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Aviation Act
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1562832
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Aviation Act
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John O. Marsh Files (Ford Administration)
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The original documents are located in Box 5, folder "Aviation Act" of the John Marsh Files
at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
Digitized from Box 5 of the John Marsh Files at the Gerald R. Ford Presidential Library
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
ALAN GREENSPAN, CHAIRMAN
PAUL W. MACAVOY
BURTON G. MALKIEL
October 31, 1975
MEMORANDUM FOR: PHIL BUCHEN
Counsel to the President
FROM:
Paul W. MacAvoy Pane many
Three weeks have passed since the Aviation Act of 1975
was announced. Since the announcement, this regulatory
reform initiative has received substantial editorial
support.
The Aviation Act was the lead news story -- and
favorably reported -- on both CBS and ABC Evening News
on the day of announcement. NBC also gave it full
coverage.
Editorials from the following publications are
attached at Tab A.
Baltimore Sun
Chicago Tribune
Dallas Morning News
Denver Post
National Journal
New York News
New York Times
Philadelphia Inquirer
Rocky Mountain News
Washington Post
Washington Star
You also might be interested in the following items:
Coverage by The Economist at Tab B.
Wall Street Journal analysis of the stock market effect
at Tab C.
Perceptive column by George F. Will at Tab D.
AMERICAN REVOLUTION 1776-1976
Attachments
GERALD 8. FORD
THE
SUN
A12
BALTIMORE, MONDAY, OCTOBER 13, 1975
PAUL A BANKER Managing Editor
JRL STERNE. Editorial Page Editor
WILLIAM F. SCHMICK JRL. Publisher
Food
How To Have Better Air Service
They don't want to see competition. They like the
Chicago Uribune
FOUNDED June 10, 1847
STANTON R. Cook, Chairman crid Publisher
ROBERT M. HUNT, President and General Manager
CLAYTON KIBKPATRICH Editor
JOHN MCCUTCHEON. Editorial Page Editor
MAXWELL McC30E0N, Managing Editor
WILLIAM E. JONES, Managing Editor News.
8
Section t
Saturday Oct. 18, 1975
Getting CAB out of the cockpit
The government wants to reduce sharp- and would increase ridership nearly 20
The Ballas Morning News
The News, oldest business institution in Texas, was established in 1842
ase
while Texas was C Republic
Editorial Page
Dick West, Editorial Director
MONDAY, OCTOBER 13, 1975
Airline Fares:
Dollars and Common Sense
Debate CAB Reform Proposal
President Ford has initiated long-anticipated
It is by no means a one-sided matter.
public debate on federal regulation of the airline
President Ford and his advisors in the Trans
Regulatory Focus
by Louis M. Kohlmeier
A Ripe Time for Airline Deregulation
1458
A Washington attorney, well practiced in aviation law
will Congress ignore the oppposition, particularly from
10 18 75
and in the politics of airline regulation, summed up in
mayors.
NATIONAL
a word his reaction to President Ford's airline deregula-
Fundamentally, however, Ford is arguing that com-
JOURNAL
C1975
tion proposal: "Baloney."
petition will be better for consumers, cities and the air-
The attorney, a former Civil Aeronautics Board
line industry itself. if not for all existing airlines. Pack-
(CAB) official. then added, "I've seen so many reform
aged as consumer legislation, deregulation may well be
proposals go down the drain. They shake up too much
more attractive to mayors as well as to Members of
opposition. The airlines, the unions, the mayors, the
Congress.
banks. All that opposition is still out there and Ford's
Time for change: There is, however. a more immediate
SUNDAYNEWS
218 E33t 423 St.
NEW TORK'S PICTURE NIWSPAPER.
(213) MU 2-1234
OCTOBER 12 1975
Published every Sunday by New York Naws Inc., 223 East 421 St., New York X.Y.
10017. W. H. James, President and Publisher: Michael J. O'Neill, Editor and Vico
President; VIE Paimer, Secretary, and R. J. Rearbach, Treasurer.
Mail subscription rates per year: U.S. Daily and Sunday $79.50 Daily 3553. Sunday
$26.00 Armed Forces Special Retern Daily and Sunday 351.57. Daily $36.00 Sundar $17.59
Foreign and short term rates upon recess.
