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...
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... (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.
The name General Carl ‘Tooey’ Andrew Spaatz has become synonymous with the phrase air power and strategist. Air power has come along way since Wilbur and Orville launched the first airplane in 1902 in the city of Kitty Hawk. Famous engineers have taken the Wright-Brothers design and made great improvements to them while slowly integrating these new powerful means of transportation, weaponry and communication aids into the military. Since the onset of World War I there has been a debate on how to most effectively use these new airplanes in the Army’s collection. Most individuals believed that airplanes should be under control of the Army theater commander, while very few felt that these airplanes should be a separate entity from the Army. One of these few people who believed that the Air Force should be separate is General Spaatz. General Spaatz possessed perseverance, leadership attributes and military knowledge; all factors leading him becoming a substantial proponent of a separate Air Force. Spaatz legacy continues to live on; his leadership skills continue to influence people today as General Spaatz is still able to impact air power in the 21st century.
Lowther, Adam and Casey Lucius. "Identifying America's Vital Interests." Space and Defense 7, no. 1 (Winter, 2014): 39-52.
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...
The issue that is being discussed in whether or not the government should help Air Canada out financially. As can be seen in the articles presented in the scrapbook, it is known that the government controls many of the operations at Air Canada.
"1920's Aviation." The 1920's - Roaring Twenties - The Nineteen Twenties in History. 2005. Web. 28 Feb. 2011. .
Denver International Airport Construction and Operating Costs. (1997, July 5).University of Colorado Boulder. Retrieved April 28, 2011, from http://www.colorado.edu/libraries/govpubs/dia.htm
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?
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.
The invention of planes would later allow easier trade and delivery around the country. In an article by Annamarie Edelen, she states that in 1917 the United States started transporting mail by plane. (Edelen) This made transportation much easier from coast to coast. In addition to this, when mail started being delivered by plane, businesses were then able to receive and ship their products faster. Because things were now being shipped by air, shipment times were greatly reduced. In the same article, Edelen also states that in 1917 planes transporting mail saved 22 hours in delivery from one coast to the other. (Edelen) This is a major improvement from automobiles and trains. Planes also had a major impact on international trade. In an article called “Why Planes Are Taking Over Global Trade”, Tim Fernholz said “about one-third of US imports by value entered the country on a plane.” (Fernholz) This number is still rising. He also stated that from 1965 to 2004 air cargo grew about 2.6 times faster than ocean cargo. (Fernholz) International transportation using planes is growing faster than any other method. This is because of the time it takes for the product to be shipped. The invention of the plane has decreased the time it takes for people to buy and trade items. This aspect has impacted American culture more than
Airport planning, once carried out utilizing a single future forecast, failed to account for the complexity and uncertainty of the aviation industry. Today, it is widely assumed airport success can only be met through the utilization of a flexible, integrated planning approach that sees forecasts as incorrect.
333-355. Hocking and Waud 1992, Oligopoly and Market Concentration' in Microeconomics 2nd Edition, Harper Educational Publishers, NSW, pp. 315-342. Kathleen Hanser, The Secret Behind High Profits at Low-fare Airlines'. a href="http://www.boeing.com/commercial/news/feature/profit.html">http://www.boeing.com/commercial/news/feature/profit.html/a> [accessed 15 May 2003]
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
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...
Air travel is a huge and tremendously flourishing industry. Globalization can be defined as the integration of national and local economics, culture and societies through a web of communication, transportation and trade. The current era considers globalization as the dominant driver of almost all business due to the influence or the international market. The emerging prosperity of the global aviation industry plays a substantial role in economic growth, tourism, global investment and world trade, which are the impacts of globalization. This essay portrays the negative and positive effects of this globalization on the airline industry.
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