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Letter to the Chairman of the Civil Aeronautics Board on Transatlantic Air Fares

September 26, 1977

Dear Mr. Chairman:

I have reviewed your proposed order (Docket 31363) dated September 16, 1977, which suspends passenger fares filed by Pan American World Airways, Inc., Trans World Airlines, Inc., British Airways, Air-India, Iran National Airlines Corporation, and Aerlinte Eireann Teofanta for foreign air transportation.

Under my authority pursuant to section 801(b) of the Federal Aviation Act of 1958, as amended, I have decided to reject the Board's order as inconsistent with this Administration's foreign economic policy. I must emphasize that my international aviation policy carries with it a commitment to low fare, competitive international air service for the benefit of American consumers. I am not convinced that these innovative, carrier-initiated, low fares would damage the international aviation system. If the Board obtains new evidence after these fares are in effect that they are indeed predatory, I will consider a suspension of the rates at that time under the terms of the ad hoc agreement negotiated on September 19, 1977, with the United Kingdom.

I would also take this opportunity to suggest that the Board give serious attention to reforming present rules covering charter flights to permit those services to be more competitive with the new low fare scheduled flights and more responsive to the foreign economic policy reasons for encouraging low fare passenger service. Liberalizing charter rules will assist in the expansion of air travel markets and should provide real benefits to consumers and carriers alike.



[Honorable Alfred E. Kahn, Chairman, Civil Aeronautics Board, Washington, D.C. 20498]

Jimmy Carter, Letter to the Chairman of the Civil Aeronautics Board on Transatlantic Air Fares Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/242425

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