CONTENTS LINES WITH REGULATED INTERSTATE AIRLINES CAB REGULATION OF ENTRY INTO DOMESTIC AIR ROUTES AND INTO THE DOMESTIC AIR TRANSPORT CAB'S HANDLING OF CONSUMERS, SMALL GROUPS, AND CHARTERS IN THE REGULATION OF DOMES- CAB REGULATIONS OF DOMESTIC AIR FARES . GENERAL QUESTIONING OF THE CAB OFFICERS USES OF CAB'S AUTHORITY TO IMMUNIZE INTER- CARRIER AGREEMENTS FROM THE ANTITRUST INQUIRY INTO THE FAILURE OF THE CAB TO INVES- Engman, Lewis, Chairman, Federal Trade Commission__. 22 Miller, James C., III, senior staff economist, Council of Economic Ad- 56 Prepared statement of Gary L. Seevers, member, Council of Economic Panel of economists: Merton J. Peck, professor of economics, Yale Uni- versity; Roger G. Noll, professor of economics, California Institute of Technology; and Thomas G. Moore, senior fellow, The Hoover Institu- tion on War, Revolution, and Peace, Stanford University_. Prepared statement of Mr. Peck_-- Prepared statement of Mr. Moore_. Prepared statement of Mr. Noll. Kahn, Alfred E., Chairman, New York State Public Service Commission__ James, George W., senior vice president of economics and finance, Air EXHIBITS Income characteristics of adults who have flown on regular passenger airline Air Transport Association prepared exhibits : Example of connecting and through-flight complex, eastbound_ Dollar value of time savings due to air travel rather than other modes Changes in air fares compared with other U.S. products and services__ Distribution of trunk airlines scheduled coach fares, year ended Sept. 1974 load factors, nonstop services-Boston-Detroit market_ Distribution of airline passenger traffic by number of city-pairs (year ended June 1974)__. Page 122 123 124 124 129 130 131 132 133 134 135 136 Percent of transported passengers who are not through or connecting, 137 138 Air Transport Association, "The Consequences of Deregulation," (Apr. 25, 1974) U.S. scheduled airline 1973 routes (city-pairs) risking loss of service as a consequence of deregulation (in order from least to most unprofitable) 139 Flight/segment load-factor distribution, U.S.-certificated airlines, 48state services, Aug. 1973___ 161 171 Air Transport Association, letter from George James, senior vice president 380 Council on Wage and Price Stability, letter from Albert Rees, director, to Senator Edward M. Kennedy, dated May 1, 1975, evaluating the ATA study, "Consequences of Deregulation”. Douglas, George W., professor of economics, University of Texas, prepared statement Drake, John W., professor of air transportation, School of Aeronautics and Kennedy, Senator Edward M., letter to George W. James, senior vice presi- 382 394 437 410 139 379 380 421 423 Sherman, Roger, professor of economics, University of Virginia, letter to Senator Edward M. Kennedy, dated May 12, 1975, evaluating the ATA study, "Consequences of Deregulation". Whinston, Andrew, professor of economics, management and computer science, letter to Senator Edward M. Kennedy, dated May 9, 1975, evaluating the ATA study, "Consequences of Deregulation" Page 426 430 FRIDAY, FEBRUARY 14, 1975 TESTIMONY Panel of California intrastate airlines: Lawrence A. Guske, assistant controller, Pacific Southwest Airlines; and Robert W. Clifford, president, Air California__ 444 Prepared statement of Mr. Guske_ 449 Prepared statement of Mr. Clifford 450 Prepared statement of Dr. Jordan_. Prepared statement of Dr. Summerfield_. Panel of economists: William A. Jordan, professor of managerial economics, York University; and John R. Summerfield, president, Summerfield Associates O'Melia, Richard J., Acting Chairman, Civil Aeronautics Board_. 452 464 487 494 Prepared statement 498 Panel of interstate airlines: Morton Ehrlich, vice president for planning Murphy, Charles, executive director, Texas Aeronautics Commission___ 525 529 EXHIBITS American Airlines, prepared exhibits: Short-haul operating costs and earnings of American Airlines, Boston- 522 Short-haul operating costs and earnings of American Airlines, Boston- 522 Civil Aeronautics Board, prepared exhibits: Comparison of fare rates for CAB-regulated and non-CAB-regulated carriers in selected markets, Jan. 1975. 502 Domestic Passenger Fare Investigation-Phase 7 (excerpts), Apr. 1971 -- 502 Domestic Passenger Fare Investigation-Phase 9 (excerpts), Mar. 1974 503 General Passenger Fare Investigation, Nov. 1960 (excerpts). Jordan, William A., prepared exhibits: 508 PSA's coach fares compared with CAB-authorized 1st class fares for three major California city-pairs, 1949__. 467 PSA's coach fares compared with CAB-authorized coach fares for three major California city-pairs, 1965. 