Evening star., 1932-08-21
AVIATION INDUSTRY
FACES MAIL LOSS
Plane Firms Enjoy Boost in
Passenger Business,
However.
Special Dispatch to The Star.

SpeNAdA oIopdtSil W AHc otdI'
CHICAGO, August 20-Confronted
with very real loss of from Is to 20
per cent in revenue from airmail, as a
result of higher postage rates, the avia-
ton industry Is learning that it can
turn successfully to the travelling public
to make up that deficiency.
As result of special drive for
passenger business to offset air mail
revenue losses, the big operating COM
panies now report that they have
achieved Unexpectedly favorable re-
suits. For the past month, United Air
craft advises that +, carried 10000 pay
ing passengers, and American Airways
nearly 10000, with the other companies
gaining in much the same proportion
A year ago this volume OF traffic, rep
resenting gain of more than one third,
would have been considered a distant
goal to shoot at in sales efforts.
Air Travel Jumps.
Travel by plane, at a time when
other types of travel are declining, has
turned up SO sharply that the indus
try is confident that the business public
is sold on speed Rates have been re-
duced to an extent that makes the ex-
pense of long air jumps about as cheap
as rail travel. Absence of serious ac-
cidents in recent months at the same
time has overcome large measure of
fear that formerly provided a handicap.
Now the industry is turning toward
the express business as another source
of income. The railway express agency
and the General Air Express are of
fering sharply reduced rates, compared
with a year ago, in an endeavor to
attract business, which is greatly in
creasing in volume. AS result of ac-
tivities Of the air companies in drum
ming up business, the large depend
ence upon airmail for the major por-
tion of operating revenue can be re-
duced partially.
The aviation industry points out that
the cost to the Government of airmail
has constantly been reduced during re-
cent years. Since 1929, the cost per
pound for each mile of airmail flying
has been cut from $109 to under IS
cents. The aim is to increase the VOL
ume of airmail business until there
will be no cost to the Government be-
yond the return received from postage.
The Post Office Department has spent
$67,000,000 on the airmail system in the
past IA years, but good portion of
this has been returned through the
sale OF stamps.
100000 Flew Last Year.
Airmail has borne the brunt of the
cost Of development of commercial avi-
alton. Now other sources of revenue
are growing in proportion. Last year
nearly 100000 persons paid fares to
travel in planes and this year the total
is expected to be much larger. Costs
Of travel have been reduced until the
average fare is about six cents mile.
This compares favorably with railroad
rates when Pullman accommodations
and dining car meals are figured in.
Planes are being built now that will
make the cross-country trip in % hours,
allowing three hours for ground work.
The new schedules being designed call
for five hours from Chicago to New
York and Is hours from Chicago to San
Francisco. Improvements in plane de-
sign constantly are being made and
the automatic pilot is reaching a stage
of development where it will be part
of the equipment of all passenger car
riers, providing an added element of
safety.
Copyright, 1922