Circular 193. Regional Differences in Fares, Rates and Costs for International Air Transport - 1983

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Circular 193

Regional Differences in Fares, Rates and Costs for International Air Transport - 1983

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CIRCULAR REGIONAL DIFFERENCES IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT Approved by the Secretary General and oublished under his authority lNTERNATlONAL CIVIL AVlATlON ORGANlZATlON MONTREAL CANADA

Published in sewrare English, French, Russian and Spanish editions by the International Civil Aviation Organimfion. All correspondence, except orders and subscripfins, should be addressed to rhe Secretary 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 Aviation Organization 1000 Sherbrmke Street West, Suite 400 Montreal, Quebec Canada H3A 2R2 Argentina. El Ateneo, Pedro Garcia S.A.L.E. e I., Dpto. Compras - Importation, Patagones 2463, 1282 Buenos Aires. Em. ECAO Representative, Middle East and Eastern African Office, 16 Hassan Sabri, Zarnalek. Cairo. France. Representant de IWACl, Bureau Europe, 3bis, villa Emile-Bergerat, 92522 Neuilly-sur-Seine, Cedex. India. Oxford Book and Stationery Co., Scindia Hwse, New Delhi or 17 Park Street, Calcutta. Japun. Japan Civil Aviation Promotion Foundation, 15-1 2, 1-chome, Toranomon, Minato-Ku, Tokyo. Kenya. ICAO Representative, Eastern African Office, United Nations Acwmmodation, P.O. Box 46 294 Nairobi. Mexico. Representante de la OACI, Oficina Norteamerica y Caribe, Apartado postal 5-377, Mexico 5, D.F. Peru. Representante de la OACI, Oficina Sudamerica, Apartado 4127, Lima 100. Senegal. Representant de I'OACT, Bureal Afrique, Boite postale 2356, Dakar. Spain. Libreria de Aeroniutica y dstronautica Sumaas, Desengaio, 12-3'-3, Madrid 13. Thailand. lCAO Representative, Asia and Pacific Office, P.O. Box 614, Bangkok. Unired Kingdom. Civil Aviation Authority, Printing and Publications Services, Greville House, 37 Grauon Road, C heltenham, Glos., GL50 2BN. Do you receive the ICAO BULLETIN The lCAO Bulletin contains a concise account bf 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, thew contents. amendments, supptgments, corrigenda, and prices. Available in three separate editions English, French and Spanish. Annual subscription. U S. t 5.00 surface maill U S. 20.00 air mail.

TABLE OF CONTENTS Pane I INTRODUCTION ...................................................... 1 I1 LEVELS OF FARES AND RATES ......................................... 2 Passenger Traffic ................................................. 2 Freight and Mail Traffic .......................................... 5 I11 REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES AND RELATED COSTS ................................................. 8 Overall Financial Results by International Route Group ............ 8 Variations in Revenue/Cost Ratios amongst Airlines ................ 12 Comparison of Results for 1983 with those for 1982 ................ 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 Summary of Causes of Regional Differences in Costs ................ 23 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 1Cont.l APPERDICES ............................................................. 30 1 . Data Sources and Coverage ........................................ 30 2 . Method of Analysis and Margins of Uncertainty ..................... 34 3 . Questionnaires Relating to Revenues and Costs ..................... 41 I . Facsimiles of Questionnaires and Attachments ................. 41 I1 . Respondents to Questionnaires ................................ 47

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