Airline Deregulation Act of 1978

Airline Deregulation Act of 1978

Aviation Legislation

Airline Deregulation Act

      I will discuss the deregulation of the airline industry.   The
Airline Deregulation Act of 1978 brought the reign of government

oversight to an end.   Also the United States bankruptcy act that set

Laws on bankruptcy.

The United States government had control and protected the

airline industry for forty years.   On October 24, 1978, president Jimmy

Carter signed the Airline Deregulation Act.   President Carter signing the

1978 ADA brought closure to government oversight.   There was only

two areas that the government would intervene with the public interest in

mind.   These areas were aviation safety and international relations.   The

Airline Deregulation Act purpose is to develop, encourage, and attain air

transportation systems.   The systems of transportation rely on quality,

variety, and price.   The act made many differences for the domestic

airline industry.   A direct result of the act was the phase out of the Civil

Aeronautics Board and its authority over routes and fairs.   The CAB

route authority ended December 31, 1981 and rate authority ended

                                            Airline Deregulation Act

December 31, 1983.   On December 31, 1984 the CAB was done

completely.   After the Civil Aeronautics Board was finished airlines had

to comply with antitrust laws governing commercial enterprise in the

United States.   The Department of Transportation was there to enforce

these laws.   With the CAB out of the picture, airlines did not have to get

certificates to use a route for commercial use.   Airlines could also raise

rates at any time now.   The act also got rid of economic regulations that

set up barriers for competition.   Their were safe guards put in place for

the protection of carrier services.   Air carriers were able to enter new

markets and employees that would be affected by...