Evening star., 1950-07-23

to people everywhere.
Events of the past four we
echoing in our industrial econ
omy, point hourly to the possibil-
ity that the postwar expanded
commercial airway to Europe can
revert to a defense airway or be
so depleted Of its airliners for
diversion to airlift needs in the
Pacific that none but those with
the most important missions
will fly. -
But until the word is passed to
the international airlines Of the
democracies to shift over to war
status, the three United States
flag lines. operating between
North America and Europe since
the end of the other war, are
taking steps to shrink to two, by
order Of President Truman.
In approving the sale of Amer
ican Overseas to Pan American,
the President directed the Civil
Aeronautics Board to grant TWA
the right to fly into London and
Frankfurt, Germany, heretofore
denied by the CAB, and also gave
Pan American entry into Paris
and Rome. which 1t had been
prohibited by the CAB. TWA has
had exclusive service to Paris and
Rome and PAA and AOA have
been operating into London and
Frankfurt. ..
These changes in the route pat
tern of the two United States flag
lines do not become effective until
September 10 and between now
and then all three are expected
to operate their routes as author
lied before the merger approval
The acquisition of AOA by Pan
American is not yet an accom-
plished fact, though early legal
moves in the courts and before
the CAB to prevent the issuance
of the Presidents order have
failed. New legal contests to block
the merger were launched by TWA
and a group of AOA employees in
the Court of Appeals in New York
and New Haven as the week ended.
Even though there were no
Korean situation, there are sew
eral detailed obstacles lying be-
tween Pan American and COM
plete absorption of AOA that may
take more than the time allotted
by CAB-60 days-to work out
satisfactorily. OF first Importance
is the negotiating that needs to
be carried out by the State De-
partment with England and
France. to obtain their permission
for both Pan American and TWA
to operate into London and Paris
and to carry passengers between
those cities on an airway that
compares with that between New
York and Washington.
What Happens to Personnel? ?
Under normal conditions, the
entrance of Pan American and
TWA in the London-Paris service,
with their prestige and first-class
equipment, would tend to divert
traffic now intensively exploited
by British, French and other con-
tinental airlines serving those i'm
portant capitals. Initial steps to
notify England and France, also
Italy where no apparent question
exists, we're taken Wednesday by
the State Department and the
CAB. ..-
Second in Importance in the
readjustment is the matter of
what will become of the employees
of AOA. In the original contract
Of purchase and sale between Pan
American and American Airlines,
which holds the controlling in
terest in AOA, Pan American
agreed to take over AOA's en-
ployes and "endeavor to provide
continued employment for them. -
The CAB in its decision and order
approving the merger said that in
its original decision disappearing
the acquisition of AOA by Pan
American, no consideration was
given to employe protection. This,
presumably in the belief there
was to be no sale, therefore no
employe problem.
However, in its No. 2 decision,
the board said "since the Presi-
dent has indicated that the ac-
QUESTION of AOA by Pan American
should be approved without fur
ther delay. we have been unable
to give adequate consideration to
this problem. Accordingly, we
will retain Jurisdiction over this
proceeding for the purpose of i'm
posing any required employe pro-
tective condition" The board
then imposed" the condition that
no person employed by either air.
line in its North Atlantic opera
tions shall be discharged other
than for good cause until 1t can
work out an employe protective
arrangement.
There are about 1900 employees
in AOA. Of which some 600 are
United States nationals. A little
more than 500 of this latter
number are engaged in direct op-
Grafton of the airline. They in
clude pilots, flight engineers,
purSers and stewardesses and me-
chanics. These classifications
are represented by unions and
have collective bargaining agree
ments with AOA, as do similar
classifications in Pan American.
Trippe VS.. Hughes
A public interest and human
interest by-product of the AOA-
PAA merger was to be, and still
will be but to a lesser degree,
the squaring away for a finish
fioht IF tw0 r,0uoY-f,11 nor,1oyo flows