springer.com Economics : R & D/Technology Policy Reynolds-Feighan, Aisling J. The Effects of Deregulation on U.S. Air Networks 1. 1 A Brief History of U. S. Commercial Aviation Regulation and Deregulation The U. S. commercial aviation industry was regulated by the government for a period of 40 years, beginning in 1938 with. the passing of the Federal Aviation Act, and ending in October 1978 when President Carter signed into law the Airline Deregulation Act (ADA). There were 16 airlines in existence when the Federal Aviation Act was passed in 1938 (the so-called 'trunk lines'). The Act established the Civil Aeronautics Authority (CAA) as the industry's regulatory body. The Act was passed principally because it was felt that the free market, if allowed to continue unregulated for much longer, would put many of these firms into bankruptcy. It is possible therefore to view the CAA of 1938 (re-organized into the Civil Aeronautics Board (CAB) Springer in 1940) as a response to a potential market failure at the time. In the 1930s, few air traffic markets could have efficiently"supported more than one airline operating in the market [Panzar Softcover reprint of the 1st (1980)]. Competition among the carriers was cut-throat, and it was felt that the near original 1st ed. 1992, XIV, edition bankruptcy of the airlines in the period was caused principally by the competitive bidding 131 p. system used by the Post Office in allotting airmail subsidies [Keeler (1972), Caves (1962)]. Printed book Order online at springer.com/booksellers Softcover Springer Nature Customer Service Center GmbH Customer Service Printed book Tiergartenstrasse 15-17 Softcover 69121 Heidelberg ISBN 978-3-642-77063-0 Germany £ 79,99 | CHF 106,50 | 89,99 € | T: +49 (0)6221 345-4301 98,99 € (A) | 96,29 € (D) [email protected] Available Discount group Science (SC) Product category Monograph Series Advances in Spatial and Network Economics Other renditions Softcover ISBN 978-3-642-77062-3 Prices and other details are subject to change without notice. All errors and omissions excepted. Americas: Tax will be added where applicable. Canadian residents please add PST, QST or GST. Please add $5.00 for shipping one book and $ 1.00 for each additional book. Outside the US and Canada add $ 10.00 for first book, $5.00 for each additional book. If an order cannot be fulfilled within 90 days, payment will be refunded upon request. Prices are payable in US currency or its equivalent. ISBN 978-3-642-77063-0 / BIC: KJMV6 / SPRINGER NATURE: SCW43000 Part of .