343:
296:
31:
220:
intrastate carriers tended to be tiny, a reflection of the fact that the economic opportunity was limited except in larger states. But such state regulation tended to be lighter than that exerted by the CAB. Moreover, state regulators had an interest in seeing "their" airlines succeed. The CPUC allocated non-overlapping routes between Air
California and PSA, ensuring the survival of Air California (a new entrant in 1967) against interstate airlines competing on Air California routes. In Texas, enabling legislation specified that the TAC was to encourage and develop intrastate air service.
236:). Only in the last year of regulation (1978) did the CAB relax and award economic certificates. Until deregulation it was impossible for an intrastate airline to swap its state certificate for a CAB certificate. Therefore, while intrastate carriers were one of the few ways to start a scheduled carrier, there was a natural limit bounded by the geography/demography/economics of the state they were certified within. PSA became superdominant within California, hitting a market share of 70% of passengers flying within California, but until deregulation had no ability to go beyond California.
307:
322:
265:
93:. Nonetheless, these carriers had an outsized impact because of their prominent success. Despite being much smaller than the federally-regulated carriers, PSA and Air California came to dominate intra-California air travel, and Southwest the same in Texas. Moreover, the fares of such carriers were notably lower than federally regulated fares, leading to substantial increases in passenger traffic on the routes on which they competed, despite which the financial results of these carriers were far superior.
141:(CAB), the federal agency responsible for economic airline regulation, and the CAB's requirement that PSA's service not have a material impact on interstate commerce required, among other things, that PSA not sell joint tickets to/from out-of-state cities and that PSA not sell tickets on its routes to anyone located outside California. It also meant that when the CAB allowed interstate carriers competing on such routes (e.g.
157:. This airport is located in California, right next to Nevada, and clearly many travelers used such flights to travel between California and Nevada. In the eyes of the CAB, this constituted a more-than-incidental impact on interstate commerce, which therefore meant such service should be regulated by the CAB, notwithstanding that the route itself was between two California points.
97:
traditional carriers and being swept up in the first decade of post-deregulation consolidation, Southwest stuck to its business model and became the most consistently successful airline in the United States, in turn inspiring many copycats worldwide. The advent of airline deregulation globally, and in particular such carriers as
256:(FAA). This too is a consequence of the Commerce Clause - one aircraft is the same as any other in matters such as air navigation, and it would make no sense for both state and federal agencies to both provide services like air traffic control. Courts have long viewed safety as a federal responsibility.
200:(CPUC) regulated ticket prices for California intrastate carriers like PSA and Air California under pre-existing legislation pertaining to intrastate transportation generally. Only in that year did legislation increase the CPUC's authority to airline certification, market entry/exit and service quality.
397:
Southwest is now the largest airline in the US by domestic passengers carried. Southwest was fortunate that deregulation occurred when it did, almost at the exact time the airline ran out of Texas cities to which to expand. Southwest had swept Texas of competition but had not had a chance to lose its
338:
The highest profile intrastate carrier was PSA, the acknowledged inspiration for the other three. PSA became super dominant within
California, with a market share as high as 70% and playing a substantial role in the life of the state. However, in the late 1960s and early 1970s it became distracted by
286:
The first intrastate carrier to make a substantial impact was
California Central Airlines (CCA) from 1949 to 1955. CCA slightly preceded PSA (which started later in 1949) and during its existence flew many more passengers than PSA. CCA was credited to moving most transport between Los Angeles and San
248:
effectively abolished federal economic regulation of domestic air travel in the United States starting in 1979 (the CAB was dissolved in 1985 under the same legislation). Further, it protected federally certified air carriers from attempted state economic regulation. Federal, not state, certification
96:
The contrast was stark. The success of these small carriers stood out among a US economy that, in the 1970s, was generally stagnant. They therefore helped inspire the 1979 deregulation of the US airline industry. While PSA and Air
California had minor impact thereafter, choosing to become effectively
84:
In aggregate, US intrastate carriers never comprised a large portion of the US airline industry. At year-end 1978 (the end of the regulated era), the fleets of PSA, Air
California and Southwest numbered 34, 13 and 13 aircraft respectively against a total of 2,263 aircraft in US air carrier fleets. A
56:
in 1979. These intrastate carriers therefore amounted to a small unregulated, or less regulated, sector within what was otherwise then a tightly regulated industry. As detailed below, flying within the geographic boundaries of a single state was a necessary but not sufficient condition to qualify as
359:
Air
California was the one other notable California intrastate airline, not so much a rival to PSA as a complement, because its success was in large part due to being protected from PSA competition by its state regulator and by being part of a duopoly (from which PSA was excluded) at its main base.
