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Circular 228
Regional Differences in Fares, Rates and Costs for International Air Transport - 1988
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CIRCULAR I REGIONAL DIFFERENCES IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRAN'SPORT 1988 Approved by the Secretary eniral and published under his authority lNTERNAf IONAL CIVIL AVlATEON OROANlZATION MONTREAL CANADA
Pubiisheb in separate English, French, Russin and Spanish editions by the International Civil Aviation Organization. AII correspondence, except orders and subscript rons, should be uddresed to the Secretary Gene Ordm for thi publication should be sent to am 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 1008 Sherbrooke Street Wea, Suite 400 Montreal. Que Canada H3A 2R2 Egypt. ICAO Representative, Middle East Office, 9 Shrtgsyel Ef Dorr Street, Zamalek 1 121 1, Cairo. France. Reprisentant de I'OACI, Bureau Europe, 3 bis, villa"mileEkrgtrat, 92522 Neuilly-sur-Seine Cedex. India. Oxford Book and Stationery Co., Scindia House, New Defhi 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 Norteamkrica, Centroamhifa y Caribe, Apartado pasta1 5-377, C.P. 11590, Mkxico 5, Q.F. Pem. Representante de la OACI, Qficina Sudamirica, Apartado 4127, Lima 100. Senego. Representant de I'OACI, Bureau Afrique occidentale et centrale, Boite postale 2355, Dakar. Spuitr, Pilot's, Suministros AeronAuticos, S.A., C/Ulises, 5-Oficinq Nurn. 2, 28043 Madrid. Thailand. ICAO Representative, Asia and Pacific Office, P.O. Box 614, Bangkok. United Kingdom. Civil Aviation Authoriry, Printing and Publications Services, Greville House, 37 Gratton Road, Cheltenham, Glos., GL50 2BN. The Catalogue of lCAO ublicatiohs Issued annually, the Catalogue lists all publications currently available. Monthly supplements announce new publications, amendments, supplements, reprints, etc. Available free from the Document Sales Unit, ICAO
TABLE OF CONTEWS Page . I .. INTRODUCTION ........................ 1 I1 . LEVELSOFFARESANDRATES .................. 2 Passenger traffic ...................... 2 Freight andmail traffic ................... 5 I11 . REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES ANDRELATEDCOSTS ....................... 9 Over-all financial results by international route group ... 9 Comparison of results for 1988 with those for 1987 ...... 11 Variations in revenuelcost ratios among airlines ...... 13 IV . FACTORS CAUSING REGIONAL DIFFERENCES IN COSTS ........ 16 ................ Aircraft mix and stage length 16 ............... Prices for aircraft fuel and oil 18 ................ Airport and associated charges 22 Load factor ......................... 22 ........ Other causes of regional differences in costs 22 Summary of causes of regional differences in costs ...... 24 APPENDIX 1 . DATA SOURCES AND COVERAGE ............... 25 APPENDIX 2 . METHOD OF ANALYSIS AND MARGINS OF UNCERTAINTY ..... 31 ..... . APPENDIX 3 QUESTIONNAIRES RELATING TO REVENUES AND COSTS 37 I . Facsimiles of questionnaires ............... 37 I1 . Respondents to questionnaires .............. 41 The designations employed and the presentation of the material in this publication do not imply the expression' of any opinion whatsoever on the part of ICAO concerning the legal status of any country. territory. city or area or 'of its authorities. or concerning the delimitation of its frontiers or boundaries .
1 ,1 This study ham been prepsred pursuant to ICAO Assembly Resolution AZ1-26' fClauses lbl and d, which directs the.Counci1 to undertake analpsee of regional dif ferencea in the level of international passenger fares and corresponding dif f ereaees in the level of airline costa Covering the year 1988, this study is the fourteenth in an annual series, the one for the pear 1987 having been published as Circular 220- 1 .2 For 17 international route groups, comprising all international routes, paseenger, freight and mail revenue yield date are presented in Chapter If for scheduled services along with passenger and freight revenue yield data for non-scheduled operations. For the same route groups regional differences in the casts related to the scheduled service paesenger yields are presented in Chapter 111. Finally, certain of the causes of regional differences in costa are identified in Chapter XV, I .3 The eourlees 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 thia kind. 1.4 Overviews of published passenger fares and freight rates are available in separate annual publications issued by the Organization in response to Clause la of Assembly Resolution b21-26. Circular 219 covers September 1988 and Circular 224 covers September 1989. 1.5 Unless indicated otherwise, all references in this Circular to "cents" mean "U.S. cents", and all references to "dollars1' mean "Q,S. dollars"'.
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Table Of Contents
COVER PAGE
TABLE OF CONTENTS
Appendix 1
Appendix 2
Appendix 3