Word: cabs
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...established U.S. airlines, North American Airlines is neither swan nor goose but an unloved and awkward swoose. Technically a nonscheduled operator under CAB rules calling for "irregular" and "infrequent" flights, it has nevertheless grown into a $9,000,000 outfit operating one of the biggest transcontinental air-coach services. Last week, with North American's 1954 sales topping $11 million, the CAB decided to clip the big hybrid's wings. A CAB examiner recommended that North American be grounded for operating a scheduled airline in violation of CAB regulations...
Battles & Coaches. The trouble was nothing new for North American's four Los Angeles co-owners-Stanley Weiss, 43, James Fischgrund, 39, Ross R. Hart, 40, and Jack B. Lewin, 42. Separately and together, they have been fighting CAB for years. Returning from the war, Fischgrund, a Navy lieutenant commander, and Weiss, an ex-Air Corps transport pilot, bought two war-surplus Douglas C-47 transports for $15,000 down, and formed Standard Airlines. Hart and Lewin. two Douglas Aircraft employees, formed their own Viking Airlines with the money raised from 29 coworkers. The two lines pioneered cut-rate...
Commerce Secretary Sinclair Weeks, under whose department CAB operates, advised the President to reverse the CAB decision, drop Northwest and give the route exclusively to Pan American. Pan American has lower Government subsidies than Northwest, and in the past two years carried more passengers to Hawaii -18,192 to 11,671 for Northwest. The President, who is interested in saving money on airline subsidies, decided to reverse CAB and signed a letter giving the route to Pan American alone...
...uproar that followed, the President soon learned that there was a lot more to the case. Northwest's scrappy, 42-year-old President Don Nyrop flew to Washington. A onetime CAB chairman who knows his way around the Capitol, Nyrop got Minnesota's Republican Senator Edward Thye to call on the President with a new sheaf of facts and figures supplied by Nyrop and CAB's Acting Chairman Chan Gurney. Pan Am had indeed led in passengers for the last two years, but most of its bulge came in 1953, when plane-short Northwest had to shift...
Last week Ike fired off a new letter to CAB. reversing himself and giving back Northwest its Honolulu run for three more years, in competition with Pan American. At his press conference, Ike said bluntly that he had "made an error." Said Minnesota's Thye: "As soon as he got the facts, he changed his decision...