The Aviation Industry
2. What was the primary purpose of the Kelly Act?
This act is also referred to as the Contract Air Mail Act. Its main objective was to assist in the privatization of the U.S. airline industry. It further allowed the tendering of mail contracts of the government to individual carriers, created the rates for transporting mail, and fixed the airmail rates. The giving out of contracts was through the bidding process through postal service in the U. S. The act also allowed the development of the airmail service without burdening the taxpayers. The expansion of the industry increased the influence of the post office over the airline industry and restricted the number of carriers that were awarded the coveted mail transport.
6. What was the overriding purpose of the Civil Aeronautics Act of 1938?
The overriding purpose of the Civil Aeronautics Act of 1938 was to transfer federal duties for non-military aviation from the Air Commerce to a new, independent agency, the Civil Aeronautics Authority. It was also accountable for creating the Civil Aeronautics Administration and Board. The Civil Aeronautics Board was answerable for giving out and overseeing the certification and suspension of the aircraft and pilot. Additionally, the Act gave out air carrier route certificates and controlled fares for the airlines. It was further in charge of investigating aircraft accidents. The Civil Aeronautics Administration was charged with the responsibility of regulating aviation, control towers, airways, and complying with aviation regulations.
9. What was the purpose of the Federal Airport Act of 1946?
The sole purpose of the Federal Airport Act of 1946 was to bring about the accountability and participation in constructing airports through the newly implemented Federal Aid Airport Program. The Federal Aid Program issued 75 million dollars yearly funding for the construction and improvements of airports. The Act also provided grants worth $500 million for airports projects paid within a period of seven years. The maximum federal grant for an eligible project would give half the expenses of the project. Title 1 of the Act further gave out $250 million every year for acquiring, establishing, and improving air navigational facilities. Title 11 recognized what was commonly referred to as the “aviation trust fund”.
10. What were some of the provisions that had to be adhered to before federal aid was granted under the Federal-Aid Airport Program?
Some of the provisions that had to be adhered to include the following; an airport is expected to be included in NPIAS. NPIAS is charged with an obligation of identifying public-use airports that are vital to the public transportation and contributes to the needs of postal service, national defense, and civil aviation.
13. What was the purpose of the Department of Transportation Act of 1966?
The main purpose of the Department of Transportation Act is to ensure that NTSB determines the potential cause of transportation accidents and report the conditions, situations, and conditions associated with such accidents. This act is further charged with the obligation of ensuring that NTSB reviews on appeal the suspension, and denial of any certificate or license issued by an administrator or the Secretary.
18. How did the Airline Deregulation Act of 1978 affect the airport system in the United States?
This Act advocated for the gradual phase out of the certificated air carriers by the CAB. The Airline Deregulation Act of 1978 positively affected the airport system because it encouraged the air service at key urban regions through satellite airports. The act also allowed new carriers to join the air transportation markets. It further aimed at removing most of the restrictions on airline operations within a period of four years. It allowed the airline authority to set fares and allowed global carriers to provide domestic service. This deregulation act also dismissed prevailing mutual agreements between air carriers. DOT and other agencies were given the mandate to perform various responsibilities. CAB rules restricted entry into the market, and controlling costs implying that airlines were restricted to competing only on the quality of cabin crew, food, and frequency.
After deregulation, it was reported that the airline industry in the United States experienced losses of approximately $23.2billion between 2001 and 2003.
20. What is the purpose of the Aviation Safety and Noise Abatement Act of 1979?
The Aviation Safety and Noise Abatement Act of 1979 have three Titles (1, 11,111) and each has its own responsibilities as explained below;
Title 1: Gives the Secretary of Transportation the mandate to give directions on creation of one system of measuring noise and determine the effect of noise on people that can be applicable in measuring noise at airports and its neighborhoods and suggest how land can be utilized. It also permits operators in the airports to hand in noise impact maps to the Secretary. Title 11 made amendments to the Airport and Airport Development Act of 1970 to raise specified appropriations. Title 111 directs the Secretary to see to it that all international aircraft operating in the U.S adhere to the noise standards in case the International Civil Aviation Organization (ICAO) does not adopt similar noise standards.
21. What was the primary purpose of the Airport and airway Safety and Capacity Expansion Act of 1987?
The key purpose of this Act was to extend the Airport and Airway Improvement Act for 5 years. It further provided that 10% of funding is awarded to disadvantaged small businesses. It extended the limitations on the utilization of airport revenue to entail any local taxes charged on aviation fuel (Young and Alexander 89) . The AAIA and the 1987 Airport Act allowed the use of noncapital airport revenue.
