Airline Deregulation Act Law and Legal Definition
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 result of the Act is:
1. it opened up the aviation industry into competition; and
2. it opened up new opportunities for emerging airlines and secondary airports.
The Act provides for:
1. maintaining safety as the highest priority in air commerce;
2. air transporting services by placing maximum reliance on competition;
3. encouraging air service at major urban areas through secondary or satellite transportation;
4. avoiding unreasonable industry concentration;
5. encouraging new air carriers’ entry into air transportation markets;
6. continued strengthening of small air carriers; and
7. encouraging existing air carriers’ entry into additional markets.
Due to the regulations on the Civil Aeronautics Board (CAB) by the Act, the CAB became dormant in 1984.
