Airline Deregulation Act of 1978

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.

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