The Importance Of The Airline Industry

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Control and oversight of the airline industry did not happen overnight, it has evolved over the past 90 years, most if not all of the legislation and regulations, congress passed and signed into law by the President of the United States were reactionary to real world events instead of visionary outlook. The aviation industry would enter into the United States at a relatively slow pace furthermore; there was minor growth from the Wright Brothers first flight in 1903 to mid-1925. The years between World War I and World War II experienced great advances in aviation in the types of aircraft and the materials used to build them. When World War I concluded, the United States had a surplus of military airplanes and pilots who were eager to demonstrate …show more content…
This act resulted in Congress to change “the basis for fees and gave the Postmaster General broad powers; some said "dictatorial" powers” (Werrell, 2010). The Post Master general was successful in removing smaller airlines from the bidding process in favor of the larger carriers. The Civil Aeronautics Act of 1938 was the piece of legislation that finally put the oversight of the aviation industry completely in the Federal Government’s grasp. This act transferred oversight from Bureau of Air Commerce to a newly formed agency independent agency, the Civil Aeronautics Authority (CAA). This act encompassed all previous regulations and additionally gave broad powers the Civil Aeronautics Authority, which would control “both the routes, airlines flew and the ticket prices they charged, with the goal of serving the public interest” (Gowrisankaran, 2015). The main purpose of this regulation was to provide an economically sound aviation grid that was stable and wide-ranging. This act would be further defined in 1940 by redefining the

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