Federal Register / Vol. 60, No. 30 / Tuesday, February 14, 1995 / Notices 8375

25The analog for pipeline transportation would

be ‘‘origin-destination’’ pairs, but both the

Commission and DOJ have generally analyzed

pipeline origin and destination markets separately.

Why the difference? Oil and gas are fungible, airline

passengers and freight are not.

26Elizabeth Bailey, David Graham, and Daniel

Kaplan, Deregulating the Airlnes (MIT, 1985), and

Steven Morrison and Clifford Winston, The

Economic Effects of Airline Deregulation

(Brookings, 1986).

27Alfred Kahn, ‘‘Supreses of Airline

Deregulation,’’ American Economic Review (May,

1988).

Routes. Regulation effectively closed the

industry to newcomers and guaranteed

relatively stable market shares to firms

already in the industry. (Id., 205)

The Airline Deregulation Act was signed

into law in 1978. The Act phased out the

CAB’s authority and the Board itself ceased

operations entirely by 1985.

2. The Role of Market Power Analysis in

Airline Deregulation and Merger Policy

Market power analysis was an important

factor in the rapid deregulation of airlines

and an even more important factor in the

merger policy that controlled consolidation

within and exit from the industry. An

important element of the case against

regulation was that but for regulation, the

industry would be much less concentrated at

the national level than it was under CAB

regulation. The relevant market for the

traveler was usually defined to be the ‘‘citypair,’’ the two cities between which the

traveler wishes to fly.25 Advocates of

deregulation did not argue that each airline

would find itself battling hosts of actual

competitors. They claimed only that the

threat of entry into a particular market by

airlines not currently serving that market

would hold prices down. An airline that

serves city A and city B, but does not fly

between them, can enter the A–B market at

very low cost, and there are several such

airlines serving most major routes.

The Board based its assessment of the

likely effects of a merger on two related

findings: that concentration measures based

on city-pair markets alone are not an accurate

gauge of competitive performance and that

potential entry would have an important

disciplining effect on performance. (Bailey et

al, 1985, 173–202). Market definitions were

often contested. The DOJ in the Northwest/

Republic merger, for example, argued that the

relevant product market was ‘‘non-stop’’

flights between city- pairs. In other cases

witnesses have argued over whether the

appropriate definition should be airport

pairs, city pairs, or the complex of services

representative of a hub and spoke network.

But in all cases the same general relevant

market definition framework has been used.

Breyer (1987) suggested that antitrust rules

designed to deal with industry in general

may not properly reflect the unique features

of the airline industry. For example, he

cautioned against applying the ‘‘optimistic’’

merger view that is more lenient on higher

concentration thresholds and places great

store on ‘‘potential competitors,’’ fearing that

such an antitrust view would not be stringent

enough. On the other hand, he would be

more lenient than the merger guidelines with

respect to the ‘‘failing company’’ or efficiency

defenses for merger, to reflect that fact that

the airline industry is emerging from forty

years of regulation.

3.The Effects of Airline Deregulation

Virtually all observers agree that airline

fares have been much lower and traffic

immensely larger than they would have been

absent deregulation.26 However, as Alfred

Kahn put it, there were some ‘‘unpleasant

surprises’’ as well.27 Although in the early

years there was much new entry, most failed

and national concentration in the industry

failed to decline as most proponents of

deregulation had predicted. Quality of

service declined. Another unpleasant

surprise to Kahn was ‘‘the persistenceindeed, intensification-of price

discrimination * * *’’ despite which the

airline industry has experienced severe

losses and only a few carriers have been

profitable.

[FR Doc. 95–3631 Filed 02–13–95; 8:45 am]

BILLING CODE 6717–01–P

Issuance of Decisions and Orders for

the Week of December 5 Through

December 9, 1994

During the week of December 5

through December 9, 1994 the decisions

and orders summarized below were

issued with respect to appeals and for

other relief filed with the Office of

Hearings and Appeals of the Department

of Energy. The following summary also

contains a list of submissions that were

dismissed by the Office of Hearings and

Appeals.

