Summary

Portrait of William O. Douglas William O. Douglas Western Air Lines v. Civil Aeronautics Board…

We read the Act as meaning that 'the need' of the carrier which Congress has directed the Board to consider in fixing a subsidy rate is 'the need' of the carrier as a whole. The need specified in § 406 (b) is measured by 'compensation for the transportation of mail sufficient to insure the performance of such service, and, together with all other revenue of the air carrier, to enable' it to develop air transportation, etc.
Source: Wikisource

Portrait of William O. Douglas William O. Douglas Western Air Lines v. Civil Aeronautics Board…

The 'compensation for the transportation of mail' is flight income. It seems too clear for argument that 'all other revenue' would include nonflight income from incidental air carrier activities. We have found nothing persuasive as indicating that 'all other revenue' means transportation revenue. The inclusive nature of the category precludes a narrow reading. If the carrier's treasury is lush, 'the need' for subsidy decreases whether the opulence is due to transportation activities or to activities incidental thereto.
Source: Wikisource

Portrait of William O. Douglas William O. Douglas Western Air Lines v. Civil Aeronautics Board…

Western keeps the entire amount of the profit. The issue is how much additional money Western is to receive in the form of a subsidy. Western's 'need' is the measure of the amount authorized by Congress. No finding was made that there was 'need' for the additional subsidy, in the sense that otherwise Western would not have been willing or able to make the transfer of Route 68 in accordance with the development program which the Board deems advisable.
Source: Wikisource

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