Evening star., 1949-11-24
Civil Aeronautics Board Blamed
For Not Encouraging Air Line Efficiency

Civil Aeronautics Board Blamed
For Not Encouraging Air Line Efficiency
To the Editor Of The Star:
May I second. from q slightly different
angle, the letter Of w. T. Sheaffer which
appeared In The Star. November IA. It is
certainly time the Government got out of
the transportation business, although that
hardly will happen until the American people
know what Is going on and demand better
Use for their tax dollars.
While 1t probably is true that the airlines
are conspicuously anxious to keep forefeet
In the subsidy trough 1t should not be over
looked that there is room for serious ques-
ton as to how well the Civil Aeronautics
Board has carried out its mandate from
Congress in the Civil Aeronautics Act to
administer the Act with view to "the pro-
motion Of adequate economical and ef-
hcient service Of air carriers"
Despite the rose &olored glasses through
which economists are viewing the 1949 sea-
son, It is apparent that this country today
is faced with decidedly unhealthy condi-
ton in its air transportation. From what
does such situations stem when more people
are travelling than kver before?
For example, the mail subsidy system, as
administered by tfye board. has destroyed
all incentive for the certified carriers to
operate economically, and the Board now
finds itself In much the same position as
gambler sending good money after bad At
the present time the board has stake in
the airlines amounting to several hundred
million dollars and lis building that stake at
q rate Of about $1a5 900 900 annually. Be-
fore the board can stop paying these car
riers more than reasonable compensation
for the carriage o1 mail, the airlines must
achieve profitable operations through ef-
ficient and economic management. But the
road to efficiency and economy is harsh
and bitter one. as anyone who has had to
make revenues at least equal expenses can
testify, so that there is little incentive Tor
the airlines to find and travel that road as
long as the primrose path Of subsidy is
open to them.
The board recently expressed concern over
the fact that the more traffic increases the
more subsidy is required and the farther
away the goal Of q sound air transportation
system retreats. In that proceeding, the
board was preparing to hand over to two
air carriers SIS 5,12A 900 In mail pay in addi-
ton to what already has been paid to these
carriers for the wears 1946, 1947 and 1948.
Domestic and international carriers in
creased their earnings by more than $143.-
000,0 900 between 1946 and l948. Concur
rently, the airlinek' operating costs were only
2h per cent greater for each ton mile than
In 1941.
Says Agency LED CONGRESS Astfay.
But the board presented Congress with
q different picture about q week previous
to the time the above figures were presented.
What the board presented was that while
the revenues Of the airlines increased by
143 millions between those years, operat-
ing expenses increased more than $3.50 .000,-
0OO In other words, there has been "a
per cent increase In revenue and a 42 per
cent increase in expenses. In the inter-
national field, the revenue ton miles In
creased from $50 millions in 1946 to 292
millions In 1913, but this growth in the
volume Of business resulted In concurrent
increase in the break-even need from 18
million dollars in 1946 to As million dollars
In 1948.
As Mr.. sheaner pointed out. the American
people are fstce TO face with the issue OF
whether government is to continue under
writing the financial end Of the air trans
portation system. However, Washington
editor Of large national weekly magazine
puts It this; way, 'Ths American people