Final answer:
The Civil Aeronautics Board regulated air travel and fares before deregulation led to a more competitive market, reduced fares, greater efficiency, and increased safety oversight, although recent mergers have raised competition concerns.
Step-by-step explanation:
The organization that historically regulates almost all international air travel and maintains the stability of fares and rates was the Civil Aeronautics Board (CAB), a U.S. government entity created in 1938. The CAB's role was to regulate airfares, establish routes, and control entries and exits into the market, a practice that lasted for 40 years until the airline industry experienced deregulation. The inception of aviation regulation began with the Postal Service's need for mail delivery which transitioned into giving airlines permission to carry passengers along with airmail.
With the deregulation of the airline industry, there was an introduction of increased competition, leading to more efficient flight operations and significantly reduced airfares. The number of air passengers and airline industry jobs doubled as a result, and although fares decreased, the emphasis on safety continued under the watchful oversight of government safety inspectors. Nonetheless, the process of deregulation brought its challenges, particularly with concerns over mergers reducing competition in recent years.