78-06-B8

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Air Cargo Deregulation

Transcript In the years since World War II the air cargo business has experienced steady growth. It has, however, been constantly and carefully regulated by the Civil Aeronautics Board, which also regulates the passenger airline industry. Actually, regulating is not quite the right term. What the C.A.B. has done since 1938 is maintain a cartel. Until recently anyone wishing to start an air cargo service to meet consumer demand faced some serious obstacles. The most serious was obtaining the permission of the Civil Aeronautics board merely to exist as a carrier. The Board has never been eager to certify new entrants and new routes. Instead it has seen its role as holding an umbrella of protection over those air cargo companies lucky enough to have gotten in on the ground floor. But even when the C.A.B. was persuaded to certify a new carrier, it did not leave future results to the workings of the marketplace. Far from it. The C.A.B. insisted on specifying just what rates the carrier could charge, just what routes it could fly, and even what size planes it could operate. The air cargo business--unlike most of the passenger airlines--fought against the C.A.B.'s restrictions. The cargo carriers asked no subsidy from Uncle Sam. They asked for no government cartel to protect them against competition. All they asked was the chance to meet the needs of the economy by doing what they do best--moving valuable freight quickly and efficiently. And last November they won their battle. Congress passed and President Carter signed into law a bill that, in effect, gets government's hands off the air cargo business. By this November at the latest, anyone fit, willing and able to provide air cargo service will be free to go into the business. Any carrier will be able to decide which cities it wants to serve without first obtaining government permission, Companies will set their own rates, and for the first time can operate any size air craft. Now, only a few months after the Air Cargo Deregulation Act, we are beginning to see what can happen. Federal Express has placed new orders for six Boeing 727 cargo jets and plans to add many new cities to its routes. Flying Tiger Line will double the number of U.S. cities it serves as soon as it can get more planes. Seaboard World Airways will add domestic service to New York along with its trans-Atlantic cargo flights. The whole field is humming with new activity; activity which will benefit shippers and, ultimately, every consumer who buys their products. This time, Congress seems to have discovered the value of competition. This is Ronald Reagan. Thanks for listening.		Details Batch Number 78-06-B8 Production Date 04/03/1978 Book/Page Online PDF Audio Youtube? No
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