HW2_2.2_AbdulSalam - EMBRY RIDDLE AERONAUTICAL UNIVERSITY Management of Air Cargo BSAB410 Assignment 2.2 Air Cargo Leaders Companies ABDUL SALAM 2348888

HW2_2.2_AbdulSalam - EMBRY RIDDLE AERONAUTICAL UNIVERSITY...

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EMBRY – RIDDLE AERONAUTICAL UNIVERSITY Management of Air Cargo BSAB410 Assignment 2.2 Air Cargo Leaders - Companies ABDUL SALAM 2348888 History
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Before the deregulation of the air cargo industry in 1977, the government had only certified four all-freight carriers to operate. Carriers like UPS, FedEx and DHL were not among them, and therefore were only permitted to operate small planes, even though using larger ones were definitely more efficient. This is because they were classified as an express service. After the deregulation of the 1977 of the air cargo segment of the industry, UPS, FedEx and DHL were now allowed to be classified as an air cargo carrier and thus operate much bigger planes. The Airline Deregulation Act of 1978, which shifted control of the air travel from the government to the open market, allowed airlines to expand (Smith & Cox, 2008). By the time the deregulation act was passed in United States, UPS already had a very vast ground delivery system in place. UPS started off by being a ground delivery service, delivering packages with the use of cars and trucks. After World War II, UPS started their two-day delivery service to major cities on the east and west coast. They became the first company to provide air service via privately operated airlines (UPS, n.d.). After the deregulation of 1978, many established airlines had to reduced flights and abandon some routes. This forced UPS to start its very own jet cargo fleet to
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