Air Service to Cities Abandoned by Piedmont Aviation Since Deregulation

In 1978 Congress passed the Airline Deregulation Act (ADA) which curtailed the authority of the Civil Aeronautics Board (CAB) over the location, quality, and price of air passenger service. The Act was a response to the high cost of subsized air service to small communities, and to the belief that the public could be served more efficiently by an unrestricted commercial aviation industry. (J) A central issue in the ensuing debate on the wisdom of airline deregulation was whether or not major carriers' attempts to maximize profits in response to the Act have led to lower quality air service to small cities. Representatives of small, and even medium-sized cities, feared the reduction or elimination of air passenger service when federal subsidies to the major carriers were phased out, particularly if the airlines concentrated their equipment on the most profitable, high volume routes between the largest hubs. Proponents of deregulation countered that these smaller communities would be served without subsidy by emerging commuter airlines, operating limited networks with more economical equipment. Moreover, the Act contains several provisions promoting commuter airlines, and subsidizes service by commuters to small communities through 1988. (2)