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Open Access Dissertations
9-2012
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Dustin Robert Avent-Holt
University of Massachusetts Amherst
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Avent-Holt, Dustin Robert, "Organizing Markets: The Structuring of Neoliberalism in the U.S. Airline
Industry" (2012). Open Access Dissertations. 611.
https://doi.org/10.7275/8z4d-d912 https://scholarworks.umass.edu/open_access_dissertations/611
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Organizing Markets: The Structuring of Neoliberalism in the U.S. Airline Industry
A Dissertation Presented
by
DUSTIN ROBERT AVENT-HOLT
Submitted to the Graduate School of the
University of Massachusetts Amherst in partial fulfillment
of the requirements for the degree of
DOCTOR OF PHILOSOPHY
September 2012
Sociology
© Copyright by Dustin Avent-Holt 2012
All Rights Reserved
Organizing Markets: The Structuring of Neoliberalism in the U.S. Airline Industry
A Dissertation Presented
by
DUSTIN ROBERT AVENT-HOLT
Approved as to Style and Content by:
_________________________________
Donald Tomaskovic-Devey, Chair
________________________________
Joya Misra, Member
________________________________
Robert Faulkner, Member
________________________________
Michelle Budig, Member
________________________________
Michael Ash, Member
______________________________
Donald Tomaskovic-Devey, Chair
Department of Sociology
ACKNOWLEDGEMENTS
What seems like to many years ago I started an unpredictable journey into
academia because I wanted to understand the world around me and in some way
transform that world. Beginning at North Carolina State University in 2003 I could have
never imagined the impact of so many people on my intellectual journey. Undoubtedly,
among the most central people in that journey has been my advisor, Don Tomaskovic-
Devey. After taking me under his wing early on at NC State, he took me with him to the
University of Massachusetts. I am indebted to him for countless conversations in not
only his office (certainly the hardest place to maintain a conversation) but at countless
bars in numerous cities, spanning multiple countries. Don brought me onto his projects
and helped me develop my own. His constant pushback against my ideas has helped me
develop my own sociological voice. He never asked what he would get out of of this,
only seeking to ensure that I had everything I needed to develop as a sociologist. For that
I am a better sociologist today that I was when I started.
Having a mentor like Don has been crucial, no one person can be everything.
Several other faculty at UMass took more time than they had to support me in numerous
ways. Among the most important was Joya Misra. Joya met with me when I visited
UMass and has been selflessly giving her time to me and my work since then. Her
unwavering support and enthusiasm through challenges that seemed insurmountable to
me has meant more than she could know. I don’t think I could have landed where I am
today without her agreeing to serve on my committee when she was already overbooked
and then offering her time and energy to helping me from start to finish in this project.
iv
Her ability to critique not only constructively but also lovingly is a rare gift that helped
me move forward and stay positive about what I am doing. Michelle Budig opened her
door to me with enthusiasm when I came to UMass and like no other actively sought to
work with me. From my first seminar with her on Labor Market Inequalities she has
pushed me toward clearer and sharper analytical reasoning. Rob Faulkner has always
provided energy and enthusiasm along with his nuggets of sociological insights. Whether
rifling through pages of CompuStat or the latest article on network diffusion
conversations have always been lively and informative. Finally, Michael Ash agreed to
serve on my committee with only limited knowledge of me, but has been an enthusiastic
supporter of my work and provided a distinctive intellectual point to bounce my ideas off.
I sincerely appreciate his offering up his time to helping me see this project through.
No one can understand what it is like to be in graduate school, except other
graduate students experiencing it with you. I was fortunate enough to numerous graduate
students to lean on through this process. At UMass Irene Boeckmann has been a constant
source of support, encouragement, and humor. Through routine lunches, dinners, and
beers Irene listened to the development of this project, and for that I am extremely
thankful. I also want to thank Jason Rodriquez, who among other things went through
the crucial job market process with me. Sometimes neither of us thought we would make
it into good jobs, but we did. I’m glad to have shared that experience with him.
Numerous other graduate students at UMass provided suggestions on my work, read
pages of it, helped me laugh, and simply provided a supportive atmosphere. Of particular
mention for me are: Ken-Hou Lin, Chris Smith, Sharla Alegria, Melissa Hodges, Josh
v
Carreiro, Abbey Templar, and Ryan Turner. While at NC State I developed strong ties to
many people, the most important of which were Sarah Nell and Kendra Jason. Even
from afar they were both supportive and offered help when needed through routine
emails, phone conversations, and drinks at conferences. With all of these friends I know
I will never be alone at a conference.
