Air Line Pilots Ass'n, International v. Civil Aeronautics Board

667 F.2d 181, 215 U.S. App. D.C. 138
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 30, 1981
DocketNos. 80-1168, 80-1327 and 80-1676
StatusPublished
Cited by1 cases

This text of 667 F.2d 181 (Air Line Pilots Ass'n, International v. Civil Aeronautics Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Air Line Pilots Ass'n, International v. Civil Aeronautics Board, 667 F.2d 181, 215 U.S. App. D.C. 138 (D.C. Cir. 1981).

Opinion

Opinion for the court filed by Circuit Judge WRIGHT.

WRIGHT, Circuit Judge:

The central issue in these consolidated cases is whether the Airline Deregulation Act of 1978, which provides for phased restoration of market competition in the airline industry, also raises the minimum safety standards for new carrier applicants and creates an expanded role for the Civil Aeronautics Board (CAB). Petitioner Air Line Pilots Association, International (ALPA) relies on language in the declaration of policy, 49 U.S.C. § 1302(a) (Supp. III 1979), to support its contention that the Act requires “more stringent government scrutiny of the applicants’ fitness and safety” during the period of transition to free market entry.1 Respondent CAB asserts that the Act did not modify either the standards for safety and fitness or the responsibilities of the agency. We hold that the 1978 Act left the CAB’s safety mandate unchanged.

In the orders under review the CAB granted new operating authority to three existing carriers, relying on evaluations of the applicants’ safety records by the Federal Aviation Administration (FAA). Federal Express Corporation, intervenor in No. 80-1327, was authorized to operate scheduled passenger service from Chicago-Midway to six other markets.2 Fleming International Airways, Inc., intervenor in No. 80-1168, and Pacific Alaska Airlines, Inc., intervenor in No. 80-1676, received certificates to operate all-cargo service. In each case ALPA contends that the CAB should have denied certification because the carriers did not satisfy the new, higher, standard of safety established by the 1978 legislation. Alternatively, ALPA argues that the CAB’s proceedings were procedurally flawed.

We conclude that, on the record as a whole, the CAB’s decisions to grant operating authority to these three carriers were supported by substantial evidence and were not arbitrary, capricious, an abuse of discretion, or contrary to law. With respect to the qualifications of the applicants, we affirm, generally for the reasons stated in the opinions of the Board.3 We also find no reversible procedural error in the CAB’s proceedings. We wish, however, to set forth our position more fully on the issue of statutory interpretation. We agree with the Second Circuit, which has recently decided a substantially similar issue,4 that ALPA’s interpretation of the Airline Deregulation Act of 1978 is erroneous.

I. BACKGROUND

The Federal Aviation Act of 1958 established a bifurcated regulatory scheme for the air transportation industry. Congress entrusted “safety regulation of civil aeronautics” to the FAA,5 and gave the CAB authority over “air carrier economic regula[140]*140tion.”6 An applicant was required to obtain operating authority from the FAA, which conducted a technical investigation to determine compliance with FAA-promulgated safety regulations.7 Before a new carrier could enter into service it also had to obtain a CAB certificate, based on a finding that the carrier was “fit, willing, and able” to provide the proposed service and to comply with the statute and CAB regulations, and that its proposed operations were “required by the public convenience and necessity * * *.”8 The CAB’s decision focused on routes, prices, and conditions of service. It also analyzed economic factors that might affect the safety of operations, including the applicant’s financial resources, management experience, operating plans, and compliance disposition. Lacking technical personnel of its own, however, the CAB relied on FAA determinations with respect to technical operating questions, including safety.9

Airline deregulation legislation passed in 1977 and 1978 instituted a phased program to restore a substantial measure of free market competition in air transportation.10 Air cargo carriers are no longer subject to CAB regulation of routes and rates; the Board is required to certify all-cargo applicants “unless it finds that the applicant is not fit, willing, and able to provide such service” and to comply with CAB rules and regulations.11 In passenger transportation the CAB will gradually be divested of regulatory authority. Until the end of 1981 it has the duty to grant certification to new domestic carriers which are “fit, willing, and able” to operate and to comply with regulatory requirements, and whose proposed routes are not inconsistent with the public convenience and necessity.12 From 1982 to 1984 the CAB will determine only whether applicants are “fit, willing, and able.”13 On January 1, 1985 the CAB will be abolished.14 Thereafter FAA safety certification will be sufficient to permit initiation of service. The statutory provisions at issue in these cases will therefore apply only to new carrier certification decisions by the CAB during the transition period, which ends at the beginning of 1985.

II. THE CAB’S DUTIES UNDER THE AIRLINE DEREGULATION ACT

The CAB maintains that the 1978 Act did not change the substantive fitness standards required of new applicants.15 It notes that the standard for certification, “fit, willing, and able,” was unchanged by the 1978 legislation,16 and that Congress did [141]*141not express any disapproval of the CAB’s criteria for pre-1978 certification decisions. Therefore, the Board continues to focus on financial strength, managerial experience, operating plans, and “compliance disposition,” economic factors which have a bearing on safety. In the CAB’s view, the FAA retains primary responsibility for evaluating the technical ability of a carrier to operate safely and for assessing its past operating record.17 The CAB receives information and opinions from the FAA on these issues. It “inquire[s] further if past operations create doubt as to [the applicant’s] willingness to comply with aviation regulations,” 18 but it does not reexamine the FAA’s technical determinations.

ALPA, in contrast, asserts that the 1978 legislation requires the CAB to apply a newly-tightened substantive safety standard to applicants for new carrier certification. ALPA maintains that the CAB may not certify a new carrier as “fit” to operate — even if it has passed muster with the FAA — unless the CAB is satisfied that the applicant will operate at the “prevailing level of safety in the airline industry”19 in 1978. All parties agree that this standard is higher than FAA minimum safety requirements.20

ALPA’s contention rests on language in the declaration of policy of the 1978 Act, 49 U.S.C. § 1302(a) (Supp. Ill 1979).21 Section 1302(a) sets forth ten considerations which the CAB is directed to consider “as being in the public interest, and in accordance with the public convenience and necessity[.]” The first two of these factors are:

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Bluebook (online)
667 F.2d 181, 215 U.S. App. D.C. 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-line-pilots-assn-international-v-civil-aeronautics-board-cadc-1981.