The primary role of the CAB was to regulate scheduled commercial
airline operations in the United States. The CAB strictly controlled all U.S. certificated airlines ("scheduled carriers") -- deciding which routes would be serviced by which airlines, and setting minimum limits on passenger fares (comparable to the
Interstate Commerce Commission) -- effectively managing competition between airlines, and ensuring certain levels of service to communities throughout the United States.[1][2]
While CAB regulation suppressed
free competition, it provided security for the existing airlines, avoided gluts and shortages of passengers on certain routes, and (partly by allowing airlines to carry
air mail) secured airline service for communities that would have otherwise been served less, or not have been served at all (due to low passenger traffic or other reasons).[1][2]
To achieve its goals, the CAB was empowered to provide and administer subsidies to airlines. Further, the CAB regulated airline industry mergers and intercompany contracting -- but shielded the airlines from
antitrust regulation. Additionally, within the airline industry, the CAB was assigned to prevent deceptive trade practices and unfair competition methods (similar to the role of the
Federal Trade Commission).[2]
History
The Civil Aeronautics Authority Act of 1938 superseded the
Watres Act, which had regulated commercial aviation since the mid-1920s, and created a new agency, the Civil Aeronautics Authority.[3][4] The agency was renamed in 1940,[5] due to a merger with the Air Safety Board.[6] It became an independent agency under Reorganization Plans Nos. III and IV of 1940, effective on June 30, 1940.[7] The Air Safety Board had formed in 1938.
Other predecessor agencies included the Aeronautics Branch (1926–1934), the Bureau of Air Commerce (1934–1938), and the Bureau of Air Mail, Interstate Commerce Commission (1934–38).[8]
Under the chairmanship of
John Robson, the Civil Aeronautics Board "in April 1976 did the unthinkable, becoming the first regulatory body to support deregulation," which President
Gerald Ford first spurred in February 1975 with a proposal to abolish the CAB altogether.[9] In the late 1970s, during the administration of President
Jimmy Carter, and under the guidance of his economic advisor
Alfred Kahn (who had specialized in research on deregulation, and was appointed CAB Chairman), the CAB continued to be the focus of the early
deregulation movement, and its dissolution was one of the most conspicuous pioneering events of the movement.[10][2][11] The
Airline Deregulation Act of 1978 specified that the CAB would eventually be disestablished — the first federal regulatory regime, since the 1930s, to be totally dismantled[11][10] — and this happened on January 1, 1985.[12] The remaining tasks were transferred to the
Secretary of Transportation except for a few going to the
U.S. Postal Service.[5]
Offices
The agency had its headquarters in the Universal Building in
Dupont Circle,
Washington, D.C.[13][14] The agency had moved there by May 1959.[15] Previously it had been headquartered in the Commerce Building (a.k.a. the
Herbert C. Hoover Building),[16] and its offices were in several buildings.[15] After moving into the Universal Building, CAB leased space there. By 1968 the agency had acquired an additional approximately 2,000 square feet (190 m2) of space in the same building, resulting in additional rent expenses.[17]
^Smith, Richard Norton (2023). An Ordinary Man: The Surprising Life and Historic Presidency of Gerald R. Ford. New York: Harper. pp. 548–551.
ISBN978-0-06-268416-5.
^Kane, Robert M. Air Transportation. Kendall Hunt, 2003.
ISBN0787288810, 9780787288815. p.
121 (a part of the "Civil Aeronautics Board" section).
^"Sorbitol from France: determination of the Commission in investigation no. 731-TA-44 (final) under the Tariff Act of 1930, together with the information obtained in the investigation" (Volume 1233 of USITC publication).
United States International Trade Commission, 1982. p.
A-42. "Civil Aeronautics Board, 1825 Connecticut Avenue, N.W., Washington, D.C."
^The Code of Federal Regulations of the United States of America. U.S. Government Printing Office, 1964. p.
370. "[...]office hours at the Board's Docket Section. Room 711, Universal Building, 1825 Connecticut Avenue NW., Washington, D.C."
^
ab"Briefings..." Flying Magazine. May 1959. Vol. 64, No. 5.
ISSN0015-4806. p.
98. "UNDER ONE ROOF at last, the Civil Aeronautics Board is now quartered in the Universal Building, 1825 Connecticut Ave., N.W., Washington"
^National Research Council (U.S.). Committee on Latin American Anthropology, Alexander Lesser. Survey of Research on Latin America by United States Scientists and Institutions.
National Academies, 1946. p.
70. "Material available for the most part at the Civil Aeronautics Board, Commerce Building, Washington, D.C."
^Civil aeronautics board (Volume 38 of Independent Offices and Department of Housing and Urban Development Appropriations for 1969: Hearings, Ninetieth Congress, Second Session, United States. Congress. House. Committee on Appropriations. Subcommittee on Independent Offices and Dept. of Housing and Urban Development).
U.S. Government Printing Office, 1968. p.
475. (
See search page) "Mr. Evins. Other objects are shown on page 94. Rent is shown to increase by $28,000. You go from $194,400 to $223,200. Why do you need this increase? Mr. Murphy. We are acquiring about 2,000 more square feet of office space in the Universal Building, where we are presently housed. I think that accounts, perhaps, for the increase in our rent. Is that correct, Mr. Kiefer?"
Further reading
Kahn, Alfred E. (last CAB Chairman), Alfred E. Kahn,
Airline Deregulation, in The Concise Encyclopedia of Economics by libertarian website "Library of Economics & Liberty" of the
Liberty Fund
Oversight of Civil Aeronautics Board practices and procedures : hearings before the Subcommittee on Administrative Practice and Procedure of the Committee on the Judiciary, United States Senate, Ninety-fourth Congress, 1975
National Transportation Library - Includes air accident reports and other materials from the CAB, Air Safety Board, and Bureau of Air Commerce, dating to 1934