North Atlantic versus transcontinental air transport passenger services : cost analysis ...

• Main Author: Vondracek, George Joseph
• Format: Text
• Language: English
• Published: University of British Columbia 2011
• Subjects: North Atlantic
• Online Access: https://dx.doi.org/10.14288/1.0093355; https://doi.library.ubc.ca/10.14288/1.0093355

The purpose of this study is twofold: first, to determine whether the level of passenger fares effective on the North Atlantic routes bears close relationship to the cost of operating these routes; and, second, to test a hypothesis that rate making under the International Air Transport Association regulations on the North Atlantic results in a passenger fare/ cost spread in excess of that existing in the Canadian transcontinental commercial air service. While these objectives are intended to reflect general relationships which have existed for some time in both of these markets, only recent statistics are employed to exemplify them. The 1966 data are used throughout the study supplemented by 1965 and 1967 information where deemed necessary. The assumption is made that the aircraft operating costs, or direct costs, incurred in airline operations on the North Atlantic in 1966 were similar to those experienced in providing the Canadian transcontinental service as the aircraft used (DC-8 category) and the ...