HomeGlossaryAirline Deregulation Act
Airline Deregulation Act
The 1978 U.S. law that phased out the Civil Aeronautics Board’s control of routes and fares—an emblem of late-twentieth-century deregulation.
Before reform, regulators often limited entry and set minimum fares, aiming at stability but sometimes protecting inefficient carriers. The act shifted toward market pricing and contestable routes, with effects on fares, hub concentration, and labor.
Supporters cited consumer gains and innovation; critics noted consolidation, service cuts to smaller cities, and episodic distress in the industry.
Pattern for other sectors
The airline story became a template in debates over trucking, finance, and telecommunications: would deregulation deliver competition or slide into new forms of concentration?