They aren't really "deregulated", they are kept in a status where each one can't really compete with each other, given many subsidies (some exist on these alone), and prevented from failing. Routes and other aspects still have much "regulation" built into them. "In between" is worse than either option IMO. In any capitalist economy things need to "fail" every once and a while so that better things can rise up from the ashes. This is kept from happening.