Wednesday, August 20, 1975

THE MICHIGAN DAILY

Page Five

Wednesday, August 20, 1975 THE MICHIGAN DAILY Page Five

Airline agency ups fares

Labor department to hold
affirmative action hearings

(Continued from Page 4)
for a one way trip between Los
Angeles and San Francisco. If
PSA had followed the pricing
formula of the Civil Aeronautic-
Board, the ticket would cost
about $40.
A DRAFT STUDY of CAB reg-
ulation by the Senate Subcom-
mittee on Administrative Prac-
tice and Procedure reports, "the
major reason for lower costs
and lower fares is that the Cali-
fornia airlines fill their planes
with more passengers."
Basically, instead of schedul-
ing unnecessary flights to gain
new business, the intrastate car-
riers are required by price corn.
petition to reduce fares. Thus,
on its Houston-Dallas route,
Southwest Airlines charges $25
one-way fare while Braniff, sub-
ject to CAB regulation, charges
Last April, President Ford,
noting the deficiencies of airline
regulation, called for a revision
in the statutory authority given
to the Civil Aeronautics Board
by Congress. The administration
is soon expected to send a pro-
posal to Congress permitting
easier route entry and substan-
tial pricing flexibility in the air-
line industry.
One possible beneficiary of de-
regulation legislation is World
Airways, a large charter outfit,
that has petitioned the CAB for
- permission to initiate daily
coast to coast service charging
an $89 one-way fare.
ROBERT CRANDALL, a sen-
ior vice president of American
Airlines, feels that the big trunk
carriers would lower their fares
to meet new competitors such
as World Airways, but "as long-
haul e a rn i n gos declined, we
would find it less and less pos-
sible to support our public serv-
ice obligations." Crandall con-
cludes thatmany smaller towns
"would either find schedules
dramatically reduced or lose
scheduled air transportation al-
together."
Because of scheduling compe-
tition, the airlines have already
competed away a large part of
their long-haul earnings that
could have been used to sub-
sidize short-haul routes. With
not much money presently being
spent to subsidize small town
routes, deregulation of the air-
line industry is not likely to
cause a significant drop in
service.

In view of the fare and sched-
uling structures of the intrastate
airlines administration deregula-
tion legislation should be sup-
ported.
The Civil Aeronautics Board,
while fostering the growth of
the airline industry, has ignored
its responsibility to provide a
low cost product to theapublic.
The Board's policies have re-
sulted in a transportation sys-
tem that emphasizes additions
to capacity instead of fare re-
ductions.
The public should be given
the opportunity to pay for the
spaces which they occupy in an
airline, not the cost of empty
seats and service frills.
Jonathan Eostein is a fre-
ouent contributor to the
Editorial Page.
wae ,ssm:rsrswnsui
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Day Calendar:
Classes End.
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-panel discussion, "Unemployment,
Productivity, & the Work Ethic,"
10:30 n.m.
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(Continued from Page 1)
LAST JUNE, HEW, showing
uncharacteristic muscle, threat-
ened 29 colleges and universi-
ties with the elimination of mil-
lions of dollars in federal fund-
ing unless they agreed to sign
a 45-page model affirmative ac-
tion agreement, which many ed-
ucators claim was impractical
and unenforceable.
The University was not among
the 29 schools cited, but Presi-
dent Robben Fleming said in
June that its exclusion may
have been "purely accidental."
The University did not have a
federal grant of over $5D,004.
pending at the time.
Barry Anderson, a spokesman
for the higher education divi-
sion of HEW's civil rights office,
said yesterday that the model
agreements required "s o m e
rather rigorous self-evaluation"
on the part of the schools that
signed them.
Fuzzy Zoeller of New Al-
bany, Ind., led the PGA's 1974
qualifying school for approved
tournament players. In eight
rounds he had 572 shots for a
71.5 stroke average.

ANDERSON said the labor de-
partment has offered an alter-
native set of guidelines that will
be discussed at the upcoming
hearings. He described the reg-
ulations as much more "mel-
low," and less stringent than
HEW's.
Briefly described, the labor
department's regulations would
not hold a school responsible for
hiring women and minorities in
fields where their availability

was almost non-existent. By
comparison, HEW does not con-
sider availability a valid excuse.
"Our interpretation of their
proposals is that they are a
bunch of crap," concluded An-
derson.
"There has been some in-
fighting between HEW and the
labor department as to the re-
quirements," observed Varner,
"and that will probably be re-
flected in the hearings."


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