American Airlines, Inc. v. Civil Aeronautics Board

348 F.2d 349
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 4, 1965
DocketNos. 18590, 18600, 18608
StatusPublished
Cited by6 cases

This text of 348 F.2d 349 (American Airlines, Inc. 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.

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American Airlines, Inc. v. Civil Aeronautics Board, 348 F.2d 349 (D.C. Cir. 1965).

Opinions

BURGER, Circuit Judge:

This matter comes to us on petitions to review orders of the Civil Aeronautics Board. With Presidential approval the Board issued certificates of public convenience and necessity to two supplemental carriers authorizing their conduct of charter flights of persons in transatlantic supplemental air transportation. Those orders, E 20530 and E 20531, together with E 20776, which denied petitions for reconsideration and denied a petition to intervene filed by American Airlines, et al., are here for review.

The controversy grows out of the Board’s revision of Part 295 of its Economic Regulations which was effected pursuant to Orders E 20530 and E 20531. That revision defines “charter flight” as including

“air transportation performed by a direct air carrier on a time, mileage or trip basis where * * * (2) one-half the capacity of an aircraft has been engaged by a person for his own use or by a representative or representatives of a group for the use of such group and the remaining half of the capacity of such aircraft has been engaged by another person for his own use or by a representative or representatives of a second group (provided no such representative is professionally engaged in the formation of groups for the transportation or in the solicitation or sale of transportation services).”

Petitioners object to this authorization of “split charters” — permitting one half of a plane’s capacity to be chartered to each of two eligible groups, neither of which requires the entire aircraft. Petitioners Pan American and TWA claim that they will lose substantial overseas traffic, despite contrary Board findings; petitioners American Airlines et al., domestic trunkline carriers, fear such losses in the future should split-charter authority be extended to competitors in their geographical areas.

All of the petitioners assert that the Board lacks the power under the Federal Aviation Act to permit the supplemental carriers to operate so-called split charters. Pan American contends further that even if the Board has the requisite statutory authority to permit split charters its decision to do so here is not justified by the Board’s findings and that the order denying reconsideration is invalid for lack of findings. American Airlines et al. contend that their possible future injury gives them standing now to obtain review, entitled them to intervene in the Board’s proceeding after the granting of the awards to the supplemental carriers, and required the Board to reconsider its decision.

(D

Jurisdiction To Review

We are confronted at the outset with a determination of which of the questions posed are reviewable by petition in this court. Both the Board and the Department of Justice concede that we may review the legality of the Board’s institution of split charters and their views, while by no means dispositive, are entitled to some consideration as evidencing an Executive consensus that there is no cogent policy consideration militating against judicial review; of course the Executive may not by concession create judicial review powers not conferred by Congress and we therefore proceed to the merits of the question. In Chicago & Southern Air Lines, Inc. v. Waterman Steamship Corp., 333 U.S. 103, 68 S.Ct. 431, 92 L.Ed. 568 (1948), the Supreme Court held that orders granting or denying applications of citizen carriers to engage in overseas and foreign air transportation are exempt [352]*352from Court of Appeals review under Section 1006 of the Civil Aeronautics Act to the same extent as are orders affecting foreign carriers, since both types of orders are subject to Presidential approval. The Court concluded that

“* * * [Ojrders of the Board as to certificates for overseas or foreign air transportation are not mature and are therefore not susceptible of judicial review at any time before they are finalized by Presidential approval. After such approval has been given, the final orders embody Presidential discretion as to political matters beyond the competence of the courts to adjudicate.”

333 U.S. at 114, 68 S.Ct. at 437. The Court’s sweeping language was its answer to a petition which sought relief on the theory that the Board’s award of authority to petitioner’s competitor, which the President approved, was not based upon substantial evidence. The contention thus went to the merits of a Board award to a particular carrier. The question immediately before us is whether the Waterman principle governs a situation in which a petitioner claims that awards made by the Board, with Presidential approval,1 exceed the Board’s power under the act. Stated in another way, does Waterman govern a situation where the action of the Board, before the matter reaches the President, is beyond the Board’s power to act? We think not, for in the latter situation there is nothing legally to submit to the President. Clearly Waterman presupposes lawfully exercised congressional authority in the Board’s action, in the first instance, as an indispensable predicate, without which there is nothing Presidential action can approve.

We therefore hold that Waterman does not bar our consideration of the Board’s power to authorize split charters. We find United States Overseas Airlines, Inc. v. CAB, 95 U.S.App.D.C. 363, 222 F.2d 303 (1955), not in point. That case refused to recognize allegations of denials of procedural due process as a predicate for review of action vested by Congress in the President. Such claims, like one that the action is unsupported by substantial evidence, go to the correctness of an award to someone other than the petitioner. They thus encounter the difficulty, recognized in Waterman, that the President must be free to consider broad “evidentiary” policy factors not involved, and indeed not relevant, in Board proceedings and that the President must be free to exercise unreviewable discretion as to the weight to be given to such extrajudicial factors.

Petitioners here, in contrast, frame the issue as whether the Board may under any circumstances recommend to the President an award of split-charter authority to any carrier. This challenge goes to the Board’s power, independent of the Presidential power; 2 we conclude we have jurisdiction to determine whether the Board acted, as claimed, beyond its statutory authority. - So far as it may be thought applicable to the instant case our somewhat cryptic observation as to unavailability of judicial review “now or later” in British Overseas Airways Corp. v. CAB, 113 U.S.App.D.C. 76, 304 F.2d 952 (1962), is dictum. The holding of that case is only that the Board’s denial of a motion to dismiss a proceeding as unauthorized is a non-final order and therefore unreviewable in a Court of Appeals. This court’s reference to Waterman as precluding Court of Appeals review “now or later” — the “later” being after Presidential action, if any — went beyond the needs of the holding; that Waterman precluded Court of Appeals [353]*353review as the case then

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