AVIATION: Shot in the Arm

The nation's ailing airlines got a quick shot in the arm last week. The Civil Aeronautics Board approved their request for a 10% raise in passenger fares (from 4.68¢ a mile to slightly more than 5¢) to last for 90 days. The lines had cried that increased operating costs had made them lose $10,000,000 last year. The boost, they hopefully estimated, would increase gross revenues by $25,000,000, make up for the increased costs.

Would it? Some airmen did not think so. With air fares now about 50% higher, mile for mile, than rail fares, the airlines were bound to lose some of their present traffic to railroads by a further increase. Airline troubles, compounded of over expansion and falling traffic, were too deep-seated for any quick cure.