Congress Centralizes Regulation of U.S. Commercial Air Traffic (Great Events from History II: Business and Commerce Series)
Article abstract: The Civil Aeronautics Act of 1938 brought organized regulation of the domestic civil aviation industry and presaged the development of the Civil Aeronautics Board in 1940 and the Federal Aviation Administration in 1958.
Summary of Event
Several landmark regulatory efforts helped to shape commercial aviation in the United States. First, the Kelly Air Mail Act of 1925 removed the government from carriage of airmail and allowed contracts to be given to commercial airlines through competitive bidding. Second, the Air Commerce Act of 1926 placed responsibility for the development of the airways, aids to navigation, and safety regulation squarely with the federal government. The Federal Aviation Administration had its roots in the Air Commerce Act of 1926. Third, the Civil Aeronautics Act of 1938 laid foundations for centralized federal control. The act came to subject commercial air transportation to regulation of entry and exit from the industry, routes, and fares.
By the mid-1930’s, the growth of airmail and air passenger operations had firmly established the U.S. airline industry. After the disastrous years of the Great Depression, aircraft manufacturers began providing more aircraft to airlines for air passenger service. The advent of World War II put even greater emphasis on the development of military, and eventually commercial, aviation. Progress and acceptance of new technology were...
(The entire section is 1913 words.)
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