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Deregulation
Carter signing the Airline Deregulation Act, 1978
Main article: Airline Deregulation Act
In 1977, Carter appointed Alfred E. Kahn to lead the Civil Aeronautics Board (CAB). He was part of a push for deregulation of the industry, supported by leading economists, leading think tanks in Washington, a civil society coalition advocating the reform (patterned on a coalition earlier developed for the truck-and-rail-reform efforts), the head of the regulatory agency, Senate leadership, the Carter administration, and even some in the airline industry. This coalition swiftly gained legislative results in 1978.[176]
Carter signed the Airline Deregulation Act into law on October 24, 1978. The main purpose of the act was to remove government control over fares, routes and market entry (of new airlines) from commercial aviation. The Civil Aeronautics Board's powers of regulation were to be phased out, eventually allowing market forces to determine routes and fares. The Act did not remove or diminish the FAA's regulatory powers over all aspects of airline safety.