Appeal

Eric Engberg, 12/5/94, VFA–0010

CBS News Correspondent Eric

Engberg (Engberg) filed an Appeal from

a determination issued by the

Albuquerque Operations Office

(Albuquerque). The determination

denied, in part, a Request for

Information which Engberg submitted

under the Freedom of Information Act

(FOIA). Engberg requested various travel

documents submitted by security

personnel, known as couriers, who had

travelled with Secretary of Energy Hazel

R. O’Leary. Albuquerque released

responsive documents, from which

names, home addresses, Social Security

numbers, home telephone numbers,

credit card numbers, and expiration

dates had been redacted pursuant to

FOIA Exemption 6. Engberg appealed

only the deletion of the names. In

considering the Appeal, the DOE found

that Albuquerque had failed to

adequately justify the withholding of

the couriers’ names under Exemption 6.

In the course of the Appeal,

Albuquerque requested an opportunity

to re-evaluate the applicability of

Exemption 6 and other FOIA

exemptions to the withheld names.

Consequently, the DOE granted in part

the Appeal and remanded the matter to

Albuquerque for a new determination.

Refund Applications

The Office of Hearings and Appeals

issued the following Decisions and

Orders concerning refund applications,

which are not summarized. Copies of

the full texts of the Decisions and

Orders are available in the Public

Reference Room of the Office of

Hearings and Appeals.

Atlantic Richfield Company/Costain Coal, Inc ............................................................................................................ RF304–15459 12/06/94

Empire Coal Company ............................................................................................................................................... RF304–15460 ...................

Atlantic Richfield Company/Vaccaro & Son Arco et al .............................................................................................. RF304–14638 12/06/94

Crystal Water Co. et al ............................................................................................................................................... RF272–85480 12/06/94

Cubby Oil Co., Inc ...................................................................................................................................................... RF272–97229 12/06/94

Dalton Asphalt Corp et al ........................................................................................................................................... RF272–94139 12/06/94

Dart Container Corporation ........................................................................................................................................ RF272–66874 12/05/94

Dart Container Corporation ........................................................................................................................................ RD272–66874 ...................

E & B Paving, Inc ....................................................................................................................................................... RF272–67026 12/07/94

E & B Paving, Inc ....................................................................................................................................................... RD272–67026 ...................

Epes Transport System, Inc ....................................................................................................................................... RF272–93329 12/08/94

Farmers Cooperative Elevator et al ........................................................................................................................... RF272–94704 12/06/94

Good Hope Refineries/Howard Oil Company ............................................................................................................ RF339–17 12/08/94

Gulf Oil Corporation/City of Rocky River et al ........................................................................................................... RF300–21325 12/07/94

Gulf Oil Corporation/Fallwood Service Center ........................................................................................................... RF300–18460 12/06/94

Gulf Oil Corporation/Kirk Brown’s Gulf Service et al ................................................................................................. RF300–18153 12/08/94
8376 Federal Register / Vol. 60, No. 30 / Tuesday, February 14, 1995 / Notices

K.A. Baker Construction Co ....................................................................................................................................... RF272–68186 12/06/94

S.J. Groves & Sons, Inc ............................................................................................................................................. RF272–77504 12/07/94

Seashore Transportation Co ...................................................................................................................................... RF272–97223 12/07/94

Texaco Inc./Ortiz Texaco ............................................................................................................................................ RF321–21049 12/08/94

Dismissals

The following submissions were dismissed:

Name Case No.

Alameda Texaco Station ...................................................................................................................................................................... RF321–20865

Antelope County Farmers Cooperative ............................................................................................................................................... RF272–92006

Bowers Asphalt Paving, Inc ................................................................................................................................................................. RF272–94780

Burnup & Sims of Texas, Inc ............................................................................................................................................................... RF272–89938

Cabo Roto Service Station .................................................................................................................................................................. RF321–20849

Caranil Service Station ........................................................................................................................................................................ RF321–20720

Castro Texaco Service ........................................................................................................................................................................ RF321–20858

Citizen Action ....................................................................................................................................................................................... VFA–0008

Conea Service Station Texaco ............................................................................................................................................................ RF321–20854

