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Overview of Air Transport Control

by:CNS     2021-07-08
Overview of Air Transport Control 2021-06-20 17:22:37 Before 1938, nail art was mainly to control railways. In response to the various abuses caused by railway monopoly at that time, the Interstate Commerce Commission was established and the Commercial Control Law was formulated. The railway monopoly controls, forcing the railway enterprises to compete vigorously with each other to protect the public interest. In the 20th century, great changes have taken place in the domestic transportation market in the United States. With the vigorous development of road, water transportation and air transportation, the competition between them and the railway and the internal competition among various methods have become more and more fierce, and with the intensification of competition7, there has been excessive competition and unfair competition. This phenomenon has harmed the normal development of the transportation industry. During this period, competition has become the main feature of the transportation market, and monopoly has retreated to a secondary position. In order to adapt to this new change, the U.S. transportation industry organization policy has undergone corresponding changes, from restricting monopoly and maintaining competition to regulating transportation competition. . The regulation of air transportation that occurred in 1938 was one of the consequences of this change. In order to avoid excessive and unfair competition within the aviation industry, and to protect airlines from obtaining normal income, the Civil Aviation Law of 1938 mainly controlled the aviation industry in three aspects: 1. Strictly restrict the entry of new enterprises. ②Prohibition of business mergers; ③Control of freight rates and revenue. This is mainly considering that too many airlines enter the market, which will cause destructive competition among enterprises to fight for a limited market, resulting in repeated waste, excessive extension and inferior services, and at the same time, because aviation does not have enough revenue to maintain normal production activities , Will eventually go bankrupt or go bankrupt, reducing the production capacity of the aviation industry, so it is necessary to control entry and freight rates. The prohibition of mergers between enterprises is to prevent unfair competition caused by monopoly. Before 1970, the freight rates, route development, flight entry and exit of airlines all over the world were strictly controlled by the government. As a result of the regulation of competition in the aviation industry, from 1938 to 1978, 80 airlines applied to enter the aviation industry, but none of the trunk licenses were approved. Airlines are over-protected and strictly controlled by the Civil Aviation Administration. They have no internal operational autonomy, lack of external competitive pressure, poor service quality, high ticket prices and deteriorating financial conditions. Some well-known scholars have calculated the control cost of the aviation industry and pointed out that this kind of control is a chaotic allocation of resources, which causes great social costs. This is not only the case for the aviation industry, but also for other modes of transportation. Especially for railways, the Pennsylvania Central Railway, which accounted for ⒛% of the national freight and passenger transportation in 1970, and five railways in the same area filed for bankruptcy at the same time, which further led to people's doubts about the effectiveness of control, and the voice of anti-control is getting higher and higher.
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