FAA History Lesson -- September 18, 2007

From the FAA Historical Chronology, 1926-1996...

”Sep 18, 1974: Transportation Secretary Claude S. Brinegar announced the Ford Administration's decision not to ask Congress to subsidize the nation's financially troubled flag carriers, Pan American and Trans World Airlines. Instead, the Administration continued to pursue an "action plan" to assist the two airlines through a variety of means that did not involve subsidy or new legislation. Congress, however, passed the International Air Transportation Fair Competitive Practices Act of 1974. As signed on Jan 3, 1975, this law included provisions designed to raise overseas mail rates, require Federal agencies to use U.S. flag carriers whenever possible, and control rebates by shippers and ticket agents. The law mandated negotiations aimed at protecting U.S. flag carriers from discriminatory landing fees and airport charges, and directed the Secretary of Transportation to impose retaliatory fees against the airlines of nations that failed to respond. (See Feb 15, 1980) ”

Don Brown
September 18, 2007