Show S Airlines in Crucial Battle Baffle FOUR F major airlines are holding their breath reath until the newly created civil aeronautics aeronautiC authority releases its decision on one of the thorniest thornie t cases to come before it It may turn turnout out c ut to h have ve a an important bearing on several prospective tive developments closely tied in with the thelt Salt lt Lake City airports airport's growth as asa a in inthe inthe the west for transcontinental networks networks' 1 Pearson and Allen the Washington Merry- Merry Go look for a d decision that will do dono dono dono no damage to local interests and which may in inthe inthe the near or br or distant future prove distinctly ad- ad in this territory Hearings have nave been completed on the application application application cation of Transcontinental and Western Air Airor for or certain slIght flight privileges which other airlines S conte contend d would create unfair competition and wreck the airway map The controversy hinges c on n interpretation of the grandfather clause of the new law so-called so because it gives preferred status to airlines operating before the act was passed The clause permits lines to Uy ily between between between be tween the terminal and intermediate points in established routes Those six words are the cause of all aU the rumpus T W A interpreted them to mean it t could make stop non-stop flights not only between Atlantic and Pacific coast terminals but also from one terminal direct to any intermediate point The company applied for permission to o do this United United United Unit Unit- ed Airlines American Airlines and Western Air Express demanded that the application be re rejected rejected rejected re- re on th the ground that it would enable T W A Ato Ato to establish new stop non-stop routes to which it is rIot not entitled The trio a also o charged that I W A be able to skip unprofitable and operate direct express service between New NewY NewYork NewYork Y York Chicago and Los Angeles This would compete dangerously with T W A rivals Both sides are threatening court action if they lose the decision Privately aeronautics officials of of- doubt this because the four lines are also demanding increased rates for carrying air mail and an appeal to the courts would mean delay The authority has stated that hat it will not consider the mail rate petitions until the present row is settled Insiders say Pearson and Allen are betting the authority's decision will go against the T W A. A |