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Story February 10, 1960

The Nome Nugget

Nome, Nome County, Alaska

What is this article about?

In Juneau, Alaska, executives from Northern Consolidated Airlines, Alaska Airlines, and attorney Robert Annis testified against a bill that would allow pilot-operators to compete freely on lucrative routes, arguing it would undermine federal subsidies and disrupt established air service for Alaska's 225,000 residents.

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Commercial Airline Chiefs
Testify Against Bill to
Allow Free Competition

JUNEAU. (AP) -- Fly-by-night operators would arrive in Alaska like ducks, a commercial airline spokesman said yesterday at a hearing called by the Joint Senate-House Judiciary Committee.

Ray Peterson, of Northern Consolidated Airlines, said if a bill favored by pilot carriers should pass, some private aircraft operators would "come north with the ducks, skim off the cream on the lucrative routes, destroy the subsidy and fly back south with the ducks."

Peterson, Robert Annis, Juneau attorney, and Richard Gilbert of Alaska Airlines testified in favor of a Senate bill, which would prohibit so-called "pilot-operators" from competing with federally-certified carriers on heavily used routes.

Passage of the bill favored by the pilot carriers would bring unrestricted competition on the lucrative routes and endanger the federal subsidies now granted the established carriers, the trio maintained.

The subsidies average about one-seventh of the more than 70 million dollars paid annually by the federal government for airline subsidies, Peterson said.

"Alaska's 225,000 population gets an average of $80 a person," Peterson said. "The average is about 33 cents a person for the rest of the country."

He said the federal subsidies have brought stability to the airline situation in Alaska, which has enabled the carriers to provide better service.

Annis argued further passage of the pilot-favored bill would disrupt the existing transportation patterns established over the past 20 years, and would endanger the basic system.

What sub-type of article is it?

Legislative Hearing Business Testimony

What keywords are associated?

Airline Subsidies Pilot Operators Alaska Aviation Legislative Hearing Federal Competition

What entities or persons were involved?

Ray Peterson Robert Annis Richard Gilbert

Where did it happen?

Juneau, Alaska

Story Details

Key Persons

Ray Peterson Robert Annis Richard Gilbert

Location

Juneau, Alaska

Event Date

Yesterday

Story Details

Airline executives testified at a Joint Senate-House Judiciary Committee hearing against a bill allowing pilot-operators to compete on lucrative routes, warning it would attract fly-by-night operators, destroy subsidies averaging $80 per Alaskan, and disrupt 20 years of stable service.

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