Airline Deregulation Act Pros And Cons

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The state of commercial aviation before and after the passage of the Airline Deregulation Act received much controversy from many different sides in the aviation industry. The Airline Deregulation Act caused many problems before and after it was enacted by the United States government. There were several possible courses of action. Two of these are included here as well as the problems and advantages of each. In conclusion, the rationale for the new law enacted by the government is presented.
5.2 Case Analysis: Airline Deregulation Act
I. Summary
The Airline Deregulation Act was a bill that was passed through the United States Congress and signed by President Jimmy Carter on October 28, 1978. The act was to supersede the Civil Aeronautics Board control and authority over the United States airline industry. The new law was enacted to privatize the airline industry, so that new or smaller private airline companies could profit from air transportation services. According to textbook readings …show more content…

Problem
There were many problems before the Airline Deregulation Act was enacted by the US government. The problem was that the Civil Aeronautics Board limited the industry from its full potential. This ranged from limiting the air services available to the American consumers to allowing more companies to profit from the air transportation services.
Another problem with the Airline Deregulation Act after it was passed was that the airline industry opposed for it to be enacted. One problem was that the airline industry opposed deregulation as under regulation they would lose their protection from the Civil Aeronautics Board and their profitable routes they monopolized from. Under regulation there would no longer be an oligopoly as Eastern, American, and Trans World Airlines would have to compete for their profitable routes with other private airlines. The Civil Aeronautics Board would no longer be able to influence the market in their favor.
III. Significance of the

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