April 25, 1942
 
MEMORANDUM FOR THE CHIEF OF STAFF:
 
        Subject: Airline requirements for Transport Planes.
 
          The number of airplanes required to maintain scheduled air transportation for strictly war
purposes depends directly upon the definition of  war purposes. There is another and probably far
more important mission under war purposes than that of carrying passengers and mail, and that is
as a reserve for future military needs of the United States Army. 
 
          If a policy were adopted that neither passenger nor mail will be carried between any two
points which can be reached in less than 18 hours by rail', a  material number of transport planes
could be taken off of the airlines and made availible for strictly military use.
 
          Total number of airplanes on hand (not including Pan American, Panagra, and Hawaiian)
as of April 15th.......................................................................................................................327
To be utilized by the Air Service for military purposes..............................................................77
Balance available for airline operations....................................................................................250
 
           It is estimated that if the 18 hour elapsed time policy is put into effect, a  total of
approximately 200 airplanes wil be all that will be required to operate the airlines. In this 200
airplanes will be included the necessary reserves to take care of airplanes out for engine changes
and overhauls. To insure that the 200 airplanes availible will provide for this service, it will require
some re-routing, some reorganzation of the airmail system, and possibly "washing out" of some
smallar lines. Great care must be exercised in selecting the 50 planes taken away from the airlines,
otherwise the airlines will become inorperative due to shortage of certain types of planes.
 
     If it is desired to secure more than 50 airplanes for strictly military purposes, it is my
opinion that the Government had better take over and operate the airlines. Paying for planes does
not compensate the airlines for the ground service and overhead necessary to keep planes in the
air. As the number of planes is reduced, the cost of operation per plane of the airlines rises. If the
airlines are limited in their operations to 200 planes, unless the overhead is correspondingly
reduced the cost per passenger and per lb. Of cargo will rise and the airline rates will have to be
revised upwards.
 
     The airlines within the United States are probably the most efficient