WASHINGTON, D.C. — President Jimmy Carter signed three major pieces of legislation affecting transportation in the late 1970s and early 1980s. Among these was the Airline Deregulation Act of 1978.
The act eliminated the Civil Aeronautics Board, which had previously regulated airline routes and fares. It permitted airlines to independently set fares and select routes. The legislation contributed to the development of the hub-and-spoke routing model and facilitated the market entry of low-cost passenger airlines.
Carter also signed the Motor Carrier Act of 1980, which removed federal price and route controls from the trucking industry. This act contributed to the formation of numerous smaller and specialized trucking firms. The Staggers Rail Act of 1980 granted freight railroads the authority to set pricing based on market conditions, permitting railroads to negotiate private contracts with shippers. This contributed to financial recovery in the freight rail industry.
Joe Schwieterman, a transportation professor at DePaul University, said, "Deregulation transformed stodgy industries into highly innovative and customer-driven enterprises." He noted that deregulation ushered in an era of fast-paced transportation that completely changed how people live. Schwieterman added, "Deregulation set off a tidal wave of innovation that lowered transportation costs and spurred enormous economic growth."
Economic growth in the transportation sector has continued for approximately 50 years following the deregulation laws. The Department of Transportation currently prioritizes safety, regulatory compliance, and infrastructure development over economic regulation. The department continues to conduct enforcement actions against carriers that violate safety standards.
Following the deregulation legislation, companies without sufficient capital or operational expertise exited the transportation sectors. Independent trucking companies experienced increased price competition, and consolidation in the freight rail sector decreased the total number of major operating carriers. Several rural communities lost scheduled commercial air service as airlines shifted operations to more profitable routes. President Ronald Reagan succeeded Carter and oversaw continued transportation deregulation.
No independent assessment of Jimmy Carter’s claims was available.