Open Sky Policy and all sorts of strategic alliances have resulted in high competitiveness in airline business. After the terror attack of 911, the public pays greater attention to aviation safety and security, and so does the government in every country. The issue of how to balance profits and flight safety and security while transporting dangerous goods cannot be overstated. The effectiveness of managing dangerous goods not only ensures flight safety in the whole but also enhances airline profits. The paper aims to describe the development of regulations and rules regarding dangerous goods in air transport. Its classification, identification, and ways of transportation are also stated. Major aircraft accidents related to dangerous goods are listed and the challenges of transporting dangerous goods are depicted as well.