28. What are some of the biggest problems faced by the airport system during the early part of the twenty-first century?
The biggest problems faced by the airport system during the twenty-first century include the following; Insufficient funding from present AIP provisions was identified as one of the key causes of slow rate of construction and development of the airport and air traffic control modernization. Secondly, airports were experiencing high rates of congestion, most of the commercial airports that serve small communities experience difficulties in upholding present levels of service, specifically in the form of nonstop service to over two destinations. (Young and Alexander 90)Consequently, the discrepancy between the needs of the airport became extreme, with the larger airports working hard to get funds to accommodate the rising demands and smaller airports trying to get funds.
30. How has the Airport Security legislation changed since the events of September 1, 2001?
From the time when the events of September 11, 2001 took place, the airport security legislation changed in order to address the weakness in airports. There was the implementation of security detectives that never existed before. For instance, passengers were not allowed to carry box cutters and knives and any other potential non-firearm weapons in the aircraft. Furthermore, they closed all curbside check-in facilities. The Congress of the United States developed formal legislation to handle security issue in aviation industry. It drafted the Aviation and Transportation Security Act (ATSA) of 2001 to be used in enhancing the security of the airways. This act was signed into law by President Bush on November 19, 2001.The Transpiration Security Administration was established after the implementation of ATSA. TSA set deadlines for enhancing security that would be met by the agency that was newly established. For instance, November 19, 2001, all workers of the airline and airport with access to security-sensitive areas were expected to go through new Federal background checks prior to getting access clearance. In January 18, 2002, all checked package in the airports of the United States were to be screened by a passenger bag matching, explosive detection systems, or canine units. On February 17, 2002 the TSA was to formally assume all civil aviation functions from FAA. In 2002, the Homeland Security Act was implemented in an attempt to coordinate the work of several agencies accountable for protecting the nation. On November 21, 2002, it was expected that the screening staff hired by TSA was to screen all passengers and carry-on baggage. December 31, 2002, all checked –in baggage are expected to be screened using the certified explosive detection equipment by the screening staff employed by TSA at the country’s 429 biggest commercial air carrier airports.
31. What was the purpose of forming the Department of homeland security?
The Department of Homeland Security was established to help in coordinating the work of various agencies like the Secret Service, Customs and Border protection accountable for protecting the homeland of a nation under one cabinet-level department. It further ensures that the United States is safe and secure from terrorist attacks. The Department of Homeland Security was established after the terrorist attacks that took place on September 11. It mainly focuses on preparations of the federal government in addressing the issue of terrorism while attempting to manage other responsibilities for instance, security at the border.
Current Events that have had Impacts on the Development of Aviation Industry
The current event that I will focus on is oil prices. The volatility in oil markets are a great risk to the aviation industry. For example, a rise in the price of crude oil lifts the largest input cost of the industry. On the other hand, a reduction in cost for example, the one experienced in 2015 resulted in various problems. Even though weakening of the cost of crude oil enhances profits, they can result in reduced airfares, increasing the demand for travel pushing airlines to raise its capacity.
Economic Climate of the Airline Industry
The economic recession in the United States led to the consolidation and downsizing of the commercial airline carriers and a sharp reduction in the whole aviation activity. This issue highly affected the financial health of the aviation system and nation’s airports. The 2008 economic crisis highly affected the aviation sector. For instance, because of the international economic crisis, the aviation industry experienced a negative growth (Young and Alexander 92).The effect of the crisis was so big that most of the airlines became bankrupt resulting in huge losses. The 2001 economic crisis led to a reduction in salaries for pilots coupled with a rise in productivity. The increase in productivity had serious impacts on the health of the crews (fatigue, failure to report to work because of illness) and balancing of family work.
Social Issues in the Aviation Industry
On November11, 2001, anybody who understands aviation knew that the aviation industry would never be the same again after the terrorist attack. The attack resulted in a reduction of the number of airline passengers. This was after the government ordered the closure of airports leading to the cancellation of thousands of flights at a direct expense to the airlines. Furthermore, the terrorist attack contributed to most airlines being declared bankrupt not long after the attack. Because of huge of financial losses because of lack of passengers, airlines that never experienced financial issues before were forced to lay off some of its workers. Additionally, the attack resulted in indirect impacts to the procedures of the New Air Security. The Transportation Security Administration served as a disadvantage to passengers that opted for a different mode of transport.
In conclusion, aviation sector is an important sector to the economy of a nation, Furthermore, economic climates, current events, and social issues, usually have significant effects on the development of the aviation industry, specifically when focusing on its legislative history. Economic recessions have contributed to a reduction in the general operations of aviation activities. Even though the aviation industry has experienced various challenges, various acts have been implemented for instance, making airports more energy efficient.
Young, Seth B and Alexander Wells. Airport Planning and Management. New York: McGraw-Hilll, 2011. Print.