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Airmail Act Of 1930

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After The Airmail Act of 1930 contracts with the post office were the main source of income for commercial airlines. The Airmail Act of 1930 changed the way payments to airlines were calculated, it was based off of the volume of mail, rather than the weight of the mail (Baltazar, 2018) Established airlines ended up outbidding the smaller operators form contracts with the U.S. Postal System. There was no competition due to the high bidding abilities from the established airlines. The new system of payments increased the efficiency of the U.S. Postal System. Most of the airlines involved with the U.S Postal System were small and underfunded compared to the other airlines, which only allowed them to fly older aircraft and short routes. There were

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