In December 1903 at Kitty Hawk, North Carolina, Orville and Wilber Wright were successfully in their attempt to fly a heavier that air contraption. This event was labeled in history as the “birth of aviation”. The flight occurred in a field which did not have a paved runway and only enough room to take off and land. Additionally, they had no lights or terminal. More importantly they had no regulatory governing body to oversee operations (Young & Wells, 2011). There are various events through history of Air Transportation which have led to the advent and development of the aviation oversight program in the United States. The two events that I felt had a major part are the Air Commerce Act of 1926 and the Federal Aviation Act of 1958.
With the increase in the movement of air mail in the 1920’s and the reliance of commercial companies on the air transportation system the government decided to transfer management of the industry to the commercial sector. The Kelly Act of 1925 put this into motion, transferring responsibility for the movement of mail to commercial contractors. This move, which made mail routes available to commercial companies, was the spark that led to the formation of an abundance of new transportation companies. The follow-on to this was the introduction of new aircraft designs to fit the requirements of moving the mail. The actions of the government lead to President Calvin Coolidge introducing the Air Commerce Act of 1926. This act was the first signs of an aviation oversight program. It gave regulatory oversight to the Department of Commerce. Initially, they focused their attention on the probably the item that required the most attention the many safety issues. It seemed to have a positive imp...
... middle of paper ...
... (2005). Retrieved from Grand Canyon Collision: http://www.doney.net/aroundaz/grandcanyon/index.htm
Federal Aviation Authority. (2010). Retrieved from http://www.faa.gov/about/history/brief_history/
FAA Celebrates 75th Anniversary of Air Traffic Control. (2011). Targeted News Service.
Huebert, J. H. (2010). Who owns the sky? The struggle to control airspace from the Wright Brothers on. Quarterly Journal of Austrian Economics, 87-95.
Landes, W. M. (1977). An Econiomic Study of U.S. Hijacking, 1960-1976. NBER Working Paper Series, 1.
Meyer, J. R., & Strong, J. S. (1992, March). From closed set to open set deregulation: An assessment of the U.S. airline industry. Logistics and Transportation Review, 21.
Young, S. B., & Wells, A. T. (2011). Airport Planning & Management. In S. B. Young, & A. T. Wells, Airport Planning & Management (p. 55). McGraw-Hill Companies.
By exposing readers to a world where workers are underpaid and mistreated, corruption is heavy, and factories control a whole neighborhood, Sinclair shocks readers and explains that the Packington factories “[were] really not a number of firms at all, but one great firm, the Beef Trust” (Sinclair 112). Similar to how the airlines shared information to upcharge passenger tickets and control the airport, Sinclair writes that “every week the managers of [The Beef Trust] got together and compared notes” (Sinclair 112). Stating that these meetings were not to help the workers or consumers, because they judged the effectiveness of workers there and “fixed the price they would pay for beef…..and all the dressed meat in the country” (Sinclair 112). Sinclair also tells readers that the mergers and cooperation not only hurts workers and consumers but also smaller companies. For example, the airlines that grow and try to “bully foreign carriers” (Thomaselli) can be compared to the man who tried to “gather this filth in scows, to make lard out of it” (Sinclair 97) in Bubbly Creek but was stopped when “the packers took the cue, and got an injunction to stop him, and afterwards gathered it themselves” (Sinclair 97). Even though large airlines and smaller airlines both try to cheat to have a winning hand, the monopolies end up on top and can have a more widespread hold on the nation’s travelers and have “80 percent of the nation’s air traffic to be concentrated among four airlines”
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
The aviation industry in the 1920s took flight because of men and women like Charles Lindbergh, William Boing, Betty Coleman, William J. Powell, Richard Evelyn Byrd, and Raymond Orteig. Their efforts and risks helped shape the industry as well as the Jazz Age. Both Lindbergh and Amundsen are both famous for their daring feats that helped push the limits of their planes at the time and brought attention to the new industry. Boing and Orteig are also both well recognized for investing in the industry so that it had monetary backup to make it profitable to continuously improve and advance new airplane designs.
After World War II there was an excess of aircraft and trained pilots in the United States, which significantly increase in private and commercial flights. An increase in the use of private aircraft and large passenger planes meant an increase in the possibly of aircraft safety incidents. Even though safety measures had been put in place to tend to large number of aircraft in the skies, in late 1950’s there were two unfortunate accidents that finally led to legislation that would be a major change to the world of aviation that affects us even today. The introduction of the Federal Aviation Act of 1958 spurred several changes in aviation that eventually led to the creation of the Federal Aviation Administration.