Copyright New York News Inc. 1975. The Associated Press is entitled exclusively to THE
USA for resublication or all lecal news printed in this paper- All other rights reserved.
COME ON, TRY IT
The airline industry isn't the least bit happy with
the Ford administration's proposal to give it a bracing
Life market air. Indeed, the earriers are pro-
Rocky MOUNTAIN News
Deregulating the airlines
SCHEDULED AIR CARRIERS have been criticized as the creature of the
reacted with something like panic to industry it is supposed to regulate, and the
ndministration proposals to deregulate the
been deceased
NEW YoRK TIMES
- -
- -
I - -
Airline Competition
The domestic airline industry has been in a holding
nettern CHEE since Cn pared +'= hosic
E INQUIRER
Airlines reject more freedom
For all the ritualistic denunciations
Association, speaking for the airline
of the "heavy hand" of the Federal
industry itself.
Government uttered at Chamber of It is not necessary to endorse every
- LD
WASHINGTON POST
Deregulating the Airlines
PRESIDENT FORD'S PROPOSAL to reduce sharply
has ever gone bankrupt. no matter how badly it was
federal regulation of the airline industry is a big step in
managed because the CAB has worked out solutions to
the rigi t direction. The airlines long 2go outgrew the
financial problems by providing new routes or higher
tightly knit regulatory system they needed in their in-
prices or by approving mergers.
fancy. and the time has come to try something else. Mr.
It may well be that major changes will occur in the
Ford is right in telling Congress that the "something
airline industry if Congress adopts a program along the
The Washington Star
JOE L ALLBRITTON. Publisher
JAMESG BELLOWS. Editor
SIDNEY EPSTEIN. Managune Editor
EDWIN M. YODER JR., Associate Editor
MONDAY, OCTOBER 13, 1975
The airlines' curious anguish
An unsophisticated mind, one still cherishing
airline vice presidents. In fact, the big carriers
copybook maxims of a free-enterprise economy,
have become right comfortable beneath the
might well be puzzled by the howl from the air-
blanket of federal control, with its concern for
:- -- -- ... of mmenten
their health From time to time of course the
THE ECONOMIST OCTOBER 18. 1975
AMERICAN SURVEY
the door wide to sales and swaps.
Perhaps more significant, anv "fit.
willing and able" carrier could start up
a new scheduled service between any
two cities not decody enjoying non-
stop Friend also
give al: up to Uit ore that 200 small
air taxi operators who are bringing
irlines
airline-type service to small towns and
communities that the CAB-Memed
A dose of
carriers do not deem profitable. The
CAB recently allowed them to operate
competition
30-seat aircraft without becoming en-
meshed in the restrictive CAS regula-
it A SPECIAL CORRESPONDENT
tions. President Ford would allow them
Washington DC
in to 55 serve This will narmit the
WALL STReeT JOURNAL
Ford's Proposal to Sharply Reduce Regulation
Of Airlines Has Little Impact on Wall Street
By CEARLES J. FIJA
the market as long 23 uncertainties neu-
''
The Ford administration's legislative
tralize the expected improvement in funda.
procesal to reduce sharply federal regula-
mental business trends.
tion of airlines has surprisingly little im-
We've felt all along deregulation
pact on how Wall Street views the airline moves have to be defined, and they have
long.
November 12, 1975
MEMORANDUM TO:
PAUL MAC AVOY
FROM:
JACK MARSH
Paul, many thanks for your memo on the editorial reaction
to the announcement of the Aviation Act of 1975.
The reaction was most interesting, indeed.
JOM:RAR:cb
FORD & OFRALD LIBRARY
R Shartown
COUNCIL OF ECONOMIC ADVISERS
NOV 1 1975
0
WASHINGTON
TKS
ALAN GREENSPAN, CHAIRMAN
PAUL W. MACAVOY
BURTON G. MALKIEL
October 31, 1975
MEMORANDUM FOR: JACK MARSH
Counsellor to the President
FROM:
Paul W. MacAvoy Pane ma away
Three weeks have passed since the Aviation Act of 1975
was announced. Since the announcement, this regulatory
reform initiative has received substantial editorial
support.
