Word: cabs
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Unwilling Competitor. American is not above being fat and complacent itself. As Maine's Senator Brewster sharply reminded Damon: in CAB hearings 19 months ago, American Airlines had opposed any competition on its New York-to-Boston route. It argued then, as Trippe does now, that one line could do a better job than a number competing for a limited amount of traffic. In effect, American was willing to accept competition...
...intend to get out. There seemed little chance that they would have to. Two months ago, the Senate subcommittee seemed on the verge of recommending to Congress that the U.S. adopt a chosen-instrument policy. But in the last few weeks, under heavy fire from the Army. Navy and CAB, the idea has steadily lost ground. American's Damon may well have given monopoly its coup...
...domestic airlines have applied to the Civil Aeronautics Board for permission to fly foreign routes (eleven of them over the North Atlantic), and one (American Export Airlines) has been favorably recommended by a CAB examiner. "If they were certificated," said Trippe, "they would all be competing for that 18% of traffic that lies beyond our borders...
Ranged against Trippe and his principal ally (United Air Lines) are the CAB, the State, Justice, War, Navy and Commerce departments, and 17 U.S. airlines. They insist that the competition which built the U.S. domestic airlines will do the same for its international airlines, and they have no misgivings about the limitations of the overseas air market...
With the applications Pan Am frankly stated why it wanted these plums: if domestic airlines are licensed by CAB to elbow into postwar overseas routes, there is no reason why Pan Am should not crowd its rivals for a share of their rich domestic traffic...