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What Prompted Airline Deregulation 20 Years Ago? What Were the Objectives of That Deregulation and How Were They Achieved?

 By John W. Barnum of McGuireWoods LLP

In 1938, when the Civil Aeronautics Act was passed, there were 16 trunk airlines in the United States. "Trunk" was the generic name for the common carriers that provided scheduled national and international air service. Government assistance through protection, subsidy, promotion and regulation was thought to be necessary to permit the new industry to develop.



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