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Circular 242
Regional Differences in Fares, Rates and Costs for International Air Transport - 1990
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lCAO CIRCULAR 242-ATB8 CIRCULAR REGIONAL DIFFERENCES 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 i.r sepurute Eltglish, French Russian and Spanish editipn. by th Inrernarional Civil A viation Organization. AU correspondence, exeepf orders and subscriptim, sshouM be ddessed to the Secretary General Orden for this publication should be sent to one of the following addresws, together with the approprim remitancc by bank drnft, cheque or money order in U.S, cloths or the currency of the country in which the order is placcd, Document Sales Unit Intmainal Civil Aviaion Organization 1000 Sherbrooke Street Wesl, Suite 400 Montreal, Quebcc Cinads H3.4 2R2 Tc. 5 1 4 285-82 1 9 Telex 05-24 1 3 Fax 5 14 288-4772 Sitatex YULCAYA dit card urdcrs Visa or American Exprcss only are accepted at the above address. Egypt. ICAO Representative, Middle East Ofice, 9 Shagrrret El Dorr Street, 2amalek 1121 I, Cairn, Frrmce. Representant de I'OAC1, Bureau Europe el Atlantique Nord, 3 bis, villa 6mile-Bergmt, 92522 Meuilly-sur-Seine Cedex. Indiu. Oxford Book and Svationery Go., Scindia House, New Delhi as 17 Park Stmt, Calcutta. Japan. lapin Ciil Aviation Promotion oundalfon. 15- 12, I -chomc, Toranomon, Minato-Ku. Tokyo. Kenyu. ICAO Representative, Eastern and Southern African Ofice, IJ United Nations Accomrndation. P.O. Box 46294, Nairobi. Mexico. Representante de la OACI, Oficina Nonearnbrica, entroamtrka y Caribe, Amado porn1 5-377. C.P. 06500, Mexico, D.F. Peru. pepresentante de la OACI, Oficina SuhmErica, Apartado 4 127, Lima 100. Senegal. Repr6sentant de I'OACI, Bureau Afrique occidenle a centrale, Boite postale 2356, Dakar. Spain. Pilot's, Suministros Aemoduticos, S.A., CRllim, 5-Oficina Nfim. 2,28043 Madrid. Theilrmd. ICAQ Representative, Asia and Pacific Oftice, P.O. Box 1 I, Samyaek hdprao, Bangkok 10w1. Unild Kirrdnm. Civil Avialion Authority, Printing and Publications Services, Gtevillt House. 37 Gmton Road, Cheltenham, Glos., CL50 ZBN. The Catalogue of ICAO Publications and Audio Visual Training Aids Issued annualjy, the Cata\ogue lists all publications and audio visual, training aids currently avaifable. Monthly supplements announce new publications and audio visual training aids, amendments, supplements, reprints, etc, AvaikMe free from the Document Sales Vnit, IGAO
TABLE OF CONTENTS '1 ' 2 LEVELS OF FARES AND . RATES .................................... 2 Passengetraffic ................................................ 2 Freight and mai traffic 3 . ........................................... 3 . REGIONAL DIFFERENCES IH SCHEDULED PASSENGER FARES ANDRELATEDCOSTS .......................................... 9 Over-alt financial results by international rout0 group ..................... 9 Comparison of results for 1990 with those for 1989 ...................... 11 ....................... Variations in revmuelcost ratios amongst airlines 13 ............... 4 . FACTORS CAUSING REGlONAL DIFFERENCES IM corns 16 ....................................... Aircraft mix and stage length 16 .............................. Prices for aircraft fueI and oil ....... 19 ..................................... Airport and associated charges 21 ................................................... Load factor 21 ........................... Mher causes of regional differences in costs 21 .............. Summary of causes of regional differences in costs ....... 23 ......................... . APPENDIX 1 . DATA SOURCES AND COVERAGE 25 ............................... .............. Sources of the data 25 .............................................. Coverags . of the data 25 APPENDW 2 . METHOD OF ANALYSIS AND MARGINS OF UNCERTAINTY ..... 29 .. ................................. ............. Method of analysis ' 29 ............................................ Margins of uncertainty 32 APPENDlX 3 . QUESllOPlNAlRES RELATING TO REVENUES AND COSTS ..... 35 ........................ I . Facsimiles of questionnaires and attachments 35 ................................... II . Respondents to questionnaires 9
INTRODUCTION 1. This study has been prepared pursuant to ICAO Assembly Resolution A21 -26 Clauses I b and d, which directs the Council to undertake analyses of regional differences in the level of international passenger fares and corresponding differences in the level of airline costs. Covering the year 1990, this study is the sixteenth in an annual series, the one for the year 1989 having bean published as Circular 235. 2. For 17 internafional route groups, comprising all international routes, passenger, freight and mail revenue yield data are presented in Chapter 2 or schaduled services along with passenger and freight revenue yield data for non-scheduled operations. For the same route groups regional dierences in the costs related to the scheduled service passenger yields are presented in Chapter 3. Finally, certain of the causes of regional differences in costs are identified in Chapter 4. 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 pubtished passenger fares and freight rates are available in separate annual publications issud by the Organization in response to Ciause la d Assembly Resolution 821-28. Circular 231 covers September 1990 and Circular 239 covers September 1991. 5. Unless indicated otherwise, all references in this Circular to kcants" mean "U.S. cents", and all references to "dollars" mean "U.S. dollars".
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Table Of Contents
COVER PAGE
TABLE OF CONTENTS
Appendix 1
Appendix 2
Appendix 3