
Since 1937, the federal Civil Aeronautics Board (CAB) had regulated all domestic air transport as a public utility, setting fares, routes, and schedules. The CAB promoted air travel, for instance by generally attempting to hold fares down in the short-haul market, to be subsidized by higher fares in the long-haul market. The CAB also was obliged to ensure that the airlines had a reasonable rate of return.
In 1974, President Jimmy Carter signed the Airline Deregulation Act, which in part barred private lawsuits against airlines, with some very few exceptions that are not relevant here. The Deregulation Act says: " [A] State * * * may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier."
After a while, when the legal smoke had cleared, the bottom line was that "Dick and Jane Passenger" had little or no recourse to the courts if they wanted to sue an airline. The courts broadly interpreted the phrase "related to" as preempting literally almost anything having to do with "price, route or service."
Food poisoning? False advertising? Deceptive business practices? Lost or delayed baggage? Stuck on the runway for 8 hours? Flight delays due to negligence? Refusal to honor Frequent Flyer miles? Collecting alleged fees/taxes for a foreign government and keeping them? Misrepresentation as to services offered? Sexual Harassment? Name it and it's probably preempted.
For all of the above and much more, passengers are barred from the courts, both state and Federal.




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A quick timeline of the Airline Deregulation Act and its ultimate consequences for the Amereican flying public.