Circular 154. Regional Differences in Fares, Rates and Costs for International Air Transport - 1978

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Circular 154

Regional Differences in Fares, Rates and Costs for International Air Transport - 1978

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CIRCULAR I I IN FARES. RATES AND COSTS I FOR INTERNATIONAL AIR TRANSPORT 1978 Approved by the Secretary General and published under his authority INTERNATIONAL CIVIL AVIATION ORGANIZATION MONTREAL CANADA

Published in separate English, French, Russian and Spanish editions by the international Civil Aviation Organization. All correspondence, except orders and subscriptions, should be addressed to the Secretary General of ICAO. P.O. Box 400, Place de IXviation internationale, 1000 Sherbrooke Street West, Montreal, Quebec, Canada H3A 2R2. Orders for this publication should be sent to one 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. Internotional Civil A viation Organization. Attention Distribution Officer, P.O. Box 400, Place de I'Aviation internationale, 1000 Sherbrooke Street West, Montreal, Quebec, Canada H3A 2R2 EgVpr Arab Republic of. ICAO Representative, Middle East and Eastern African Office, 16 Hassan Sabri, Zamalek, Cairo. Frame. Representant de I'OACI, Bureau Europe, 3 bis, villa Emile-Bergerat, 92200 Neuilly-sur-Seine. I Oxford Book and Stationery Co., Scindia House, New Delhi w 17 Park Street, Calcutta. krparr Japan Civil Aviation Promotion Foundation, No. 38 Shiba Kotohira-Cho, Mito-Ku, Tokyo. Macica. Representante de la OACI, Oficina NorteamQica y Caribe, Apartado postal 5-377, Mexico 5, D.F. Peru. Representante de la OACI, Oficina Sudambrica, Apartado 4127. Lima. Senegal. Representant de I'OACI, Bureau Afrique, Boite postale 2356, Dakar. Spoin. Libreria de Aeronautics y Astronautica Sumaas, Desengaiio, 12-3O-3, Madrid 13. Sweden. C.E. Fritzes Kungl. Hovbokhandel, Fredsgatan 2, Box 16356, Stockholm 16. Thailand ICAO Representative, Far East and Pacific Office, P.O. Box 614, Bangkok. United Kingdom Civil Aviation uthority, Printing and Publications Services, Greville House, 37 Gratton Road, Cheltenham, Glos., GL5O 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 publica- tions, their contents, amendments, supplements, corrigenda, and prices. Availrbls in three eporaa editions English, French and Spanish. Annual tubragtion U.S.Sl5.OO surface meili U.S.SZO.00 air mail.

TABLE OF CONTENTS Page I INTRODUCTION 1 If LEVELS OF FARES AND RATES ........................................... For passenger traffic 3 .................................... For freight and mail traffic 5 I11 REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES AND RELATED COSTS .......... Overall financial results by international route group 9 .............. Variations in revenue/cost ratios amongst airlines 11 .............. Comparison of results for 1978 with those for 1977 13 IV FACTORS CAUSING REGIONAL DIFFERENCES IN COSTS ................................... Aircraft mix and stage length 18 ................................ Prices for aircraft fuel and oil 21 .................................. Airport and associated charges 23 ..................................................... Load factor 23 ................... Other causes of regional differences in costs 24 .............. Summary of causes of regional differences in costs 25 V POSSIBLE MEANS OF REDUCING REGIONAL DIFFERENCES IN FARES AND COSTS ................................... Reduction of cost differences 27 ......................... Reduction of differences in fare levels 29

Table of Contents ct'd Page APPENDICES 1 . Data Sources .......................................................... 31 2 . Method ofhlysia andbrgina of Error ............................... 39 .... 3 . Variations in Levels of Scheduled Fares and Rates amongst Airlines 43 . ......................... 4 . Questionnaires wlating to Revenues and Costa 45

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