Airline Deregulation

Airline Deregulation and Its Effects The 1978 Airline Deregulation Act deeply affected the air transportation industry. Fares established by the Civil Aeronautics Board (CAB) based on a uniform rate-of-return regulation prior to deregulation became subject only to market forces. Firms facing bankruptcy were no longer automatically rescued with inflows of federal money. Certificates of convenience and necessity previously required to open new routes were no longer needed. Finally, airlines dissatisfied with some of their less traveled …

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