AVIATION: The Perils of Pioneer

Ever since ex-Air Force Major William F. Long founded Dallas’ Pioneer Airlines in 1946, the busy, ambitious feeder line has grown like a Texas steer. Starting with six surplus Douglas DC-3s, Pioneer began by shuttling oilmen from west Texas oilfields to Dallas and Houston, soon built its fleet up to 13 DC-3s and its route to 21 cities in Texas and New Mexico. In 1950, moneymaking Pioneer flew more passenger-miles (37 million) and carried more mail than any of the nation’s 14 other local service lines.

Last year, bucking hard for trunk-line routes, Pioneer asked the Civil Aeronautics Board to let it expand to some 30 cities in five additional states. To prove it was ready, it sold its entire fleet of old DC-3s to the Air Force for a profit of $945,537, and bought nine faster (270 m.p.h.), roomier (36-passenger) Martin 2-0-2s. CAB warned Pioneer that the Martins were too hot for small airports to handle and far too expensive to operate. If Pioneer insisted on flying the 2-0-2s, it could expect no boost in mail pay.

Disregarding the warning, Pioneer put its new planes into service, then brashly asked CAB for a 57% boost in its mail subsidy. Last week CAB turned down the petition. Said CAB: Pioneer had cost the Government more in mail pay ($1,300,000) for six months of Martin operation than for a full year of Douglas service.

The airline, which had gone deep in the red, as CAB had warned it might, promptly raised a dust storm of protest. Pioneer s president, General Robert J. Smith announced that his line would have to fire its 450 employees, shut up shop within a week, and wires from aroused constituents poured in upon Texas Congressmen. In reply, CAB calmly indicated that here were several anxious airlines just waiting to take over Pioneer’s routes

At week’s end, Pioneer’s dust storm had about blown itself out. It agreed to sell its 2-0-2s and buy back a fleet of DC-3s. Said President Smith: “There are some things you do because you want to, and other things you do because you have to. This comes in the latter category.”