AN ANALYSIS OF CIVIL AERONAUTICS BOARD POLICY CONCERNING AIRLINE MERGERS.

The study determines and analyzes the Civil Aeronautics Boards policy concerning airline mergers. This is accomplished by 1 tracing the evolution of statutory authority granted the Board to regulate airline mergers 2 analyzing specific decisions of the Board to determine Board policy 3 analyzing the position of the courts in reviewing Board policy and, 4 analyzing the impact of Board and court decisions on the economic condition of the carriers involved in the mergers. Conclusions are that 1 the CAB was given statutory authority by Congress because of realization that some mergers would be necessary, 2 the CAB has developed guiding criteria for evaluation in each case, rather than establishing a firm policy that will insure uniform application in all situations where unifications are proposed, 3 the courts have not been instrumental in setting CAB policy other than in affirming Board decision, 4 the primary advantage of the Boards merger policy in terms of national aviation objectives is the elimination of weak carriers that were receiving subsidy payments, 5 no dramatic results were achieved in terms of the impact of the Boards policy on the economic condition of the carriers involved, and 6 the actions of the CAB regarding mergers has been realistic and in consonance with sections 102 and 408 of the Federal Aviation Act.