Island Airlines, Incorporated, V, Civil Aeronautics Board

This is a petition to review an order of the Civil Aeronautics Board (hereinafter “CAB”), denying an exemption.

The CAB had jurisdiction to entertain Island Airlines’ (hereinafter “Island”) petition for exemption from economic regulation pursuant to section 416(b) of the Federal Aviation Act, 49 U.S.C. § 1386 (b). This court has jurisdiction to review the order of the CAB refusing the exemption pursuant to section 1006 of the Federal Aviation Act, 49 U.S.C. § 1486 .

This is the third time that Island has appeared before this court in connection with its continuing controversy with the CAB concerning the right of Island to carry on inter-island flights among the islands comprising the State of Hawaii. Island first appeared here in 1964 on appeal from a permanent injunction issued by the district court for the District of Hawaii which enjoined Island from continuing inter-island flights authorized by the State of Hawaii without first having obtained a federal certificate of convenience and necessity from the CAB. This court remanded the proceedings to the district court to determine whether the intervening open seas between the various Hawaiian Islands were within the territorial…