Air Cargo Deregulation Act Case Study

Great Essays
1977- Air Cargo Deregulation Act
Andrew E. Brooks
ERAU Worldwide

Before we start to look at the pluses and minuses of the establishment of the air cargo deregulation act, we will take a look at a little bit of history prior to it’s enactment. Prior to the deregulation there was the Civil Aeronautics Board (CAB). The CAB was developed to institute regulations of fares, routes, and schedules of the domestic airlines. They would work at trying to keep fares for short-haul cargos lower by increasing the rates for long-haul cargos. The CAB was literally the downfall of some of the airlines because of the fact that the application process of starting a new air route or lower fare adjustment was to be approved or disapproved by
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According to Lawrence (2014), not everyone in the industry was in favor of this bill. He continues to say that, as a whole, the aviation community did not support deregulation mainly because many of the weaker airlines feared that their most profitable routes (which were currently protected under regulation) would now have competition that would take over the less financially stable airline’s routes (Lawrence, 2014, p. 227). Other fears that came about were things such as the hire of non-union workers, in so doing would bring about a reduction in wages, threating job security, and favorable work rules (Lawrence, 2014, p. 227). All of which were justifiable concerns within the aviation …show more content…
(2014). Unleashing Innovation: The Deregulation of Air Cargo Transportation | Mercatus. Retrieved from The Mercatus Center at George Mason University website: http://mercatus.org/publication/unleashing-innovation-deregulation-air-cargo-transportation.
Carron, A. S. (1980). Deregulation of the air cargo industry (8109659) (Doctoral dissertation). Retrieved from ProQuest Dissertations and Theses database. (8109659)
Fedex. (2015). History - About FedEx. Retrieved from http://about.van.fedex.com/our-story/history-timeline/history/.
In Tompkins, J. A., & In Smith, J. D. (1998). Transportation modes. In the warehouse management handbook (2nd ed., pp. 131-133). Raleigh, NC: Tompkins Press.
Lawrence, H. (2014). Aviation & the role of government (3rd ed.). Dubuque, IA: Kendall/Hunt Pub. Co.
McGuirewoods. (2008, March 26). What Prompted Airline Deregulation 20 Years Ago? What Were the Objectives of That Deregulation and How Were They Achieved? Retrieved from

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