Aviation: Blocking Air Mergers

The U.S. airline industry, which suffers periodically from financial turbulence, last week ran into a patch of especially rough air. Items:

> Splitting along party lines (three Democrats to two Republicans), the Civil Aeronautics Board rejected a merger proposal by Eastern and American airlines to form the nation's largest domestic airline. Says CAB Chairman Allan Boyd: "The risk of concentrating so much power in one airline outweighed the benefit the merger might have had for American and Eastern." The refusal left Eastern in a grave financial state. Faced with withering over-competition and crippled by a recent flight engineers' strike,...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!