Word: braniff
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...fares were first proposed by four U.S. airlines-Pan Am, TWA, Delta and Braniff. The Carter Administration heartily approved: its policy is to encourage minimum fares and maximum competition among airlines at home and abroad. But British officials insisted that extending cheap fares to so many cities before a longer trial period on the New York-London route was a dangerously uneconomic policy that might end up bankrupting some airlines, especially their...
...battle left Braniff stranded. On March 1, it flew a 747 loaded with celebrities to Britain for what it had planned as a gala inauguration of its new run be tween London and Dallas-Fort Worth. The Life Guards band turned out at Gatwick airport to serenade the orange jumbo jet with The Yellow Rose of Texas. But the British government would not let Braniff fly passengers back to the U.S. at the new low fares, and the U.S. Civil Aeronautics Board refused to let Braniff charge the high fares. Result: the plane flew back with its nonpaying passengers...
Although CAB Chairman Alfred Kahn had originally opposed giving Braniff the Dallas-London route (he wanted it to go to Pan Am), he moved quickly to defend the Texas-based airline. In a plea to the White House. Kahn denounced Britain's action as a "fundamental and flagrant breach" of the Bermuda II pact, which governs air travel between the two countries. He urged Carter to retaliate by suspending British Caledonian's flights between London and Houston, that airline's only service...
...early last week, British Airways itself was proposing some new low fares, and only the details of an agreement remained to be wrapped up. By Friday they were, and Braniff planned to start its Dallas-London flights over the weekend...
None of that helps Pan Am, which has let its once enormous political power decline while Braniff has developed potency with Carter's Sunbelt constituents. The loss of any international route hurts Pan Am especially because it has no domestic service to supplement its foreign business. The airline pointed out that no department of the Government found any foreign policy reason for denying it the run from Dallas-Fort Worth to London. But the only opinion that counts is the President's, and according to several reports, he traded the award to Braniff for the votes...