ASCI 254- Topic 2

Federal Airport Act of 1946

Granted $500,000,000 over a 7-year period to develop and update airports across the States

Jet Challenge

Potential vs. Expense!

• Industry: shortages, economics

• Airlines: New training, old equipment, funding airplanes

• Airports: Lacking infrastructure

Jet Symposium

(1956) Establishes Jet Age Planning Group to integrate jets

Harding Reports

(1955) Shows that airspace is overcrowded, systems are lagging behind aeronautical development, and shows the needs of population and industry

The Grand Canyon Collision

(1956) Collision over Grand Canyon resulting in the largest loss of life in an aviation accident

Airways Modernization Act of 1957

Direct response to the Grand Canyon Collision

• Develops unified air traffic control/navigation system for both civil and military aircraft

• Establishes Airways Modernization Board

Federal Aviation Act of 1958

Acting out of necessity to address new technology, expanding market, and the safety crisis

• Establishes Federal Aviation Agency

  • Kills CAA

• Authority delegated to FAA Administrator

  • Regulate, control navigable airspace

  • Air traffic rules

  • research and develop air traffic technology

  • Deal in certificates

  • Participate in accident investigation (purely logistical)

• Leaves economic regulations unchanged

Department of Transportation Act of 1966

• Establishes the Department of Transportation

• Renames the FAA to the Federal Aviation Administration, places it under the DOT

  • Rulemaking!

• Establishes the National Transportation Safety Board (independent, within DOT)

  • Investigation!

Independent Safety Board Act of 1975

NTSB is reestablished as an independent agency separate from the DOT

Airport and Airway Revenue Act of 1970

• Establishes the Airport and Airway Trust Fund

  • revenue sourced from taxes

• Provides funds for airports, airways, and technological developments

• Shifts funding from Govt to users of airspace

Air Transportation Security Act of 1974

Provides FAA with authority to screen passengers and baggage for weapons

Factors leading to deregulation of air commerce

• Chicago School: suggested that airfares would be lower, helping consumers

  • Industry can survive in free market!

• Democratic initiatives/consumerisms

• CAB procedurs/practices are slow

Regulated Capitalism

• Certain sectors of the economy are essential to daily life and commerce

• Transportation!!

• Deciding factor in regulating aviation economics in 1938

  • One/few companies dominating the maret

  • Too much competition leads to too low prices, development stifles

Airline Deregulation Act of 1978

• Amended economic provisions of Federal Aviation Act

• Set the stage for the dissolution of the COB, phasing out existing regulations