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...Courageous Leadership" Sir: You have done a useful service for civil aviation in this country by calling attention to the statesmanship of CAB Chairman Whitney Gillilland in specifying to the Defense Department that Military Air Transport traffic move over the certificated airlines at tariff rates, eliminating the ruinous practice of cutthroat bidding [July 18]. Only with this type of courageous leadership can the CAB fulfill its responsibility for developing an economically sound airlines system with the health and vigor to serve the country's civil and military needs...
...streets of Seoul shaking down pedestrians for American cigarettes ("Our politicians live in luxury-foreign cigarettes will burn the fatherland!"), seizing Japanese records from tearooms ("Japanese swords are hidden in these melodies!"), and dragging civil servants out of cars bearing blue, official plates ("Why are you using official transport after office hours? Who do you think you are-Syngman Rhee or somebody?"). The puritanical demonstrators lit big bonfires of cigarettes and records and then swept through Seoul's biggest kisang (geisha) house, the White Cloud, to drive male customers and indignant, silk-gowned "hostesses" into the street. "Only rotten...
...Gillilland last week took a step that was long overdue. In the first clear sign that Gillilland intends to supply CAB with a new brand of leadership, CAB scrapped the cut-rate charter fares charged by nonscheduled and scheduled airlines flying for the Air Force's Military Air Transport Service, biggest U.S. airline; CAB said that the low fares will be replaced by higher, published tariff rates, with a reasonable margin of profit. This removes the position of privilege that has enabled many nonskeds to grab MATS' business, will transfer much of the military personnel and freight...
...exemptions to lines flying charter contracts for MATS. At cut-rate prices established by competitive bidding, nonskeds got the right to fly to given points regardless of the regular carriers already certificated on the route. The effect, CAB now concedes, was to develop "what amounts to an overlapping air transport system...
...lease their first planes. Losing out to the low-priced nonskeds, scheduled U.S. lines found themselves making money-losing bids to win MATS contracts. The competitive bidding used by MATS, said CAB, "is not conducive to sound economic growth and development of air transport capability." During the past five years, MATS spent some $300 million for international, overseas and Alaskan air transportation, all of it outside the regulatory system established by CAB. By scattering its business among so many airlines, MATS has neither enabled nonscheduled airlines to buy newer planes nor encouraged the bigger airlines to buy the turboprop cargo...