I'll second the vote to get the feds out of the business. Airlines aren't "de-regulated" just less regulated. Complete deregulation and less taxes would be better.
Again, the free market lecture. If we raised the fares from $89 to $389 nobody would buy them. And if someone can build a better mousetrap, let them. If they can run a profitable company with $89 fares then let them. That's America.