AIR FARES DISPUTE

Press, Volume CII, Issue 30130, 14 May 1963, Page 13

AIR FARES DISPUTE

U.K. Wares On Plane Seizures

(N.ZJ’A.-Reuter — Copyright)

LONDON, May 13.

Britain yesterday warned two American international airlines to comply with an international increase in transatlantic air fares.

The Aviation Ministry told the airlines—Pan American and Trqnsworld—that failure to do so could render their aircraft liable to detention in Britain.

The two airlines have refused to apply a reduced discount on return fares across the Atlantic. This step was agreed on by members of the International Air Transport Association. The I.A.T.A. has decided to cut the discount to 5 per cent, from 10 per cent, as from yesterday. The two “renegade’’ airlines have maintained their old fares on instructions from the United States Civil Aeronautics Board. British Overseas Airways Corporation put its fares up today. A 8.0.A.C. spokesman said last night that it was operating the new higher fares and “so far bookings have not been affected.” A T.W.A. spokesman said there was no “evidence to suggest that people who booked with 8.0.A.C. and other airlines at the increased rate are cancelling and transferring to us in order to travel £lO more cheaply. The passenger flow has been normal.” A Pan American spokesman said the airline had told the Ministry of Aviation it could not comply with the British fares requirement. A Ministry of Aviation spokesman said he did not see any conflict in the Ministry’s statement about planes being liable for detention and earlier statements made in the’ dispute. He said Pan American and T.W.A. had been given a “reminder" of

the penalty for not complying with British law. The British Embassy in Washington handed over an aide memoire to the State Department yesterday, making its position clear. The State Department has expressed surprise at the British threat to confiscate .aircraft of the two American airlines. A spokesman said representatives of the British Embassy had given assurances after a meeting at the State Department “that there would be no interruption in service.” pending further talks to solve the rate controversy.