EMBRY – RIDDLE
AERONAUTICAL UNIVERSITY
Management of Air Cargo
BSAB410
Assignment 2.2
Air Cargo Leaders - Companies
ABDUL SALAM
2348888
History
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
