Airline Regulations Of The Civil Aeronautics Board

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During the time of airline regulations, (prior to the late 1970’s), most airlines were operating on a point to point routing system. In other words, the plane would leave from point A and land at point B. This system, driven by regulation, created inefficiency as many of the airplanes were not full. With regulations in place, the government, not the market, told the airlines what routes they could fly and managed the prices they could charge. According to Aviation Week, “the Deregulation Act eventually dissolved the Civil Aeronautics Board (CAB), which regulated U.S. airlines like a public utility, setting where they could fly and what they could charge” (Unnikrishnan, 2015, para. 2). With this barrier out of the way and the introduction of low cost carriers, both legacy carriers and new airlines researched ways to improve the utilization of their airplanes and increase profitability. Airlines that were once only allowed to fly certain routes, specifically determined by regulation, now have the ability to fly in any route and must determine how to make those routes affordable to the passenger and profitable to the company. In a given day or time of day, there are not enough passengers and cargo that want to leave every origin, going to the same destination to make a flight financially appropriate. At the same time, only flying in that route once or twice per day, did not meet the flying public needs. To allow for more frequent flights, while keeping costs and profits in

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