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1977 - October DOT Ord. & Dec. [1] (October, 1977)

handle is hein.usfed/dotod0611 and id is 1 raw text is: Order 77-10-1 UNITED STATES OF AMERICA CIVIL AERONAUTICS BOARD WASHINGTON, D. C. Adopted by the Civil Aeronautics Board at its office in Washington, D.C., on the 3rd day of October, 1977 GREENVILLE/SPARTANBURG-WASHINGTON/NEW YORK : Dockets 24778 SUBPART M CASE 28308 ORDER ON DISCRETIONARY REVIEW This case involves the issue of first competitive service in the Greenville/Spartanburg, S.C.-Washington/New York markets. Eastern Air Lines is the incumbent carrier. On May 23, 1977, Administrative Law Judge William A. Kane, Jr. issued an initial decision in which he concluded that Southern Airways should be authorized to provide nonstop service in the Greenville/Spartanburg-Washington/New York markets on a permissive and subsidy-ineligible basis. In addition, he imposed a special subsidy-eligibility condition that provided that the economic results of nonstop service in these markets be disregarded if they would otherwise decrease the aggregate amount of Southern's excess profits subject to profit sharing. Finally, he concluded that Piedmont Aviation's application for nonstop authority in the same markets should be denied. By Order 77-6-17, June 8, 1977, the Board stayed the initial decision and provided for the filing of petitions for discretionary review. 1/ A petition for discretionary review has been filed by Eastern Air Lines and answers to that petition have been filed by Southern and the Greenville-Spartanburg Airport Commission. 2/ Upon consideration of the matters presented, we have decided to: (a) take review of the initial decision; (b) entertain briefs and hear oral argument on the subsidy-eligibility issue;3/ (c) affirm Judge Kane's ultimate findings and 1/ See also, Order 77-6-33, June 8, 1977. 2/ In addition, Southern filed a letter, which we will consider as a petition for discretionary review, urging the Board to take review of the initial decision limited to the subsidy-ineligibility and permissive authority issues. The carriernonetheless,expresses its willingness to accept the award on the condition that all operations over the route, from the day such service is inaugurated, will be subject to the judge's new subsidy-ineligible condition when,and if the condition is ultimately approved and applied by the Board. 3/ It is our intention to examine the subsidy condition at the same time as we examine similar proposals made in the Additional Dallas/Fort Worth-Kansas City Nonstop Service Case (Docket 28778), the Phoenix-Des Moines/Milwaukee Route Pro- ceeding (Docket 28800), the Sacramento-Denver Nonstop Proceeding (Docket 28961), the Improved Authority to Wichita Case (Docket 28848), and-the Memphis-Twin Cities/Milwaukee Case (Docket 29186). Oral argument in these cases is currently set for October 12, 1977, We will include this case in that oral argument and allow briefs to be filed on a later date.

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