Airline Deregulation
I. Summary
The Civil Aeronautics Board (CAB) created as part of the Civil Aeronautics Act of 1938, being charged with regulating interstate air commerce for decades had successfully taken commercial air service from small single-engine aircraft carrying only a few people to large airlines carrying dozens of passengers around the world. However, with after almost fifty years of managing air routes and fare prices, air travel remained a means of travel for the wealthy and business traveler as ticket prices were beyond the means of average citizens. To thwart the chokehold of the CAB on the industry a few upstart airline began operation within the boundaries of several states. The most notable of these being Southwest …show more content…
Advantages. The federal government would allow the airlines to implement a rate structure that works for them. Allow the airlines to establish their routes. Give the Civil Aeronautics Board oversight on fares and routes created by the airlines to ensure.
Disadvantages. The Civil Aeronautics Board having shown to have bias within the airline industry may not be capable of reasonably regulating the …show more content…
Advantages. Removes government control over rates and routes. The government will not pick winners and losers in the airline industry. Establishes competition as a component of defining fare rate.
Disadvantages. Complete deregulation may increase accident rate and casualty due to aircraft accidents. Airlines may not provide service to small or remote locations. Airlines may go out of business without the protection of the government.
V. Recommendation
Deregulate the commercial aviation industry and remove government as much as posable without compromising air safety. Implement the best points of actions one and two.
The Airline Deregulation Act of 1978 did just that. It removed the yoke of the government from the industry, ticket prices fell dramatically, and completion among the airlines significantly increased. The companies that could not adapt or were not in a good finical position before deregulation failed or were merged with other airlines. The Act also ensure safety was still a paramount concern for the government and placed the burden of providing it in the hands of the Federal Aviation Administration to
I. Summary
The Civil Aeronautics Board (CAB) created as part of the Civil Aeronautics Act of 1938, being charged with regulating interstate air commerce for decades had successfully taken commercial air service from small single-engine aircraft carrying only a few people to large airlines carrying dozens of passengers around the world. However, with after almost fifty years of managing air routes and fare prices, air travel remained a means of travel for the wealthy and business traveler as ticket prices were beyond the means of average citizens. To thwart the chokehold of the CAB on the industry a few upstart airline began operation within the boundaries of several states. The most notable of these being Southwest …show more content…
Advantages. The federal government would allow the airlines to implement a rate structure that works for them. Allow the airlines to establish their routes. Give the Civil Aeronautics Board oversight on fares and routes created by the airlines to ensure.
Disadvantages. The Civil Aeronautics Board having shown to have bias within the airline industry may not be capable of reasonably regulating the …show more content…
Advantages. Removes government control over rates and routes. The government will not pick winners and losers in the airline industry. Establishes competition as a component of defining fare rate.
Disadvantages. Complete deregulation may increase accident rate and casualty due to aircraft accidents. Airlines may not provide service to small or remote locations. Airlines may go out of business without the protection of the government.
V. Recommendation
Deregulate the commercial aviation industry and remove government as much as posable without compromising air safety. Implement the best points of actions one and two.
The Airline Deregulation Act of 1978 did just that. It removed the yoke of the government from the industry, ticket prices fell dramatically, and completion among the airlines significantly increased. The companies that could not adapt or were not in a good finical position before deregulation failed or were merged with other airlines. The Act also ensure safety was still a paramount concern for the government and placed the burden of providing it in the hands of the Federal Aviation Administration to