Before deregulation, which agency managed airline routes and fares?

Test your knowledge of Aviation Law. Utilize flashcards and multiple choice questions with hints and explanations to excel in your exam preparation.

The Civil Aeronautics Board (CAB) played a crucial role in managing airline routes and fares before the deregulation of the airline industry. Established in 1938, the CAB was responsible for regulating commercial aviation in the United States, which included overseeing the allocation of routes to various airlines and setting fare prices. This regulation aimed to ensure fair competition and stabilize the airline industry, which was experiencing significant turbulence during its early years.

With the CAB's authority, airlines had to apply for routes and fares, which required government approval. This system provided a structured approach to managing the aviation market, allowing the government to maintain a balance of services across different regions. However, the CAB's control over these aspects is what led to calls for deregulation in the late 20th century, culminating in the Airline Deregulation Act of 1978, which effectively eliminated the CAB's regulatory powers.

The other agencies mentioned—such as the Department of Transportation (DOT), which oversees transportation policy and regulations more broadly; the Federal Aviation Administration (FAA), primarily focused on safety and operational regulations; and the Transportation Security Administration (TSA), which focuses on security measures—did not have the regulatory authority over fares and routes that the CAB held prior to deregulation. Therefore

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