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Circular 254
Regional Differences in Fares, Rates and Costs for International Air Transport - 1992
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CIRCULAR CIRCULAR 2SCATI104 REGIONAL DIFFERENCES IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT Approved by the Secretary General and published under his authority INTERNATIONAL CIVIL AVIAf ION ORGANIZATION MONTREAL CAMAOA
Published in separate English Frmch Russian and Spatzish editions by the Internationad Civil Aviation Organization All correspondence, except orders and subscriptions, should be addressed to the Secretary General. Orders for this publication should be sem to one of the following ddresses, together with the appropriate mitrance by bank draft, cheque or money order in U.S. dollars or the cumncy of the cwn6ry in which 'the order is pIaced. Document Sales Unit International Civil Aviation Organization 1 OOO Sherbrooke Sireet West, Suite 400 Montreal, Quebec Canada N3A 2R2 Tel. 5 14 285-8022 Telex 05-2451 3 Fax 5 14 285-6769 Sitatex YULCAYA Cdit card orders Visa or American Express only ate accepted at the above address. Emt. ICAO Representative, Middle East Office, 9 Shagaret El Don Street, Zamalek 1 121 1, Cairo. Fmce. Rep5sentant de I'OACI, Bureau Europe et Atlmrique Nord, 3 bis, villa mile-ergerat, 92522 Nwilly-sur-Seine Cedex. India. Oxford Book and Stationery Co., Scindia House, New Delhi 11 0001 or 17 Park Street, Calcutta 7000 16. Japan. Japan Civil Aviation Promotion Foundation, 15-1 2, I -chome, Toranomon, Minato-Ku, Tokyo. Kenya. ICAO Representative, Eastern and Southern African Office, United Nations Accommodation, P.O. Box 46294, Nairobi. MexicoD Repmrante de la OACI, Oficina NorteaMrica, Centroamkrica y Caribe, Apanado pstal 5-377, C.P. 06500, Mbico, D.F. Peru. Representante de la OACI, Oficina Sudamkca, Apartado 41 27, Lima 1m. Senegal. Repdse,nmnt de I'OACI, Bureau Afrique occidentale et cenuale, EoTk postale 2356, Dakar. Spain. A.E.N.R. - Aeropuenos Espaifoles y Navegmibn Aea, Calk Juan Ignacio -a de Tena, 14, Planta Teroera Despacho 3. 11,28027 Mdrid. Thailandnd ICAO Representative, Asia and Pacific Office, P.O. Box 1 1, Smyaek Ladprao, Bangkok 10901. Unired Kingdom. Civil Avigitiun AurMty, Printing ad Publications Services Grrville Rouse, 37 Gratton Road, Cheltmham, Glos., GL50 2BN. The Catalogue of ICAO Publications and Audio Visual Training Aids Issued annually, the Catalogue lists all publications and audio visual training aids currently available. Monthly supplements announce new publications and audio visual training aids, amendments, supplements, reprints, etc. Available free from the Document Sales Unit, lCAO
TABLE OF CONTENTS Page ............................................... . 1 INTRODUCTION 1 2 . LEVELS OF FARES AM0 RATES .................................. 2 Passenger traffic ............................................... 2 ...................... ..................... Freight and mail traffic 4 3 . REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES AND RELATED COSTS .......................................... 9 Over-all financial results by international route group ..................... 9 Comparison of results for I992 with those for 1991 ...................... 11 Variations in revenue/cost ratios among airlines ......................... 13 .............. 4 . FACTORS CAUSING REGlONAL DIFFERENCES IN COSTS 16 Aircraft mix and stage length ....................................... 16 ...................................... Prices for aircraft fuel and oil 19 .................................... Airport and associated charges 20 Loadfactor .................................................. 21 Other causes of regional differences in costs ........................... 21 ...................... Summary of causes of regional differenoes in costs 23 . ........................ APPENDIX 1 DATA SOURCES AND COVERAGE 25 Sources of the data ............................................. 25 ... Coverage of the data ......................................... 25 . ..... APPENDIX 2 METHOD OF ANALYSIS AND MARGINS OF UNCERTAINTY 30 Method of analysis .............................................. 30 Margins of uncertainty ............................................ 33 ..... . APPENDIX 3 QUESTlONNAlRES RELATING TQ REVENUES AND COSTS 35 I . Facsimiles of questionnaires and attachments ........................ 35 II . Respondents to questionnaires ................................... 39
Chapter 1 INTRODUCTION 1.1 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 differenoas in the level of aidine costs. Covering the year 1992, this study is the eighteenth in an annual series, the one for the year 1991 having been published as Circular 248. 1 -2 For 17 international route groups, comprising all international mutes, passenger, freight and mail revenue yield data are presented in Chawr 2 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 3. Finally, certain of the causes of regional differences in costs are identified in Chapter 4, 1.3 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. 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 A21-26. Circular 246 covers September 1992 and Circular 256 covers September 1993. 1.5 Unless indicated othetwise, all references in this Circular to "cents" mean "U.S. cents", and all references to 'dollars" mean "US. dollars".
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Table Of Contents
COVER PAGE
TABLE OF CONTENTS
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Appendix 1
Appendix 2
Appendix 3