Air Transport
New Routes, Costs Test Local Airlines
Washington—A troubled time of testing lies ahead for local service airlines in their metamorphosis from DC-3 equipped subsidized feeder lines to regional carriers with turbine fleets and growing capital structures. Equipment changes, route expansion into major nonstop markets, subsidy reductions, and the rising costs of doing business are reflected in consolidations through merger and a slump in earnings.
By Harold D. Watkins15 min