The US airline transportation was originally envisioned as leading to an increase in the number of carriers whose divergent service market segments, fleets and route structures which will be made to produce new competition, stimulated traffic, and reduced fare, it ultimately came full circle and became only a virtual monopoly. Three distinct phases occurred in the course of its evolution.
The situation itself has its origins in 1938, when Congress passed a law on civil aviation. Its results in five member Civil Aviation Board (CAB), formed two years later, in 1940, authorized regulated tariffs, subsidize routes and approved agreement interval among other functions.
Delta Air Lines, for example, has been interested in providing nonstop service between New York and Florida, continually petition rights by the CAB. But the regulator believes that the North-East, a small local service support often suffer from low traffic, financial losses and bad weather due to its route system, a required potential revenue is needed to boost up it back to health and it gives the authority instead.
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