Sky Twain

More laissez-faire in the air

It is indeed rare for a father to give his blessings to three suitors in quest of his daughter's hand. But last week the Civil Aeronautics Board granted tentative approval for either Pan American or gutsy little Texas International Airlines to acquire Miami-based National Airlines.

Equally surprising, the CAB also gave Eastern Air Lines permission to buy up to 25% of National's stock, although the board has not made a decision on Eastern's takeover proposal.

The CAB has thus cleared the way for Pan Am and Texas International, each holding close to 25% of National's shares, to fight fairly freely for control of the airline in the marketplace. If Eastern later gets CAB permission to buy more than 25% of National's stock (it now holds just 100 or so shares), it also will become a serious bidder.

Pan Am's merger proposal is likely to prevail and receive final approval from the White House. The international carrier has routes that dovetail neatly with National's predominantly domestic runs and would probably not encounter antitrust objections.

The CAB'S decision to allow the courtship shows its new tolerance of mergers.

This week the board is expected to rule favorably on a linkup between Western and Continental. Passengers would benefit almost immediately. If they merge, Western and Continental have promised a 20% reduction in coach fares. -

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