AVIATION: Eagle among Chicks

In the air-freight business, crowded with weak chicks, an eagle appeared last week. American Airlines Board Chairman Cyrus Rowlett Smith announced that American intended to operate "an effective nonscheduled air cargo service." Its "effectiveness" caused shivers to 2,730 new small operators, many of whom are veterans flying surplus planes. They now charge an average of 20¢ a ton mile. American plans to carry cargo at rates ranging from 18¢ down to the unheard-of low of 11¢ a ton mile for big shipments on long hauls.

Nonscheduled carriers cried that this was a...

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