Overview

The Civil Aeronautics Board (CAB) was a federal agency in the United States created to regulate commercial aviation. Established by the Civil Aeronautics Act of 1938, the CAB oversaw the economic regulation of airlines and, for a time, played a role in air accident investigation. Its headquarters were located in Washington, D.C..

Structure and powers

The board functioned as a small, quasi‑judicial body whose members were appointed by the President and confirmed by the Senate. It had authority to issue certificates of public convenience, approve routes and schedules, set fares and approve mergers. The CAB’s decisions shaped which carriers could serve particular markets and under what terms.

Functions and activities

Key responsibilities included:

  • Granting and revoking route certificates and operating permits.
  • Regulating fares and fare structures to control competition and ensure stability.
  • Approving airline mergers, acquisitions and international agreements affecting U.S. carriers.
  • Conducting administrative hearings and issuing enforcement actions when needed.

History and evolution

From its founding in 1938 the CAB aimed to create an orderly marketplace for air service, encouraging network growth and predictable pricing. For several decades it sheltered carriers from destructive price wars and determined market entry. In the 1960s and 1970s its investigative and regulatory roles were reexamined: accident investigation responsibilities were transferred to the newly formed National Transportation Safety Board, and broader political pressure mounted for economic deregulation of the airline industry.

The Airline Deregulation Act of 1978 began the process of phasing out CAB control over routes and fares, replacing centralized economic oversight with market competition and federal oversight by the Department of Transportation. The CAB ceased operations in 1985 after completing remaining adjudications and disposition of pending cases.

Legacy and assessment

The CAB is often cited in studies of regulation for the tradeoffs it embodied: it provided stability and service to smaller communities but also limited competition and contributed to relatively high fares and barriers to entry. Its abolition is viewed as a turning point that led to the modern competitive airline environment, the rise of low‑cost carriers, and a different regulatory emphasis on consumer protection and safety oversight rather than price setting.

For further institutional history and primary documents, consult archival collections and government histories that document mid‑20th century transportation policy.