The Aviation Act was the lead news story -- and
favorably reported -- on both CBS and ABC Evening News
on the day of announcement. NBC also gave it full
coverage.
Editorials from the following publications are
attached at Tab A.
Baltimore Sun
Chicago Tribune
Dallas Morning News
Denver Post
National Journal
New York News
New York Times
Philadelphia Inquirer
Rocky Mountain News
Washington Post
Washington Star
You also might be interested in the following items:
Coverage by The Economist at Tab B.
Wall Street Journal analysis of the stock market effect
at Tab C.
Perceptive column by George F. Will at Tab D.
AMERICAN REVOLUTION WENTENNING
Attachments
1776-1976
FORD i QERALD LIBRARY
LIBRARY
FORD
is UTVHIR
THE SUN
A12
BALTIMORE, MONDAY, OCTOBER 13, 1975
PAUL A. BANKER Managing Editor
JRL STERNE Editorial Page Editor
WILLIAM F. SCHMICK. JRL Publisher
How To Have Better Air Service
President Ford's proposal to reduce federal regu
They don't want to see competition. They like the
lation of airline service is sound and long overdue. A
cozy relationship they have long enjoyed with the
Chicago Tribune
FOUNDED June 10, 1847
STANTON R. Cook, Chairman and Publisher
ROBERT M. HUNT, President and General Manager
CLAYTON KIBKPATRICK. Editor
JOHN McCutcheon, Editorial Page Editor
MAXWELL McCRoHoN, Managing Editor
WILLIAM H. JONES, Managing Editor News.
w
8
Section 1
Saturday, Oct. 18,1975
Getting CAB out of the cockpit
The government wants to reduce sharp- and would increase ridership nearly 20
I
The Dallas Morning Netus
The News, oldest business institution in Texas, was established in 1842
while Texas was a Republic
Editorial Page
Dick West, Editorial Director
MONDAY, OCTOBER 13, 1975
Airline Fares:
Dollars and Common Sense
THE FORD administration CAB's philosophy is to let the air-
Debate CAB Reform Proposal
President Ford has Initiated long-anticipated
It is by no means a one-sided matter.
public debate on federal regulation of the airline
President Ford and his advisers in the Trans-
industry by proposing reform of the Civil Aeron-
portation Department claim that his procosed
extire
Recerd
Regulatory Focus
by Louis M. Kohlmeier
A Ripe Time for Airline Deregulation
1458
A Washington attorney, well practiced in aviation law
will Congress ignore the oppposition, particularly from
10/18/75
and in the politics of airline regulation, summed up in
mayors.
NATIONAL
a word his reaction to President Ford's airline deregula-
Fundamentally, however, Ford is arguing that com-
JOURNAL
©1975
tion proposal: "Baloney!"
petition will be better for consumers, cities and the air-
The attorney, a former Civil Aeronautics Board
line industry itself, if not for all existing airlines. Pack-
(CAB) official, then added, "I've seen so many reform
aged as consumer legislation, deregulation may well be
proposals go down the drain. They shake up too much
more attractive to mayors as well as to Members of
The cirlines the unions the
Com
SUNDAYNEWS
228 East 42d SL
NEW YORK'S PICTURE MEWSPAPER.
(212) MU 2-123
OCTOBER 12, 1975
Published every Sunday by New York News Inc., 220 East 42d St., New. York, N.Y.
10017. W. H. James, President and Publisher: Michael J. O'Neill, Editor and Vico
President; V.E Paimer, Secretary, and R. J. Rohrbach, Treasurer.
Mail subscription rates per year: U.S. Daily and Sunday $79.50. Daily 553.50, Sunday
$25.00 Armed Forces Special Rates: Daily and Sunday $52.50. Daily $36.00. Sunday $17.50.
Foreign and short term rates upon request.
Copyright New York News Inc. 1975. The Associated Press is entitled exclusively to rae
USA. for republication of all local news printed in this paper. All other rights reserved.
