Circular 220. Regional Differences in Fares, Rates and Costs for International Air Transport - 1987

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Circular 220

Regional Differences in Fares, Rates and Costs for International Air Transport - 1987

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CIRCULAR I IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT 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. AN correspondence, except orders and subscriptions, should be addressed to the Secretary General. Orders for this 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 Sherbrooke Street West, Suite 400 Montreal, Quebec Canada H3A 2R2 Egypt. ICAO Representative, Middle East Office, 16 Hassan Sabri, Zamalek, Cairo. France. Reprtsentant de I'OACI, Bureau Europe, 3 bis, villa fimile-ergerat. 92522 Neuilly-sur-Seine Cedex. India. Oxford Book 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, Tokyo. Kenya. ICAO Representative,-Eastern and Southern African Office. United Nations Accommodation, P.O. Box 46294 Nairobi. Mexico. Representante de la OACI, Oficina Norteamtrica, Centroamerica y Caribe, Apartado postal 5-377, C.P. 11590, Mexico 5, D.F. Peru. Representante de la OACI, Oficina Sudamerica, Apartado 4127, Lima 100. Senegal. Representant de I'OACI, Bureau Afrique occidentale et centrale, Boite postale 2356, Dakar. Spain. Pilot's, Suministros AeronPuticos, S.A., C/Ulises, 5-Oficina Ntim. 2, 28043 Madrid. 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 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 publications, their contents, amendments, supplements, corrigenda and prices. Available in three separate editions English, French and Spanish. Annual subscription U.Sf20.00 surface mail U.S.25.00 air mail.

TABLE OF CONTENTS Page . I . INTRODUCTION ........................ 1 I1 . LEVELSOFFARESANDRATES .................. 2 Passenger traffic ...................... 2 Freight and mail traffic ................... 4 I11 . REGIONAL DIFFERENCES IN SCHEDULED PASSENGER FARES ...................... ANDRELATEDCOSTS 9 ... Over-all financial results by international route group 9 Variations in revenue/cost ratios amongst airlines ...... 11 Comparison of results for 1987 with those for 1986 ...... 11 ......... . IV FACTORS CAUSING REGIONAL DIFFERENCES IN COSTS 16 ................ Aircraft mix and stage length 16 ............... Prices for aircraft fuel and oil 18 ................ Airport and associated charges 20 .......................... Loadfactor 22 ........ Other causes of regional differences in costs 22 ...... Summary of causes of regional differences in costs 24 . ............... APPENDIX 1 DATA SOURCES AND COVERAGE 25 ..... APPENDIX 2 . METHOD OF ANALYSIS AND MARGINS OF UNCERTAINTY 31 ..... . APPENDIX 3 QUESTIONNAIRES RELATING TO REVENUES AM COSTS 37 ............... . I Facsimiles of questionnaires 37 I1 . Respondents to questionnaires .............. 41 The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of ICAO concerning the legal status of any country. territory. city or area or of its authorities. or concerning the delimitation of its frontiers or boundaries .

I. INTRODUCTION 1. This study has been prepared pursuant to ICAO Assembly Resolution A21-26 Clauses lb and d, which directs the Council to undertake analyses of regional differences in the level of international passenger fares and corresponding differences in the level of airline costs. Covering the year 1987, this study is the thirteenth in an annual series, the one for the year 1986 having been published as Circular 210. 2. For 17 international route groups, comprising all international routes, passenger, freight and mail revenue yield data are presented in Chapter I1 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 111. Finally, certain of the causes of regional differences in costs are identified in Chapter IV. 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. 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 208 covers September 1987 and Circular 219 covers September 1988. 5. Unless indicated otherwise, all re'ferences in this Circular to "cents" mean "U.S. cents", and all references to "dollars" mean '7J.S. dollars".

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