Airline Deregulation

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Airline Deregulation act of 1978 Aston A Samms Embry Riddle Aeronautical University Abstract The United States Airline Deregulation Act of 1978 was a dramatic turning point in America. It was the first systematic dismantling of a comprehensive system of government control since the Supreme Court declared the National Recovery Act unconstitutional in 1935. It was also part of a broader movement that, with varying degrees of thoroughness, transformed such industries as trucking, railroads, buses, cable television, stock exchange brokerage, oil and gas, telecommunications, financial markets, and even local electric and gas utilities. Since the Airline Deregulation Act of 1978, the airline industry has experienced significant growth,…show more content…
Today the hub and spoke concept is used at most major airports throughout the United States such as Atlanta, Chicago, and Dallas. The new system allows air travelers two key concepts in air travel. The first, experienced by those that live in close proximity to the central hub, saw a significant increase in both flights available and service areas. The second key point is with air travelers that live near the spoke or regional areas of the routes. Those near the spokes have gained hundreds of new destinations with the new system. By traveling from the serving airports to the hubs air travelers are able to reach destinations on servicing or regional airlines that would not have existed prior to deregulation. Although there was a deregulation of the airline industry, the one significant component that did not change was the infrastructure of the airline industry. Constrained by the limitations of the airports and the air traffic control system, airlines did not see significant increases in profits despite the large growth and operations. As the airlines increased the number of flights and structure, the air traffic control system did not experience the same increase. Because the ATC system was still controlled and owned by the government, growth was, and continues to be slow. Each year the Department of Transportation goes to Congress to request more funding for increases in budgets to pay the salaries of more controllers and to improve ATC technology. To
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