Viewing page 2 of 49

This transcription has been completed. Contact us with corrections.

Aviation DAILY

1001 Vermont Ave., N.W., Washington, D.C., 20005 202-659-3250

Roland Leiser, Editor
Eric Bramley, Editorial Director
Wayne W. Parrish, President
William V. Henzey, Executive Editor 

Published daily, expected Saturdays, Sundays and Holidays by American Aviation Publications, Inc., in Washington.
SUBSCRIPTION RATE: $75 for three months, $135 for six months, $250 a year, postpaid. Quantity and deferred mailing rates on request. APPLICATION FOR REPRODUCTION of material contained herein should be made to the editors.

Vol. 177, No. 10 Tuesday, May 14, 1968, Page 71
REALISTIC TRAFFIC PROJECTIONS IN SUBPART M FILINGS URGED BY CAB OFFICIAL

Local service carriers should exercise a great deal of care and discretion in their Subpart M filings, Emory N. Ellis Jr. of the CAB's Bureau of Operating Rights, told the Assn. of Local Transport Airlines executives at their quarterly meeting in Seattle yesterday. Such filings are designed to expedite the CAB processing of applications of local carriers for route improvements.
Ellis said the staff "has been somewhat less than well pleased with the economic support in a number of Subpart M applications" filed to date. Ellis called for use of "conservative, well-established traffic forecasting techniques." Most of the cases, on file, he said, contain "highly optimistic rather than conservative forecasts, and in at least two cases the carrier applicants have found it necessary to submit significant revisions to their original traffic forecasts..." Ten Subpart M applications have been filed by give local service carriers--Mohawk, North Central, Ozark, Air West and Frontier. He said it was a little too early to say whether the Subpart M filings have lived up to expectations, and predicted that most of the locals will have filed applications by year end. "We would also expect that the rule would present some good opportunities for recently merged carriers to present route integration proposals to the Board, and we expect this type of filing," Ellis said.
Ellis said the Subpart M case "will not present the same opportunity that the ordinary route case does to shore up weak cases with direct oral testimony or with late filed exhibits. In most cases, you will be stuck with what you file with your pleadings and if the pleading is worth filing, it is worth filing right."
He added that one of the difficulties of processing certain Subpart M applications is that another CAB proceeding might be underway in which the same markets are directly in issue, along with other markets. He called on the carriers "to consider very seriously all of the implications of such applications..."
John M. Burzio, aviation legislative counsel for Sen. A. S. Mike Monroney (D-Okla.), forecast favorable action soon on the extension of the aircraft loan guarantee program which expired last September. the administration bill was introduced in the House last September and in the Senate the following month (DAILY, Sept. 25, Oct. 5, 1967). Joseph P. Adams, executive director and general counsel of ALTA, commented that the $2.6 million reduction in airline subsidy payments in fiscal 1969 made by the House Appropriations Committee "is not critical." The committee recommended $45 million, compared to $47.6 million the Board requested.

ALPA TO PURSUE EFFORT TO CHANGE RETIRE-AT-60 RULE DESPITE FAA DENIAL

Despite FAA's rejection of the Air Line Pilots Assn.'s latest attempt to overturn the rule requiring airline pilots to retire at age 60 (DAILY, April 25), the union will continue its campaign to establish a new way to determine when a man is too old to fly an airliner, ALPA officials told The DAILY.
"We're not looking for a big fight with FAA," Gerald D. Goss, ALPA regional vice president and chairman of the Age 60 Committee, said. "We're trying to find a way for both parties to get out
(Continued on Following Page)