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History of airline deregulation in the global market
History of airline deregulation in the global market
The history of airline industry
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Shortly after World War I, the U.S. Government discovered the abilities of the modern airplane and created the idea of utilizing aircraft to transport mail across the country. In 1917, Congress approved funding to experiment with the idea of delivering mail by air. By 1920, the Post Office was delivering mail across the entire country, eliminating over 22 hours in delivery times of a coast-to-coast route. With the success of the airmail service and the growing popularity of civil aviation, the U.S. Government recognized the need to develop set standards for civil aviation and in 1926 created the Air Commerce Act of 1926. The Air Commerce Act of 1926 called for the government to regulate air routes, navigation systems, pilot and aircraft licensing and investigation of accidents. The act also controlled how airlines were compensated for mail delivery. Later in 1930, Postmaster General Walter Brown made recommendations which were later known as the Watres Act which consolidated airmail routes and opened the door for longer-term contracts with the airlines. Brown handled the situation regarding new contracts poorly by only inviting a hand selected list of large airlines to the negotiation table. This move pushed smaller airlines to complain and the issue was pushed to Congress. Following congressional hearings President Roosevelt later decided Brown’s scandal was too much to deal with and canceled all mail contracts completely and handed over air mail delivery responsibility to the U.S. Army. That decision was a disaster, and one month later, air mail was handed back over to the private sector. This time, however contract bidding was more structured and fair to all. It was then clear that the airline industry was back in full swing...
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...ll regulates several areas of aviation, such as flight crew and aircraft certification, maintenance, as well as the national airspace system. Slot management is also something that is regulated by a third-party group. In our capitalistic society, it is clear however that routes and fares are both items that are best driven by the market.
Works Cited
Avjobs.com - The History of Aviation. Retrieved 12/1 from http://www.avjobs.com/history/index.asp
Businessweek.com – Airline Deregulation, Revisited. Retrieved 12/1 from http://www.businessweek.com/bwdaily/dnflash/content/jan2011/db20110120_138711.htm
U.S. Centennial Flight Commission. Retrieved 12/1 from
http://www.centennialofflight.gov/essay/Commercial_Aviation/Dereg/Tran8.htm
Bureau of Transportation Statistics. Retrieved 12/1 from
http://www.bts.gov/press_releases/2010/bts031_10/html/bts031_10.html
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
On 9 February President Roosevelt ended all government air mail contracts with airlines and ordered the Army to fly the mails. Roosevelt took this measure to deprive commercial airlines of scandalously high financial arrangements, but his plans failed because of the Army Air Corps' inability to handle the job. After the ...
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Growth of commercial aviation was greatly influenced when the U.S. Air Mail Service was created in the early 1920’s. The Post Office was one of the first to impose aviation regulations. It required its pilots to be tested, pass medical exams and have at least 500 hours of flying experience. The Post Office set up aircraft inspection schedules and preventive maintenance programs for the pilots to have a safe airplane to fly. These early regulatory requirements improved air carrier safety.
of price versus service in the airline industry as a whole, as well as, the
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