Dec 16 1985

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Former NASA administrator James Beggs, General Dynamics, and three executives of the company today pleaded not guilty to charges of plotting to hide cost overruns during development of a prototype of the DIVAD antiaircraft gun [see NASA/Management and Personnel, Dec. 2], the Washington Post reported. “I plead not guilty to each count,” Beggs, a former company executive, told U.S. District Court Judge Ferdinand Fernandez.

Fernandez scheduled a trial to begin April 8, 1986, although prosecutor Randy Bellows said the case was too complex to be heard so quickly. Bellows said the government had 2.7 million documents to review.

Thomas Sullivan, attorney for General Dynamics, told Fernandez that the defendants wanted the trial to begin in the spring because a government suspension of most contracts with the company until the case was resolved had put the defense contractor “in a real serious bind . . . This company could be literally . . . put out of business by this suspension,” Sullivan said.

Attorneys estimated the trial could take more than 12 weeks, with Bellows saying he would call at least 70 witnesses. (W Post, Dec 17/85, A13)

In a recent report to the U.S. House Public Works and Transportation Committee and its subcommittee on aviation, the U.S. General Accounting Office (GAO) said that deregulation of the U.S. air transport system had forced carriers to become more efficient and competitive, lower fares, and improve services for most travelers, Aviation Week reported. However, airlines had dropped nonstop service between some cities, and some small communities had lost all scheduled air service. Most communities receiving subsidies were not progressing toward self-sustaining air service and had lost passengers since deregulation began, the report said; and it indicated that without legislative action, many of the small communities with subsidized essential air service would lose all scheduled service when the current subsidy ended in 1988. GAO repeated its recommendation that Congress consider giving the Department of Transportation greater flexibility to increase or decrease subsidies to selected communities.

The report found the airline industry was still in the process of adapting to deregulation with these trends dominant: more airlines offering competing services; declines in average fares; improvements for most passengers in service, availability, and convenience; and industry profitability improved through increased efficiency and declining unit labor and fuel costs.

Travelers between high-traffic, long-distance city-pairs gained the most from deregulation, as fares came closer to cost; and competition fostered greater choice in fares and service. However, the smaller number of passengers flying between many light-traffic, short-distance city-pairs did not benefit from lower fares, the report said.

GAO predicted that the industry would probably remain competitive, although the number of airlines might decrease due to bankruptcies and mergers. And the report said the number of large airports with capacity limitations on service could increase from the current 8 to 61 by the end of the century and that the allocation of limited airport capacity among competing airlines could offset the benefits of regulations. (Av Wk, Dec 16/85, 33)

NASA announced that Gerald Griffin, director of NASA's Johnson Space Center (JSC), would leave the agency January 14,1986, to become president of the Houston Chamber of Commerce. Robert Goetz, deputy director of JSC, would become acting director upon Griffin's departure.

Griffin had been JSC's director since August 1982 and had served with NASA for more than 20 years in a number of key positions at three NASA centers and in Washington, D.C. Griffin served in the U.S. Air Force and worked in the aerospace industry before joining NASA in 1964.

“It was a tough decision to leave NASA,” Griffin said, but “I'll depart with the comfort that the NASA team of government, industry, and university people will continue their outstanding job in space activities for this country.” William Graham, acting NASA administrator, said, “As one of NASA's key senior executives, Gerry has had a long distinguished career. He has received many honors and awards in recognition of the contributions he has made both to aeronautics and space. We shall all miss him very much and wish him great success as he moves on to new accomplishments.” (NASA Release 85-172)

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