1. AIRLINE MANAGEMENT AERO 4100 / 5100
HISTORICAL
PERSPECTIVE
Chapter 2

2. THE FORMATIVE PERIOD
FIRST REGULAR AIR MAIL ROUTE IN THE UNITED STATES
218 MILES IN LENGTH
ESTABLISHED MAY 15, 1918
BETWEEN NEW YORK AND WASHINGTON, DC WITH STOP IN PHILADELPHIA
CONDUCTED JOINTLY BY WAR DEPARTMENT AND THE POST DEPARTMENTS

3. THE POST OFFICE DEPARTMENT
THE POST OFFICE DEPARTMENT SERVICE
PLAYED CRITICAL ROLE IN ESTABLISHING COMMERCIAL AVIATION
WEATHER CONDITIONS WAS THE MOST SERIOUS PROBLEM
REGULAR NIGHT FLYING OVER REGULAR ROUTES
FIXED SCHEDULES

4. THE POST OFFICE DEPARTMENT
LIGHTED AIRWAYS ESTABLISHED
BETWEEN CHEYENNE AND CHICAGO
LIGHTED AIRWAY AND LANDING FIELDS ESTABLISHED
MOST IMPORTANT ROUTE
NEW YORK TO CHICAGO
REGULAR OVERNIGHT SERVICE FIVE NIGHTS A WEEK (1925)
SEVEN NIGHTS A WEEK (1926)

5. CONTRACT MAIL SERVICE CONTRACT AIR MAIL ACT OF 1925 (KELLY MAIL ACT)
ALLOWED POSTMASTER GENERAL TO ENTER INTO CONTRACTS
PRIVATE PERSONS
COMPANIES

6. CONTRACT MAIL SERVICE COMMERCE ACT OF 1926
GOT THE GOVERNMENT BACK INTO AVIATION
SET UP FEEDER ROUTES OR CAM ROUTES
PROVIDED GENESIS FOR SEVERAL OF TODAY’S AIRLINES
AMERICAN AIRLINES
UNITED AIRLINES
NORTHWEST AIRLINES

7. POSTMASTER GENERAL BROWN AND THE AIRLINES
PRESIDENT HOOVER AND MR. BROWN WANTED THREE THINGS
STABILITY
EFFICIENCY
GROWTH

8. POSTMASTER GENERAL BROWN AND THE AIRLINES
AIR MAIL ACT OF 1930
FORCED SMALL OPERATORS OUT OF BUSINESS
CONTRACTED WITH HANDFUL OF AIRLINES CONSIDERED
WELL RUN
FINANCIALLY STABLE
EFFICIENT

9. SPOILS CONFERENCE AIR MAIL ACT OF 1930
ALLOWED FOR COAST-TO-COAST TRAVEL IN 48 HOURS
WORKED UNTIL 1934 WHEN SCANDAL BROKE OUT
ROOSEVELT ORDERED ARMY TO FLY MAIL AGAIN
BECAME TRAGIC MISTAKE

10. SPOILS CONFERENCE AIR MAIL ACT OF 1934
ACT AUTHORIZED NEW ONE-YEAR CONTRACTS
SUBJECT TO REVIEW BEFORE RENEWAL
INTERSTATE COMMERCE COMMISSION (ICC) INVOLVED IN RATE
SECRETARY OF COMMERCE SPECIFIES SUITABLE EQUIPMENT

11. TURNING POINT FOR AIRLINES
BOEING 247 AIRCRAFT
10 PASSENGERS
UNITED AIRLINES ORDERED 60 A/C
PRATT & WHITNEY WASP ENGINE
DC 1 AIRCRAFT
14 PASSENGERS
TWA AND AMERICAN AIRLINES
PRATT & WHITNEY HORNET ENGINE

12. TURNING POINT FOR AIRLINES
DC 3 AIRCRAFT
INCREASED SPEED
ADDED COMFORT OF TRAVEL
OPERATED RELIABLY AND PROFITABLY

13. PROFESSIONAL AIRLINE MANAGER
NEW GROUP OF MANAGERS EMERGED
PROVED MOST DOMINANT PERSONALITIES THUS FAR
INDUSTRY NEEDED STRONG LEADERSHIP

14. PROFESSIONAL AIRLINE MANAGER
GROUP OF DYNAMIC INDIVIDUALS OUTSTANDING TRAIT
ABILITY TO TAKE RISKS AGAINST GREAT ODDS
KEEP GOING IN ADVERSITY
PASSENGER REVENUES EXCEEDED INCOME FROM MAIL PAYMENTS IN 1940
DEC 1, FIRST AIRWAY TRAFFIC CONTROL CENTER NEWARK, NJ

