Council Urges CAB to Consider Application by New Airline

by Council on Wage and Price Stability on October 22, 1976
by Council on Wage and Price Stability

 

Prompt consideration by the Civil Aeronautics Board (CAB) of a request by a new airline to provide low-fare service out of Chicago’s Midway Airport was urged today by the Council on Wage and Price Stability. The Council’s recommendation was made in a filing responding to an application by Midway Airlines, Inc., for a grant of operating authority to serve Cleveland, Detroit, Kansas City, Minneapolis, Pittsburgh, and St. Louis from Chicago’s downtown Midway Airport. Under existing regulations, a carrier proposing such interstate air service must first obtain from the CAB a “certificate of public convenience and necessity.”

Commenting on the Council’s action, Assistant Director for Government Operations and Research James C. Miller III explained: “This application is truly significant and appears to hold much promise for providing consumers with low-cost air service. To our knowledge, this is the first such application by a new carrier in decades. Moreover, the proposed service is patterned after the successful low-fare services offered in California and in Texas. In our judgment, the Board should give this application an expeditious hearing.”

 

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