Pioneer Rights

An air transport company which opens up new territory, invests heavily in ground equipment and drums up its own traffic, generally lays claim to certain intangible pioneer rights over any independent concern attempting to invade its route. Late last month Arizona witnessed the start of the first major court test of pioneer rights.

Thoroughly unpopular with pioneer companies are Motorman Errett Lobban Cord's Century Air Lines and Century Pacific Air Lines. Two months ago Century Pacific turned its face east from Los Angeles, prepared to parallel American Airways' route to El Paso. As operator for more than a year of this southern transcontinental link, American Airways had bought it and the pioneer rights from Standard Air Lines, invested large sums in radio, beacons, emergency landing fields, weather reporting services.

Century Pacific got as far as Phoenix, started to push on to Tucson when American Airways appealed for protection of its pioneer rights to the Arizona State Corporation Commission. First result: a temporary order restraining Century from carrying passengers for hire between Phoenix and Tucson, pending a public hearing in March.

But Century refused to be grounded by any such order. While American Airways was flying two schedules per day between Tucson and Phoenix at a $7.65 fare, Century started filling its planes with persons who paid nothing for the same trip. Each free passenger, however, was asked to sign a blank in which he endorsed Century service and the proposed Century fare ($5.75); he also agreed to testify, if necessary, for Century before the Corporation Commission.

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