Legislative Acts

 The Air Mail Act of 1925, sometimes known as the "Kelly Act" played a key role in shaping today's thriving aviation industry. This was the first major piece of legislation law created by Congress that allowed post offices to send airmail letters freely by paying private airlines to deliver the mail. Payments were based on the weight of the mail carried. The Post Office later added a subsidy to help offset airline operating losses, until more efficient aircraft could be developed. Although airmail freedom does not look like much, it did enable profitable Commerical airlines such as Pan American Airlines and Western Airlines Express. 

When the Act was passed in 1925, contractors were allowed to receive subsidies for airlift nationwide. Since the subsidy depends on the number of mail carried and the area passed, the contractor was encouraged to carry more items and fly more frequently. This helps to stimulate the fledgling American airlines. Eventually, the airmail parcel contractor's business model shifted from simply handling mail to transporting paid passengers. This led companies like Boeing to have two subsidies and the other from paid passengers (Cates, 2000). In addition, as air travel increased, some airport operators began to provide early forms of air traffic control based on visual signs for security purposes (FAA, 2022).

A Brief History of the Mail Act of 1925

• Henry Ford was one of the first Americans to profit from carrying mail and cargo. He began by carrying cargo in 1923 and went on to win two airmail contracts in 1925, flying his Ford Trimotor aircraft.

• The Boeing 40-C could accommodate a pilot, the mail, two passengers, and their baggage. 

• Acquired from the military service and modified so they could carry 400 pounds of mail, the de Havilland 4s were the backbone of the U.S. airmail service. 

• National Air Transport, a predecessor of United Airlines, was awarded the contract in May 1926 to fly the mail between Chicago and Dallas

• Eighty percent of the stamp money received by the Post Office was to be paid to the airmail carriers.

• By 1927, over 2.5 million miles were traveled by US Airmail Service planes, carrying over 22 million letters.

• By 1930, 34 Contract Airmail Routes would be established

• Private airmail transport is credited with helping advance aircraft technology, as planes that were faster and bigger were built to deliver that mail and increase profits

• Companies that had Contract Airmail Routes included Western Air Express, National Air Transport, Boeing Air Transport, Pacific Air Transport and Northwest Airlines. 

A Ford Air Transport Stour 2-AT, Maiden Dearborn

A Boeing Model 40 of Pacific Air Transport, which operated CAM #8, which had several stops on the West Coast

A Western Air Express Douglas M-2, which flew CAM #4, Los Angeles to Salt Lake, with a stop in Las Vegas

A National Air Transport For Trimotor. NAT operated 2 routes, CAM #3 (Chicago-Dallas) and CAM #17 (Chicago-New York)

To sum up, the Air Mail Act of 1925 opened up new opportunities for businesses by providing generous subsidies. The airline then continued to transport passengers, eventually introducing air traffic control for safety's sake. These services are still infuse today and you can see how the Air Mail Act of 1925 shaped the aviation industry overall. 

References: 

Airmail Creates an Industry | National Postal Museum. (n.d.). Postal Museum. https://postalmuseum.si.edu/exhibition/fad-to-fundamental-airmail-in-america/airmail-creates-an-industry

Cates. (2000). Airmail and the Evolution of the U.S. Aviation Industry. Commons.Erau.Edu. https://commons.erau.edu/cgi/viewcontent.cgi?article=1207&context=space-congress-proceedings

Federal Aviation Administration. (2022). A Brief History of the FAA. FAA. https://www.faa.gov/about/history/brief_history