Timeline

• The Airline Deregulation Act was first introduced on February 6, 1978 by Nevada Senator Howard W. Cannon. It passed in the Senate on April 19 and passed in the House on September 21. The act became law on October 24, 1978.
  
  

Significance

• Up until the Airline Deregulation Act, the Civil Aeronautics Board (CAB) was charged with controlling the entry, exit and pricing of airline services. After deregulation, the control was shifted from the government to the market. The results were lower prices, the creation of new routes and fewer passengers needing to change airlines to make a connection.
  
  

Consequences

• While deregulation created many benefits, over time a few problems have also been revealed. For example, the airlines have had trouble with profits due to the lower prices created by competition. Antitrust laws have also made it more difficult for companies to do any restructuring. Finally, government control of the air travel grid has increased the amount of flight delays.