176:
Further, when the State of Hawaii attempted to certificate an intrastate carrier, Island
Airlines, the CAB challenged it on the basis that the channels between the Hawaiian islands were under CAB jurisdiction and therefore no airline could fly from one Hawaiian island to another without engaging in
317:
Intrastate carrier success required a state that was physically large and had a substantial population. Unsurprisingly, the four intrastate airlines that acquired jet equipment were from
California (PSA and Air California), Texas (Southwest Airlines) and Florida (Air Florida). Air California first
172:
are examples of airlines that, prior to 1979, operated solely within a single state yet for several reasons remained regulated by the CAB. First, the carriers did participate in interstate commerce by, for instance, selling connecting tickets to the rest of the United States. Moreover, at times in
219:
By 1976, 25 US states regulated intrastate carriers within their borders. Of the 25 requiring certification for intrastate airlines, 15 regulated flight schedules, 17 regulated quality of service, 19 regulated market entry/exit and 19 regulated prices. However, other than in a handful of states,
369:
Air
Florida was unsuccessful for most of its intrastate existence, finally turning it around in the last year of regulation (1978). Air Florida thereafter expanded extremely rapidly in the early years of deregulation and was celebrated as the "little airline that could" until a
149:) to match the lower fares of PSA, such fare matching applied only to tickets sold within the state of California - on purchases of tickets outside of California on United on a route within California that competed with PSA, normal (higher) CAB fares applied.
180:
For similar reasons, California intrastate airlines could not fly too far offshore. In 1967, the CAB provided
Pacific Southwest Airlines with a specific exemption to allow it to fly between Los Angeles and San Francisco more than three miles offshore.
152:
The CAB took the requirement for minimal impact on interstate commerce extremely seriously. As an example, in the dying days of the regulated era, the CAB was still engaged in a fight with PSA and Air California over the service of these carriers to
134:, under which the US federal government may only regulate interstate commerce, leaving states considerable leeway to regulate companies that operate solely within a single state, so long as that operation has minimal interstate impact.
643:
Air Cargo and Passenger Deregulation: Hearings Before the Subcommittee on Aviation of the Committee on Public Works and Transportation, House of Representatives, Ninety-sixth Congress, First Session, July 25,31; August 1 and 2,
224:, Southwest's first CEO, saw the TAC as "anxious to have a real airline ... under the TAC's jurisdiction." In Florida, the Public Service Commission likewise sought to increase service by intrastate carriers.
742:
Civil Aeronautics Board Practices and Procedures: Report of the Subcommittee on Administrative Practice and Procedure of the Committee on the Judiciary of the United States Senate
339:
ill-conceived diversification into hotels, rental cars and radio stations, and made a very poor decision to buy wide-bodied aircraft, leading to significant financial distress.
318:
flew in 1967, Southwest in 1971 and Air Florida in 1972. In 1970, the populations of California, Texas and Florida were 20.0mm, 11.2mm and 6.8mm respectively.
413:
232:
During the regulated era, certification of new scheduled carriers by the CAB was extremely rare. From 1950 until 1974, there was only one certification (
185:
asked PSA to request CAB permission to use such a routing in the name of safety. The "high seas" were otherwise reserved for CAB certificated carriers.
542:
The Intrastate Exception to CAB Regulation: How Much Interstate Activity Can An Intrastate Carrier Engage in and Retain Its Freedom From CAB Regulation
177:
interstate commerce. This was upheld in court. So intrastate Hawaiian carriers were limited to flying within the boundaries of each individual island.
846:
762:
137:
Prior to PSA's launch in 1949, it was not obvious that such a niche existed for airlines - PSA had to assert the Commerce Clause against the US
915:
86:
196:
Prior to 1979, airlines with such status were economically regulated, if at all, by their home state. For example, prior to 1965, the
68:, played a major role in the advent of US airline deregulation and thus airline deregulation globally, and the subsequent growth of
249:
now provided the most economic freedom for intrastate airlines, which left state regulatory bodies with no airlines to regulate.
