United States. Loniess. Senate. Committee all on Ariation. REGULATORY REFORM IN AIR TRANSPORTATION HEARINGS BEFORE THE SUBCOMMITTEE ON AVIATION OF THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION NINETY-FIFTH CONGRESS FIRST SESSION ON S. 292 AND S. 689 SERVICES, AND FOR OTHER PURPOSES MARCH 25, 28, AND 29, 1977 Part 2 Serial No. 95–10 Printed for the use of the U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1977 88-737 O COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION WARREN G. MAGNUSON, Washington, Chairman HOWARD W. CANNON, Nevada JAMES B. PEARSON, Kansas RUSSELL B. LONG, Louisiana ROBERT P. GRIFFIN, Michigan ERNEST F. HOLLINGS, South Carolina TED STEVENS, Alaska • DANIEL K. INOUYE, Hawaii BARRY GOLDWATER, Arizona ADLAI E. STEVENSON, Illinois BOB PACKWOOD, Oregon WENDELL H. FORD, Kentucky HARRISON H. SCHMITT, New Mexico JOHN A. DURKIN, New Hampshire JOHN C. DANFORTH, Missouri EDWARD A. MERLIS, Staf Director JAMES P. WALSH, General Counsel JOHN C. KIRTLAND, Minority Staff Counsel SUBCOMMITTEE ON AVIATION HOWARD W. CANNON, Nevada, Chairman DANIEL K. INOUYE, Hawaii TED STEVENS, Alaska ADLAI E. STEVENSON, Illinois BARRY GOLDWATER, Arizona EDWARD ZORINSKY, Nebraska BOB PACKWOOD, Oregon JOHN MELCHER, Montana (II) CONTENTS Bradley, Frederick W., Jr., vice president, Citibank.----- Heath, Alan F., president and chief executive officer, Pacific American Kelly, Arthur F., chairman of the board and chief executive officer, Western Air Lines; accompanied by Gerald O'Grady, senior vice president, legal; Prepared statement of Mr. Kelly Prepared statement of Mr. O'Grady.. McGurdy, William, vice president, Equitable Life Assurance Society of the Ordway, William A., director of Arizona Department of Transportation, chairman, American Association of State Highway and Transportation Officials Standing Committee on Aviation; accompanied by Henrik Stafseth, executive director; and Bob Aaronson, State aviation adminis- trator for the Maryland Department of Transportation Weintraub, Norman, director of research, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers Union; accompanied O'Hara, legislative counsel. ---- Wexler, Harvey, senior vice president, international and governmental affairs, Continental Air Lines, Inc.; accompanied by Lee Hydeman, -- -------- ---- ------ ------ -- -- Budd, H. Boyce, Jr., vice president, Summit Airlines .. Burwell, Lewis C., Jr., chairman, Pinehurst Airlines ---- Butler, Charles F., president, Air New England, Inc.---- Jarmin, Gary, legislative director, American Conservative Union; ac- companied by Maynard H. Dixon, Jr.. Shaffer, John H., former Administrator, Federal Aviation Administration. Wilbourne, Preston H., president, Air Wisconsin, Inc.------- Borman, Frank, chairman, president and chief executive officer, Eastern Prepared statement.------------------- Castro, Hon. Raul H., Governor, State of Arizona on behalf of the Four Corners Regional Commission; accompanied by James Burger, counsel; Bud Thar, National Governors' Conference; and John Walters, Arizona Lorenzo, Francisco, chairman, Association of Local Transport Airlines; Prepared statement of Mr. Lorenzo.. Prepared statement of Mr. Adamson.- Maurer, R. S., senior vice president, general counsel and secretary, Delta Air Lines; accompanied by James W. Callison, vice president, law and Miles, Thomas S., president, Commuter Airline Association of America; accompanied by Janet St. Mark, executive vice president; John Siebold, chairman of the board; Paul Jones, chairman, Federal and State affairs ADDITIONAL ARTICLES, LETTERS, AND STATEMENTS American Bar Association, letter of February 6, 1976. -- Teamsters, statement- Kendall, Richard J., attorney, letter of April 6, 1977. Lorenzo, Francisco, chairman, Association of Local Transport Airlines, REGULATORY REFORM IN AIR TRANSPORTATION FRIDAY, MARCH 25, 1977 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE AND TRANSPORTATION, SUBCOMMITTEE ON AVIATION, Washington, D.C. The subcommittee was reconvened, pursuant to adjournment, at 9:40 a.m. in room 5110 of the Dirksen Senate Office Building, Hon. Howard W. Cannon (chairman of the subcommittee) presiding. Senator CANNON. The hearings will come to order. Today we complete our first week of hearings on regulatory reform in air transportation. It has been a very informative and interesting week, and I hope this trend continues throughout the next week and a half. Our first witness this morning is Arthur Kelly, chairman of the board and chief executive officer of Western Air Lines. Senator Inouye, we are happy to have you here today. Senator INOUYE. I regret I could not be here for the hearings. I have my Merchant Marine hearings this morning discussing rebates, but I would like to join you in welcoming the chairman and chief executive officer of Western. Mr. Kelly, as you know, Western Air Lines has been servicing Hawaii for many years now and is providing the people of Hawaii fine service. I read your statement and it is one of the best I have seen. It is very detailed and I think it will be most helpful to us. Thank you very much. STATEMENT OF ARTHUR F. KELLY, CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER, WESTERN AIR LINES; AC- I will go through my text skipping some part of it for the sake of time, but I will try to highlight when I consider the important items of my comments today. I am proud of Western's heritage as the oldest continuously operating airline in the industry. As such, we have more years of experience in the domestic airline business than any other carrier. Staff members assigned to these hearings: Robert Ginther, John Kirtland, and W. Douglas Buttrey. |