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DOCKET #3051 - NEW YORK to MIAMI, FLA., via intermediate points, PHILADELPHIA, PA., BALTIMORE, MD., WASHINGTON, D.C., CHARLESTON, S.C. and JACKSONVILLE, FLA. (Route application is intended as an alternate to that applied for in Docket No. 3053 and a request has been made that both applications be heard at the same time.)  Not yet scheduled for hearing.

FARES AND TRANSPORTATION TAX

Your management is constantly seeking new sources of revenue.  However, one of the more obvious ways of increasing revenue -- by raising prices -- isn't always successful.  During 1948 a number of airlines felt that a 10% raise in fares across the board would benefit the industry while others felt that such a course would tend to price their services out of the market.  There ensued a series of inconsistent passenger fare increases by many of the major airline operators.  Overall rate structures were further confused by the simultaneous offering of a hodgepodge of so called promotional fares at reduced rates ranging from 10% to 35% less than the regular fares.  Your management fortunately saw no reason to participate in this rate battle having previously placed its fare structure at what was believed to be a justifiable level.  It further believed that any substantial increase in fares under existing economic conditions would result in diminishing returns.  Later developments have fully justified our position and it now appears that passenger fares on an industry basis are gradually returning to a sane level.

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Handling a shipment of baby chicks takes infinite care.  Colonial Air Cargo has run the gamut from a 4-oz. diamond to a 1000 lb. steamship propeller.