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...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...
...inclination is not to throw my little plastic card away yet. For one thing, the fact that the CAB decided to review the Examiner's Report instead of routinely accepting it suggests that the Board's traditional pro-Youth Fare policy may not die easily. For another, there are many forces at work to encourage CAB leniency...
Such was the reasoning of the CAB Examiner as he signed what he supposed was the document that would kill Youth Fare...
First, most of the airlines want to keep Youth Fare. Rumor has it they have retained President Nixon's former law firm to represent them in the matter (another rumor is that the firm turned them down). The CAB may very well accept the industry point of view, provided it can find statutory justification for doing so. Perhaps the controversial Trans-Pacific Case has involved the Board in enough recriminations for one year...
Congress, too, is pushing the CAB. On February 19, Senator Magnuson, Chairman of both the Senate Commerce Committee and its important Aviation Subcommittee, wrote CAB Chairman John Crooker. Magnuson asked the CAB to retain Youth Fare on "national interest" grounds--for which, conceivably, justification may be found in the 1958 Federal Aviation Act. The Magnuson letter stresses the role of Youth Fare in making possible the broad formal and informal education "so essential in our modern society." Congressman Olsen, in addition, has initiated a national campaign to flood the CAB with letters from students urging retention...