Evening star., 1961-01-25
ON WINGS
By CHARLES YARBRoUGH
Uncertainty Clouds the Skies

Considering the fact that the
Nations IL major airlines' COM
bined net profit last year
wouldn't even purchase q single
new let transport, 1t Is under
standable that the industry
contemplates 1861 with great
uncertainty"
Estimated profits in 1860 win
reach about 81 million. APP
proximate cost of q new Jet
transport is about SIS million.
About the only thing the air
line experts will predict with
assurance is that jet capacity
will grow rapidly. Jets in serv-
ice q year ago could produce
10.2 billion seat-miles per year.
Early this month the figure had
risen to 20.4 billion seat-miles
and is expected to 60 to 31.3
billion by next January.
The industry generally de-
nies that this phenomenal
growth and dropping profits is
Q case Of optimistic over-buy-
ing. Although the trunklines
showed a net gain Of 3.9 per
cent In revenue passenger miles
for 1960-well under the in
crease anticipated . year ago
no higher growth rate is ex-
pected. In fact, 1t may be lower.
The airlines have q two-fold
explanation for the situation.
First is an increase in COM
petition permitted by the Civil
Aeronautics Board since 1855
on the theory that they would
strengthen some Of the smaller
regional airlines. Industry
charges the actual result is q
"dilution Of traffic which
weakened all the airlines," +"
large and small.
Second reason for reduction
Of profits as seen by the ex-
perts is the increase in costs
labor, materials, supplies and
financing. Interest charges. for
instance. rose from STA million
In 1855 to an estimated $54
million for the IL months end
ing June 80 Of this year.
One official says the indus
try's future Is grim and un-
certain" in 1861; says solution
to the problems are not wholly
within the airlines' power.
He sees Intelligent regula-
ton Of airline affairs, with q
realistic approach to problems
Of competition and their possi-
BILE solution through realign-
ments, mergers and other busi-
nesslike methods" as one an
swer.
The Nays Rear Admiral
Luis de Florez couldn't have
picked Q better time to beat
the drum for making control
Of the weather equal in scope
to the Manhattan District
Project which produced the
first A-bomb."
In o speech prepared for the
29th meeting Of the Institute Of
the Aerospace Sciences in New
York today. Admiral de Florez
said. 1T Is indeed Q sad COM
tnentary that Americans-who
assume that you can solve any
problem II you have the intel
ligence to define it, and the
will to work it-display the
same fatalism and resignation
when it comes to weather that
our ancestors did hundreds of
thousands Of years ago."
Briefly, his proposal would
increase the output Of meteor
ologists, increase research
funds from a present 'pitiful-
ly inadequate" $36 million a
year to "well over 500 million"
and to accelerate the meteor
ological satellite program.
Atlantic Aviation, the flying
part" Of the new Montgomery
County Airpark. viii give the
new Beechcraft Baron its first
Washington exhibit at the air
port near Gaithersburg over
this week end. Atlantic is the
Beech representative in the
area. The Baron Is q five-place,
twin engine (260 horsepower
executive-type aircraft; sells
for about $4,000.
= . =
Early reaction Of the Federal
Aviation Agency to the Decem-
Der 16 mid-air collision in New
York indicated that no changes
on procedures were contem-
plated.
But last week, with prelim-
mary results Of the CABS
hearing in hand, the FAA said