Circular 199. Selection of ICAO Facilitation B-Type Recommendations

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Circular 199

Selection of ICAO Facilitation B-Type Recommendations

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CIRCULAR REGIONAL DIFFERENCES I IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT i Approved by the Secretary General and published under his authority INTERMATIONAL ClViL AVlATtON OROANIZAXION MONTREAL CANADA

Published in separate English, French, Russian and Spanish ediiions by the International Civil Aviation Oanizaf ion. Ail correspondence, except orders and subscript ions, should be addressed to the 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 1OOO Sherbrooke Street West, Suite 400 Montreal, Quebec Canada H3A 2R2 Argentina. El Ateneo. Pedro Garcia S.A.L.E. c I., Dpto. Compras - Importacib, Patagones 2463, 1282 Buenos Aires. Egypt. ICAO Representative, Middle East and Eastern African Office, 16 Hassan Sabri, Zamalek, Cairo. France. Representant de I'OACI, Bureau Europe, 3 bis, villa smile-Bergerat, 92522 Neuilly-sur-Seine Cedex, India. Oxford Book and tationeiy Co., Scindia House, New Delhi or 17 Park Street, Calcutta. Japun. Japan Civil Aviation Promotion Foundation, 15-1 2, 1 -chome, Toranomon, Minato-Ku, Tokyo. Kenya, lCAO Representative, Eastern African Office, United Nations Accommodation, P.O. Box 46294 Nairobi. Mexico. Representante de la OACI, Oficina Norteamdrica y Cnribe, Apartado postal 5-377, C.P. 1 1590, Mexico 5, D.E. Pem. Reprwntante de la OACI, Oficina Sudamerica, Apartado 4127, Lima 100. Senegal. Reprbentant de I'OACI, Bureau Afrique, Boite postale 2356, Dakar. Spain. Libreria de Aerontiutica y Astronhutica Sumaas, Desengafio, 12-3"-3, Madrid 13. Thailand. ICAO Representative, Asia and Pacific Office. P.O. Box 614. Bangkok. United Kingdom. Civil Aviation Authority, Printing and Publications Services, Greville House, 37 Gratton Road, Cheltenham, Glos.. GLSO 2BN. Do you receive the ICAO BULLETIN The ICAO Bulletin contains a concise account of the activlttes 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 publications, their contents, amendments, supplements, corrigenda and prices. Available in three separate editions English, French and Spanish. Annual subscription U.S.15.00 surface mail U.S.20.00 air mail.

TABLE OF CONTENTS Pane I INTRODUCTION ...................................................... 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 1984 with those for 1983 ................ 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 Cont . Page APPENDICES ............................................................. 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 . Facsimilee of Questionnaires ................................. 41 I1 . Respondents to Questionnaires ................................ 45

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