bing the CRAF and explaining the support it requires from the civilian airline industry in the US, (2) examining airline industry marginal profitability and its causes, and (3) assessing the probable effects of declining airline profitability on the CRAF.
The CRAF and the Civilian Airline Industry
The CRAF was created in 1951 as an element of the national airlift policy which was developed at that time (McCleave, 1986). In recognizing the vital role of transportation in national defense, both Congress and the Department of Defense (DOD) sought to establish strong ties between the air transportation elements of the armed forces and the civil air transportation industry (Cohoon, 1989). The existence of a program such as the CRAF is necessary in the US because of the ownership structure of the air transportation industry. In many other countries, even developed, market economies, public ownership of air transportation carriers is typical. In such an environment, government is in a position to dictate cooperation between civilian and military air transportation entities. The privately owned civil air transportation system in the US, however, demands a different approach to develop the necessary military civilian cooperation for national defense transportation needs. The CRAF program was the answer that was developed.
Under the authority of the CRAF enabling legislation, contracts are negotiated between the DOD and individuals American airline companies. These contracts create "a fleet of pre identified civil passenger and cargo aircraft" that is "committed to supporting military strategic airlift requirements in emergencies" (Cohoon, 1989, p. 10). When all or a portion of the CRAF fleet is activated during a national emergency, the aircraft in the CRAF remain under the operational control of the individual air carriers to whom they belong; however, operational missions for these aircraft are assigned by the Mi...