Air Mail Act

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Airline Industry
Mark Markakis
MBA 510
Professor Young
September 12,2012

Many people assume flying is a fairly new endeavor. However, although the first few years of the 20th century were a risky time for flying, it did exist. It wasn’t until 1925 that flying became more common. This began when the Air Mail Act took place, which enabled the post master to contract with private airliners to deliver mail, developing the airline industry. Shortly after, the Air Commerce Act gave the Secretary of Commerce power to establish airways, certify aircraft, license pilots, and issue and enforce air traffic regulations (Harris, nd). Within ten years many modern day airliners such as United and American had emerged as great players in this up and coming industry. In 1938 the Civil Aeronautics Act was established creating the Civil Aeronautics Board. This board’s two most significant functions were determining airlines' routes of travel and regulating prices for passenger fares (Harris, nd). The Federal Aviation Administration was created in 1958 to manager and regulates safety operations and in 1978 the era of unencumbered free market competition would finally take place due to the Airline Deregulation Act.

Airliners have come a long way. With special accommodations such as first class, food and beverage available, and often times even radio or television. Often times, it is easy to find a deal for tickets such as packages. Some examples would be round a bout trips, or package deals on hotel rooms, inclusive food, and the trip back home.

The Airline Industry Business model can be easily broken down into five models. First, the buyer and second is supplier power in the industry. “Airbus and Boeing dominate the jetliner market, so it makes it hard for other suppliers to have a lot of power in the industry, “(“Airline Economics, p.14, 2010). Different types of Carriers are demanded in the industry, depending on what it is...
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