During the early stages of the US airline industry, there were no formal government regulatory controls. "Prior to 1938, only airmail carriers had been subject to government regulation" (Lin 3). The Civil Aeronautics Act of 1938 laid the ground work for the federal regulatory policies of the airline industry which remained intact for nearly 4 decades. The main goal of this act was to "strengthen the air transport system in this country through tight regulation and restriction of new competitors""(Miller 4).
Scholarly Commons Citation
The Political Motivation of Aviation Deregulation.
Journal of Aviation/Aerospace Education & Research, 8(3).