The Civil Aeronautics Board was established in 1938 by none other than the Civil Aeronautics Act. This act gave power to the Civil Aeronautics Board, or CAB, to regulate the airline industry. This regulation has been the most impactful decision possibly ever in the industry. Since then, the airline industry has been regulated, deregulated, and is facing the possibility of reregulation. Each change has benefits and disadvantages that affect all of those involved with the aviation industry. With the regulation that was initiated with the CAB, there were many who were for and many who were against the new rules in place. Some of these new guidelines dictated which airlines could fly at that time, where they would be departing and landing and
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Chief Executive Robert Crandall of American Airlines is one of the strongest and most recognizable advocated for regulating again. Crandall (2008) stated, at Wings Club accompanied by other aviation and financial industry professionals, “We have failed to confront the reality that unfettered competition just doesn’t work very well in certain industries” (para. 2). Regulation would benefit the aviation industry by not only bringing but financial stability in an otherwise severally unstable field, but by reducing the bottleneck effect air more trafficked airports. Ticket fares would be more consistent. Knowing the effects from the first regulated period, it can be assumed that the fares will face a steep increase in cost. Accessibility will also lack; less flights a day directly impacts the available times to book a …show more content…
The United States started a period of regulation when flying first became popular but was still fairly new in the commercial aspect. Fares and flight route were heavily controlled by the government. President Jimmy Carter made the executive decision in 1978 to open the industry to be a free market. This spurred a decrease in ticket costs, an increase in flight routes, and an overall profit growth rate. The current legislation regarding regulation still utilizes the plan enacted by Carter. However, there is question on whether or not the airline industry should be regulated again. As with all new changes, there are advantages and disadvantages. Robert Crandall is the most recognizable face for those supporting reregulating the industry. Many good, and not so good, points have been brought to the public's attention. Fares would be more consistent but pricier and routes would be more profitable but flown less often. The decision respecting reregulating or not is still in the air and we are not likely to see anything new go into effect just quite yet. Based off of the facts outlined, staying in the open market would be most beneficial for the airline industry current financial status and
Chief Executive Robert Crandall of American Airlines is one of the strongest and most recognizable advocated for regulating again. Crandall (2008) stated, at Wings Club accompanied by other aviation and financial industry professionals, “We have failed to confront the reality that unfettered competition just doesn’t work very well in certain industries” (para. 2). Regulation would benefit the aviation industry by not only bringing but financial stability in an otherwise severally unstable field, but by reducing the bottleneck effect air more trafficked airports. Ticket fares would be more consistent. Knowing the effects from the first regulated period, it can be assumed that the fares will face a steep increase in cost. Accessibility will also lack; less flights a day directly impacts the available times to book a …show more content…
The United States started a period of regulation when flying first became popular but was still fairly new in the commercial aspect. Fares and flight route were heavily controlled by the government. President Jimmy Carter made the executive decision in 1978 to open the industry to be a free market. This spurred a decrease in ticket costs, an increase in flight routes, and an overall profit growth rate. The current legislation regarding regulation still utilizes the plan enacted by Carter. However, there is question on whether or not the airline industry should be regulated again. As with all new changes, there are advantages and disadvantages. Robert Crandall is the most recognizable face for those supporting reregulating the industry. Many good, and not so good, points have been brought to the public's attention. Fares would be more consistent but pricier and routes would be more profitable but flown less often. The decision respecting reregulating or not is still in the air and we are not likely to see anything new go into effect just quite yet. Based off of the facts outlined, staying in the open market would be most beneficial for the airline industry current financial status and