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By Anson Busch. Type of airline. Published at Saturday, March 23rd, 2019 - 07:32:40 AM.

By the 1980s almost half of the total flying in the world took place in the U.S. and today the domestic industry operates over 10 000 daily departures nationwide.

In recognition of the essential national economic role of a healthy aviation system Congress authorized partial compensation of up to $5 billion in cash subject to review by the U.S. Department of Transportation and up to $10 billion in loan guarantees subject to review by a newly created Air Transportation Stabilization Board (ATSB). The applications to DOT for reimbursements were subjected to rigorous multi-year reviews not only by DOT program personnel but also by the Government Accountability Office 45 and the DOT Inspector General. 46 47

Undaunted Delta ultimately resorted to acquiring the regional carrier and subsequently received approval for the merger on April 24 1972. But these extremes would shortly no longer be needed.

Increasingly since 1978 US airlines have been reincorporated and spun off by newly created and internally led management companies and thus becoming nothing more than operating units and subsidiaries with limited financially decisive control. Among some of these holding companies and parent companies which are relatively well known are the UAL Corporation along with the AMR Corporation among a long list of airline holding companies sometime recognized worldwide. Less recognized are the private equity firms which often seize managerial financial and board of directors control of distressed airline companies by temporarily investing large sums of capital in air carriers to rescheme an airlines assets into a profitable organization or liquidating an air carrier of their profitable and worthwhile routes and business operations.


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