Way cleared forcheap flying

Press, 3 July 1978, Page 1

Way cleared forcheap flying

Montreal The International Air Transport Association, reacting to price slashing by charter companies, has approved sweeping changes that will allow member airlines to introduce lower fares. Despite protesta from aeveral of IA.T.A.'s smaller airlines, which already feel at a disadvantage in competing with big air carriers, 75 per cent of more than 80 airlines present at a special meeting in Montreal have approved in principle draft proposals to dismantle a 50-year-old system for fixing fares. . During the two-day meeting, the 106-member organisation was repeatedly given warning that it would die unless it adapted to competition and consumer demand for cheaper air travel.

Under a nine-part reform package discussed over the last two days, airlines would be able to disregard fare agreements and set their own rates rather than charge fares to suit other I.A.T.A. members.

But individual airlines would still have a voice in administrative matters connected with LA.T.A.’s function as a trade association.

The chairman of the meeting, Mr Claude Taylor, of Air Canada, said a revised version of the draft proposals, based on views expressed by members at the gathering would be approved by LA.T.A.’s 21-member executive committee scheduled for September and then presented for Government consideration.