AVIATION: New Rate Policy

The Civil Aeronautics Board moved last week to take the subsidy out of airmail payments to the booming U.S. domestic air transport operators. In two rate decisions it bypassed the old contract-type flat payment per mile flown, irrespective of the amount of mail carried, and substituted a pound-mile rate payment. The new policy affects Eastern Air Lines and American Airlines: in both cases the carriers will receive .3 mill for each mile a pound of mail is flown.

CAB estimated that this new rate will slice $773,000 off Eastern's annual mail pay,...

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