No. 82-1880.

709 F.2d 119 (1983)

COASTAL AIRLINES, INC., d/b/a National Air, Petitioner, v. CIVIL AERONAUTICS BOARD, Respondent.

United States Court of Appeals, First Circuit.

Decided June 9, 1983.

Attorney(s) appearing for the Case

Jonathon D. Friedmann, with whom Lewis A. Sassoon, and Gargill, Sassoon & Rudolph, Boston, Mass., were on brief, for petitioner.

David Schaffer, Atty., C.A.B., Washington, D.C., with whom Ivars V. Mellups, Acting Gen. Counsel, C.A.B., Thomas L. Ray, Asst. Gen. Counsel, C.A.B., William F. Baxter, Asst. Atty. Gen., Dept. of Justice, Robert B. Nicholson, and Edward T. Hand, Attys., Dept. of Justice, Washington, D.C., were on brief, for respondent.

Before COFFIN and BREYER, Circuit Judges, and BONSAL, Senior District Judge.

BREYER, Circuit Judge.

The Airline Deregulation Act of 1978, Pub.L.No. 95-504, 92 Stat. 1705, allows the Civil Aeronautics Board (the "CAB" or "the Board") to subsidize essential air service to towns that lost such service due to deregulation. Federal Aviation Act, § 419(b), 49 U.S.C. § 1389(b). The Act sets forth one list of criteria, such as cost, potential traffic, and community isolation, that the Board is to use in deciding which communities are eligible...

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