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1974 - February DOT Ord. & Dec. [1] (February, 1974)

handle is hein.usfed/dotod0689 and id is 1 raw text is: 



Order 74-2-1


                         UNITED STATES OF AMERICA
                         CIVIL AERONAUTICS BOARD
                         WASHINGTON,  D. C.                       PAV

                  Adopted by the Civil Aeronautics Board
                    at its office in Washington, D.C.             3a
                      on the 1st day of February, 1974



Petition of

  EASTERN AIR LINES, INC.           :              Docket 26331

to engage in discussions concerning
passenger amenities and services



                          ORDER DENYING PETITION

     On January 18, 1974, Eastern Air Lines, Inc. (Eastern) filed a petition
requesting authority for all trunk and local service carriers to engage in
discussions to consider means of limiting passenger amenities and services
ancillary to, severable from, and not an essential part of providing air
transportation on domestic and overseas flights, particularly short-haul
flights. I/

     In support of the petition, Eastern allege- inter alia,that the authority
to hold discussions is urgently required by the industry to hold down the
magnitude of a needed fare increase, and is clearly in the interest of both the
carriers and the fare-paying public; that largely as a result of the enormous
increase in fuel costs anticipated in 1974, the unprecedented efforts on the
part of individual carriers to  lay off personnel, cutback schedules, ground
aircraft, and temporarily close stations may not go far enough  to preserve
the economic viability of the industry.

     It is also alleged that the discussions sought are another avenue that
should be explored in order to assure that relief from the fuel shortage and
its by-products does not entirely take the form of increased fares; and that
limiting some of the amenities by which carriers compete is a reasonable
alternative, but one which goes beyond the ability of individual airline
management to control effectively except on a very limited scale, or at the
expense of losingpatr6nage  to a competitor. Therefore,  industry-wide
multilateral measures, as in the case of frequency reductions, are required  to
achieve any appreciable benefit.


I1 American Airlines, Inc. has filed an answer stating that it believes that
   such discussions may be useful, and that it is willing to join them.