Lowenfeld, Andreas F.; Bundy, William P.
October 1975
Foreign Affairs;Oct75, Vol. 54 Issue 1, p36
Academic Journal
This article examines the overall structure of international agreements governing the airlines of the world. The importance of aviation to aviation to the reconstruction of a peaceful world was recognized by the allied powers while World War II was still in progress. In May 1975, 31 scheduled airlines--many represented by persons who had been observers or delegates at the 1944 international conference on civil aviation--assembled in Havana, Cuba to organize the International Air Transport Association (IATA). The first assumption to be shattered was that the scheduled carriers assembled in IATA could control fares indefinitely. Among the European countries, several considered the idea of limiting or controlling charters--which were nowhere provided for in the postwar agreements--but as long as all the European countries were not united, only those countries that could count on a separate and distinct market, such as Israel, were able to avoid the charter problem. After arguing unsuccessfully to the Civil Aeronautics Board that air travel was all one big market and that therefore expanded charter authority would be largely diversionary, the scheduled international carriers took the opposite approach in their own pricing policy. Pan American World Airways, long the pioneer and pacesetter in routes and equipment, lost over $80 million in 1974, its sixth straight year of massive financial reserves, and was forced into increasingly complex and burdensome credit arrangements which by their size alone lose their character as secured transactions.


Related Articles

  • Bargain Season.  // Time;11/7/1969, Vol. 94 Issue 19, p106 

    The article focuses on the U.S. airline industry and the conflict among airline businesses including Pan Am World Airways Inc. and Trans World Airlines Inc. caused by the growing threat of cut-rate charter flights. As a result of disagreement on uniform rates, the Atlantic lines started...

  • Transatlantic Rate Cut.  // Time;11/26/1951, Vol. 58 Issue 22, p97 

    The article reports on the support expressed by several airlines to a proposal by the company Pan American World Airways to reduce transatlantic tourist rates in November 1951.

  • Heliport.  // New Yorker;1/1/1966, Vol. 41 Issue 46, p19 

    The article reports on the official opening of the new heliport on top of the Pan American Building in New York City. The occasion began with a vast cocktail party and luncheon laid on at the Waldorf-Astoria by Pan American World Airways Inc. Prominent leaders in the business world and the New...

  • Pan Am's Route Across the Sea of Red Ink.  // Fortune;Jan1972, Vol. 85 Issue 1, p78 

    The article presents information on international carrier Pan American World Airways Inc. (Pan Am), which has suffered total losses of 100 million dollars for three years. The airline's market value decreased to 607 million dollars in December 1971, from 1.8 billion dollars in 1966. Pan Am's...

  • Sky Wars over North America.  // Time;9/12/1977, Vol. 110 Issue 11, p67 

    The article focuses on several air-fare wars in which several airlines compete in offering low price air fares. Several airliners such as Pan American World Airways Inc. and Trans World Airlines Inc. (TWA) will begin offering new cut-rate fares on flights from New York City to London, England in...

  • Cut-Rate to Europe.  // Time;5/5/1952, Vol. 59 Issue 18, p97 

    The article reports on the implementation of cut-rate transatlantic flights by TWA and Pan American in 1952. Under the new rates, nine scheduled foreign carriers and 39 flights a week will be covered. It points out that southern routes to the Mediterranean or regular flights in Europe are...

  • Low-cost lobby targets Brussels.  // Airline Business;Oct2004, Vol. 20 Issue 10, p19 

    Reports on a study conducted by the European Low Fares Airline Association (ELFAA) concerning the possible discontinuance of operations of low-cost airlines in Europe in 2004. Total amount of reduction in air fares; Reason behind the reduction in air fares according to the ELFAA; Issue on the...

  • L.A. to New York in Four Hours. Gustafson, Philip // Saturday Evening Post;9/29/1956, Vol. 229 Issue 13, p46 

    Features the use of jet planes by Pan American World Airways, a U.S.-based airline company. Worth of jet-propelled airliners ordered by the firm; Reservation for the first transcontinental jet flight of the company; Characteristics of the jetliners of the company.

  • Too Much Competition.  // Time;11/10/1958, Vol. 72 Issue 19, p80 

    The article focuses on the fall of revenue of U.S. airlines such as Pan American World Airways Inc. and Panagra Airways in Latin America. It states that the revenue fall was caused by the entry of foreign carriers, which offer cut-rate fare policies that are almost half the rate by Pan Am and...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics