ABSTRACT

The development of large bombing planes during World War I demonstrated that the airplane could be used for fast commercial and mail transportation. The Kelly Act authorized the postmaster general to enter into contracts with private citizens or companies for the transportation of mail by air. The Air Commerce Act of 1926 imposed on the secretary of commerce and the Department of Commerce the duty of promoting and fostering the development of commercial aviation in the United States. Despite remarkable advances under the regulatory system established in 1938, as well as broad public satisfaction with the airline system, air regulation gradually came under increasing criticism, particularly from academic economists. The Airline Deregulation Act of 1978 dealt primarily with domestic air transportation. The Air Mail Act of 1934 was signed into law by President Roosevelt after Senator Pat McCarran's effort to legislate an independent regulatory body was defeated.