The Airline Deregulation Act of 1978 had what effect on airline regulation?

• A. Ended federal control over airline routes, fares, and market entry
• B. Created the FAA
• C. Expanded CAB authority
• D. Increased government subsidies to airlines

Answer: (C)

The main idea here is that deregulation removed the government’s direct control over where airlines could fly, what prices they could charge, and which carriers could enter or leave markets. The Airline Deregulation Act of 1978 shifted those decisions toward market competition rather than federal dictates. The safety regulation role remains with the FAA, and the Civil Aeronautics Board’s power to set routes and fares was greatly reduced and eventually dissolved. Subsidies to airlines were not a central part of this change. So the most accurate description is that the act ended federal control over routes, fares, and market entry, paving the way for a more market-driven industry.