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1975 - May DOT Ord. & Dec. [1] (May, 1975)

handle is hein.usfed/dotod0583 and id is 1 raw text is: Order 75-5-1 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 1st day of May, 1975 Chicago-Miami charter rate proposed by Docket 27748 TRANS WORLD AIRLINES, INC. ORDER DISMISSING COMPLAINT By tariff revision 1/ marked to become effective May 3, 1975, Trans World Airlines, Inc. (TWA) proposes to establish a point-to-point inclusive tour charter (ITC) rate of $17,500.73 from Chicago to Miami and return for flights operated with 178-seat B-707-331 aircraft. The flights are scheduled t~o depart on Saturday of each week during the period May 3 through December 27, 1975, with return the following Saturday. Delta has filed a complaint requesting that the proposed rate be suspended and investigated. It points out the fact that TWA does not hold authority to provide scheduled nonstop service between Chicago and Miami, and alleges that the planned service under the proposed rate would provide virtually a scheduled nonstop service for a period of 34 weeks, posing substantial risk of diverting traffic representing over $1.13 million in revenues from carriers obligated to provide scheduled service in the market. Delta claims TWA's proposed charter rate is unreasonably low, comparing it with individual fares for scheduled service. The complainant also questions TWA's profit estimate, and asserts that the proposal is an attempt to invade the Chicago-Miami market. In support of its proposal and in answer to the complaint TWA submits that it will realize an operating profit of $3,950.73 from each round trip operated; that the proposed rate is 4.1 percent below its otherwise applicable domestic charter rate, reflecting the saving to it from the fact that ITC's are non- commissionable. TWA states that it is not mounting a competitive foray into the Chicago-Miami market, and that the proposed ITC program which requires purchase of ground service in addition to the air transportation will have no diversionary effect on scheduled passengers. TWA further states that it is free to operate ITC's as it is doing in this instance under the charter I/ Revision to Trans World Airlines, Inc., tariff C.A.B. No. 290.

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