Word: cab
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Dates: during 1940-1949
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Sick U.S. airlines were queued up a block long at the door of the Civil Aeronautics Board last week, wailing for fast first aid. Mostly, they wanted higher mail rates, higher passenger fares. (A notable exception was Eastern Air Lines, which asked CAB to approve a 10% reduction in its round-trip fares.) Some, in acute distress, had special problems. In fact, there were suddenly so many special problems that many an airman began to wonder: How well had CAB done its big job of supervising the airlines...
...general, airmen had thought that CAB was doing a good job. But now that CAB's policies were being strongly tested for the first time, they were not so certain. One big trouble seemed to be CAB's policy of making "big ones out of little ones" -i.e., encouraging the overanxious smaller lines to expand too fast, and often giving parallel routes when there is not enough traffic to support them...
...Mistakes. A prime example last week was Western Air Lines. In 1944 CAB, disregarding its own examiner's recommendation in favor of United Airlines, had given Western the Denver to Los Angeles route. But Western developed what its new president (TIME, Dec. 23) called a bad case of "expansionitis," ran out of cash. Western agreed last week to sell the route, and four planes, to United for $4,000,000-if CAB approves...
...economics of red ink gave CAB little choice. But some of the older members of CAB still showed some reluctance to change with the wind...
...split in CAB's thinking was plain to see last week when CAB approved, by a 4-to-1 vote, a 90% boost in Chicago and Southern's mail pay on its New Orleans-Havana route. The lone dissenter was CAB's newest member and chairman, James McCauley Landis. Landis, who usually gets what he wants, was bent on taking a hard, realistic look at the rates and routes awarded by CAB in the past. He did not think that subsidies should be boosted to make up for CAB's mistakes in granting routes...