| Course | AVT-3010 Airline Management |
|---|---|
| Module | Module 1 |
| Paper type | Written Assignment 1: historical developments in aviation |
| Length | About 787 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | B.S.B.A. in Aviation Management |
| Updated | October 2026 |
Free sample paper for AVT 3010 Module 1
From Fixed Fares to Open Entry: How Deregulation Made Room for JetBlue
Student Name
B.S.B.A. in Aviation Management, Thomas Edison State University
AVT-3010: Airline Management
Mentor Name
Month Day, Year
From Fixed Fares to Open Entry: How Deregulation Made Room for JetBlue
Introduction
Every airline operating in the United States today is shaped by a choice Congress made in 1978. For forty years before that, a federal board decided which airlines could fly which routes and what they could charge. This paper traces that system, explains why it ended and shows what deregulation made possible, using JetBlue Airways as the example. It closes with three airlines I may choose for the final research paper.
Regulation Under the Civil Aeronautics Board
The Civil Aeronautics Act of 1938 created the agency that became the Civil Aeronautics Board (CAB). The CAB controlled entry into the industry, assigned routes and approved fares. Wensveen (2015) describes how this protected the established trunk carriers, such as American, United, Eastern and TWA, from new competition. No new trunk carrier received a certificate for decades. Because airlines could not compete on price, they competed on service: meals, frequency and cabin features. Fares were set to cover costs, so inefficiency could be passed on to passengers.
Intrastate airlines showed another path. Carriers that flew only within one state, such as Southwest in Texas and Pacific Southwest in California, were outside CAB fare control. They charged much less on comparable distances and still made money. Economists and policymakers took this as evidence that regulation was keeping fares high.
The Airline Deregulation Act of 1978
Under Chairman Alfred Kahn, the CAB began loosening its rules in 1977, and Congress passed the Airline Deregulation Act in 1978. The act phased out the CAB's control of routes and fares, and the board itself closed at the end of 1984. Safety regulation stayed with the Federal Aviation Administration. Rose (2012) concludes that deregulation brought lower average fares, more travel and more efficient airlines, even though it also brought bankruptcies, mergers and periods of severe financial stress.
What Followed: Hubs and Low-Cost Carriers
Borenstein (1992) traces two major responses. First, the large carriers built hub-and-spoke networks, routing passengers through connecting airports. Hubs let an airline serve many city pairs with fewer aircraft, but they also gave a dominant carrier market power at its hub, where fares tended to be higher. Second, new entrants appeared, and many failed, as People Express did in the 1980s. Dresner et al. (1996) found that when a low-cost carrier entered a route, fares fell not only on that route but also on competing routes at nearby airports, an effect that made low-cost entry a central force in the industry.
| Period | Who controlled entry and fares | Typical airline behavior |
|---|---|---|
| 1938-1977 | Civil Aeronautics Board | Competition on service; fares set to cover costs |
| 1978-1984 | CAB phasing out | New entrants; first fare wars |
| 1985-1999 | Market | Hub networks; mergers; low-cost carriers grow |
| 2000-present | Market | Low-cost and ultra-low-cost carriers; consolidation |
Why JetBlue Needed Deregulation
JetBlue Airways was founded by David Neeleman in 1998 and began flying from New York's John F. Kennedy International Airport in February 2000. Its plan depended on freedoms that did not exist before 1978: choosing its own routes, setting its own fares and entering markets held by established carriers. JetBlue started with new Airbus A320 aircraft, leather seats and live television at every seat, and it priced below the legacy carriers on routes such as New York to Florida (JetBlue Airways Corporation, 2025). Under the CAB, such an airline would have needed approval for each route, and the board rarely granted new carriers access to markets served by trunk airlines. The company combined low cost with a better onboard product, a position that only made sense in a market where airlines competed on both price and service.
Lessons From the History
Three lessons carry into the rest of the course. Market entry is open but hard, since many new airlines have failed. Network design matters, because hubs and focus cities give airlines power in some markets and weakness in others. And low-cost competition shapes pricing for everyone. JetBlue's history includes all three, which is one reason it is a strong choice for the research paper.
Final Project Step 1: Three Candidate Airlines
JetBlue Airways: a low-cost carrier with a premium product, a New York and Boston focus and recent merger attempts that courts blocked.
Alaska Airlines: a West Coast carrier that acquired Virgin America and later Hawaiian Airlines.
Allegiant Air: a leisure carrier serving small cities with low-frequency flights to vacation destinations.
My first choice is JetBlue, because its history connects directly to deregulation and its recent decisions touch every topic in the course.
Conclusion
Deregulation replaced a board's decisions with market choices. That change produced hubs, failures, low-cost competition and new airlines such as JetBlue. Understanding this history explains why today's airlines look and behave as they do.
