The Airline Deregulation Act of $1978$ was a United States federal law that deregulated the airline industry in the United States, which removed federal control over such areas as fares, routes, and market entry of airlines. In essence, airlines had significantly more freedom following deregulation. This included greater ease of entering new markets, scaling up and back of new and existing routes $($i$.$e$.,$ when and where they fly$),$ and greater pricing flexibility of tickets. The move significantly increased competition in the industry by significantly removing governmental protection and oversight over the competitive environment. Which of the following is a correct statement regarding this issue as it relates to a SWOT analysis?

I. The decreased governmental protection in the industry as a result of the deregulation automatically translates into a threat for all airlines.

II$.$ The decreased governmental protection in the industry as a result of the deregulation automatically translates into an opportunity for all airlines.

III. Whether the deregulation act is properly labeled a threat or an opportunity by an airline is contingent on the firm$$s ability to effectively respond to the deregulation.

IV$.$ The airlines with flexible strategies, strong balance sheets, and talented executives might have actually viewed the deregulation as an opportunity to gain market share and improve their competitive position.

Select one:

A$.$

I

B$.$

II

C$.$

III

D$.$

IV

E$.$

III and IV