Rise and Demise of Eastern Airlines

Eastern Airline has a history that dates back to 1927. At that time, Pitcairn Aviation Inc. a mail carrier had been created to provide mail services to the United States Postal Service. 

 

In 1930, the company was sold and then renamed to Eastern Air Transport. was one of several carriers that developed and flourished as a result of the Air Mail Act of 1934. 

 

The Air Mail Act of 1934 was major piece of legislation created by Congress in 1934 that would effect the aviation industry.

In essence, this Act authorized the awarding of government mail contracts to private carries, established the rates for transporting mail and it set the airmail rates. Contracts were awarded through the United States Postal Service, and contracts were awarded through a bidding process. This act as well required air carriers to separate them selves from manufactures of aircraft. As many air carriers were owned at that time by aircraft manufactures. This Act inspired owners of aircraft and investors to start up air carrier services, providing airmail service.

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