Airline Deregulation
Impact on Commercial Airline Industry as a Result of Deregulation
The airline industry in the United States began functioning almost as soon as the Wright brothers made their first flight at the Killdevil Hills in North Carolina. In 1903, mail began to be carried by airplanes over short routes, so the United States government created an agency to help regulate how this was accomplished to make it safe for carriers. This agency, called the Civil Aeronautics Board (CAB), first regulated mail carriers (since there were no passenger flights at the time), but when passenger flights began the board also dealt with how people would be moved also. The CAB was responsible for all areas of passenger flight such as ticket price, awarding of routes to different carriers, and how the planes were to be maintained. Because the CAB sometimes chose routes and different rewards in favor of one airline over another (in some cases because of a personal relationship (Siddiqi)), deregulation was called for starting as early as the 1940's (Kost). But, an actual act deregulating the airlines did not occur until 1978 when it was determined that it was the best course for the flying public (Siddiqi). There have been good and bad consequences of that deregulation, but the focus here is to determine if deregulating the airlines has led to a greater number of fatalities and crashes because of faulty maintenance. This essay first provides a look at what the 1978 act meant for the airline maintenance field, and then examines how crashes due to maintenance issues were affected during the ten-year periods immediately preceding and following deregulation in 1978.
Deregulation Effects
The original goal of deregulation, as it always is when deregulation of an industry happens, was to give carriers more freedom. This was a consequence of the move but there were others....
These inconveniences associated with air travel have led many passengers to choose other forms of transportation including driving and taking the train. The research also found that the development of the Travel Promotion Act which is designed to specifically assist in reversing the decline in international travel to the United States. Problems Arising from deregulation in the Airline Industry Airline Industry dominated by a limited number of players Indeed, although there have
By the turn of the century, though, these low-costs carriers had become profitable or at least had significantly reduced their losses due in large part to concomitant increases by major carriers that were increasing their prices in response to decreasing yields and higher energy prices (Doganis 2001). By and large, passenger traffic across the board increased significantly prior to September 11, 2001 and all signs indicated it was continue to
The combination of such broad language and the paucity of any significant enforcement tools meant that these initiatives were largely ineffective. Not surprisingly, complaints from passengers increased by 200% within the year; furthermore, flight delays continued to increase 12% faster in the first five months of 2000 than in the same period in 1999. "Indeed, in the twelve months following the airlines' voluntary promises, flight delays cost business travelers 5
Innovation is our signature. We foster creativity and vision to provide solutions beyond today's boundaries ("FAA Mission)." JAA The Joint Aviation Authorities (JAA) was developed in the 1970s by a handful of major European National Aviation Authorities when they began to join activities. The JAA was established for the purposes of developing a platform for a cooperative safety regulatory system because they desired to have a uniform high standard of aviation
Airline Transportations on Economy Impacts of Airline Transportations on Economy INTRIDUCTION The rapid rise in the use of air transportation since deregulation in 1978, coupled with the unprecedented financial crisis in the airline industry after the September 11 terrorist attacks raises questions on how vulnerable the nation is to significant interruptions to its air transportation system[footnoteRef:1]. In an attempt to better understand its national importance; this paper examines some aspects of how the
POST-9/11 Management OF U.S. AIRLINE INDUSTRY Strategic Management of the United States Airline Industry after the 9/11/2001 Terrorist Attacks Strategic Management of the United States Airline Industry after the 9/11/2001 Terrorist Attacks Airlines in the United States have a long, complicated history in terms of management strategy that includes alterations due to technological advances, bankruptcies, economic downturns, deregulation and even presidential intervention, but none of these forces had the power to both destroy and restructure
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