910:
398:
competitive fire, its focus nor discipline. It simply kept methodically expanding nationally the same way it had within Texas.
197:
173:
their history the two carriers were directly subsidized by the CAB, including participating in CAB aircraft finance programs.
17:
499:"Dockets 22680, 22721 Pacific Southwest Airlines and Air California, Exemptions - order 71-8-57 adopted August 12, 1971"
374:, after which it fell on hard times until its bankruptcy in 1984. After being grounded for three months, it operated in
567:"Dockets 18713 and 18759, Pacific Southwest Airlines, Three-Mile Limit Exemption—order E-25483 adopted August 2, 1967"
213:
131:
253:
182:
814:
776:
711:
885:
790:
Robert F. Maris, "State Versus Federal Regulation of Commercial Aeronautics", 39J. Air L. & Com.521 (1973)
554:
392:
34:
789:
76:
by the federal government, eventually extending to railroads, trucking, energy, communications and finance.
205:
60:
Despite providing a small proportion of US airline capacity, the success of these airlines, in particular
681:
379:
342:
281:
333:
295:
61:
828:
245:
126:
The opportunity for intrastate carriers to escape federal economic regulation arose because of the
53:
90:
138:
920:
872:
347:
30:
252:
For safety purposes, intrastate carriers were regulated, as with any other US carrier, by the
48:
operating solely within a single US state and taking other steps to minimize participation in
371:
306:
426:
113:
in Asia, can therefore be traced back, in significant part, to these intrastate pioneers.
8:
321:
73:
617:
386:
201:
154:
65:
72:. Further, US airline deregulation was merely the first in a wave of general economic
905:
833:
707:
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165:
239:
749:
745:
651:
647:
609:
582:
578:
510:
472:
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449:
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146:
69:
52:, thus enabling them to escape tight federal economic airline regulation prior to
741:
642:
566:
464:
441:
311:
233:
142:
127:
49:
816:
United States v. Pacific Southwest Airlines, 358 F. Supp. 1224 (C.D. Cal. 1973)
778:
United States v. Pacific Southwest Airlines, 358 F. Supp. 1224 (C.D. Cal. 1973)
354:
188:
Geographical intrastate operation alone did not imply legal intrastate status.
169:
899:
800:
726:
664:
539:
514:
744:(Report). Washington DC: U.S. Government Printing Office. 1975. p. 80.
264:
498:
269:
364:
209:
45:
227:
697:
621:
597:
375:
326:
300:
221:
27:
Pre-1979 US airline that minimized participation in interstate commerce
463:
Bailey, Elizabeth E.; Graham, David R.; Kaplan, Daniel P. (May 1983).
667:
State Regulation of Airlines and the Airline Deregulation Act of 1978
613:
110:
240:
Airline deregulation and the effective end of intrastate airlines
102:
98:
89:
said such airlines accounted for less than 2% of all US airline
106:
646:(Report). U.S. Government Printing Office. 1980. p. 375.
598:"An Evaluation of Intrastate Airline Regulation in California"
439:
683:
Southwest Airlines: A Texas Airline in an Era of Deregulation
555:
CAB v. Island Airlines, Inc., 235 F. Supp. 990 (D. Haw. 1964)
287:
Francisco from ground to air, which was noticed nationally.
686:(Master of Arts thesis). Texas Tech University. p. 13.
442:
An Analysis of the Intrastate Air Carrier Regulatory Forum
290:
479:
444:(Report). Vol. I. US Department of Transportation.
854:
521:
228:
Inability to swap state for federal (CAB) certificate
37:
was a California intrastate airline from 1965 to 1975
829:
Southwest Airlines has a flashback – emphasis flash
467:(Report). Civil Aeronautics Board. pp. 19–25.
897:
837:. March 3, 2009. Retrieved on February 18, 2010.
259:
465:Deregulating the Airlines: An Economic Analysis
440:Simat, Helliesen & Eichner (January 1976).
382:until being acquired by that airline in 1985.
