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Circular 206
Regional Differences in Fares, Rates and Costs for International Air Transport - 1985
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CIRCULAR Approved by the Secretary General and published under his authority REGIONAL DIFFERENCES IN FARES, RATES AND COSTS INTERNATIONAL CIVL AVIATION ORGANIZATlON MONTREAL CANADA I I FOR INTERNATIONAL AIR TRANSPORT
Published in separate English, French, Russian and Sppnish editions by the Internorional Civil A vzulion Organization. A /I correspondence, excepl orders and su bseriptions, should be addressed to the Secretary General. Orders for this publication should be sent to one of the fallowing 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 Sates Unit International Civil Aviation Organization 1OOO Sherbrooke Street West, Suite 400 Montreal, Quebec Canada H3A 2R2 Em. lCAO Representative, Middle East and Eastern African Office, 16 Hassan Sabri, Zarnalek, Cairo. France. Reptsentant de IyOACI. Bureau Europe, 3 bis, villa emile-Sergerk, 92522 Neuilly-sur-Seine Ccdex. If. Oxford Book and Stationery Co., Scindia House, New Deihi or 17 Park Street, Calcutta. Japan. Japan Civil Aviation Promotion Foundation, 15- 12, I -chome. Toranomon, Minato-Ku, Tokyo. Kenyo. ICAO Representative, Easrern African Office, United Nations Accommodation, P.O. Box 46294 Nairobi. Mexico. Representante de la OACI, Oficina Norteamtrica y Caribe, Apartado postal 5-37 C.P. 11590. Mbico 5. D.F. Peru. Reprwentante de la OACI, Oficina SudamCrica, Apartado 4127, Lima 100. Senegal. Reprtsentant de l'OAC1, Bureau Afrique, BoTte post ale 2356, Dakar. Spin. Pilot's, Suministros Aeronduticos, S.A., CJUlises, 5-Oficina N6m. 2, 18043 Madrid. Thailand. ICAO Representative. Asia and Pacific Office. P.O. Box 614, Bangkok. United Kingdom. Civil Aviation Authority, Printing and Publications'Services, Grevlle House, 37 Gratton Road, Cheltenharn, Glos., GLSO 28N. Do you receive the lCAO BULLETIN The ICAO Bulletin contains a concise account of the activities of the Organization as we1 l as articles of interest to the aeronautical world., The Bulletin will also keep you up to dale on the latest lCAO publications, their contents, amendments, supplements, corrigenda and prices. Available In three separate editions English, French and Spanish. Annual subscription U.S.20.00 surface mail U.S.25.00 air mail.
TABLE OF CONTENTS Page 11 . LEVEXlS OF FARES AND RATES ....m............m..m.....e....a.....m. 2 Passenger Traffic ................................m.......m....... 2 Freight and Hail Traffic ....................................a..... 4 IIZ . BBGXOHllL DIPPEBBEBS XB SCHEINZEP PASSBEJGEB PARES ................................................. Am QEUTED COSTS 10 ........... Over-allFinancialResultsbyfnternational ElouteGroup 10 ................ Variations inRwenue/ost RatiosamougstAirlinea 13 ................ Comparison of Results for 1985 with those for 1984 14 Aircraft Hix and Stage Length ...................................a. lf Prices for Aircraft Fuel and Oil ........................a......... 21 Airport and Associated Chargea ......m............................. 21 Load Factor ...........................................a........... 23 Other Causes of Regional Differences in Costs ..................... 23 Summary of Causes of Regional, Differences in Costs ................ 25 V. POSSIBLE WHAHS OF RBDDCIHG REGIOML DIFPEREHCES IN FARES AND COSTS ..............m.............a................... 26 Reduction of Cost Differences ....................................... 26 Reduction of Differences in Fare Lwcls ........................... 29 ......................................... 1 . Data Sources and Coverage 31 2 . Method of Analysis and Margins of Uncertainty ..................... 37 3 . Questiennairea Relating to Revenues and Costs ..................... 43 ................................. 1 . Facsimiles of Questionnaires 43 11. Respondents to Questionnaires ............................... 47
I. INTRODUCTION 1. This study has been prepared pursuant to ICAO Assembly Resolution A21-26 Clauses lb and d, which directs the Council to undertake analyses of regional differences in the level of international passenger fares and corre- sponding differences in the level of airline costs. Covering the year 1985, this study is the eleventh in an annual series, the one for the year 1984 having been published as Circular 199. 2. For 17 international route groups, comprising all international routes, passenger, freight and mail revenue yield data are presented in Chapter I1 for scheduled services along with passenger and freight revenue yield data for non-scheduled operations. For the same route groups regional differences in the costs related to the scheduled service passenger yields are presented in Chapter 111. Finally, in Chapters IV and V, certain of the causes of regional differences in costs are identified and indications given of the kind of measures that might be taken to reduce costs and fares in those regions where they are high. 3. The sources of data used in the study are given in Appendix 1 together with information on the sample sizes on which revenue and cost data are based. The method of analysis used in the study is presented in Appendix 2 together with information on the margins of uncertainty which should be borne in mind when considering the results of studies of this kind. 4. Overviews of published passenger fares and freight rates are avail- able in separate annual publications issued by the Organization in response to Clause la of Assembly Resolution A21-26. Circular 198 covers September 1985 and Circular 204 covers September 1986.
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