The U.S. Department of Transportation passed the Airline Deregulation Act in 1978, which gave air carriers freedom to determine which markets to serve domestically and what fares to charge for that service. To address the concern that small communities previously served by certificated air carriers before airline deregulation maintain a minimal level of scheduled air service, Congress added section 419 to the Federal Aviation Act to ensure that smaller communities would retain a link to the National Air Transportation System, with Federal subsidies when necessary. The result of this Congressional action helped to launch the regional airline industry.
RAA’s 2019 Regional Airline Report Highlights Vital Industry
Key Takeaways:
- Originating from the 1978 Airline Deregulation Act to ensure small communities retain air service, regional airlines now form a massive sub-sector, generating $134 billion in economic activity and supporting one million jobs annually.
- The regional airline industry faces a critical and growing shortage of pilots and maintenance technicians, as retirements of experienced personnel are outpacing the entry of new recruits, threatening future operations.
- The Regional Airline Association (RAA) is addressing this workforce challenge through recruitment initiatives and by advocating for federal financial aid reforms to ease the significant cost burden of pilot education.
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