The Need for Reform
By the end of the 1920s, private airlines were flying an expanding system of air mail routes. Passenger service, however, remained almost nonexistent.
While airlines often prospered flying the mail, the system had problems. The Post Office's bidding process for air routes resulted in an unfair payment system, and short-term contracts discouraged airlines from investing in long-term development.
Airlines that carried only mail favored small, single-engine airplanes. Larger multi-engine aircraft were needed to carry passengers, but such airplanes were too costly to operate. Reform was needed for the airline system to grow.