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6 NATIONAL AVIATION GOALS-PROJECT HORIZON been to confuse activity with action and the overall results have not kept pace with requirements. In his economic message, President Kennedy said, "America has the human and material resources to meet the demands of national security and the obligations of world leadership while at the same time advancing well-being at home. But our Nation has been falling further and further short of its economic capabilities. In the past seven years, our rate of growth has slowed down disturbingly." Aviation is a prime example. While our airlines have expanded their traffic to the point where they are now the Nation's No. 1 common carrier of intercity passenger traffic, they are not in a healthy financial condition. Their gross revenues were higher in 1960 than ever before, but earnings dwindles for the fifth consecutive year. Many reasons for this lack of financial health have been advanced - excessive competition, unwieldly route structures, obsolete ratemaking machinery, work stoppages, inappropriate equipment, inhibited managerial ingenuity, and internal management shortcomings. Whatever the reason, the fact that the vast majority of the American public still do not now use scheduled air transport or general aviation facilities indicates a great waste of our air in resource. This great market must be tapped. Reduced fares designed specifically to attract new markets, economic resolution of the short-haul air problem, greater scheduling reliability, imaginative application of air vehicles to the problems of urbanization - all these and more must be pursued with vigor. Air terminals and air traffic facilities are overstrained. The largest and fastest growing single segment of aviation - general aviation - is more and more inhibited in heavily populated areas of high traffic density. It must have room to grown and to make its important contribution to the aviation economy in consonance with the increased activity of the common carriers. Our U.S. international flag carriers have lost a large share of the world air market since World War II. From a dominant position at that time, by 1960 the U.S.-flag carriers' share of the free world international passenger transportation market had declined to less than one-third. This situation must be assessed unemotionally in the context of
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