Word: cabs
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...Civil Aeronautics Board has been involved for more than a year in investigating a general passenger fare increase for domestic airlines. Even though the CAB knows that carriers must have an increase and has granted a 6.6% temporary boost, the hearings may go on for another year, at least, before a decision...
...thousands use it. Lawyers have made an art of dragging out a case (at fees up to $500 a day) to their clients' advantage. Nonscheduled North American Airlines was able to hang on for two years, at a profit of $8,000,000 a year, after the CAB ordered it grounded because it was actually providing scheduled service...
Commissioners themselves do not sit in on all cases, depend on examiners to brief them and justify their decisions. Many commission officials have little knowledge of how to conduct a hearing on industry's problems. At a recent CAB hearing, American Airlines President C. R. Smith snapped at a CAB counsel: "I don't know what you're talking about, and neither do you." When the record has accumulated, often to a height of five or six feet, the commissioners do not have time to read all or even most of it. Lawyers often take advantage...
Commission decisions often bear little relation to the facts uncovered in months or years of hearings. After three years in preparation and hundreds of thousands of dollars in expense, the CAB examiner in 1956 recommended Delta Air Lines for a New York-Florida run, specifically disqualified Northeast Airlines. CAB commissioners picked Northeast. Reason: Administration policy was to get domestic carriers off subsidy, and Northeast was getting $1,800,000 a year in subsidy...
...commissions are further slowed by the necessity of taking into account all kinds of legitimate influences: Congress, which controls their purse strings, the White House, which can overrule them (in the case of the CAB), or the courts, where all decisions can be appealed. While a strong commissioner could ignore most of these influences and make his own decisions, it rarely happens in practice. The FCC has declined for seven years to make a decision on pay TV because Congress has frowned on it. FPC let gas companies put increases into effect while waiting for an FPC decision; a court...