Word: cabs
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...caused by a historic decision of the Civil Aeronautics Board. Last week, CAB gave the two big nonscheduled cargo airlines permission to fly two transcontinental scheduled air-freight routes, the first in the U.S. CAB's certificates will permit them to fly on regular, advertised schedules, thus compete for air freight on equal terms with the regular airlines. At the same time CAB: 1) certificated Florida's U.S. Airlines, Inc. to fly a north-south freight route between the New York and Chicago areas and the southeast; 2) approved a local newspaper-delivery route flown by Texas...
...cheap enough to lure bus and rail-coach riders who never flew before. If some of the irregulars had irregular safety records, they had also proved to the scheduled airlines that they could fill their planes by cutting frills and fares. Nevertheless, many scheduled airlines still agreed with ex-CAB Chairman James M, Landis that the U.S. was cluttered with too many airlines. "An intrinsically weak airline," he told a Senate committee last week, "either should be chloroformed or absorbed by some other airline." Despite this, the nonskeds hoped that CAB would go easy with the chloroform...
Last week the Civil Aeronautics Board, prodded by the big carriers, announced that it would ground the nonskeds as of June 20. After that, any "large" irregular carrier (i.e., flying any airplane heavier than 10,000 Ibs.) would have to have CAB's permission to stay in business. In granting permits, CAB would hold the nonskeds accountable for such past sins as flying on what amounted to regular schedules, and thus, according to scheduled airlines, taking business away from them. Anybody who got a permit would have to stick to irregular charter service...
...CAB had a tough problem. It had to look out for the well-being of the regular airlines, and the taxpayer who subsidized them, but it also had a duty not to stifle the free, enterprising spirit in which the nonskeds had been born...
Fred Miller has already applied to CAB for certification as an air-coach operator. Whether he gets it or not, the new rule is not likely to be a death sentence to Air America.; Miller can always retreat to some intrastate route, out of CAB's reach. But CAB's crackdown might kill off more than half the irregulars...