Airline Deregulation

Impact on Commercial Airline Industry as a Result of Deregulation

The airline industry in the United States began functioning almost as soon as the Wright brothers made their first flight at the Killdevil Hills in North Carolina. In 1903, mail began to be carried by airplanes over short routes, so the United States government created an agency to help regulate how this was accomplished to make it safe for carriers. This agency, called the Civil Aeronautics Board (CAB), first regulated mail carriers (since there were no passenger flights at the time), but when passenger flights began the board also dealt with how people would be moved also. The CAB was responsible for all areas of passenger flight such as ticket price, awarding of routes to different carriers, and how the planes were to be maintained. Because the CAB sometimes chose routes and different rewards in favor of one...
[ View Full Essay]