15. THE GROWTH YEARS 1938-1945 THREE AGENCIES HELD POWER
POST OFFICE DEPARTMENT
INTERSTATE COMMERCE COMMISSION
CIVIL AERONAUTICS ACT OF 1938 ESTABLISHED
CIVIL AERONAUTICS AUTHORITY (CAA)

16. THE GROWTH YEARS 1938-1945 AVIATION CONTRIBUTED TO THE WAR EFFORT
PRODUCTION CONVERTED OVERNIGHT
DC-3’S BECAME C-47 TRANSPORTS
WAR SHRANK THE AIRLINES THEMSELVES
INDUSTRY NOTHING MORE THAN THE SUM OF THE SKILL AND EQUIPMENT

17. THE POSTWAR YEARS
AFTER WWII DC-4 AND CONSTELLATION BECAME KEY CIVILIAN AIRCRAFT.
LOCKHEED BUILT CONSTELLATION
WRIGHT ENGINES
PRESSURIZED AIRFRAME
TRIPLE TAIL (WHICH DOUGLAS HAD ABANDONED)

18. THE POSTWAR YEARS
ESTABLISHED CARRIERS FEARED GOVERNMENT WOULD SUBSIDIZE NEW FEEDER LINES.
ARGUED--THEY SHOULD PROVIDE SERVICE
CAB ASSURED THEM FEEDERS WOULD BE WATCHED
NOT ALLOWED TO MOVE INTO COMPETITION WITH THE TRUNK LINES.

19. THE POSTWAR YEARS SOME OF THE FIRST FEEDERS WERE ALLEGHENY PIEDMONT
NORTH CAROLINA
FRONTIER
BONANZA
OZARK
PACIFIC

20. THE POSTWAR YEARS
BIGGEST PROBLEM WAS THE NON-SCHEDULED AIRLINES--- NOT FEEDERS
BERLIN AIRLIFT IN CREATED UNEQUALED OPPORTUNITY FOR A VIABLE AIR FREIGHT BUSINESS

21. THE POSTWAR YEARS 1947----CIVIL AERONAUTICS AUTHORITY (CAA)
BEGAN CERTIFYING THREE NEW CLASSES OF FLIGHT PERSONNEL ---- A SYMBOL OF A NEW TECHNICAL ERA.
FLIGHT RADIO OPERATORS
NAVIGATORS
FLIGHT ENGINEERS

22. THE POSTWAR YEARS TURBO-PROPS BECAME THE AIRPLANE OF THE TIMES
VICKERS VISCOUNT
ELECTRA
SUPER CONSTELLATION

23. THE JET ERA 1958-1978 THE JET AGE COMETH SPEEDS INCREASED BY 50%
TIMING BECAME DOUBLY PRECISE
CAA LOOKED AT AUTOMATION OF AIR TRAFFIC CONTROL

24. THE JET ERA
TWA CONSTELLATION AND UNITED DC-7 COLLIDED OVER THE GRAND CANYON--KILLING 128 PEOPLE
ONE INDEPENDENT AND COMPREHENSIVE AGENCY
CONTROL ALL AVIATION MATTERS BOTH CIVIL AND MILITARY

25. THE JET ERA 1958 - 1978 STABILIZATION OF THE INDUSTRY
BOEING 707 / DC - 8
BOEING 727 / DC - 9
SINCE THE JETS TOOK OVER----
THE AIRLINE BUSINESS HAS BEEN A HISTORY OF TECHNICAL ACHIEVEMENT
PASSED DURING THIS ERA FROM A PERIOD OF HIGH RISK TO A PERIOD OF VIRTUALLY NO RISK AT ALL

26. THE JET ERA
WITH THE AIRLINE DEREGULATION ACT OF THE AIRLINE INDUSTRY MOVED INTO AN ERA OF NEW CHALLENGES

27. FEDERAL LEGISLATION AND THE AIRLINES
STABILIZE THE INDUSTRY
IMPROVE AIR SAFETY
REDUCE CASH SUBSIDY
OTHER REASONS
INDUSTRY USES THE AIR SPACE OF U.S.
OTHER COUNTRIES
INTERNATIONAL WATERS
CIVIL RESERVE AIR FLEET (CRAF)