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...