Document: 347 U.S. 67 74 S.Ct. 98 L.Ed. 508 WESTERN AIR LINES, Inc.v.CIVIL AERONAUTICS BOARD et al. CIVIL v. SUMMERFIELD, Postmaster General Nos. 224, 225. Argued Dec. 9, 10, 1953. Decided Feb. 1, 1954. Rehearing Denied March 8, See 924, 512. Mr. Emory T. Nunneley, Jr., Washington, D.C., for C.A.B. L. Welch Pogue, Delta Air Lines. Hugh W. Darling, Los Angeles, Cal., Western Daniel Friedman, Summerfield Justice DOUGLAS delivered the opinion of Court. 1 These cases, here on writs certiorari to Court Appeals District Columbia, present an important question in construction § 406(b) Civil Aeronautics Act 1938, 52 Stat. 973, as amended, 49 U.S.C. 401 seq., U.S.C.A. seq. Section 406(a) authorizes Board fix 'fair and reasonable rates compensation transportation mail by aircraft'.1 requires take into consideration, inter alia, 'the need each such air carrier sufficient insure performance service, and, together with all other revenue carrier, enable under honest, economical, efficient management, maintain continue development extent character quality required commerce United States, Postal Service, national defense.'2 The controversy cases turns meaning words carrier' 'all carrier'. 2 Lines filed a petition rate order April 26, 1944. In 1951 finally determined applicable between May 1944, December 31, 1948. During this open-rate period realized some $88,000 profits from operation restaurants concessions at airport terminals. that income was 'other revenue' available reduce pay. approval Board3 sold its certificate properties operations (Route 68) Angeles Denver, profit excess $1,000,000. treated derived sale tangible assets (approximately $650,000) reduced amount. But it declined pay allowance intangible value' route. concluded amount should not be used offset because wanted 'to encourage improvement route pattern through voluntary transfers carriers.' 14 246. 3 On review challenged inclusion amounts received assets. General4 exclusion offsets made intangibles. sustained Western's reversed remanded case fixing new after deducting entire Route 68. 92 U.S.App.D.C. 248, 207 F.2d 200. 4 Some are service rates, based mail-miles flown;5 others subsidy 'need.' We concerned which fixed so produce 7 percent return investment taxes question. words, end problem concerns money provided but over above sums. 5 read need' Congress has directed consider is whole. specified measured 'compensation enable' develop transportation, etc. mail' flight income. It seems too clear argument would include nonflight incidental activities. have found nothing persuasive indicating means revenue. inclusive nature category precludes narrow reading. If carrier's treasury lush, decreases whether opulence due activities or thereto. 6 By same reasoning 68 also within 406(b). agrees; goes say matter, since reduction mandatory. Act, true, merely says determining 'shall consideration' various factors, including 406(b); 'need,' we noted, transportation' prescribed standards. standard 'need' given may great transactions allowed addition normal rate. Or, hand, total revenues against operating costs developmental program disappears trnsferred difficulty Board, concluding part offset, forsook adopted different one. safeguard incentive transfers.' thought could keep alive industry unless were subsidy. promote mergers compel. therefore argues enables 406(b), consistent deemed desirable. however, speaks subsidy, effect policy carriers general. This recapture earnings. keeps profit. issue how much additional receive form measure authorized Congress. No finding there sense otherwise been willing able make transfer accordance deems advisable. Whether satisfied statutory requirement do reach, makes plain considerations controlling: 8 '* * our decision net intangibles reached solely thus seeking 9 Congress, whose being fixed. 10 Affirmed. 'The empowered directed, upon own initiative (1) determine time time, notice hearing, fair aircraft, facilities useful therefor, services connected therewith (including than aircraft whenever necessary conditions emergency arising operation), holder authorizing effective date shall proper; (2) prescribe method methods, aircraft-mile, pound-mile, weight, space, any combination thereof, otherwise, ascertaining class carriers; (3) publish same; faxed paid appropriations aircraft.' 'In section, considering peculiar particular carriers, classes service. case, among condition hold operate certificates carriage only providing adequate mail; standards respecting rendered pursuant law; defense.' United-Western, Acquisition Carrier Property, 1947, 298. duty standing rates. A change function Reorganization Plan No. 1953, October 644, 486 note. See, example, Eastern Lines, Mail Rates, 1942, 733.

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