The Air Mail Act of 1934

Re-introduced competitive biding as a means for commercial airlines to procure mail contracts. The act required the separation of the airlines from manufactures. During this time many of the manufacturers of aircraft were as well providing passenger service such as; United Aircraft and North American Aviation. As a result of this law companies like United Aircraft disassociated from passenger travel and United Airlines was created to provide passenger travel as we know it today. The main reason for this piece of legislation was in consideration for safety. This Act also gave authority to 

• The United States Postal Service to award postal contracts
• The Interstate Commerce Commission would set airmail rates
• The Bureau of Air Commerce would have authority over the airways and regulate air safety.

The creation of the Federal Aviation Commission was formed to study the aviation industry, its policies and behavior and make recommendations. On January 22, 1935 the Federal Aviation Commission, appointed by the President as provided in the Air Mail Act of 12 June 1934, submitted its first report which in essence set forth a broad policy covering all phases of aviation and the relation of the government thereto. A major share of its recommendations referred to commercial and civil aviation and in general stressed the needs for a strong air transport, for expanding airport facilities, for improving provisions for aviation in government organization, and for supporting the welfare of the aviation industry, particularly through the establishment of more realistic procurement practices and policy.