Circular 180. Regional Differences in Fares, Rates and Costs for International Air Transport - 1981

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Circular 180

Regional Differences in Fares, Rates and Costs for International Air Transport - 1981

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CIRCULAR REGIONAL DIFFERENCES IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT 1981 Approved by the Secretaw Genere1 and published undsr his authority INTERNATIONAL CllVlL AVIATION ORGANIZATlON MONTREAL CANADA

Published in separate English, French, Russian and Spanish editions by the Inrermtional Civil Aviation Organization. All correndnce, except orders and subscriptions, should be addressed to rhe Secreloty General. 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. Document Sales Unit International Civil hiation Organization 1000 Sherbrooke Street West. Suite 400 Montreal, Quebec Canada H3A 2R2 Argentina. El Ateneo, Pedro Garcia S.A.L.E. a I., Dpto. Compras - Importaci6n, Patagones 2463, f 282 Buenos Aires. Egypt. ICAO Representative, Middle East and Eastern African Offm, 15 Hassan Sabri, Zamalek, Cairo. France. Gpntant de I'QACI, Bureau Europe, 3, villa Emile-Bergerat, 92522 Neuilly-sur-Seine, Cedex. India Oxford hk and Stationery Co., Scindia House, New Delhi or 17 Park Street, Calcutta. Japan. Japan Civil Aviation Promotion Foundation, 15-12. 1-chome, Toranomon, Minato-Ku, Tokya. Mexico. Representante de 1a OACI, Oficina Norteamhica y Caribe, Aparhdo postal 5-377, MCxico 5, D.F. Peru. Representante de la OACI, Oficina Sudamerica, Apartado 4127, Lima 100. Senegal. Reprhntant de I'OACI, Bureau Afrique, kite postale 2356, Dakar. Spain. Libreria de Aeronautica y Astroniutica Sumaas, Desengai'io 12-3s3, Madrid 13. Thailand ICAO Representative, Asia and Pacific Office, P.O Box 614, hngkok. Unised Kingdom. Civil Aviation Authority, Printing and Publications Services, Greville House, 37 Gratton Road, Cheltenham, Glos., GLSO ZEN. 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 lCAO publics- tions, their contents, amendments, supplements, corrigenda, and prices. Available in three separate editions English, French and Spanish. Annual subscription U.S. 1 5.00 surface maB U.S. 20.00 air mallL

TABLE OF CONTENTS Page I INTRODUCTION ................................................ 1 I1 LEVELS OF FARES AND RATES ................................... 2 For Passenger Traffic ....................................... 2 For Freight and Mail Traffic ................................ 4 I11 REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES AND RELATED COSTS ..........................................a 8 Overall Financial Results by International Route Group ...... 8 Variations in Revenue/Cost Ratios amongst Airlines .......... 12 .......... Comparison of Results for1981 withthose for 1980 14 IV FACTORS CAUSING REGIONAL DIFFERENCES IN COSTS ............... 16 Aircraft Mix and Stage Length ............................... 18 Prices for Aircraft Fuel and Oil ............................ 20 Airport and Associated Charges .............................. 20 Load Factor ................................................. 22 Other Causes of Regional Differences in Costs ............... 22 Sumary of Causes of Regional Differences in Costs .......... 24 V POSSIBLE MEANS OF REDUCING REGIONAL DIFFERENCES IN FARES AND COSTS .......................................... 25 Reduction of Cost Differences ............................... 25 Reduction of Differences in Fare Levels ..................... 28

Table of Contents Cont. Page ....................................................... APPENDICES 29 ................................... . 1 Data Sources and Coverage 29 ............... . 2 Method of Analysis and Margins of Uncertainty 33 ............... . 3 Questionnaires Relating to Revenues and Costs 39 ........... I . Facsimiles of Questionnaires and Attachments 39 . .......................... I1 Respondents to Questionnaires 45

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