What act was brought about in 1978, and followed by the founding of Air California?
Air California:  Following the federal Airline Deregulation Act in 1978, it expanded to several destinations in neighboring states, and in the 1980s was flying to Chicago (ORD), Seattle (SEA), Anchorage (ANC), and Vancouver, B.C. (YVR) in addition to its California routes as well as service to other destinations in the western U.S. Airline Deregulation Act: The Airline Deregulation Act is a 1978 United States federal law that deregulated the airline industry in the United States, removing U.S. Federal Government control over such areas as fares, routes and market entry of new airlines, introducing a free market in the commercial airline industry and leading to a great increase in the number of flights, a decrease in fares, and an increase in the number of passengers and miles flown.
Airline Deregulation Act