ABSTRACT
The certificated regional air carriers provide short-haul air service to small and medium-size communities across the country, typically linking those communities to the nation's larger airports in a hub-and-spoke network. The regional/commuter airline segment is an integral part of the nation's air transportation system. Interlining of air freight within the industry is an effective means of expanding air freight services to customers. The act empowered the Civil Aeronautics Board to structure the interstate airline industry through regulation of passenger fares, air mail rates, route entry and exit, mergers and acquisitions, and intercarrier agreements. Regional air carriers are classified as large, medium, or small, depending on their annual gross revenue and whether they hold a certificate of public convenience and necessity from the Department of Transportation. Certification is the point at which regulatory authorities become involved with the business procedures of establishing a new airline.
