In 1931, they submitted a low bid of 25¢ per mile to show their commitment to extending the route “at or below cost.” Lewis later found out that not only had Ludington not received the contract, but it had gone to their rival, Contract Air Mail, at a rate of 89¢ per mile. While they were the first US airline to make a profit carrying only passengers, the novelty of flying wore off during the Depression and the business suffered greatly. Lewis had spoken with an officer from the Ludington Airline. Investigation into the scandal was initially launched by journalist Fulton Lewis Jr. US #C19 was issued in 1934 for a new airmail rate. Within two years, the airline industry was one of the only fields enjoying consistent growth and profitability, described by one historian as “Depression-proof.” The number of passengers, the distance they flew and new airline employees all tripled and airmail deliveries doubled. The goal of this was to force the smaller carriers to merger with the larger ones. In May 1930, Postmaster General Walter Folger Brown held his first “Spoils Conference.” At this conference, he called on his authority under the Air Mail Act to consolidate the air mail routes to just three major companies (that eventually became United, Trans World, and American Airlines), which were all competing. The most controversial provision of the act gave the postmaster general the authority to “extend or consolidate” routes based solely on his own judgment. They also hoped this would help to encourage the airlines to carry more passengers.Īnother provision in the act permitted any airmail carriers that had a contract of two years or more to turn in their contracts for route certificates, which would allow them to carry the mail for another 10 years. The goal of this provision was to discourage the carriers from bringing aboard junk mail to increase their profits. These carriers received set fees for the size of their planes, whether or not they carried mail. One of the major changes this act brought about was that it changed how payments to airmail carriers were calculated. The act gave the postmaster general the authority to grant long-term airmail contracts with rates based on space or volume, instead of weight. The scandal had stemmed from the passage of the Air Mail Act of 1930 on April 29, also known as the McNary-Watres Act (after its sponsors, Charles L. The Airmail Fiasco, as it was also known, eventually led to wide-scale improvements to the airline industry and modernization of the Army Air Corps. On September 28, 1933, an investigation was launched into the awarding of contracts for airmail flights. US #C12 – Airmail stamp in use at the time the Air Mail Act of 1930 was passed.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |