An Investigation of Federal Promotion of the Domestic Trunk Airline Industry through a Program of Air Mail Payments

Abstract

This paper is essentially an historical account with economic commentary upon the program of air mail payments to the domestic trunk airline industry. Specifically, the paper attempts to examine the place and role of air mail payments in the development of commercial air transportation. The approach to and treatment of this topic has not concerned itself with the larger economic policy issues and questions which normally surround a program of external aid or subsidy to an industry. Rather, the scope of this study has been concerned with the question of how air mail pay has been used to promote the development of this industry. In dealing with the latter question, this paper looks more closely at the specific legislative acts, their provisions with respect to air mail payments, their administration, and their functioning.