Cortland Water Board .......................................................................................................................................................................... RF321–20167

David M. Diaz Monje ........................................................................................................................................................................... RF321–20824

Don Davo Service Station ................................................................................................................................................................... RF321–20850

Garage Texaco .................................................................................................................................................................................... RF321–20954

Garage Texaco Altosano ..................................................................................................................................................................... RF321–20999

Garaje Ayala ........................................................................................................................................................................................ RF321–20845

Gardner Industries, Inc ........................................................................................................................................................................ RF321–20163

Jorge David Castrodad Quiles ............................................................................................................................................................. RF321–20956

Jorge Luis Agusto Agosto .................................................................................................................................................................... RF321–20728

Las Mareas Service Station ................................................................................................................................................................. RF321–20846

Luis R. Abraham Melendez ................................................................................................................................................................. RF321–20863

Pablo R. Colon ..................................................................................................................................................................................... RF321–20726

Ramon Anibal Russe Torres ............................................................................................................................................................... RF321–20732

Raul Ignacio Colon .............................................................................................................................................................................. RF321–20725

Rexco Park Texaco ............................................................................................................................................................................. RF321–20836

Sabana Seca Service Station .............................................................................................................................................................. RF321–20841

Salinas Service Station ........................................................................................................................................................................ RF321–20955

Savannah River Operations ................................................................................................................................................................. VSO–0003

Sierra Bayamon Service Station .......................................................................................................................................................... RF321–20842

Sucn. Salustiano Ortiz Acevedo .......................................................................................................................................................... RF321–20959

Tom Davis Texaco ............................................................................................................................................................................... RF321–19794

Trenton Service Station ....................................................................................................................................................................... RF321–20812

Velez Service Station ........................................................................................................................................................................... RF321–20827

Copies of the full text of these

decisions and orders are available in the

Public Reference Room of the Office of

Hearings and Appeals, Room 1E–234,

Forrestal Building, 1000 Independence

Avenue SW., Washington, DC 20585,

Monday through Friday, between the

hours of 1:00 p.m. and 5:00 p.m., except

federal holidays. They are also available

in Energy Management: Federal Energy

Guidelines, a commercially published

loose leaf reporter system.

George B. Breznay,

Director, Office of Hearings and Appeals.

[FR Doc. 95–3653 Filed 2–13–95; 8:45 am]

BILLING CODE 6450–01–P

ENVIRONMENTAL PROTECTION

AGENCY

[FRL–5154–2]

Air Pollution Control; Proposed Action

on Clean Air Act Grant to the South

Coast Air Quality Management District

AGENCY: U.S. Environmental Protection

Agency (USEPA)

ACTION: Proposed determination with

request for comments and notice of

opportunity for public hearing.

SUMMARY: The USEPA has made a

proposed determination that a reduction

in expenditures of non-Federal funds for

the South Coast Air Quality

Management District (SCAQMD) in

Diamond Bar, California is a result of a

non-selective reduction in expenditures.

This determination, when final, will

permit the SCAQMD to keep the

financial assistance awarded to it for

FY–94 by EPA under section 105(c) of

the Clean Air Act (CAA).

DATES: Comments and/or requests for a

public hearing must be received by EPA

at the address stated below by March 16,

1995.

ADDRESSES: All comments and/or

requests for a public hearing should be

mailed to: Douglas K. McDaniel, Air

Grants Section (A–2–3), Air and Toxics

Division, USEPA Region IX, 75

Hawthorne Street, San Francisco,

California 94105–3901; FAX (415)744–

1076.

FOR FURTHER INFORMATION CONTACT:

Douglas K. McDaniel, Air Grants

Section (A–2–3), Air and Toxics

Division, U.S. EPA Region IX, 75

Hawthorne Street, San Francisco,

California 94105–3901 at (415) 744–

1246.

SUPPLEMENTARY INFORMATION: Under the

authority of Section 105 of the CAA,

EPA provides financial assistance to the

SCAQMD, whose jurisdiction includes

Los Angeles and Orange Counties in

southern California, to aid in the

operation of its air pollution control

programs. In FY–94, EPA awarded the