Before the Civil Aeronautics Board: Joint Petition for Emergency Procedures for emergency procedures to deal with fuel increases

by George C. Eads on September 28, 1975
by George C. Eads

The Council on Wage and Price Stability, the Federal Energy Administration, and the United States Department of Transportatior hereby jointly petition the Civil Aeronautics Board to adopt emergency procedures by which the airline industry can deal with the anticipated surge of fuel prices beginning September 1, 1975. Specifically, the Board should determine some interim methodology by which carriers experiencing fuel cost increases may recoup the full amount of such increases through discretionary, short-term adjustments in fares in markets of their own choosing. We further propose that this methodology be other than that developed in the Domestic Passenger Fare Investigation, Docket 21866, which in our judgment is inadequate to permit carriers to absorb the shock caused by appreciable and imminent increases in fuel costs. This system of interim cost-recovery should be limited in duration so as to be effective only until there is a restabilization in the costs of energy, at which time DPFI methodology will again be completely appropriate to cope with such further cost adustments as may occur.

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