Airline Deregulation Act Of 1978 Signed - 1291 Words

INTRODUCTION Airline deregulation was the process of removing the government imposed regulations on the entry of new airlines as well the airline fare limiting the competition and growth of the airline industry. In the United States, airline deregulation mainly refers to the Airline Deregulation Act of 1978 signed by President Carter. President Carter signed the Act, but the act was proposed initially during Nixon’s administration, and carried through Ford administration. The airlines industry was growing dramatically during 1960s and mid-1970s. Due to the steady increase in air travel, and strict regulations imposed by the Civil Aeronautics Board, the industry faced three major difficulties- lack of free and stable market, high ticket prices leading to poor productivity, and rising labor and fuel costs. Airlines have adopted many new strategies ever since the industry has been deregulated. The path since the deregulation has been challenging, as the airlines have faced various hurdles suc h as terrorism, war, recession, high fuel prices over the years impacting the economic structure of the United States. These challenges have raised the question concerning whether the deregulation should be considered or even reversed. I will start with providing a short history about the deregulation process of the airline industry, in the next section. The history will assist in understanding the free market that exists today. In the third section, I will explain the key factors behindShow MoreRelatedAirline Deregulation Act Of 1978 Signed1398 Words   |  6 PagesINTRODUCTION Airline deregulation is the process of removing the government-imposed regulations on the entry of new airlines as well the airline fare limiting the competition and growth of the airline industry. In the United States, airline deregulation mainly refers to the Airline Deregulation Act of 1978 signed by President Carter. President Carter signed the Act, but the act was proposed initially during Nixon’s presidency, and was carried out by the Ford Administration. The airline industry wasRead MoreAirline Deregulation1054 Words   |  5 PagesOn October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up. Expected Results The results of airline deregulation speak for themselves. Since the government got out of the airline business, not only has thereRead More Airline Deregulation Essay1046 Words   |  5 Pages On October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up. Expected Results The results of airline deregulation speak for themselves. Since the government got out of the airline business, not only has thereRead MoreAviation Oversight Essays888 Words   |  4 PagesWithout the federal government’s direct oversight of development in aviation, much of the technology and advancements we utilize today would not be available. Previous to the Deregulation Act of 1978, the Federal Aviation Administration (FAA) monitored and controlled nearly every aspect of the industry. It wasn’t until after the act was released, did the aviation industry begin seeing its true potential in transportation. 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The company performed their first passenger flight on June 17, 1929, and it began to grow rapidly due to acquiring of smaller airlines and the addition of routes (History of Delta Air Lines, 2017). This paper explores how different regulations affected Delta Airlines throughout its existence, and how theRead MoreHub And Spoke System Essay883 Words   |  4 PagesIntroduction The Airline Deregulation Act was signed into law in 1978 and allowed the airline industry to be deregulated which lifted restrictions on where they were allowed to fly (Smithsonian National Air and Space Museum, 2007). This also allowed the airline carriers to be competitive so they needed new ways to operate in order to provide services that travelers were searching for when choosing an airline. One innovation that was pioneered by the major airline carriers in the early 1980s