1. Airline Deregulation Matt Paine Brian Tappan Sin Man Wong Nick Ferdinand Nate Riebel Kyle Carnes

2. Airlines Before Deregulation Civil Aeronautics Board (CAB), enacted in 1938 was an independent agency responsible for regulation in the air transport industry. Authority over airline routes, certification, agreements, and certain other matters. Main reason for CAB was to protect existing carriers from competition and allow an infant industry to grow.

3. Routes The routes before Deregulation had to be approved by the Government. One Airline couldn’t Monopolize one route.

4. Agreements Any agreements among carriers effecting air transportation had to be filed and approved by the CAB. The act directed board to approve agreements that were not adverse to the public interest, and to reject all those that were adverse.

5. Certification A board issued certificate is required before any carrier may provide air service in the USA.

6. Scope & Purpose To amend the Federal Aviation Act of 1958, to encourage, develop, and attain an air transportation system which relies on competitive market forces to determine the quality, variety, and price of air services, and other purposes

7. Effect of Deregulation Routes: Airlines have the right to fly wherever they want Example: Braniff Airlines Rates: Carriers have the right to raise fares – Price Wars Promotions: After deregulation, carriers were permitted to market their airline.

8. Benefits The two most important consequences of deregulation have been lower fares and higher productivity Fares: Fares declined 30 percent in real, inflation adjusted terms between 1976 and 1990 Productivity: The introduction of the Hub-and-Spoke system has allowed increase efficiency by routing larger planes on busier routes and smaller planes on less traveled routes

9. Conclusion Airline deregulation has worked Its provided the air transportation industry with a more flexible system It makes the airline industry more competitive internally Increase efficiency and productivity for the industry