428:Air Transport Association 1978 Annual Report
378:as Midway Express, flying under contract to
874:John Wayne Airport Chronology: 1923-Present
804:, Baltimore Evening Sun, September 23, 1953
191:
866:
821:
415:Southwest Airlines Co. 1978 Annual Report
690:
527:
485:
462:
341:
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305:
294:
263:
29:
860:
679:
595:
291:Four successful intrastate jet airlines
14:
898:
198:California Public Utilities Commission
916:Aviation history of the United States
680:Dockrey, Christy E. (December 1996).
728:Air Florida, Air Sunshine eye merger
696:
669:, 44 J. AIR L. & COM. 747 (1979)
544:, 44 J. AIR L. & COM. 575 (1978)
70:low cost and ultra-low cost carriers
889:, New York Times, November 13, 1982
596:La Mond, Annette M. (Autumn 1976).
160:
24:
372:devastating accident in early 1982
25:
932:
577:: 1045–1047. July–December 1967.
214:Florida Public Service Commission
132:Constitution of the United States
879:
850:, New York Times, July 13, 1975
848:A Fallen Model For Deregulation
840:
808:
794:
783:
770:
766:, New York Times, July 14, 1978
756:
734:
730:, The Tampa Times, May 30, 1978
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673:
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635:
589:
571:Civil Aeronautics Board Reports
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503:Civil Aeronautics Board Reports
254:Federal Aviation Administration
183:Federal Aviation Administration
87:US Department of Transportation
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802:Aircoach Stand Still Unchanged
548:
533:
491:
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433:
420:
407:
121:
13:
1:
911:Aviation in the United States
764:5 Airlines May Land at Midway
602:The Bell Journal of Economics
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393:History of Southwest Airlines
275:
260:Prominent intrastate airlines
206:Texas Aeronautics Commission
7:
282:California Central Airlines
10:
937:
887:Air Florida Thinks Smaller
706:. Eakin Press. p. 2.
390:
384:
362:
352:
334:Pacific Southwest Airlines
331:
279:
116:
62:Pacific Southwest Airlines
44:in the United States were
246:Airline Deregulation Act
192:Role of state regulators
57:an intrastate carrier.
750:2027/mdp.39015078076794
652:2027/mdp.39015004260868
583:2027/osu.32435022360267
473:2027/ien.35556021337282
450:2027/ien.35556029279486
139:Civil Aeronautics Board
91:revenue-passenger miles
54:US airline deregulation
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38:
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204:was certified by the
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212:was overseen by the
85:1976 report for the
268:California Central
50:interstate commerce
42:Intrastate airlines
18:Intrastate airlines
387:Southwest Airlines
351:
330:
315:
304:
273:
202:Southwest Airlines
155:Lake Tahoe Airport
66:Southwest Airlines
39:
834:Los Angeles Times
703:Southwest Passage
665:John W. Freeman,
515:2027/uc1.b3534414
509:: 629-630. 1971.
166:Hawaiian Airlines
16:(Redirected from
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488:, p. 25-34.
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348:Lockheed Electra
161:Geography vs law
147:Western Airlines
35:Holiday Airlines
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540:John O. Tyler,
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380:Midway Airlines
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325:Air California
312:Lockheed L-1011
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234:Air New England
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143:United Airlines
128:Commerce Clause
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12:
11:
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863:, p. 644.
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608:(2): 641–657.
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391:Main article:
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170:Aloha Airlines
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105:in Europe and
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6:
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2:
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921:Airline types
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530:, p. 20.
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528:BG&K 1983
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486:BG&K 1983
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80:Significance
74:deregulation
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46:air carriers
41:
40:
698:Muse, Lamar
365:Air Florida
210:Air Florida
122:Legal basis
64:(PSA), and
900:Categories
713:1571687394
402:References
376:Chapter 11
299:Southwest
276:Forerunner
222:Lamar Muse
244:The 1978
906:Airlines
700:(2002).
627:March 2,
111:Air Asia
622:3003277
327:737-200
301:737-200
208:(TAC).
130:of the
117:History
103:EasyJet
99:Ryanair
710:
620:
107:IndiGo
618:JSTOR
708:ISBN
644:1979
629:2024
310:PSA
168:and
145:and
109:and
101:and
831:."
746:hdl
648:hdl
610:doi
579:hdl
511:hdl
469:hdl
446:hdl
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