August 8, 1963
PAGE 14594
AIR SERVICE TO NEW ENGLAND
Mr. KENNEDY. I thank my colleague. I appreciate the point which the Senator has made about the deep interest in this problem by a number of New England Senators who are not able to be here this evening. They have certainly expressed a common interest and desire to improve air service to all New England. This is something which is certainly the concern of all of us here. We know this is a matter which has been taken up by the New England Senators, and they have all shown their interest. We will welcome their support, and look at this as a joint effort.
Mr. SALTONSTALL. I agree with my colleague, because it involves the prestige and economy of our New England area.
Mr. MUSKIE. Mr. President, will the Senator yield?
Mr. KENNEDY. I yield to the Senator from Maine.
Mr. MUSKIE. I am delighted the Senator from Massachusetts has made this timely suggestion of a hearing of the Northeast Airlines case. In northern New England we have somewhat different reasons for concern with this decision. Our whole transportation picture in the field of air service is bound up and has been bound up for many years, in the fortunes of Northeast Airlines.
Several years ago, when Northeast was given the 5-year temporary franchise on the Miami route, I was happy, as Governor of Maine, to place the resources of Maine behind Northeast's application. We had been persuaded that if Northeast could acquire the Miami franchise, its economic position would be so improved as to permit the improvement of service to northern New England, and New England as a whole. Unfortunately, that optimistic picture was not realized, in the interest of Northeast in the Florida route, over the past few years. Nevertheless, we are still concerned with the need for air service in northern New England.
Mr. KENNEDY. Mr. President, will the Senator yield at that point?
Mr. MUSKIE. I yield.
Mr. KENNEDY. I think that applies not only to northern New England, but even within my State. It would apply in Massachusetts, for example, where there has been a termination of air service by Northeast, or at least consideration of termination or reduction of service in several cities such as New Bedford, Pittsfield, and Lawrence. This problem, as well, is a matter of concern in this requested study.
Mr. MUSKIE. I agree with the Senator. We place a slightly different emphasis on this case than we did 5 years ago. At that time we accepted the argument that a bigger and more profitable Northeast Airlines could afford to give us better service for northern New England.
We still believe that would be true. However, in light of the considerations which moved the Civil Aeronautics Board and the decision which it has announced, our emphasis is on the importance of providing to New England -- and since I am from northern New England, particularly that region -- adequate air service.
If, upon review, the Civil Aeronautics Board should reconsider its decision relative to the Northeast, it should do so bearing in mind the importance of providing adequate air service to New England. If, on the other hand, the Civil Aeronautics Board is not persuaded to change its view relative to Northeast, it seems to me it is of paramount importance that the Civil Aeronautics Board immediately consider the problem of adequate service to New England.
I emphasize that because I think the Senator's suggestion for a hearing provides a most timely topic for the consideration of all these problems.
We have been a part of Northeast Airlines' fortunes for a long time. Northeast is a familiar entity to us. If Northeast and New England are to continue to live together to the profit of each, this is what we would like to see. But, at the very least, we would like to see at the hearings a consideration of the alternatives which are before the Board, and this Congress, in terms of service for northern New England.
I compliment the Senator from Massachusetts for his suggestion. I am happy to support him.
Mr. KENNEDY. I thank the Senator from Maine. He certainly has expressed an interest in an aspect of this whole problem which affects not only northern New England, but, very intimately, a question of traffic and transportation which exists within the State of Massachusetts.
We have received numerous inquiries from many of our communities which, in the past few months and years, have had a reduction in air service. They are equally concerned about the point which the distinguished Senator from Maine has emphasized -- what will be the future air service for all of New England. I very much appreciate what the Senator has said in this regard.
Mr. MUSKIE. Mr. President, will the Senator yield for one more observation?
Mr. KENNEDY. I yield.
Mr. MUSKIE. I think the Senator's action and request are timely also because of the interests of the employees of Northeast Airlines. I appreciate the fact that in New England the bulk of the employees are from his State and that the number of employees of Northeast who reside in my State are relatively small in number. Nevertheless, they have an association with Northeast. So their economic future is bound up in the decision of the Civil Aeronautics Board. I think the entire problem should be gone into in the hearing which the Senator has requested.
Mr. KENNEDY. I am glad the Senator from Maine has mentioned this point, because this aspect of the problem, the future of job opportunities of these employees, is a matter of extreme concern to me. There have been indications by the president of Eastern Airlines, in Boston and elsewhere, that they would be delighted to absorb the great bulk of the employees of Northeast. The problem of whether Northeast is to survive as an entity includes a basic issue which applies to members of the Pilots Association and the unions that represent the maintenance employees and other people at the various bases of Northeast, namely, the problem of seniority. There has been no indication from any authoritative source at Eastern or National Airlines that they would be able to take these people with their seniority. In many instances, the pilots, for example, have 20 and 30 years service with Northeast and have been flying the in t highly sophisticated aircraft. Now, if Northeast were not to survive, they might have to go to copiloting a twin-engined plane. In spite of the statements which have been made about job opportunities and employment security for these people, this is a matter of greatest concern, certainly to me, and I know it is to the other Members of Congress from New England.
