Circular 235. Regional Differences in Fares, Rates and Costs for International Air Transport - 1989

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Circular 235

Regional Differences in Fares, Rates and Costs for International Air Transport - 1989

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ICAO CIRCULAR 2SATM CIRCULAR 1 IN FARES, RATES AND COSTS FOR INTERNATIONAL AIR TRANSPORT Approved by the secretary snsra4 and published under his authorm INTERNATIONAL CIVIL AVIATION ORGAWIZATIOP1 MONTREAL CANADA

Puhli.hed in sewrate EnXlish, French, Rus.rian and Spanish edirintu by rhe International Civil A viuiion Orgnizatfon. A /I r.nrre.przdence, excep f orders crnd .rubscriptions, hould be uddres.wd fi ihe Secrelury Genml. Orders Tor this publication should bc sent 10 onc of the foIlowing addresses, together wiih the appropriate rtmialncc by bank dwft. chcquc or moncy order in U.S. dollars or the currcncy of the country in which Ihc ordcr is plxcd. Drcumcnt Sales Unit Intcmaiional Civil Aviation Oqanimrion 1000 Shcrbrooke Slrccr Wcsl, Suite 400 Montreal, Qucbcc Canada H3A 2R2 Tcl. 5 14 285-821 9 Telex 05-245 13 Fan 514 2-4772 Sitarcx Y ULCAYA Crcdit card orders Visa or Arncricnn Express only arc acceptcd at the slbovc addrcss. ERYPI. ICAO Reprcsentaivc, Middlc hst Ot7ce, 9 Shagarci El Dorr Street, amalck 1 I2 1 I, Cairo. Frncc-. Rcpdxcntant dc I'OACI. Bureau Europe ct Atlontiquc Nord. 3 bis, villa mite-crcw 92522 Ncuilly-sur-Scinc Cedex. Indir. OxCard Bouk and Satianery CQ.. Scindia House, New Delhi or 17 Park. Sree, Calculla. JIIUII. Japan Civil Avilltion Promotion Foundation, 15-1 2. I -chomc, Toranomon, Minalo-Ku. Tokyo. KPWI. ICAO Represeniativc, Easleem and Soulhcrn African Ofice, Unit4 Nations Accommodation, P.O. Box 46294, Nairobi. Mexi.n. Rcprcscnlanlc dc la OACI. Oficina Noncnmrica, CcnlroamCrica y Cari be Apanadu postal 5-377. C.P. 06500. MCxico. D.F. Prm. Rcprcscntanlc de la OACI, Oficina Sudarnbrica. Aparlndo 4 127, Lima 100. Saserd. Rcpcntant dc I'OACI. Bureuu Afriquc occidentalc ct centrille, Boitc postale 2356. Dakar. Spclri. Pilot's. Suministros Aeronfiuticos, S A.. UUliscs, 5-Olicina Nlirn. 2,28343 Madrid. 77luilrtnd ICAO Rcprcscnlativc. Asia and Prtcilic Office. P.O. Box 1 1, Samyaek Ladprao. Bangkok 10901. Uuitlirrd Kingdm. Civil Aviation Ahority, Printing and Wications Smvices. Greville House, 37 Gnlton Road. Chcltcnham. Glos.. GL50 2BN. The Catalogue of ICAO Publications and Audio Visual Training Aids Issued annually, the Catabgue lists all publications and audio visual training aids currently available. Monthly supplements announce new publications and audio visual training aids, amendments, supplements, reprints, etc. Available free from the Document Sales Unit. ICAO

Table of Contents Page .......................... Passengertraffic 2 Freight andmail traffic ....................... 4 3 . REQIOZJAt DIFFEREMCES XI SCHEDULED PASSBEER FARES AMD RELATED COSTS ....................... 10 ........ Over-all financial results by international route group 10 comparison of results for 1989 with those for 1988 .......... 12 .......... variations in revenue/cost ratios amongst airlines 14 4 . FACTORS CAUSING REQXQHAL DIFPLREMCES 'I COSTS ............ 17 Aircraft mix and stage length factors a and b .......... 17 Prices for aircraft fuel and oil factor c ............. 21 Airport and associated charges factor dl1 .............. 22 Loadfactor factore ....................... 22 Other causes of regional differences in costs ............ 22 Summary of causes of regional differences in costs ........... 25 . Appendix 1 Data aoureea atla coverage .................. 27 Souroesofthedata ......................... 27 Coverage of the data .......................... 27 Appedix 2 . Method of analysia and margins of uncertainty ........ 33 Method of analysis ............................ 33 Margins of uncertainty ........................ 36 Agendix 3 . Queetiontrairerr relating to revenuee and costa ........ 39 I . Facsimiles of questionnaires and attachments ........... 39 I1 . Respondents to questionnaires .................. 43 The designations employed and the presentation of the material in this publication do not imply rhe expression of any opinion vhatoever on the parc of ICAO concerning the legal status of any country. territory. city or area ar of its authorities. or concerning the delimitation of its frontiers or boundaries .

1. This study has been Prepared pursuant to ICAO ssembly Resolution 21-26 Clauses lb and d, which directs the Council to undertake analyses of regional differences in the level of international passenger fares and corres- ponding differences in the level of airline costs. Covering the year 1989, this study is the fifteenth in an annual series, the one for the year 1988 having been published as Circular 228. 2. For 17 international route groups, comprising all international routes, passenger, freight and mail revenue yield data are presented in Chapter 2 for,seheduled services along with passenger and freight revenue yield data for non-scheduled operations. For the same route groups regional differences in the costs related tb the scheduled service passenger yields are presented in Chapter 3. Finally, certain of the causes of regional differences in costs are identified in Chapter 4, 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 224 covers September 1989 and Circular 231 covers September 1990. 5. Unless indicated otherwise, all references in this Circular to "centsa mean "U.S. cents", and all references to "dollars" mean "U.S. dallnrs".

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