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ALLEGHENY AIRLINES, INC. v. C. A. B.

No. 14892.

465 F.2d 778 (1972)

ALLEGHENY AIRLINES, INC., Petitioner, v. CIVIL AERONAUTICS BOARD, Respondent.

United States Court of Appeals, Fourth Circuit.

Rehearing Denied September 12, 1972.

Attorney(s) appearing for the Case

William C. Burt, Washington, D.C. (Leon M. Kestenbaum and Koteen & Burt, Edwin I. Colodny, Washington, D.C. on brief), for petitioner.

Warren L. Sharfman, Associate Gen. Counsel, Litigation and Research, Civil Aeronautics Board (O. D. Ozment, Deputy Gen. Counsel, Robert L. Toomey, Allen R. Frischkorn, Attys., R. Tenney Johnson, Gen. Counsel, Civil Aeronautics Board, and Richard W. McLaren, Asst. Atty. Gen., Gregory B. Hovendon, and Harry First, Attys., Dept. of Justice on brief), for respondent.

Before HAYNSWORTH, Chief Judge, and BOREMAN and RUSSELL, Circuit Judges.

HAYNSWORTH, Chief Judge:

The problem presented arises out of the subsidization of local service airlines and the application of shifting rules to recoup excessive subsidy payments. Allegheny was ordered to refund some $916,000 of such payments upon the application of a remnant of a rule stripped of the counterweight that initially had made it reasonably fair and equitable. On Allegheny's petition under the Administrative Procedures Act,1

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