Word: cab
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Dates: during 1960-1969
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Confusing Welter. The decision to back down came from the U.S. State Department, to which the worried CAB had turned for guidance. Both quickly drew the wrath of Washington Democrat Warren G. Magnuson and his Senate Commerce Committee, which summoned CAB Chairman Alan Boyd to account for the retreat. Boyd explained that though the CAB lacked the power to set international air fares, he had hoped to block the fare rise by winning away enough foreign lines to isolate the British. "In retrospect," he admitted, "you could say we were not smart...
...Senators agreed, but seemed in a mood to give quick approval to an Administration bill, sent to Congress last week, that would give the CAB specific authority to deal with international air fares. The American case was hampered by the fact that the two U.S. carriers (Pan Am and TWA) had not opposed the fare raise and that the CAB had not intervened until two weeks before it was to take effect. This is what brought on the charges of U.S. bad faith. Though clumsily handled, the U.S. case had merit in its main point that when many...
...street filled with Negroes. They hurled stones at policemen, slashed car tires. Within the hour two more bombs exploded at the Gaston Motel, headquarters of the demonstrations. And Birmingham went to war. Thousands of enraged Negroes surged through the streets, flinging bricks, brandishing knives, pummeling policemen. A white cab driver was knifed, his taxi overturned and burned. A policeman was stabbed in the back and a white youngster's arm was slashed from shoulder to elbow. Negroes put a torch to a white man's delicatessen, fought off firemen as they arrived to put out the blaze...
Despite its tactless tardiness, the CAB had some good reasons for turning down the fare hike. Last year 2,300,000 passengers flew across the Atlantic-but, on the average, the big jets were only 45% full. Mostly mired in huge deficits, the European airlines see higher fares as the most expedient way out of their financial difficulties. Pan Am and TWA have been making good profits on the North Atlantic run, though steadily losing a bigger share of the market to foreign carriers. They argue that lower fares are needed to attract more passengers to Europe and help...
Uneasy Truce. As the uneasy truce ticked away, the CAB's Boyd flew to London last week for a showdown. Timed to coincide with his arrival was the White House release of President Kennedy's long-awaited new aviation policy. The policy was disappointingly vague and pedestrian in most respects, but it did make one point abundantly clear: the U.S. favors lower fares and is willing to fight I.A.T.A. to achieve them...