Reduction In Air Fares ‘Unlikely’

Press, Volume CIX, Issue 31982, 8 May 1969, Page 5

Reduction In Air Fares ‘Unlikely’

fNJ.PJL. Staff Correspondent) LONDON. The introduction of high-capacity jet aircraft on major world air routes is unlikely to lead to big reductions in present fares, in the opinion of Professor Gerhard Holtje, president of the International Air Transport Association. Professor Holtje says in a statement that while the higher capacity will undoubtedly affect various technical and operational fields, such as airport and airspace capacity and methods of ground handling, it is not likely to affect present air fares, “except perhaps for some particular form of tourism." He says that in the past many aircraft manufacturers and aircraft operators made forecasts promising fare reductions. “I personally felt, however, that growing overhead expenses will prove these people to be overoptimistic,” he says. “If we could manage to keep some of our fares at the present level for some time we would, contrary to many other industries, be doing extremely welL” Professor Holtje , says I.A.T.A. members are now flying more than 2000 jet aircraft Their value, when purchased, was well over SUSI 3 billion.

"More than 1000 subsonic and supersonic aircraft have been ordered by the airlines, ineluding more than 130 highcapacity DCBs, more than 150 high-capacity Boeing 747 s and 170 so-called air buses involving an additional investment of roughly SUSIB billion,” he

says. “By 1975 the fleets of I.A.T.A. member airlines will probably have increased from 2000 to 7500 jets. The 1000 jets on order will not only have a capacity three times larger than today’s total

lA.T.A. fleet but will have an average annual productive capacity of about four times today’s aircraft.” Professor Holtje refers to the fear of some small carriers of being threatened by the competition of larger operators. In this context the use of the “consortium” is the most logical method for small nations to take part in air transportation, he says. I.A.T.A. can, he says, assist in establishing guidelines for the formation of airline consortiums to permit smaller carriers to operate jointly on major international routes without the risk of being suppressed by competition.