DOMESTIC AFFAIRS OVERVIEW

The United States domestic airline industry has undergone considerable structural and operational changes since deregulation of the airline industry in 1978. Major carriers have developed extensive hub and spoke networks that serve many large, medium, and small communities. In addition, a growing number of smaller carriers have developed extensive systems of point-to-point services that offer consumers a wider range of services, and regional airlines have significantly increased the services they provide to small communities and the types of aircraft that they use in those services. Air travelers and shippers have benefited from these changes by receiving more service at lower cost. Air service networks have expanded greatly, and the wide use of discount fares has made it possible for more people to afford air travel.

The U.S. Department of Transportation is responsible for promoting the development of our national air transportation system and ensuring that competition continues to benefit the traveling public. In order to fulfill its responsibilities, the DOT investigates alleged anti-competitive practices, analyzes the competitive impacts of carrier agreements, and regularly assesses the domestic airline industry’s competitive structure and practices, as well as infrastructure issues, such as airport access, that affect development of the airline industry. The DOT is also responsible for administering several important regulatory programs, including the Essential Air Service program and the Small Community Air Service Development Program for small communities, for issuing Air Carrier Economic Authority to U.S. certificated and commuter air carriers, and administering regulations over the provision of public charters. These responsibilities frequently involve coordination with other U.S. government agencies, such as the Departments of Justice, Treasury, and Commerce, OMB, and our sister agency, the Federal Aviation Administration, as well as the White House staff.

The Office of Aviation Analysis manages and administers the Office Aviation and International Affairs domestic aviation responsibilities. Click here for a list of domestic programs, issues, and topics this office is currently responsible for.