More Competition

After four years of hearings, the Civil Aeronautics Board last week handed down a decision on U.S. nonscheduled airlines that will result in greatly increased competition throughout the industry. The CAB decided to grant nonskeds permanent certificates as "supplemental carriers," thus give them a real niche in the fast-growing U.S. airline market. No longer need the lines fear that the CAB will ground them if they start stepping up service.

For the first time nonskeds will be able to fly unlimited passenger and cargo charter flights anywhere in the U.S.. charter their planes for any number of international cargo flights. Every nonsked will also be able to go on a partially scheduled basis, make ten flights a month between, any two points in the U.S., advertise and sell the runs as a scheduled service. In all, the ruling affects 49 big and little nonsked lines, but each will have to prove its "individual fitness, willingness and ability" before the CAB issues a certificate. Only line left out: North American Airlines, the biggest nonscheduled passenger carrier, which is charged with breaking so many CAB regulations that its right to fly was suspended by the CAB, then later stayed by a circuit court, pending an appeal to the U.S. Supreme Court (TIME, July 11).

The big scheduled airlines exploded in anger at the news. They argued that the CAB's decision would lead to cutthroat competition, said that three small lines, for example, could pool their ten monthly flights and run what would amount to a fully scheduled service. But the CAB pointed out that most nonskeds are only one or two-plane operations, are far too small to hurt the big trunk lines. Furthermore, said CAB, it had specifically reserved the right to reduce the number of scheduled flights if nonskeds started ganging up on the most profitable runs flown by big carriers. Said a CAB official: "This is a classic example of crying before you're hurt. The plain fact is that the nonskeds deserve a break. They were the pioneers in aircoach travel. Why should they be denied a chance to grow with the rest of the industry?"

This file is automatically generated by a robot program, so reader's discretion is required.