Airline Deregulation Act of 1978
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Questions and Answers

What was the primary goal of the Airline Deregulation Act of 1978?

  • To increase government control over the airline industry
  • To decrease the regulatory powers of the Federal Aviation Administration
  • To reduce the number of flights and passengers
  • To introduce a free market in the commercial airline industry (correct)
  • What happened to the number of flights after the Airline Deregulation Act?

  • It increased (correct)
  • It decreased significantly
  • It remained the same
  • It fluctuated randomly
  • What was the fate of the Civil Aeronautics Board's powers of regulation?

  • They were transferred to the FAA
  • They were greatly expanded
  • They were phased out (correct)
  • They remained unchanged
  • What happened to fares after the Airline Deregulation Act?

    <p>They decreased</p> Signup and view all the answers

    What was NOT affected by the Airline Deregulation Act?

    <p>Aviation safety regulations</p> Signup and view all the answers

    What was a major objective of the Airline Deregulation Act?

    <p>To promote competition in air transportation services</p> Signup and view all the answers

    What was a consequence of the Airline Deregulation Act?

    <p>The strengthening of small air carriers</p> Signup and view all the answers

    What was a goal of the Airline Deregulation Act?

    <p>To ensure safety as the highest priority in air commerce</p> Signup and view all the answers

    What was discouraged by the Airline Deregulation Act?

    <p>Industry concentration and unfair competition</p> Signup and view all the answers

    What was encouraged by the Airline Deregulation Act?

    <p>The growth of air carriers in new markets</p> Signup and view all the answers

    Study Notes

    Airline Deregulation Act of 1978

    • A 1978 United States federal law that deregulated the airline industry in the United States
    • Removed U.S. Federal Government control over fares, routes, and market entry of new airlines
    • Introduced a free market in the commercial airline industry
    • Led to a great increase in: • Number of flights • Number of passengers • Miles flown
    • Resulted in a decrease in fares

    Regulation

    • Phased out the Civil Aeronautics Board's powers of regulation
    • Did not diminish the regulatory powers of the Federal Aviation Administration (FAA) over aviation safety

    Goals of the Airline Deregulation Act

    • The main priority in air commerce is to maintain safety.
    • The Act relies on competition to provide air transportation services.
    • It aims to promote air service at major urban areas through secondary or satellite airports.
    • The Act seeks to prevent unreasonable industry concentration, which could lead to:
      • Unreasonably high prices
      • Reduced services
      • Exclusion of competition
    • It encourages new air carriers to enter air transportation markets.
    • The Act promotes existing air carriers to enter additional markets.
    • It aims to strengthen small air carriers.

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    Description

    Learn about the 1978 US federal law that deregulated the airline industry, introducing a free market and changing the industry's dynamics.

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