A PROPOSAL FOR CONTROL OF LOCAL SERVICE SUBSIDIES,
RAND CORP SANTA MONICA CALIF
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The discussion is directed toward a means of introducing competition into the granting of monopoly routes to local airline industries. The basic feature of the proposal is the division of the existing local service routes into two categories. The first category would consist of those relatively profitable routes which the present local service airlines are willing to operate without the benefit of direct federal subsidy payments. The second category would consist of the remaining local service routes which would continue to be subsidized by federal funds.