or the first time.
The early government regulation of the Airline industry covered every facet of its operation. It was brought about primarily at the behest of the industry, who brought their problems to the attention of Hoover. The industry wanted protection against over competition, so that, with protected markets, they could develop both the industry and the individual air transportation companies. They got, also, however, regulation in the areas of service and safety. Nevertheless, this early policy of regulation proved to be beneficial to the industry. It provided the stable framework, within which the industry developed. As a consequence, Hoover is given great credit for the establishment and development of
the commercial air transport industry in the United States (Lee, 1984).
Even the benefits accruing from the Air Commerce Act were not enough to overcome the effects of The Great Depression which ushered in the 1930s. Most of the airline companies which had flourished in the late 1920s flounder
...