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Circular 188
Regional Differences in Fares, Rates and Costs for International Air Transport - 1982
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CIRCULAR REGIONAL DIFFERENCES IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT Appro by the Secretary General and published under his authority INTERNATIONAL CIVIL AYEATION ORGANlZATIOM MONTREAL CANADA
Published in separate English, French, Russian and Spanish editions by the Internaionul Civil A viation Organization. All correspondence. except orders and subscriptions, should k addressed to the Secretary General. Orders for this publication should be sent to one of the following addresses, together with the appropriate remittance by bank draft or post office money order in U.S. dollars or the currency of the country in which the order is placed. Document Sales Unit International Civil Aviation Organization 1000 Sherbrooke Street West, Suite 400 Montreal, Quebec Canada H3A 2R2 Argentina. El Ateneo, Pedro Garcia S.A.L.E. e I., Dpto, Compras - Importacicin, Patagones 2463, 1282 Buenos Aires. Egypr, ICAO Representative, Middle East and Eastern African Office, 16 Hassan Sabri, Zamalek, Cairo. France. Reprksentant de I'OACI, Bureau Europe, 3bis, villa Emile-krgerat, 92522 Neuilly-sur-Seine, Cedex. India. Oxford Book and Stationery Co., Scindia Rouse, New Delhi or 17 Park Street, Calcutta. Japan. Japan Civil Aviation Promotion Foundation, 15-12, 1-chome, Toranomon, Minato-Ku, Tokyo. Kenyu, ICAO Representative, Eastern African Office, United Nations Accommodation, P.O. Box 46 294 Nairobi. Mexico. Representante de la OACI, Oficina NoneamQica y Caribe, Apartado postal 5-377, Mtxico 5, D.F. Peru. Representante de la OACI, Oficina Sudamerica, Apartado 4127, Lima 100. Senegal. Reprksentant de I'OACI, Bureau Afrique, Boite postale 2356, Dakar. Spain. Libreria de Aeroniutica y Astronautics Sumaas, Desengaho, 12-393. Madrid 13. Thailand. ICAO Representative, Asia and Pacific OFlice, P.O. Box 614. Bangkok. United Kingdom. Civil Aviation Authority, Printing and Publications Services, Greville House, 37 Gratton Road, Cheltenham, Glos., GLSO 2BN. Do you receive the ICAO BULLETIN The lCAO Bulletin contains a concis account of the activities af the Organization as well as articles of interest to the aeronautical world. The Bulletin will also keep you up to data on the latest ICAO publica- tions, their contenis, amendments, supplements, corrigenda, and prices, Available in lhm separate editions English, French and Spanish. Annual subscription U.S. 1 5.00 surface mail U.S. 20 00 sir mail
TABLE OF COHTENTS 11 LEVELS OF FARES AEIP RATES ......................................... 2 Passenger Traffic ................................................ 2 .......................................... Freight and Mail Traffic 5 I11 BEGIOHAL DIFFEBERCES IN SCHEDULED PASSEJGEP FARES AND BELATED COSTS ................................................ 8 ............ Overall Financial Results by International Route Group 8 ................ Variations in RevenuelCost Ratios amongst Airlines 12 ................ Comparison of Results for 1982 with those for 1981 14 IV FACTORS CAUSING BIIGIOl9AL DXFFEREICES IB 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 BEDUCIHG REGIONAL DIFFEBFIHCES ................................................ IN FARES AND COSTS 25 ..................................... Reduction of Cost Differences 25 Reduction of Differences in Fare Levels ........................... 28
Table of Contents Cont. APPENDICES ............................................................. 30 1 . Data Sources and Coverage ........................................ 30 2 . Method of Analysis and Margins of Uncertainty ..................... 34 3 . Questionnaires Relating to Revenues and Costs ..................... 41 I . Facsimiles of Questionnaires and Attachments ................. 41 I1 . Respondents to Questionnaires ................................ 47
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