Frontier Airlines, Inc. v. Civil Aeronautics Board

621 F.2d 369, 1980 U.S. App. LEXIS 17240
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 27, 1980
Docket79-1917
StatusPublished
Cited by34 cases

This text of 621 F.2d 369 (Frontier Airlines, Inc. v. Civil Aeronautics Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frontier Airlines, Inc. v. Civil Aeronautics Board, 621 F.2d 369, 1980 U.S. App. LEXIS 17240 (10th Cir. 1980).

Opinion

McWILLIAMS, Circuit Judge.

Frontier Airlines, Inc. seeks review of certain orders of the Civil Aeronautics Board which required Frontier to provide so-called “back-up” service for Zia Airlines in connection with Zia’s inauguration of service between Albuquerque, New Mexico and Alamogordo and Silver City, New Mexico. Frontier asserts that such orders are beyond the statutory authority of the Board. It is the Board’s position that backup orders of the present type are authorized by the provisions of 49 U.S.C. § 1389(a)(6), a part of the Airline Deregulation Act of 1978. We agree with the Board.

Frontier held a certificate of public convenience and necessity authorizing air transportation service to Alamogordo and Silver City, New Mexico. On March 23, 1979, Frontier filed a notice of intent to terminate all of its service to those cities after 90 days from the date of the notice, as is provided for by 49 U.S.C. § 1371(j). At or about the expiration of the 90-day period, the Board, pursuant to 49 U.S.C. § 1389(aX6), ordered Frontier to continue serving Alamogordo and Silver City for a period of 30 days, the Board having been unable to find a replacement carrier which could immediately provide essential air transportation service to those cities. Thereafter, Frontier was ordered to continue its service to those cities for several additional periods of 30 days each.

Zia Airlines eventually offered to provide replacement service to Alamogordo and Silver City. Zia was a small airline and whether it could provide adequate replacement service for Frontier, on a continuing basis, was uncertain. It was in this setting that the Board ordered Frontier: (1) to continue its service to Alamogordo and Silver City until Zia actually inaugurated its replacement service to those cities, and (2) once such service by Zia was inaugurated, to remain available for a 30-day period as a back-up to Zia to make certain that essential service would be provided in the event Zia was unable to do so. Similar orders were entered requiring Frontier to back-up Zia for a total of 60 additional days. In the present proceeding Frontier seeks review of the several back-up orders, claiming that the Board has no authority to enter such orders.

At the outset the Board argues that since the back-up orders here in question have by their own terms expired, any controversy has now been rendered moot. In a similar vein, the Board also asserts that the issue sought to be raised in this Court was never fully ventilated before the Board. Air Line Pilots Association International v. C. A. B., 502 F.2d 453, 457 (D.C.Cir.1974), cert. denied, 420 U.S. 972, 95 S.Ct. 1391, 43 L.Ed.2d 652 (1975). We decline to dismiss Frontier’s petition on either of these grounds.

A 30-day order of the type here involved is almost a classic example of a matter which is “capable of repetition, yet evading review.” Roe v. Wade, 410 U.S. 113, 125, 93 S.Ct. 705, 35 L.Ed.2d 147 (1973); Southern Pacific Terminal Co. v. I. C. C., 219 U.S. 498, 31 S.Ct. 279, 55 L.Ed. 310 (1911). The very nature of the present order strongly suggests the conclusion of non-mootness.

49 U.S.C. § 1486(e) does provide that no objection to any order of the Board shall be considered on judicial review unless such objection was urged to the Board, “unless there was reasonable grounds for failure to do so.” The chronology of events before the Board constitutes, in our view, reasonable grounds for not fully exploring before the Board the issue raised by Frontier in this Court. The narrow issue here raised is the authority of the Board to issue a backup order. The Board in this Court is adamant in its belief that it does have authori *371 ty to issue such an order. We are advised that similar back-up orders have been issued in numerous other instances. In such circumstance it is very doubtful that the Board would have vacated its back-up orders had a motion for reconsideration been filed. Also, the question presented here is one of pure statutory construction. The general rule requiring exhaustion of remedies before an administrative agency is subject to an exception where the question is solely one of statutory interpretation. McKart v. United States, 395 U.S. 185, 197-8, 89 S.Ct. 1657, 23 L.Ed.2d 194 (1969). Under all the circumstances, we decline to dismiss the petition on any procedural basis, and prefer to address the merits of the controversy.

As indicated, the Board’s position is that it has the authority to issue a back-up order of the present type under the provisions of 49 U.S.C. § 1389(a)(6). Before examining that statute, limited background is in order.

Prior to the Airline Deregulation Act of 1978, the philosophy of government regulation of air service was one of controlled entry, and controlled departure, from the field. In other words, a certificated airline could not cease serving without a finding by the Board that such was dictated by public convenience and necessity.

The Airline Deregulation Act of 1978 made substantial changes in the existing statutory law regulating air service as theretofore embodied in the Federal Aviation Act of 1958. Among other things, it made departure from a certificated air route much easier. The basic requirement was that the carrier had to give the affected parties 90 days notice before it ceased serving. 49 U.S.C. § 1371(j), (I). Congress, at the same time, recognized that to permit an airline to abruptly cease service after simply giving 90-day notice might well result in the loss of all air service to many small communities. Congress desired to guard against this situation, and it was the intent of Congress to make certain that small communities, such as Alamogordo and Silver City, be insured essential air service on a continuing basis for a period of time which could extend up to 10 years from the effective date of the applicable statute, October 24, 1978.

49 U.S.C. § 1389(a)(6), relied on by the Board as its authority to issue back-up orders, provides as follows:

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Bluebook (online)
621 F.2d 369, 1980 U.S. App. LEXIS 17240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frontier-airlines-inc-v-civil-aeronautics-board-ca10-1980.