Airline Deregulation Act (1978)

Airline Deregulation Act (1978)

Airline Deregulation Act The Airline Deregulation Act was signed and brought into effect by President Jimmy Carter on October 28, 1978 (Deregulation, 2007). This law was the first of its kind to deregulate an entire industry in the United States' history (Deregulation, 2007). According to Avstop.com (n.d.), "The main purpose of the act was to remove government control over fares, routes and market entry (of new airlines) from commercial aviation. The Civil Aeronautics Board's powers of regulation were to be phased out, eventually allowing passengers to be exposed to market forces in the airline industry. The Act, however, did not remove or diminish the FAA's regulatory powers over all aspects of airline safety." There are several stated goals ... Show more content on Helpwriting.net ...It clearly states that there is no tolerance for companies to dominate the market and own a monopoly. The act is promoting a fair and honest market in the optimistic efforts "to provide efficiency, innovation, and low prices, and to determine the variety, quality, and price of air transportation services" (Airline Deregulation Act of 1978). The Airline Deregulation Act of 1978 also sets competition on a high pedestal. This also pertains to the fair market clauses. Because the government does not want a single corporation in power, this act encourages new companies to join in the air transportation industry. In addition to new companies, the act also supports the idea of existing companies to spread their commerce to other aspects in other aviation markets. Through this act, the government can strengthen smaller air carriers by not allowing an edge to the larger

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