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Circular 171
Regional Differences in Fares, Rates and Costs for International Air Transport - 1980
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CIRCULAR 1 REGIONAL DIFFERENCES IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT Approved by the Secretary General end published under his authoriry INTERNATIONAL ClVlL AVIATION ORGANITAT EOM MONTREAL CANADA
Published in sepdrore English, Frefich, Russian and Spanish editions the Internatdona1 Civil Aviation Orgafization. All corrsndence, except orders and suhscripions, hould k oddpeued to the Secretory General. Orders for ibis publication shouId be ant to one of the folowing addresses, together with the appropriate remittance by bank draft or post offiw money order in U.S. dollars or the curremy d the country in which the order is placed. International Civil Aviation Organition Attention Distribution Offar POOO Sherbmke StFeet West, Suite 400 Montreal, Quebec Canada 83A 2Rt Argentina. El Ateneo, Pedro Garcia S.A.L.E. e I., Dpto. Compras - lmportacion, Patagones 2463,1282 Bumm Ahes. pt. ICAO Representative, Middle East and Eastern African ma, 16 Hssssn Sabri, Zamdek, Cairo. France. Reprksenunt de 2'0AC1, Bumu Europe, 3 bfs , villa mile-Bergbrat, 92522 Neuib-sur-Seine, Cedex. India. Oxford Book and Stathnery Co., Scindia House, New Delhi or 17 Park Street, Calcutta. Jam lapan Chi1 Aviation Promotion Foumhtion, IS- 12, l -om, Toranomon, Minato-Ku, Tokyo. Mm'm Representante de Ia OACI, Ofieina Nortearnkrica y Carib, Apartado postal 5-37, Mdxico 5, D.F. Peru. Representante 6 la OACZ, Oficina Sudamhica, Apartado 4127, Lima 100. Senegal. Reprknnnr de I'OACI, Bureau ATrique, Bob pastale 2356, Dakar. Spain. Libreria de Aeroniutia y AstroaButica Sumas, Desenga50,12-3-3, Madrid 13. Sweden, C.E. Fritpcs Kungl. Hovbokhndel, Box 16356, S-103 27 Stockholm. Tkallund. ICAO Representative, Asia and PwiFic Office, P.O. Box 614, Bangkok. United Kingdam. Civil Aviation Authority, Printing and Publications Services, Greville House, 37 Ciratton Road, Cheltenharn, Glos., GL50 2BN. Do you receive the ICAO BULLETIN The ICAO Bulletin contains e concise account of tb activitirts of the Organization as weU BS artides af interest to the mauticd warld. fhe BulWn wiM dso keep you up to date on tbe Jatwt ICAO publice- tions, their contents, amdments, supplements. corrigenda, end prices. Availabb in three srrpanrte ditiana -ah, Ftw and mh. hnual 9ubscription U.S. 1 5.00 surface mail U.S. 20.00 air mail.
TABLE OF CONTENTS Page ................................................ I INTRODUCTION 1 ................................... I1 LEVELS OF FARES AND RATES 2 For Passenger Traffic ....................................... 2 For Freight and Mail Traffic ................................ 4 111 REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES ........................................... AND RELATED COSTS 8 Overall Financial Results by International Route Group ...... 8 .......... Variations in Revenue/Cost Ratios amongst Airlines 12 .......... Comparison of Results for 1980 with.those for 1979 14 IV FACTORS CAUSING REGIONAL DIFFERENCES IN COSTS ............... 16 Aircraft Mix and Stage Length ............................... 18 Prices for Aircraft Fuel and Oil ............................ 20 Airport and Associated Charges .............................. 20 Load Factor ................................................. 22 Other Causes of Regional Differences in Costs ............... 22 Summary of Causes of Regional Differences in Costs .......... 24 V POSSIBLE MEANS OF REDUCING REGIONAL DIFFERENCES .......................................... IN FARES AND COSTS 25 Reduction of Cost Differences ............................... 25 Reduction of Differences in Fare Levels ..................... 28
Table of Contents ct'd Page ....................................................... APPENDICES 29 . 1 Data Sources and Coverage ................................. 29 2 . Method of Analysis and Margins of Uncertainty ............... 33 3 . Questionnaires Relating to Revenues and Costs ............... 39 ........... I . Facsimiles of Questionnaires and Attachments 39 . .......................... I1 Respondents to Questionnaires 45
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