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A Brief Review of Airline Regulation

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Part of the Transportation Research, Economics and Policy book series (TRES)

Abstract

Regulation1 of the airline industry began in the 1920’s when the U.S government began to award contracts to the airlines for the carriage of mail. Airmail was the major source of revenues in the early days of the airline industry. The U.S. Post Office and the Interstate Commerce Commission played decisive roles in the evolution of the airline industry structure. However, the failure of existing regulatory schemes, coupled with increasing passenger demand for air transportation led congress to establish the Civil Aeronautics Board (CAB) in 1938. The CAB was granted extensive regulatory authority over airlines providing interstate airline service, along with the authority to award routes, regulate fares and assure safe airline operations.2

Keywords

Travel Agent Airline Industry Yield Management Bankruptcy Filing Interstate Commerce Commission 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Endnotes

  1. 1.
    A complete analysis of the Deregulation Act of 1978 and its early impact on the airline industry can be found in Meyer, J. and Oster, C. (1981) Airline Deregulation and Baily, E., Graham, D., and Kaplan, D. (1985), Deregulating the Airlines, MIT Press, Cambridge, MA.Google Scholar
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    Brenner, M., Leet, J. and Scott, E. (1985) Airline Deregulation, Eno Foundation, Westport, CT., pp. 3-5.Google Scholar
  4. 4.
  5. 5.
    See Kaplan (1986), pp. 42-43 and Baily, Graham and Kaplan (1985), pp. 11-26.Google Scholar
  6. 6.
    This assumes that the CAB knew the actual costs of the route structures.Google Scholar
  7. 7.
    Brenner, Leet and Schott (1985). pp. 3-10.Google Scholar
  8. 8.
    See Kaplan (1986), pp. 42-44 and Bailey, Graham and Kaplan (1985), Chapter 1.Google Scholar
  9. 9.
    A current, complete and detailed list of Form 41 accounts and their definitions required for filing by all U.S airlines can be found in Code of Federal Regulations, Aeronautics and Space, Number 14, Part 241, Office of the Federal Register, National Archives and Records Administration, Washington, D.C. It is updated annually and is available in most libraries. The actual data that each carrier files with the DOT can be found in 2 publications: Air Carrier Traffic Statistics Monthly and Air Traffic and Air Carrier Financial Statistics Quarterly. These two reports are available in most large depository libraries with Federal documents and may be purchased through the U.S. Department of Transportation, Office of Research and Special Programs Administration. Alternatively, Data Base Products of Dallas, Texas sells the Form 41 data in an easily retrievable format on a CDROM Disc.Google Scholar
  10. 10.
    Brenner, Leet and Schott (1985), pp. 3-10.Google Scholar
  11. 11.
  12. 12.
    See Brenner, Leet and Schott (1985), pp. 3-10 and Bailey, Graham and Kaplan (1985), pp. 27-37.Google Scholar
  13. 13.
  14. 14.
    Brenner, Leet and Schott (1985), pp. 8-9.Google Scholar
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    Levine (1987) and Bailey, Graham and Kaplan (1985).Google Scholar
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    Pickrell (1991), pp. 5-47.Google Scholar
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  28. 28.
    Brenner, Leet and Schott (1985), pp. 75-76.Google Scholar
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    See Levine (1987) and Dempsey P. (1990) Flying Blind: The Failure of Airline Deregulation, Economic Policy Institute, Washington, D.C.Google Scholar
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    Levine (1987).Google Scholar
  31. 31.
    Dempsey(1990).Google Scholar
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    Levine (1987), and Bailey, Graham and Kaplan (1985).Google Scholar
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    Brenner, Leet and Schott (1985), p. 82.Google Scholar
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    Borenstein, S. (1989a) “Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry,” University of Michigan: Institute of Public Policy, Michigan.Google Scholar
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    Pickrell (1991), pp. 5-47.Google Scholar
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    Levine(1987).Google Scholar
  37. 37.
    Dempsey (1990) and Levine (1987).Google Scholar
  38. 38.
    U.S. Congressional Budget Office (July 1988).Google Scholar
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    Pickrell (1991), pp. 5-47.Google Scholar
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    Levine(1987).Google Scholar
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    U.S. Department of Transportation (May 1988) Study of Airline Computer Reservation Systems, Washington, D.C. Document Number: DOT-P-37-88-2, pp. 1-170.Google Scholar
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    Levine (1987).Google Scholar
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    Avmark, Inc., The Avmark Aviation Economist, (December 1986), VA, p. 8.Google Scholar
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    U.S. Congressional Office (1988); Bailey, Graham and Kaplan (1985); U.S. Department of Transportation (May 1988); U.S. General Accounting Office (May 1986).Google Scholar
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    Pickrell(1991).Google Scholar
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    U.S. General Accounting Office (July 1990).Google Scholar
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    Brenner, Leet and Schott (1985), p. 34.Google Scholar
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    U.S. General Accounting Office (July 1993) Airline Competition: Higher Fares and Less Competition Continue at Concentrated Airports, GAO/RCED-93-171, Washington, D.C., pp. 1-44.Google Scholar
  51. 51.
    ibid., U.S. General Accounting Office (July 1990).Google Scholar
  52. 52.
    The New York Times, April 22 1991, “Mirage of Discount Fares is Frustrating to Many Fliers,” p. D4.Google Scholar
  53. 53.
    Pickrell(1991).Google Scholar
  54. 54.
    U.S. General Accounting Office (July 1990).Google Scholar
  55. 55.
    Levine (1987).Google Scholar
  56. 56.
    U.S. General Accounting Office (August 1990), pp. 2-31.Google Scholar
  57. 57.
    ibid., pp. 32-43.Google Scholar
  58. 38.
    ibid., pp. 44-54.Google Scholar
  59. 59.
    ibid., pp. 55-60.Google Scholar
  60. 60.
    Pickrell (1991).Google Scholar

Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  1. 1.Center for Science and Technology PolicyRensselaer Polytechnic InstituteTroyUSA
  2. 2.Lally School of Management and TechnologyRensselaer Polytechnic InstituteTroyUSA

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