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Exactly three years after American and Allegheny ushered in the new era, CAB Examiner Arthur S. Present on January 21, 1969 ruled that Youth Fare was 'unjustly discriminatory" and must be canceled. Acceptance of the Examiner's Report -- a routine formality in most cases--was held up this time by the CAB in order to allow the Board to "independently review" the matter. Should the Board adopt the Report--and a decision is expected late this month--Youth Fare will be dead before exam period begins...
...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...