The post-war economic boom that swept the United States included a strong demand for air travel. President William A. Patterson responded by expanding United's workforce, acquiring new routes and purchasing United's first jet aircraft. This strategy, along with the 1961 merger with Capital Airlines, solidified United's industry leadership and made the company the world's largest commercial airline. The end of World War II brought a brief period of euphoria to the war-weary people of the United States. Rationing was over, business and industry were back to a peacetime mode, and the nation was feeling the feverish excitement of the boom times economists had predicted.
The Airplane was first invented in 1903; it amazed everyone but never really took off because of how dangerous it still was. They used planes in WWI but they threw them aside. After WWI (around mid 1920’s) the Federal Government had the idea of airmail. This was readily accepted; instead of receiving mail in two weeks it would only take a couple of days. Soon after this, transporting people quickly caught on although only the upper-class people could afford it, it soon became accessible to almost everyone. (Inventions: Airplane)
Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.
Senator Kennedy and the Ford administration both were heavy supporters of airline deregulation. Although initially all major airlines and feeder airlines were opposed to the thought of deregulation. During the early 1970’s the government began to notice that unregulated airlines when compared to their regulated counterparts were able to provide the same service but at a discounted price to the airline traveler. When the government compared this side by side the price per mile for a ticket on a unregulated airline to a airline that was regulated by the CAB the price was difference was astonishing. The major airlines had a fear that deregulation would lead to the small feeder airlines being able to compete with their most profitable routes. The Feeder airlines also opposed deregulation because they thought that the major airlines that had been held back by the CAB from expansion would be able to expand and take over all the feeder routes. According to (Lawrence, 2004) “The airline industry remained solidly opposed to deregulation until the hearings in the spring of 1977, when for the first time United CEO Richard Ferris came from the hotel industry, not eh airline, and some said that his conversion to the need for deregulation was the result of a failure to understand the working of air transport.” (p.
In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...
Thomas, B. (2010, May 12).Briefing Aviation: Rulers of the new silk road. Financial Times, p.16
The main opportunities that the scheduled air transportation will have in the next five years are the possible decrease of TSA agents at airports, technology increasing the safety and comfort of the flights for the passengers and ...
The results of airline deregulation speak for themselves. Since the government got out of the airline business, not only has there been a drop in prices and an increase in routes, there has also been a remarkable increase in airline service and safety. Airline deregulation should be seen as the crowning jewel of a federal de-regulatory emphasis. Prices are down: Airline ticket prices have fallen 40% since 1978. Flights are up: The number of annual departures is up from 5 million in 1978 to 8.2 million in 1997. Flights are safer: Before deregulation, there was one fatal accident per 830,000 flights, now the rate is one per 1.4 million flights. So what's the problem?
Airports can be considered as important national resources of most countries in the world. The main responsibility of an airport is in transportation of people and goods and in internal and global business. They are where the nation’s aviation system connects with other modes of transportation and where state responsibility for managing and regulating air traffic operations intersects with the role of governments that own and operate most airports. However, most major airports are owned and operated by the private sectors. This is due to several reasons such as to improve efficiency and economic performance, be more competitive as well as to maximize the community’s return from the airport assets in which public enterprise found out to be less efficient in term of its production and management.
The folio entitled “Codex on the Fight of Birds” acknowledged his attempts to design and create a man-powered aircraft/gliding device. Leonardo’s efforts however did not succeed (LEONARDO, MARINONI, p2-3). Despite this research and study it was not until the 19th century when Sir George Cayley proposed the blue prints for the modern aeroplane. Cayley’s proposition was a machine that that had separate systems for lift, control and propulsion. In 1853 he built his first glider with passengers (Britannica 2013). Between 1850 and 1900 dozens of inventors and innovators had worked on the concept of flight taking on from one another. This lead to the greater understanding of aviation. It was not until 1903 until we saw the famous Wright brothers develop the first sustained heaver than air flight recognised by the Fédération Aéronautique Internationale (FAI) (FAI 2007). From here the development of aeronautics was accelerated. In 1905 the Wright Flyer III was developed and could be fully controlled by the user. Shortly after in 1906 Alberto Santos Dumont developed the first known flight without the use of a catapult, certified by the FAI. By 1908 the Bleriot VII was innovated the first aircraft to have a joystick and rudder. This was the replaced but he Bleroit XI in 1909 (Crouch 1982, p21-22). Ten of these aircraft were produced and sold to Romanian Air Force (one of the very first