My family has been central to this process, providing constant love and support at
just the right times. My parents, Bob and Kim Avent and Cindy and Beau McCranie,
provided undying support and encouragement. Not all of my grandparents were able to
see this process through but I know they are proud of me and that is all I could ever ask
for. When I started my journey I was unmarried and childless. I am now married to a
wonderful and supportive women, Laura, and we have the most amazing daughter,
Phoebe. Both have helped to keep me grounded and ensure that I didn’t stay caught up in
the ivory tower. Laura picked up her life to be with me during this process and that has
been the greatest gift she could have given. She also ensured that we did things together
on the weekends and provided constant encouragement that I could see this process
through. Phoebe is only 16 months old and while she cannot complete a sentence she has
taught me more than I could have imagined. It is with the hope that some bits of
knowledge I contribute will make her world a better place that I continue this journey.
vi
ABSTRACT
ORGANIZING MARKETS: THE STRUCTURING OF NEOLIBERALISM IN THE
U.S. AIRLINE INDUSTRY
SEPTEMBER 2012
DUSTIN AVENT-HOLT, B.S., GEORGIA STATE UNIVERSITY
M.S., NORTH CAROLINA STATE UNIVERSITY
Ph.D, UNIVERSITY OF MASSACHUSETTS AMHERST
Directed By: Professor Donald Tomaskovic-Devey
This dissertation examines the emergence of neoliberalism through an historical analysis
of the evolution of the U.S airline industry. In 1938 the basic economic activities of U.S.
airlines were placed under the regulatory oversight and control of the Civil Aeronautics
Board. This institution of “regulated competition” persisted largely unquestioned until
the economic crisis of the 1970s. Out of this crisis the Airline Deregulation Act was
passed in 1978, eliminating most of these economic controls. Based on analysis of
Congressional hearings, a key industry trade press (Air Transport World), the general
business press, and financial and labor market data on the airline industry I explain the
stable reproduction of “regulated competition” from 1938-1973, the mobilization against
regulated competition that began in 1973 that led to the reorganization of the industry in
1978, and the transformation of the market for air travel in the 1980s following the 1978
Airline Deregulation Act. Through analyzing this case of the transition from state
vii
interventionism to neoliberalism I make three interrelated historical and theoretical
arguments. First, as an historical object neoliberalism is a contextual and often
incoherent political project that to fully understand requires fine-grained analyses of the
social spaces in which neoliberalism is inserted and adapted. Second, neoliberal
deregulations such as occurred in the airline industry do not translate into a simple self-
regulating market. Instead, what we observe in this case is that market actors rebuild
institutions and reorganize social relations in order to protect themselves from market
competition. Finally, at a theoretical level I argue that while analytically distinct
networks and institutions are mutually constitutive of markets and interact with each
other in the evolution of a market. This case demonstrates the back and forth dynamics
of actors building social relations to transform institutions that then transform existing
social relations that is the hallmark of market dynamics. Thus, at a theoretical level I
draw out the importance of understanding the relationship between networks and
institutions in understanding the evolution of markets as social fields, while at a historical
level I argue that focusing on concrete cases of neoliberalism will help us understand the
multiplex politics behind producing a neoliberal political economy and the unexpected
consequences of it.
viii
TABLE OF CONTENTS
Page
ACKNOWLEDGEMENTS………………………………………………….……….…..iv
ABSTRACT……………………………………………………………………………..vii
LIST OF TABLES…………………………………………………………………….…..x
LIST OF FIGURES……………………………………………………………………....xi
CHAPTER
1. NEOLIBERALISM AND THE SOCIAL ORGANIZATION OF MARKETS……....1
2. THE RELATIONAL AND INSTITUTIONAL ARCHITECTURE OF
MARKETS AS FIELDS……………………………………………………………..13
3. REGULATED COMPETITION AND THE POLITICS OF THE
REGULATED ERA, 1938-1973……………….……………………………………38
4. THE NEOLIBERAL TURN IN THE AIRLINE INDUSTRY, 1973-1978………....71
5. DEREGULATION AND THE TRANSFORMATION OF INTERFIRM
RELATIONS, 1979-1988..........................................................................................106
6. NEOLIBERALISM AND THE SOCIAL ORGANIZATION OF THE U.S.
AIRLINE INDUSTRY…………………………………………………….......…...147
AFTERWORD: WHAT NEXT?.....................................................................................166
APPENDICES
A: DATA SOURCES AND METHODS………………………………………………171
B: LIST OF FIELD ACTORS………………………………………….........................183
C: INCUMBENT AND CHALLENGER AIRLINES………………………………....184
REFERENCES…………………………………………………………………………207
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Description:of the evolution of the U.S airline industry. In 1938 the basic economic activities of U.S. airlines were placed under the regulatory oversight and control
