Air Transportation in 1956: New Routes

The airline industry continued also to increase route mileage. The Civil Aeronautics Act of 1938 forbids an airline to operate a new route or to extend one of its old routes unless it first obtains the approval of the Civil Aeronautics Board (CAB). The most important of the 1956 decisions rendered under this power was the granting to Northeast Airlines of a five-year right to extend its route southward from New York to Miami. This increased competition along the Atlantic seaboard, where Eastern and National have long been operating. Several other airlines had sought the right to fly the lucrative New York-Miami segment, but the CAB chose northeast partly because earnings from the new operation are expected to relieve the government of the need to continue its air-mail subsidies to the line. The decision conforms to the CAB policy of reducing the gap in size between the Big Four and the smaller trunk airlines.

 

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