Word: cab
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Dates: during 1960-1969
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...PUBLICATION of the CAB Examiner's Report is the culmination of years of controversy. Complaints from other airlines had been vociferous in the past but short-lived; 24 of them, including all 11 domestic trunk lines, eventually dropped one of the two systems, and 14 tried to convince the Examiner to retain...
...companies provided more sustained opposition, however. Transcontinental Bus Systems, in fact, took the question of the fares' legality to court in a suit against the CAB. In 1967, the Fifth U.S. District Court of Appeals ruled that the CAB had abused its discretion in its hasty approval of Youth Fare. The CAB was ordered by the court to re-examine the controversy and to come up with findings "not inconsistent with this decision...
...CAB derives its power to approve or deny proposed air fares from the Federal Aviation Act of 1958. A crucial section of that act, and the one that Youth Fare appeared to violate, specifices: "No air carrier . . . shall make, give, or cause any undue or unreasonable preference or advantage or subject any particular person . . . or description of traffic in air transportation to any unjust discrimination . . . " (Italics added...
...twin tests of "reasonableness" and "non-discrimination" have become, after numerous CAB and court rulings, the Scylla and Charybdis between which any proposed fare must chart a course in order to gain approval. Non-discrimination is, of course, the test that the court and the Examiner claim Youth Fare does not pass. But the question of "reasonableness" is also worth looking at, if only to dispel the misconceptions of those who resented Youth Fare...
...unreasonable fare," by traditional CAB idiom, is not one that is too high: it is a fare that clearly does not allow the airline to cover the cost of transporting the ticket-holder. For competitive reasons, an airline might conceivably want to introduce such a fare; even though it lost money, it would lure customers away from the competitor and thereby increase "brand identification." The "reasonableness test" attempts to preclude such cut-throat tactics. To the CAB and the airlines, a fare is "reasonable" if it passes the "profit-impact" test: the revenues generated by the fare must excede...