DEREGULATION LAW AND ITS EFFECTPRESENTED BY:

RYAN REYES

PATRICIA PUNTANAR

JEUS DE MESA

• Civil Aeronautics Board (CAB), regulated many areas of

commercial aviation such as fares, routes, and schedules.

The CAB had three main functions:

to award routes to airlines

to limit the entry of air carriers into new markets

to regulate fares for passengers

The Airline Deregulation Act of 1978, however, removed many of

these controls, thus changing the face of civil aviation in the

United States. After deregulation, unfettered free competition

ushered in a new era in passenger air travel.

AIRLINE DEREGULATION LAW

• The Airline Deregulation Act of 1978 is a U.S federal statute.

The object of the Act is to remove the governmental control

over fares, routes, and market entries from commercial

aviation.

THE ACT PROVIDES FOR:

• Maintaining safety as the highest priority in air commerce

- As everybody knows safety comes first therefore

ensuring security among passengers have a positive impact

• Air Transporting services by placing maximum reliance on

competition

- Transporting services not only people but product and

goods transportation for market competition

THE ACT PROVIDES FOR:

• Encouraging air service at major urban areas through

secondary or satellite transportation

-Connecting not only Urban to urban places but also urban

to a more remote place can be used

• Avoiding unreasonable industry concentration

- Focusing more in the airlines industry rather than being

a mere concern

THE ACT PROVIDES FOR:

• Encouraging new air carriers’ entry into air transportation

markets

- Encouraging those are interested in venturing into Air

Transportation Industry

• Continued strengthening of small air carriers

- Small airlines can do what they want to expand their

range

• Encouraging existing air carriers’ entry into additional markets

- Existing airlines ventures into additional market

competition

EFFECTS

• It opened up the aviation industry into competition

- Bringing and attracting more competitors in the industry

• It opened up new opportunities for emerging airlines and

secondary airports

- Competitions is raised in lateral of the opportunities and

advantages of those who are new in the industry also the

airports primary and secondary is being utilized.

REFERENCE

• http://www.centennialofflight.net/essay/Commercial_Aviation/

Dereg/Tran8.htm

• http://definitions.uslegal.com/a/airline-deregulation-act/