Evening star., 1946-11-24
Travel Boom
Lacks Profit
Airlines Finding Volume
Does Not Assure
Earnings
BY James ]. Sfrebig

~ 1UWcS ~ DITEUtg
Thus far 1916 has been boom year
for air travel but pretty much Of q bust
for the airlines.
In the face Of the heaviest passenger
volume and best safety record in their
short history, some scheduled air car
riers are laying of employees and others
are canceling equipment orders and
writing red figures in what should be
the profit column.
Airlines are taking stock Of the situa-
tion and attempting to eliminate future
problems, but they look for some rough
going.
Four airlines announced personnel
cutbacks within the last week. Some
others may follow. Four airlines have
Cancelled some orders for new equip
nnent. Some are looking for new financ-
ing. The period of worst flying weather
has Just started, which means flight
cancellations will be at the peak in COM
ing months.
The labor problem was not settled by
the agreement to arbitrate Trans World
Airline pilots demands for higher pay
and revised working rules. 1t was just
the first step in program which even
tuaily will cover the industry. Pilot union
leaders have said SO.
The TWA strike involved only de-
mands for pilots and co-pilots of four
engine planes. Another case relating to
demands Of the men who fly two-engine
planes for American Airlines Is before
the National Mediation Board,
David Behncke, union president, has
said he was ready to call strike If he
didn't get what he wanted Mr.. Behncke
has refused to deal with the airlines as
an industry, preferring to negotiate con-
tracts separately.
Postwar Planes Undelivered. y
When the war ended, airlines raced
each other for surplus military trans
ports and new. commercial transport
planes They got the surplus ships,
but thus far not one postwar plane has
been delivered. The prospect is none
until next year.
Those are some factors in the imme-
diate situation. The long-range picture
is as full of headaches,
l. Forty-four State Legislatures meet
next year. which means the airlines will
be busy with bills relating to aviation
fuel taxes and economic regulation.
2. The Eightieth Congress viii have
new chairmen Of committees handling
aviation matters, and a new "educa-
tional" program must be undertaken.
8. Railroad and ship interests are
building up steam for a new effort to
force their way into scheduled air
transport.
4. Municipalities, many of which
offered free airport facilities in the
f930s, are beginning to look for revenue
from landing rights and rentals.
5. Nonscheduled carriers threaten tc
take big bite out Of air cargos and
seasonal passenger services, such as
New York to Florida.
s. Pan American Airways' application
for figh-speed domestic routes Is caus-
ing uneasiness.
Load Factor Drops
Before VI day, with fewer than 200
two-engine planes, the airlines were
averaging between s5 and SO per cent
Of available seats filled.
This year they have more than 500
planes flying, including more than $50
four-engine planes, and the load fac
tor" dropped below 80 per cent.
Operating revenues for the first eight
months OF 1946 were about equal to all
Of 1945, but half the airlines wrote red
figures in their books.
Here are some of the steps being
taken:
/. The Air Transport Association is
waging campaigns against fuel taxes
and State economic regulation and to
make the public aware of industry
problems.
2. Experiments with aall-weather"
flying and numerous types OF radio
and radar aides to navigation are
being conducted.
2. An experiment In joint operation
of air terminals will be started about
January /.
8. A campaign to promote airmail
usage is under way.
4. A step to reduce mo shows
failure to use reservations been
taken by imposing IS pei cent PEN
atty with $3.50 minimum.
5. Family travel is being encouraged
by adoption of half fare for children
under 12
6. Renewed emphasis is being placed
on careful maintenance and fight oper-
ations.
distributed by the Associated Press)