468 PSA's coach fares compared with CAB-authorized coach fares Jordan, William A., prepared exhibits-Continued Average annual output per employe (PSA compared with total trunk carriers and Western Air Lines), 1965_-_. One-way coach prices for Dallas-Houston and Dallas-San Antonio service: Southwest Airlines, Braniff Airways, and Texas International Airlines, June 1971-Dec. 1974___ Page 480 485 Top 100 origin-destination city-pairs in order of passenger rank, CABcertificated and California/Texas intrastate airlines (scheduled service, 1972). 486 Summerfield, John R., prepared exhibits: Dollar cost saved by PSA due to exclusively intra-California service__ Summerfield, John R., president, Summerfieid Associates, letter to subcommittee, dated Feb. 28, 1975: 490 Response to the testimony of Dr. Jordan__. 490 Response to tentative subcommittee staff memorandum concerning intrastate/interstate fare comparison__. 515 Texas Aeronautics Commission, prepared exhibits: Southwest Airline service awakened sleeping air travel markets in 532 Dallas-Houston market: average daily local passengers carried in each direction, by carrier, 1967–73_. Subcommittee staff, interstate/intrastate fare comparison: tentative staff conclusions 533 515 Comparison of intrastate and interstate routes of similar distances, 517 TUESDAY, FEBRUARY 18, 1975 Panel of airlines: William A. Hardenstine, senior vice president-sales, Prepared statement of Mr. Wexler---. Civil Aeronautics Board: Richard J. O'Melia, Acting Chairman; G. Joseph 646 660 Panel of government officials: Donald I. Baker, Deputy Assistant Attorney 664 Prepared statement of Mr. Baker--- 679 Prepared statement of John W. Snow, Deputy Assistant Secretary for Policy, Plans, and International Affairs, U.S. Department of Transportation (submitted by Mr. Kutzke). 688 Gagnon, James, chairman, ad hoc committee on air service, Airport 695 Prepared statement__ 704 EXHIBITS Allegheny Airlines prepared exhibits: 50 percent of Allegheny's passengers are generated in only 11 percent of the city-pairs it serves__ 626 29 percent of Allegheny's passengers on its Pittsburgh-Philadelphia nonstop flights come from other than the local market, July 1974 627 51 percent of Allegheny's passengers on its Chicago-Pittsburgh nonstop flights come from other than the local market, July 1974--- 628 Airport Operators Council International, prepared exhibits: Flowchart of the CAB's route hearing process as proposed by the Page CAB's staff_ 699 Samples of high-load factor operations, 1973 and 1974_ 725 726 Pacific Southwest Airlines' load factor history, 1967 to fiscal year 1972 728 Airport Operators Council International, letter from Donald G. Shay, president, to Senator Kennedy, dated March 4, 1975, clarifying the position of the Board of Directors of AOCI__. 720 Civil Aeronautics Board, material inserted in the record for clarification: 14 C.F.R. sec. 399.60 (1974), standards for determining priorities of hearing 650 Bureau of Operating Rights, Service to Small Communities (March 1972), excerpt_-_ 673 Continental Airlines, prepared exhibits: Comparative U.S. and foreign coach fares- 587 Continental Airlines, James L. Mitchell, vice president for regulatory proceedings, prepared statement (March 31, 1975), in response to the testimony of Dr. Jordan on February 14, 1975_ 587 California intrastate air service, 1946-65, by carrier and by city- 593 Pacific Southwest Airlines and Air California, route structure, 1975__ Relationship of international to system revenues and profit-selected trunks, 1973__ Continental Airlines, prepared statement in response to the prepared Dulles International Airport's primary and secondary service areas Used and unused nonstop authority in Baltimore/Washington's top Puerto Rico, Rafael Hernandez-Colon, Governor, prepared statement_. Increases in lowest regular New York-San Juan fares and proposed 594 595 600 617 754 601 730 736 739 740 743 747 748 Comparison of New York-San Juan fares with other vacation markets, 749 Comparison of New York-San Juan yields with other vacation mar- 750 Airline unadjusted results, mainland-Puerto Rico/Virgin Islands mar- 751 Pan American's own projections indicate that passenger fare increases 752 Comparative indirect expenses levels, fiscal 1974 vs. calendar 1971--United Air Lines, letter from Andrew De Voursney, group president of finance and planning, to Senator Kennedy, dated Feb. 28, 1975, concerning the effect of deregulation upon small-town service_-_. United Air Lines, letter from William R. Nesbit, corporate economist, to the subcommittee, dated Apr. 29, 1975, concerning the effect of deregulation upon small-town service.. 753 635 636 |