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.