Domestic Airline Industry Statement on Action by the Senate Committee on Commerce, Science, and Transportation To Reduce Regulation of the Industry.

I would like to commend Senators Cannon and Magnuson and the members of the Senate Commerce Committee for voting today to report, by an 11-2 margin, the Cannon-Kennedy bill to reduce regulation of the domestic airline industry.

This is a breakthrough in our effort to remove outdated regulatory burdens and to make sure that Federal regulatory programs are responsive to the public interest. This bill will eliminate bureaucratic obstacles which have discouraged airlines from charging lower fares where they are possible and kept new, innovative carriers from offering their services to the public. In addition, it modernizes the Federal assistance program to small communities, so that air service to small communities can be improved.

I recently approved an order permitting Laker Airways to fly between London and New York at drastically reduced prices. And I have overruled the CAB to permit carriers to lower their fares on many North Atlantic markets. These decisions have made international travel more affordable for Americans and have otherwise brought substantial benefits to people traveling in international markets.

I do believe that the Government should stop denying similar opportunities to American consumers who need to travel within the United States. That is why this legislation is important, and why we are pleased by today's favorable action by the Senate Commerce Committee.

Similar legislation is pending in the House Aviation Subcommittee of the House Public Works and Transportation Committee. Transportation Secretary Brock Adams joins me in urging the House Committee to move quickly to resolve this important issue.