PERMANENT CERTIFICATION
HOT ISSUE
DCA
STEP CLOSER
NORTH CENTRAL GETS
NEW ROUTE
In a hearing before the House Commerce
Committee, February 28, questioning of
Acting CAB Chairman Chan Gurney amoun
ted to an attack on CAB majority's nega
tive policy toward permanent certificates
for the local service carriers. Through
out the hearings Gurney has strongly de
fended the Board's "No" policy for per
manent status for the locals.
Trend of the questioning sought to show
that the locals are in about as good shape
as were the trunks when they received
their certificated in 1938. In reply to a
question from Rep. Wolverton, (R-N. J .)
Gurney indicated some locals are close
to the point of permanency, could possi
bly achieve permanent status at their next
renewal proceedings.
Rep . Hinshaw(R-Cai.) sought to show that
many of the trunks were actually feeders
when certificated and became trunks in
actuality only as their routes were ex
tended and long-range aircraft developed.
He charged that some trunks are dodging
service on local service stops, pointed to
United's objections to stops on Braniff's
Route 106. Hinshaw also sought to show
that many of the trunks operate and lose
money on feeder routes, and that if they
were to shed such stops, they could offer
more effective competition to non-skeds
who serve only major terminals.
Meanwhile, Member Joseph P. Adams,
has strongly supported the Permanent Cer
tification Bill. Adams, only CAB member
supporting the Magnuson Bil 1 (S.651),said
the majority "in supporting the validity
of claims that permanent certification
would destroy initiative, etc., is com
pletely overlooking the power and duty
which we, as Board members have,to see
to it, in our mail pay decisions, that in
efficiencies of this type just don't hap
pen". CAB Acting Chairman Chan Gurney,
Members Harmar Denny and Josh Lee,and
Under Secretary of Commerce Walter Wil
liams have appeared in opposition to the
Bill. Last minute support for the Bil 1 came
from Clarence Sayen, President, ALPA,
Crocker Snow, Director, Massachusetts
Aeronautics Commission, and Nick Bez,
President, West Coast Airlines.
Piedmont's hopes of Washington service
came one step closer to reality when May
10 was set as the date of hearing before
Examiner Richard A. Walsh. Exhibits must
be filed by April 15, exhibits which will
indicate the mutual benefit which will ac
crue to both Piedmont and to the cities
which we serve by addition of the Nation's
Capitol to our routes.
In a preliminary hearing, the airlines in
tervening indicated they would have no
opposition to Piedmont's petition, since
we do not intend to operate Norfold-
Richmond-Charlottesvil le-Washington due
to the circuitous nature of such a route,
which would affect Allegheny,Capital and
National, nor do we intend to operate
Washington-Winston-Salem via Danville
and Greensboro,which would affect East
ern .
Among those supporting Piedmont are John
S. Battle, Jr., son of the former Gover
nor of Virginia,representing Charlottes
ville and Lawrence H.McWane, long and
ardent Piedmont booster, representing
Lynchburg.
Piedmont executives are hoping, and the
signs point to, an early decision by the
CAB, but no forecasts of when a decision
will be reached are being made.
MCCALL ELECTED TO
INDUSTRY POSTS
Mr. C. H. McCall, Manager of Revenue
Accounting, was elected Vice Chairman
of the Revenue Accounting-Passenger
Committee, Airline Finance and Account
ing Conference, at the March 23-24meet-
ing of the committee held in Kansas City,
Missouri. Mr. McCall currently repres
ents Piedmont on the Passenger Account
ing and Cargo Accounting Committees of
the Conference. Mr. M. J. Schneider,
TWA, was elected Chairman of the Rev
enue Accounting-Passenger Committee for
1955.
Mr. McCall was also elected to the Board
of Directors of the Airlines Clearing House,
Inc., at the annual meeting of the stock
holders held in Kansas City. For another
first —Congratulation, Mac!!
CAB this week certificated North Central
Airlines to operate between Chicago and
Detroit via South Bend, Kalamazoo, Jack-
son,Battle Creek, and Ann Arbor, Mich.,
in substitution for American Airlines,
which will continue Chicago-Detroit non
stop. Board voted 3-1 in favor of North
Central with Member Joseph Adams agree
ing that a local service carrier should get
the route, but favoring Lake Central for
the award. Adams held out for LCA,cit
ed their "greater need for this potentially
profitable segment". Certificate extends
to September 30, 1955, when NOR's en
tire certificate expires.
NEW BOARD MEMBER
SWORN IN
Ross Rizley, new Civil Aeronautics Board
member, was sworn in March 1 by Federal
Judge Noble J. Johnson. White House
action designating Rizley to serve as CAB
Chairman for 1955 was expected momen
tarily making him the 20th man to serve
on the Board and its 11th Chairman. Re
ports also indicate that Rizley will choose
Robert Kunzig, former Chief Counsel for
the House Un-American Activities Com
mittee, to serve as his Executive Assis
tant .
PAI ISSUES
FINANCIAL REPORT
Piedmont Aviation's Financial Report for
1954 shows a consol idated net profit of
$137, 865 after taxes . Total income for
the year was up 20% over 1953 while op
erating expenses rose 15%. Traffic was
up 14%, totalling over 300,000 passen
gers.
All bank loans were retired in 1954, and
the 16th DC-3, N55V, was purchased
without borrowing. Fixed Base sales rose
35% over 1 953 .
Then there was the near-sighted
fellow who picked up a snake to
kilI a stick.
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