The deregulation of the United States airline industry was spearheaded by President Jimmy Carter, who signed the Airline Deregulation Act into law on October 24, 1978. Before this landmark legislation, the federal government—via the Civil Aeronautics Board (CAB)—strictly controlled where airlines could fly, which routes they could enter, and exactly how much they could charge for tickets. This meant that flying was a luxury reserved for the wealthy, and competition was virtually non-existent. Carter, influenced by economists like Alfred Kahn, believed that a free-market approach would lower fares and increase accessibility for the average American. The act successfully phased out the CAB and allowed airlines to set their own prices and determine their own routes. While this led to the rise of "budget" carriers and significantly cheaper airfare, it also fundamentally changed the industry by encouraging the "hub-and-spoke" model and leading to the eventual bankruptcy of legendary but inefficient carriers like Pan Am and Eastern Air Lines.