Summary As debt grew over aviation, Congress came to realize that aviation could not be sustained by the Post Office. There was a large market to be opened with privatized aviation, however, aircraft were often unreliable and people did not trust them enough. On the side of mail delivery, the Post office was losing large sums of money to keep the airmail service running.
Problem
The growing debt of the Post Office and the unreliability of aircraft would soon be the downfall of Commercial Aviation if advancements were not soon stumbled upon. In 1925 the railroad was concerned with the issues of Air Mail and even through the Kelly Act would grant the contracts to promote Commercial Aviation and grow the Air Mail service, the aircraft from World War One that were being used were still unreliable
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Roosevelt also noticed that airlines were being awarded contracts with hardly any competition, which enabled them bid without fear of loosing the contract (Olson &Mendoza 2015). With the lack of competitive bids, President Roosevelt turned the Air Mail services back over to the United States Army Corps. The Army had tried to take on the role of mail carriers previously however, failed due to the lack of experienced pilots.; the new Contract for mail carriers would not be much different. Seven Army pilots had died while trying to deliver mail (Olson &Mendoza 2015) and with the criticism from government, Roosevelt turned Airmail Services back over to the Private Airlines. With Private Airlines running the Air Mail services again, new legislation would have to be set in place to ensure competitive contracts. The Airmail Act of 1934 would increase competition among contract, divided contracts into different areas of the country, and increased the government’s hand in regulating Commercial