True or False: The Airline Deregulation Act removed subsidies on unprofitable routes.

The statement is true because the Airline Deregulation Act of 1978 fundamentally changed the way air service was regulated in the United States. One significant outcome of this legislation was the removal of government subsidies for unprofitable routes. Prior to deregulation, the government often provided subsidies to airlines to ensure that service was maintained on less profitable routes, thereby connecting communities that might otherwise be underserved.

With the act's implementation, airlines were granted greater freedom to set their own routes and fares without government intervention. This led to increased competition among carriers and allowed market forces to determine the viability of specific routes. As a result, many unprofitable routes were either abandoned by airlines or consolidated, reflecting the shift towards a market-driven approach in the aviation industry.