20 Oct 2022


Airline Deregulation: What You Need to Know

Format: APA

Academic level: College

Paper type: Essay (Any Type)

Words: 550

Pages: 2

Downloads: 0

The airline industry was subordinate to the rules established by the “Civil Aeronautics Board (CAB)” from 1938 to 1978 when President Jimmy Carter signed the 1978 airline deregulation act. During the period of rigid regulation by the government, the American economy was faced with significant instability leading to rapid inflation (1973) and the oil crisis (Andrew 2011). Business people and the airlines’ workers felt the urge for freedom of the airlines from Government control over airline flight schedules, routes, fares, and market entries. The discussion below is a precise illustration of why the airline deregulation was inevitable and the most critical aspects that were contributed by the airline deregulation. 

To begin with, the airline deregulation act of 1978 entirely altered the United States aviation to a better industry. The airline customers had been denied so much in terms of convenient time and flight schedules. Therefore, the Act enabled airline customers to be valued as the priority of the industry. People gained the freedom of movement using aircraft during the 1990s than they had before 1978. For instance, the 1996 reports indicated that there was a 9% reduction in fares per passenger per mile since 1979 (Smith and Cox 2007). Through the Act, the airlines increased their flight routes and were able to enter freely in the foreign markets, which were formerly controlled by Pan American World Airways. The lawmakers provided support for the deregulatory bill because they understood the success of the action. 

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay

The US economy has improved with the airlines’ deregulations act. People are now able to fly all over the world with any airline they choose at a convenient time. The airline prices are low due to increased competition from different diverse airlines across America. Since the signing of the airline’s deregulation act, new passengers were reported to flock to airports. Without the Act, the airline industry would be dominated by the government monopoly that would still restrict flights into and out of the United States. Additionally, safety was a critical factor in airline commerce, and therefore the airline deregulation act aimed at improving the scrutiny of air accidents. Typically, the few operational airline industries would not be careful about customer safety because the government has control over their flights. 

Two well-known airline industries (TWA American and Eastern) were not thrilled by the idea of airline deregulation because they received special interests from CAB. However, the other minor airlines felt discriminated from carrying out their daily routines, and therefore there was a need to raise their voices for equality. Notably, if the Airlines Deregulation Act was not embraced, only a few significant airlines would exist with extremely high flight fares in the United States. As a result of the Act, the airlines can follow the point-to-point model over the formerly prominent Hub-and-spoke model characterized by massive government regulation. Through the “point-to-point model”, passengers can access their small destinations without necessarily going through a major hub. 

In summary, the Airline Deregulation was practically inevitable because it changed the airline industry and the operational culture for better. According to Button (2017), the Act propelled the changes in the current airline industry and shaped the monopoly state inherent since 1938. Generally, the American economy has grown tremendously with a reduction in oil prices, reduction in transportation fares, and reduced restrictions on flights. The main aim of the Act was to gain full control of the flight operations and access to the restricted trade areas. If the Act could not be signed, there would be a high risk of inflation and weak economic growth due to limited access to markets. 


Andrew R. (2011). Soft Landings: Airline Industry, Strategy, Service and Safety. A press. pp. 32, 34. ISBN    978-1-4302-3677-1

Button, K. (Ed.). (2017).  Airline deregulation: international experiences  (Vol. 1). Routledge. 

Smith Jr F. L., Cox B., (2007). Airline Deregulation, The Concise Encyclopedia of Economics, Liberty Fund Inc. , 2. Edition 


Cite this page

Select style:


StudyBounty. (2023, September 16). Airline Deregulation: What You Need to Know.


Related essays

We post free essay examples for college on a regular basis. Stay in the know!

17 Sep 2023

Winning a Lawsuit against ADHD Misdiagnosis

Misdiagnosis of Attention Deficit Hyperactivity Disorder (ADHD) among school- going children is a common phenomenon in the United States and beyond. Physicians have continued to prescribe medication following ADHD...

Words: 715

Pages: 1

Views: 474

17 Sep 2023

Special Federal Aviation Regulation No. 60

The aviation industry is a very sensitive industry due to the capability it has to cause major damage incase of an accident or misuse by a rogue aviator. Aviators are therefore required to be in the know about...

Words: 274

Pages: 1

Views: 136

17 Sep 2023

The Evolution of the Air Transportation System

The air transportation system began its evolution in the early 19 th century before the First World War happened. It was until the year 1901 that a businessperson addressed a group of distinguished engineers on a...

Words: 309

Pages: 1

Views: 229

17 Sep 2023

Glen Curtis' Contribution to the Development of Aviation

Glenn Hammond Curtis was born on May 21st, 1878 at Hammondsport, N.Y. USA (Trimble, 2010) . He is said to e the pioneer and the leading American manufacturer of aircraft by the time the USA was entering the World War...

Words: 521

Pages: 1

Views: 123

17 Sep 2023

Factors That Determine the Success of Aviation Project Management

Factors That Determine the Success of Aviation Project Management The aviation industry is among the most indispensable components of the modern world, which is getting more competitive and global. In such a...

Words: 1405

Pages: 5

Views: 109

17 Sep 2023

Airport operation's main function

Airport operation's main function is to ensure operative and proficient planning and air service execution at an airport. It is the airport's sole responsibility to identify and reduce potential risks related to...

Words: 289

Pages: 1

Views: 109


Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.