Oh is that so? Last I heard the Federal Government pretty much has control over everything and everyhow in the air biz, excepting perhaps lease and capital. Maintainence and personnel standards are set by the Feds, monitored by the Feds. Air Traffic Control is Federal. Security is now Federal.
What exactly is deregulated?
Not much. Even if classic deregulation does exist, there are pockets of regulation that no one seems interested in. Like the Wright amendment that keeps commercial flights out of Love Field (Dallas) bound only to one of 4 contiguous states. That's absurd. Southwest Airlines would probably offer a $60 super saver 1 way from Dallas to DC or Boston.