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Circular 210
Regional Differences in Fares, Rates and Costs for International Air Transport - 1986
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CIRCULAR I IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT Approved by the Secretary General and published under his authority INTERNATIONAL CIVIL AVIATION ORGANIZATION MONTREAL CANADA
Published in separare English, French, Russian and Spanish editions by the /nternational Civil Aviation Orgunkation. AN correspondence, except orders and subscriptions, should be addressed to the Secretary General. Orders for this publication should be sent to one of the following aadresses, 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 Egypt. ICAO Representative, Middle East Office, 16 Hassan Sabri, Zamalek, Cairo. France. Representant de I'OACI, Bureau Europe, 3 bis, villa Emile-Bergerat, 92522 Neuilly-sur-Seine Cedex. India. Oxford Book and Stationery Co., Scindia House, New Delhi or 17 Park Street, Calcutta. Japan. Japan Civil Aviation Promotion Foundation, 15-12, I-chome, Toranomon, Minato-Ku, Tokyo. Kenya. ICAO Representative, Eastern and Southern African Office, United Nations Accommodation, P.O. Box 46294 Nairobi. Mexico. Representante de la OACI, Oficina Norteamerica, Centroamerica y Caribe, Apartado postal 5-377, C.P. 11590, Mexico 5, D.F. Peru. Representante de la OACI, Oficina Sudamerica, Apartado 4127, Lima 100. Senegal. Representant de I'OACI, Bureau Afrique occidentale et centrale, Boite postale 2356, Dakar. Spain. Pilot's, Suministros Aeronauticos, S.A., C/Ulises, 5-Oficina Num. 2, 28043 Madrid. Thailand. ICAO Representative, Asia and Pacific Office, P.O. Box 614, Bangkok. United Kingdom. Civil Aviation Authority, Printing and Publications Services, Greville House, 37 Gratton Road, Cheltenham, Glos., GL50 2BN. Do you receive the ICAO BULLETIN The ICAO Bulletin contains a concise account of the activities of the Organization as well as articles of interest to the aeronautical world. The Bulletin will also keep you up to date on the latest ICAO 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 . I . INTRODUCTION ...................................................... 1 I1 . LEVELS OF FARES AND RATES ........................................a 2 Passenger traffic ................................................. 2 Freight and mail traffic .......................................... 5 111 . REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES AND RELATED COSTS ................................................ 10 Over-all financial results by international route group ........... 10 Variations in revenue/cost ratios amongst airlines ................ 13 Comparison of results for 1986 with those for 1985 ................ 14 IV . FACTORS CAUSING REGIONAL DIFFERENCES IN COSTS ..................... 17 Aircraft mix and stage length ..................................... 17 Prices for aircraft fuel and oil .................................. 21 Airport and associated charges .................................... 21 Load factor ....................................................... 22 Other causes of regional differences in costs ..................... 25 Summary of causes of regional differences in costs ................ 26 ................................. . APPENDIX 1 DATA SOURCES AND COVERAGE 27 APPENDIX 2 . METHOD OF ANALYSIS AND MARGINS OF UNCERTAINTY ............. 33 .............. APPENDIX 3 . QUESTIONNAIRES RELATING TO REVENUES AND COSTS 39 ......................... . I Facsimiles of Questionnaires 39 ........................ . 11 Respondents to Questionnaires 43
I. INTRODUCTION 1. This study has been prepared puxsuant to JCAO Assembly Resolution A21-26 I Clauees lb and d 1 , 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 coats, Covering the year 1986, this study is the twelfth in an annual series, the one for the year 1985 having been published as Circular 206. 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 yielda are presented in Chapter 111. Finally, certain of the causes of regional differences in costs are identified in Chapter IV. 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 204 covers September 1986 and Circular 208 covers September 1987. 5. Unless indicated otherwiae, all references in this Circular to "cents" mean "U. S. centst', and all ref ereace8 to "dollarst' mean "U .S. dollars',
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