Mr. McINTYRE. Mr. President, will the Senator yield?
Mr. KENNEDY. I am pleased to yield to the Senator from New Hampshire.
Mr. McINTYRE. I have not been overly critical of the CAB decision because it has been in the back of my mind that it would perhaps open the door to better regional service than New Hampshire has enjoyed under Northeast. On the other hand, I, like the other New England Senators, have been disturbed by the possibility that, as was so carefully pointed out by the Senator, the people in his fine State and in New Hampshire would have their jobs jeopardized.
What we are primarily concerned with in New Hampshire is better and more effective transportation. We understand and realize that in the State of New Hampshire we have certain problems of terrain and of airport locations.
It was pleasing to me to learn of the great interest of Keene in a continuation of Northeast service to that city. As I understand, Keene is now receiving some Viscount service. This is important to us in New Hampshire. If I correctly understand the purpose of the proposed inquiry, it is aimed at trying to give Northeast every fair consideration. If the purpose of the inquiry is to give Northeast every consideration, I would be in favor of such a hearing. I have been impressed by the minority decision in the CAB hearing.
I am not a great flier myself, but I have enjoyed Northeast flights from Boston to Washington. They compare quite favorably with many other airlines whose flights I have experienced.
I also wish to note that my senior colleague from New Hampshire [Mr.. COTTON], who has always had a great deal of interest in this matter, will be on the committee to which the matter would be referred.
Mr. KENNEDY. Does not the Senator from New Hampshire agree with me that if Northeast were given a strong trunkline which would provide access to the kind of lucrative market which exists between Boston and Florida points -- and I am not speaking only of Miami, but also of the other cities in Florida -- Northeast could be placed in a position, financially and economically, to provide better service for the New England areas?
Mr. McINTYRE. It is my understanding that this was the original position when CAB gave temporary certification to Northeast; namely, to enable Northeast to do an effective job in the region of northern New England.
Mr. KENNEDY. Yes. However, as the Senator has pointed out, that was a temporary certificate only. The Viscounts and other aircraft were bought since the temporary certification, and the credit situation in which Northeast found itself placed it in a prejudicial position from the very beginning.
The hearing examiner made the recommendation that there should be three lines to Florida, and if that recommendation were adopted, Northeast would at least be in a better position economically to provide the additional service. That is especially likely in view of the airline's efforts to revitalize itself financially in recent weeks -- efforts which appeared to be making significant progress prior to the CAB's announcement of its proposed decision.
Mr. McINTYRE. I would sum up my position by saying that I am in favor of every consideration and every break, so-called, that Northeast can get. Primarily, what I am interested in is for New Hampshire to get good air service. Frankly, we do not have it today, and have not enjoyed it under Northeast.
Mr. MUSKIE. The Senator from New Hampshire has echoed my sentiments on this point. I should like to respond briefly to what the junior Senator from Massachusetts has said with respect to the ability of Northeast to provide adequate service to northern New England.
The traffic pattern in northern New England is such that adequate facilities must be subsidized, and they must be subsidized either from the profits of another route, such as a trunkline route to Florida, or, as is the case in other parts of the country, through subsidies by the Federal Government. These are the only two possibilities for providing adequate service to New England, because New England business will not provide the profits necessary to sustain adequate service.
Therefore I believe that one of the purposes of the kind of hearing that the Senator from Massachusetts has requested would be to probe the question: Is it possible to provide adequate service to New England if Northeast is given a permanent certificate, broadened sufficiently to provide expanded service, or must it be subsidized in other ways?
CAB's policy is violently and strongly against providing subsidies for local air service to trunk carriers. This has been the inflexible and unchanging rule of CAB. Subsidies are given only to carriers which are purely local service carriers. Northeast is not that now, although it was prior to the time that it was given a temporary certification for the Miami run.
Certain policy questions are involved; and it is timely and necessary that they be considered at such a hearing, because if the decision of CAB remains irrevocable, and the contemplated course of action is launched, there will be involved not only the fortunes of the employees to whom we have referred, but also the future of air service in New England as a whole.
Mr. KENNEDY. I would also point out that over the past 7 years Northeast has not been subsidized, thereby saving the Government many millions of dollars it would have received by way of a subsidy, as it had received in prior years. That was consistent with what CAB policy had been. If we are to minimize subsidies and maximize service, as the minority has pointed out so well, by providing a run to the South and other points outside New England, by giving Northeast a Permanent certificate, Northeast would be better able to, should, and must provide additional service to northern New England, and to cities in the State of Massachusetts like Pittsfield, Worcester, New Bedford, and Lawrence. These areas are interested in this kind of service and deserve to receive it.
Therefore I join my colleagues in the Senate from New England in this request. It comes as the joint effort of all of us who are interested in the development of the New England area.
I wish to say one final word. The CAB was created by Congress. It is completely appropriate, therefore, that we in Congress should have the opportunity to review the consequences of what has been undertaken by CAB. It was created by delegated legislative authority from Congress, and is responsible to Congress for the exercise of that authority. Therefore I believe it is extremely appropriate and proper that this study be conducted.