Airline Deregulation in The United States
Although federal regulation of the airline industry can be traced to the Air Mail Act of 1925 and the Air Commerce Act of 1926, serious economic regulation of commercial aviation began with passage of the Civil Aeronautics Act of 1938. This Act created the Civil Aeronautics Authority, which became the Civil Aeronautics Board (CAB), and gave the CAB the power to regulate airline routes, control entry to and exit from the market, and mandate service rates. Airline safety regulation would come much later with passage of the Federal Aviation Act of 1958, which created the Federal Aviation Administration.
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