AIRMAIL CREATES AN INDUSTRY: Another Chance

By means of the Air Mail Act of 1934, the government once again returned airmail transportation to the private sector, but it did so under a new set of rules that would have a significant impact on the industry. Bidding was structured to be more competitive, and former contract holders were not allowed to bid at all, so many companies were reorganized. The result was a more even distribution of the government's mail business and lower mail rates that forced airlines and aircraft manufacturers to pay more attention to the development of the passenger side of the business

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