In the case of World Airways, Inc., et al. v. Pan American World Airways, Inc., et al., 1967, the Supreme Court dealt with a dispute between two airlines over international flight routes. The Civil Aeronautics Board (CAB) had granted Pan American exclusive rights to operate certain transpacific flights which were contested by World Airways who sought to offer similar services on these routes. The CAB denied their application and this decision was upheld by an appeals court before reaching the Supreme Court. World Airways argued that they should be allowed to compete in order to provide better service and lower prices for consumers while Pan Am contended that competition would harm its ability to maintain profitable operations on these long-haul flights. The Supreme Court ruled in favor of Pan Am upholding both the CAB's original decision and the appellate court ruling stating that it is within CAB’s authority under federal law regulating air commerce, specifically Federal Aviation Act of 1958, not only to decide whether there is public convenience or necessity for additional service but also what carrier shall render such service.

In the dissenting opinion for the case of World Airways, Inc. v. Pan American World Airways, Inc., Justice Douglas argued that the Civil Aeronautics Board (CAB) had overstepped its authority by allowing Pan Am to purchase a controlling interest in National Airlines without first obtaining CAB approval. He contended that this action violated Section 408 of the Federal Aviation Act which requires prior approval from CAB before such transactions can take place. Furthermore, he expressed concern about potential anti-competitive effects resulting from this transaction and believed it could lead to an unhealthy concentration of power within the airline industry. Therefore, he disagreed with majority's decision not to void or review this acquisition on these grounds.