Letter to Ross Rizley, Chairman, Civil Aeronautics Board, Regarding the States-Alaska Case.

Dear Mr. Rizley:

I am returning herewith the decision and proposed order of the Civil Aeronautics Board in the States-Alaska Case (Docket No. 5756, et al.).

I am in general agreement with the major aspects of the Board's proposed action in this case and I approve of the Board's proposed order except as it relates to the duration of the certificates for Alaska Airlines and Pacific Northern Airlines. I am in full agreement with the Board's view that a merger between Alaska Airlines and Pacific Northern would be an important step forward in strengthening air transportation between the States and Alaska and at the same time reduce the need for Federal subsidy support. While three-year certificates might well encourage and facilitate such a merger, such certificates would create serious problems for both carriers in the matter of financing new equipment. I am convinced that there are other steps that the Board can take within its authority to encourage and facilitate such a merger, and I trust that the Board will take all such steps as are reasonable and appropriate.

In view of the great importance of air transportation with up-to-date equipment to the people of Alaska and the future development of the Territory, the certificates of Alaska Airlines and Pacific Northern should be extended for five years. You have advised me, through the Director of the Bureau of the Budget, that in the opinion of the Board a five-year extension will enable the carriers to finance the purchase of new equipment on a sound basis with consequent benefit to the people of the Territory in better service and more effective competition.

Accordingly, I request that the Board present for my approval a revised order in this case that is consistent with the above comments.

Sincerely,

DWIGHT D. EISENHOWER