ABSTRACT
This chapter traces the industry from the era of economic regulation to the increasingly free market competition allowed in most of the world's largest markets. The chapter traces the fledgling industry through the years of economic regulation under the Civil Aeronautics Board until economic deregulation in 1978, emphasizing the economic, regulatory, and technical evolution that shaped the industry. Air transportation is just one element of the world’s transportation infrastructure, which is essential for economic growth and prosperity. Rivers were the first and most efficient means for inland transportation of goods and people. Enabled by the rapid wartime advances in aircraft technology and a post-war surplus of aircraft, airlines were founded in the immediate aftermath of World War I in 1918. The United States entered World War I late, did not produce any large aircraft, and generally did not enjoy the technological advances common in Europe.
