FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
1960
1960 - 1184.PDF
156 THE WOES of the US AIRLINES FLIGHT, 29 July l so \ By DON ADAMS (NEW YORK) "There is a rising tide of resentment over the noise of the jets . . . the situation worsens daily" A CCORDING to a growing number of editorials in leading, /\ American newspapers, US airlines are in the early stages •*• •*• of what most predict will be some very difficult times.Much of the industry troubles have been self induced; however, irrespective of who or what brought about the conditions, somesolutions will soon have to be found for a series of major industry-wide problems. Airline Costs and Fares The CAB recently (Flight, July 1960)granted the airlines a 2.5 per cent fare increase plus a further surcharge of $1 per one-way ticket. It is estimated that the airlineswill realize approximately 5 per cent from this boost in fares. Most editorial comment had favoured even greater increases, butthe CAB concluded that "full fare increases were not warranted in the light of all relevant data and the recently adopted regulatorystandards." The 5 per cent allowed is substantially less than the 5.5 to 12 per cent cited by some airlines as the minimum amountthey require to meet their present needs. Arguments in support of higher fares centred on the issue that air transport is govern-ment-regulated, and it was hence the responsibility of the govern- ing powers to ensure that the operators realize a reasonable returnon their investment. On a "return-on-investment" basis, the airlines earned some 12.3 per cent ten years ago. In 1955 thisfigure dropped to 11.5 per cent. Last year the return plummeted to 7.2 per cent. The recently approved fare increase should permitthe trunklines to earn 10.5 per cent on investment in 1960. Based Smiling here, Clarence B. Sayen, president of ALPA (left) and Elwood R. Quesada, FAA administrator, have had plenty of hard words in recent pilot v. ; -•-j Agency squabbles . •.-....--_• , on total revenues, the airlines earned a 5.9 per cent profit ten yearsago, 5.6 per cent in 1955 and 3.3 per cent last year. The profit margins currently approved for two other govern-ment-regulated industries are 15 per cent (on revenues) for electric power, and 7.6 per cent (on revenues) for Class 1 railroads. Thesefigures compare directly with the 3.3 per cent profit which the airlines earned in 1959. Adequate profits had therefore been earned in the "pre-jet"days, but the introduction of large numbers of turbine-powered aircraft within the past 18 months has brought about a period ofgreatly increased costs and reduced revenues. At the end of 1959 the certificated airlines operated 1,894 aeroplanes, of which 84were pure jets and 213 turboprops. During 1960 a further 155 pure jets and 54 turboprops will be delivered, so that by the endof the year America's airlines will be operating some 500 turbine- powered aircraft. More than 100 additional airliners are onorder and will be put in service within the next two years. With only three of the twe've major trunk lines showing a profitduring the first quarter of 1960, there are many who predict that the CAB fare-boost will simply be a case of "too little, too late."Primary among what the airlines term "unexpected" costs have been enormously increased crew costs, the inability of the airlinesto dispose of their piston-engined fleets at hoped-for sales prices, aircraft operating costs in excess of "brochure" costs, and thefailure of air traffic to grow at previous rates. This latter problem means that the airlines have essentially over-bought. A variety ofminor ills (such as the anti-noise measures imposed by some airport authorities) have contributed to industry woes. Very simply, theairliners are faced with the problem of having too many aircraft, all of which are very expensive to operate. And, of course, thereis the problem of insufficient passenger traffic. Labour Problems Since the introduction of the jets, the US :Air Line Pilots Association has waged a series of vigorous battles, first against the airlines on the issue of crew salaries, and morerecently against the Federal Aviation Agency. The airlines, caught in the middle of these skirmishes, have suffered accordingly. Thelatest ALPA struggle has concerned the question of whether FAA flight inspectors have the right to use the third-pilot seat on theflight decks of the big jets. Utilization of the seat by the FAA would be for the purpose of checking on pilot proficiency. Theusually outspoken ALPA has been particularly vehement in its opposition to the proposal, contending that absence of the thirdpilot would be very detrimental to safety. There is little doubt : that many pilots honestly believe that there is a question of safetyinvolved; but virtually all neutral observers feel that the third pilot is simply a case of "featherbedding" (a term used in railroad .parlance to denote that extra crew members are carried, not ; because they are needed, but simply to protect their jobs). It willbe remembered that the pilots waged a long and bitter battle to win the right to have a third pilot, and many feel that onceFAA inspectors occupy the seats without any obvious loss in safety the pilots' union may be at a disadvantage in future bargainingwith the airlines. The FAA/ALPA squabble is much deeper than the issuediscussed above. Ever since Elwood R. Quesada was appointed chief of the agency he and the pilots have been engaged in a run-ning feud. First, regulations concerning crew performance were tightened. Sloppy operations were met with heavy fines. To addto the bitter feelings, the FAA then passed a ruling grounding pilots who had reached_ a given age limit (60 for piston-enginedoperations, 55 for jet flights). Advancing the argument, founded on insurance statistics, that pilots in these age brackets—irrespec-tive of their apparent good health—are more likely than younger men to suffer abrupt fatal attacks, the FAA ordered a number ofolder pilots out of the air. The numbers immediately affected were small, but in forthcoming years the effect must be increasinglyfelt. Generally, the public supports the government in this issue. _ Mr Quesada is frequently complimented for urging a much-neededtightening up in operations; but some feel that he could be a bit more diplomatic in his treatment of the pilots, who are a sensitivegroup. Aircraft Noise Although there have been few headline incidents in America in recent months there is unquestionably a rising -ide
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