References
Borenstein, S. (1992). The evolution of U.S. airline competition. Journal of Economic Perspectives, 6(2), 45-73. https://doi.org/10.1257/jep.6.2.45
Dresner, M., Lin, J. S. C., & Windle, R. (1996). The impact of low-cost carriers on airport and route competition. Journal of Transport Economics and Policy, 30(3), 309-328.
JetBlue Airways Corporation. (2025). Annual report on Form 10-K for the fiscal year ended December 31, 2024. U.S. Securities and Exchange Commission.
Rose, N. L. (2012). After airline deregulation and Alfred E. Kahn. American Economic Review, 102(3), 376-380. https://doi.org/10.1257/aer.102.3.376
Wensveen, J. G. (2015). Air transportation: A management perspective (8th ed.). Ashgate.
Reading the AVT 3010 Module 1 assignment instructions
AVT-3010 has six written assignments worth 30 percent together, six graded discussions worth 20 percent, a proctored midterm and final exam worth 10 percent each, and a research paper on an airline of your choice worth 30 percent. Module 1, Historical Developments in Aviation, covers the first two course objectives. Expect a short paper on how the U.S. airline industry developed, from early regulation through the Airline Deregulation Act and its effects. The syllabus also makes this module the first step of the final project: name three airlines you might research. Your mentor marks that step complete or incomplete and comments on your choices, so explain briefly why each airline interests you. Name the airline you would most like to study and say what question about it you hope the research paper will answer.
How the AVT 3010 Module 1 example is put together
The sample opens by naming 1978 as the turning point and stating the plan. One section explains how the Civil Aeronautics Board controlled entry and fares and how intrastate airlines exposed the cost of that control. Another covers the 1978 act and Rose's summary of its effects. A section on what followed uses Borenstein for hub networks and Dresner and colleagues for the low-cost effect, and a four-row timeline table gathers the history, with a margin note explaining its purpose. The paper then shows why JetBlue's 2000 start depended on deregulation, draws three lessons and lists three candidate airlines with a stated first choice. A short conclusion closes it. Each section stays short, so the history remains readable and leaves room for the project step at the end.
AVT 3010 Module 1 rubric: what earns full marks
Mentors use a written assignment rubric that rewards accurate history, clear explanation of cause and effect, use of the Wensveen text and outside sources, and clean APA form. A strong paper explains why the regulated system produced the behavior it did, such as service competition, instead of listing dates. It links deregulation to outcomes with evidence, and it connects the history to a present-day airline. For the project step, the mentor looks for three realistic choices with a reason for each, since the next step asks you to commit to one. Writing that stays clear and organized under headings earns more than a long narrative. Careful fact checking matters more than length, and mentors notice when dates, names and laws are stated correctly.
AVT 3010 Module 1 help from the desk
Many first papers become a timeline of famous flights, from the Wright brothers onward, and never reach the economic history the module is about. Others state that deregulation lowered fares without explaining how or citing evidence. Some forget the project step or list three airlines with no reason. Keep the history centered on regulation, deregulation and their effects, use one or two research sources besides the textbook and connect the story to an airline you might study. Check dates and names carefully, since history papers lose marks on simple errors. Ask for a free first custom AVT-3010 sample if you would like help organizing yours. Keep the project step brief as well: three airlines, one reason for each and a clear first choice.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Thomas Edison State University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
More AVT 3010 and B.S.B.A. in Aviation Management sample papers
- AVT 3010 Module 2: Written Assignment: Where JetBlue Fits in the Structure and Economics of the Industry
- AVT 3010 Module 3: Written Assignment: Forecasting Demand and JetBlue's Marketing Strategy
- AVT 3010 Module 4: Written Assignment: JetBlue's Product Offering and Revenue Management
- AVT 3010 Module 5: Written Assignment: Scheduling, Route and Fleet Planning at JetBlue
- AVT 3010 Module 6: Final Project: Research Paper on JetBlue Airways
- AVT 3050 Module 3: Written Assignment: Communication Lessons From Malaysia Airlines for Boardwalk Air
- AVF 4720 Module 7: Final Project: Analysis of an Airport From a Tour and an Executive Interview
- AVF 4740 Module 7: Blog Entry: Paying for the Runway and Counting the Airport's Value
AVT 3010 Module 1 questions, answered
Where can I find a free AVT 3010 Module 1 sample paper?
The paper above traces airline regulation and deregulation and ends with three airlines chosen for the research project.
What did the Civil Aeronautics Board do?
It controlled which airlines could enter the industry, which routes they flew and what fares they charged, from 1938 until deregulation phased those powers out.
When did airline deregulation happen in the United States?
Congress passed the Airline Deregulation Act in 1978, and the Civil Aeronautics Board closed at the end of 1984.
What happened after airline deregulation?
Fares fell on average and travel grew, while large carriers built hub-and-spoke networks, many new airlines entered and failed, and mergers followed.
What is the AVT-3010 final project?
A paper of eight to ten pages about one airline you choose, covering its past, its network and aircraft, what it sells, how it markets itself and how it pays for growth, built in four steps.