( CNN ) -- Alfred Kahn , an economist who became known as the `` architect of deregulation '' under the Carter administration , has died of cancer . He was 93 . It is widely accepted that Kahn 's efforts dismantled air travel as the domain of the elite and paved the way for low-cost airlines . He died at his home in Ithaca , New York , on Monday , according to a statement from Cornell University where he was a professor emeritus of political economy . Kahn spearheaded the U.S . Airline Deregulation Act of 1978 when he chaired the now-defunct Civil Aeronautics Board . At the time , a coast-to-coast ticket cost an exorbitant sum of money and no new airlines were taking flight . Airlines such as Pan Am , Eastern and Braniff ruled the skies , and the aeronautics board governed them , controlling routes and ticket prices , keeping fares high and eliminating competition . `` Nobody could fly an airplane commercially on any route without specific permission from the Civil Aeronautics Board , and price competition , cutting prices , was illegal , '' Kahn told CNN in 1998 , recalling that period . He wanted change that would allow competition and let prices be set by the marketplace rather than the government . The result of his work was the Airline Deregulation Act of 1978 , signed into law by then-President Jimmy Carter , who predicted it would reduce airfares by up to 50 percent and open up air travel to millions of Americans who previously could n't afford it . The Department of Transportation became the industry watchdog , and airlines took control of themselves . Deregulation gave birth to the concepts of airport hubs and frequent flyer miles and led to the creation of new airlines . `` His vision and actions resulted in a profound transformation of the U.S. airline industry and strongly influenced international air transportation , '' the publishers of Aviation Week and Space Technology said when they named him the winner of the 1997 Welch Pogue Award , which recognizes contributions to aviation . When he chaired the aviation board , Kahn was also remembered for his campaign to eliminate `` 'bureaucratese ' or gobbledygook '' at the agency , said colleague Robert Frank , a professor of management at Cornell 's Johnson School . `` If you ca n't explain what you 're doing in plain English , you 're probably doing something wrong , '' Kahn once told the board 's staff . After his term at the aeronautics board , Carter tapped him to serve as his advisor on inflation . When the administration admonished him for alarming the public that the country could face a `` deep , deep depression '' if Carter 's anti-inflation policies failed , Kahn began using the euphemism `` banana '' for the word `` depression , '' Cornell university said in a statement . Kahn later switched `` banana '' to `` kumquat '' when a large banana company complained . He is survived by his wife , Mary ; three children ; a nephew for whom he and Mary were legal guardians ; eight grandchildren and two great-grandchildren , the university said .
Kahn 's policies have paved the way for low - cost airlines . He spearheaded the Airline Safety Act that let prices be set by the market and not the government . Deregulation let to the elimination of airport fees and frequent flyer miles . He is also known for his efforts to eliminate ` ` . ''