PIA - A History: New Decade, New Issues (1970-1971)
Few if anyone knew it at the time, but Federal regulation of scheduled airline service in the United States began unraveling in the late 1960s. Since 1938, when Congress created the Civil Aeronautics Board (CAB), airline fare and route changes were subject to federal approval. In 1968, the Civil Aeronautics Board ruled that airline fare changes must be systemwide rather than on select routes. Subsequent price reductions were rare, leaving flight frequency and onboard service as the only tools available to attract passengers. Consequentially, these practices created overcapacity with many flights operating half-full. The trouble with CAB's inflexible regulations became apparent during an eleven-month recession which began in December 1969. The Greater Peoria Airport saw a slight dip in passenger traffic during 1970, but this was attributable less to recession than to a week-long Ozark Air Lines mechanics' strike in April 1970. About 275,000 passengers were handled that...