COME ON, TRY IT
The airline industry isn't the least bit happy with
the Ford administration's proposal to give it a bracing
Indeed the earriers are pro-
Rocky MOUNTAIN News
Deregulating the airlines
SCHEDULED AIR CARRIERS have
been criticized as the creature of the
reacted with something like panic to
industry it is supposed to regulate, and the
administration proposals to deregulate the
criticism has often been deserved. Con-
airlines, and Congress is almost as hostile
to the idea
gress, of course, has been a. willing party
in all this
is surprising, given the
NEW YORK TIMES
- -
- -
Airline Competition
The domestic airline industry has been in a holding
pattern ever since Congress passed the basic aviation
law in 1938. The Civil Aeronautics Board has never
allowed a new "trunk" carrier to enter the business The
PHILADELPHIA INQUIRER
Airlines reject more freedom
For all the ritualistic denunciations Association, speaking for the airline
of the "heavy hand" of the Federal industry itself.
WASHINgTON POST
Deregulating the Airlines
PRESIDENT FORD'S PROPOSAL to reduce sharply
has ever gone bankrupt. no matter how badly it was
federal regulation of the airline industry is a big step in
managed because the CAB has worked out solutions to
the right direction. The airlines long ago outgrew the
financial problems by providing new routes or higher
tightly-knit regulatory svstem they needed in their in-
prices or by approving mergers.
fancy. and the time has come to try something else. Mr.
It may well be that major changes will occur in the
2 prodram along the
The Washington Star
JOE L ALLBRITTON. Publisher
JAMES G. BELLOWS, Editor
SIDNEY EPSTEIN. Managing Editor
EDWIN M. YODER JR., Associate Editor
MONDAY, OCTOBER 13, 1975
The airlines' curious anguish
An unsophisticated mind, one still cherishing
airline vice presidents. In fact, the big carriers
copybook maxims of a free-enterprise economy,
have become right comfortable beneath the
might well be puzzled by the howl from the air-
blanket of federal control, with its concern for
lines at the specter of greater competition
their health From time to time. of course. the
LIBRARY
FORD
;
THE ECONOMIST OCTOBER 18. 1975
AMERICAN SURVEY
the door wide to sales and swaps.
Perhaps more significant, any "fit.
willing and able" carrier could start up
a new scheduled service between any
two cities not already enjoying non-
stop service. President Ford would also
give a leg up to the more than 200 small
air taxi operators who are bringing
Airlines
airline-type service to small towns and
communities that the CAB-licensed
A dose of
carriers do not deem profitable. The
CAB recently allowed them to operate.
competition
30-seat aircraft without becoming en-
meshed in the restrictive CAB regula-
FROMA SPECIAL CORRESPONDENT
tions. President Ford would allow them
Washington DC
up to 55 seats. This will permit the
The question about President Ford's
smaller carriers to use more efficient and
proposals to reform the Civil Aero-
more comfortable turbo-prop aircraft.
nautics Board. sent to Congress on
The bill also seeks to bring about a
October Sta. is not whether they are limited deregulation of fares and rares
LIBRARY
FORD
is
03220
WALL STReeT JOURNAL
Ford's Proposal to Sharply Reduce Regulation
Of Airlines Has Little Impact on Wall Street
By CHARLES J. ELIA
the market as long 23 uncertainties neu-
The Ford administration's legislative tralize the expected improvement in funda-
procosal to reduce sharply federal regula-
mental business trends.
tion of airlines has surprisingly little im We've felt all along deregulation
pact on how Wall Street views the airline moves have to be defined, and they have
stocks It changes very little the posture of been now to some extent, and that the fuel
a
aiysts, whether they were bulls or bears cost situation has to be clarified. and it
GERALD
FORD P
LIBRARY
George F. Will
WASHINGTON POST
Preserving 'Commercial Feudalism' in the Airlines
On Eastern Airlines flight 554 from
of the state of Oregon, a beaver rampant
Houston the other evening, a stewardess,
on a field of blue.
of today's regulated political economy.
(five-United, American, TWA, Eastern,
I am not casily surprised, least of all by
The flag is, I think, a fair sample of what
Delta-have about 70 per cent of domestic
smiling to take the sting from what any
passes for competition in a thoroughly
business). This protects the industry from