Carrier Selection under the Airline Deregulation Actby Abdussalam A. Addus, North Carolina A&T State Univ, Greensboro, NC, USA,
Document Type: Proceeding Paper
Part of: Rebuilding America: Infrastructure Rehabilitation
The two major segments of the domestic airline system in the United States, the trunklines and the local service airlines, have, over the years, been regulated by the federal government; they were issued certificates by the Civil Aeronautics Board (CAB) to operate in specific markets based on public convenience and necessity. Commuter air carriers were exempt from federal economic regulation as long as they used aircraft with capacity not exceeding 30 passengers. The Airline Deregulation Act of 1978 (ADA), among other things, eased restrictions on market entry and exit for certified carriers. As a result, it was anticipated that these carriers would tend to drop unprofitable points from their schedules, and hence some low-density and short-haul markets would loose their air transport service.
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