Delta Air Lines, Inc. v. Civil Aeronautics Board

674 F.2d 1, 218 U.S. App. D.C. 184, 1982 U.S. App. LEXIS 21464
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 26, 1982
Docket80-2339
StatusPublished
Cited by11 cases

This text of 674 F.2d 1 (Delta Air Lines, 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.

Bluebook
Delta Air Lines, Inc. v. Civil Aeronautics Board, 674 F.2d 1, 218 U.S. App. D.C. 184, 1982 U.S. App. LEXIS 21464 (D.C. Cir. 1982).

Opinion

Opinion for the Court filed by Senior Circuit Judge BAZELON.

BAZELON, Senior Circuit Judge:

To implement the “Small Community Air Service” provisions of the Airline Deregulation Act of 1978 (hereinafter referred to as the Deregulation Act), 1 the Civil Aeronautics Board (CAB) instituted the Essential Air Service Program. The Program was designed to implement those provisions of the Act that ensured “essential air transportation” 2 for qualifying communities. The issue in this case is whether the Act authorizes the inclusion of Montgomery, Alabama in that Program. 3 We hold that it does not.

I. FACTUAL BACKGROUND

On February 22, 1980, Montgomery was receiving air carrier service from Eastern Air Lines (Eastern), Delta Air Lines (Delta), and Republic Air Lines (Republic). 4 On *3 that date, Eastern notified the CAB and the City of Montgomery that it intended to suspend indefinitely all service to and from Montgomery. 5 The suspension was to begin on June 1,1980, at the earliest. The City of Montgomery, the Montgomery Airport Authority, and the Montgomery Area Chamber of Commerce objected to the suspension and petitioned the CAB to prevent Eastern from carrying out its plan. 6 The CAB responded by ordering Eastern to maintain one daily roundtrip flight between Atlanta and Montgomery until June 30, 1980. 7 In addition, the Board ordered Delta (and Republic) to give 90 days notice of any service reduction at Montgomery, and to submit weekly reports of passenger traffic at Montgomery. The basis of the Board’s order was its finding that “the cessation of nonstop service between Atlanta and Montgomery in the absence of any replacement or alternative service reasonably appears to deprive the community of essential air service during the summer peak season.” 8 On June 24, 1980, the Board extended all of its requirements until July 30, 1980, 9 but then on July 11, 1980, it terminated the requirements effective July 16, 1980. 10

II. STATUTORY BACKGROUND

From 1938 to 1978, interstate air transportation was subject to strict regulation under the Civil Aeronautics Act of 1938 and the Federal Aviation Act of 1958. Under that regulatory scheme, a carrier could not enter or withdraw from a market without CAB approval, 11 which was to be based on a finding of “public convenience and necessity.” 12

In 1978, Congress enacted the Deregulation Act, which replaced the old form of regulation with a new economic regime that relied heavily on free-market mechanisms. 13 That Act provides for a gradual reduction of the CAB’s powers through December 31, 1984, at which point the Board is to be abolished. Most importantly, the Act substantially reduced the regulation of entry into, and exit from, air service markets. This was to allow the carriers themselves to respond quickly to changes in the supply and demand conditions of particular markets. Congress included in the Act, however, a 10-year regulatory program for “Small Community Air Service.” 14 Under that program, the CAB was given broad powers to help ensure that small communities would not be severely harmed by the transition to the free market system. 15 The objective of the program was to promote the statutory goal of “maintainpng] a comprehensive and convenient system of continuous scheduled airline service for small communities and for isolated areas.” 16 It is that set of statutory provisions that is at issue in this case.

*4 III. ANALYSIS

The Board argues, first, that this case is moot, and, second, that it has the statutory authority to take the actions at issue. We disagree on both points. Therefore, we reverse. 17

A. Mootness

The CAB argues that the issues raised in this case are moot due to the fact that the Board terminated all restrictions at issue: As of July 16, 1980, Eastern was permitted to withdraw from the Atlanta-Montgomery market, and Delta was no longer under the notice and reporting requirements. Delta responds by arguing that the basic legal issues raised in this case are “capable of repetition, yet evading review.” Southern Pacific Terminal Co. v. ICC, 219 U.S. 498, 515, 31 S.Ct. 279, 283, 55 L.Ed. 310 (1911). Delta notes that the Board has asserted the authority at issue in this case three times since the enactment of the Deregulation Act, and could very well reassert that authority to Delta’s detriment in the future. We agree, and therefore hold that the case is not moot.

As the Supreme Court has stated, a case is not moot if “there exists some cognizable danger of recurrent violation, something more than the mere possibility which serves to keep the case alive.” United States v. W. T. Grant Co., 345 U.S. 629, 632, 73 S.Ct. 894, 897, 97 L.Ed. 1303 (1953). See also Chamber of Commerce of the United States v. Department of Energy, 627 F.2d 289 (D.C.Cir.1980). In view of the breadth of authority that the Board has asserted, and the extent of Delta’s operations, such a “cognizable danger” does exist.

B. CAB Authority to Postpone Eastern’s Suspension of Service

The CAB argues that section 419 of the Federal Aviation Act, as amended, authorizes its requirement that Eastern temporarily maintain Atlanta-Montgomery service. That provision originated in the Deregulation Act and constitutes the heart of the statutory protection afforded small communities. The core of section 419 is the “essential air transportation” guarantee. Essential air transportation is defined in the Act as

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674 F.2d 1, 218 U.S. App. D.C. 184, 1982 U.S. App. LEXIS 21464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delta-air-lines-inc-v-civil-aeronautics-board-cadc-1982.