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Aviation History
1963
1963 - 0653.PDF
FLIGHT International, 2 May 1963 625 AIR CO E R C E America's International Blueprint SO far, all that has been released about the new US policy as recommended by the special committee appointed by the President in 1961, is limited to a "statement of principles" approved by President Kennedy. These are as follows:— •"( 1) In the regions of the world where air service is still inadequate, the US should encourage nations in such regions to expand their efforts in developing adequate local and regional service. "(2) The US should continue to aim for a carrier system in which one US flag carrier has access to world markets on a scale com • parable to that of the flag carriers of other major civil aviation powers. "(3) US carriers should be permitted to participate in air carrier pooling only when the national interest requires it, and that in order to provide for more effective governmental influence on rates, Congress should adopt legislation giving the Civil Aeronautics Board, subject to presidental approval, [power] to control rates in international air transport to and from the United States. "(4) The US should press for lower cargo rates best suited to stimulate the growth of the air freight industry and should explore the feasibility of obtaining an experimental, short-term agreement with European countries and Canada which would provide for the reciprocal exchange of all-cargo aircraft traffic rights. "(5) The US should co-operate in the development of international air traffic control and navigational systems, telecommunications, meteorological and other technical services, and should develop an equitable system of user charges for its air navigation and other airway services, to apply to all international air carriers." The world's leading air cargo carriers, I9SS-I961. Final figures for 1962 are not yet available on a comparable basis. Source: ICAO Digest of Statistics. See "Air Cargo Rates," starting on this page 1955 1956 1957 1956 1959 I960 196! In approving the new statement of policy, the President said: "The United States air transport policy takes into account all of the US interests: the health and growth of our carriers; the contri butions which air transport can make to our national security; and above all, the needs of the consumer—the traveller and shipper." Of the visit to London of Mr Alan Boyd of the CAB, the Pre sident says: "This protest against an unjustified fare increase is the first specific example of our implementing the policy statement." [Mr Boyd in London: page 628; leading article in this issue.) AIR CARGO RATES WHILE storms have raged over the CAB's refusal to allow lATA's increase in transatlantic passenger fares, it is a significant fact that the revised cargo rate structure called for by the same IATA conference last autumn took effect on April 1 without a murmur from anybody. It might reasonably be expected that the CAB would have been equally up in arms against cargo rate increases, which will almost certainly increase the total air cargo industry revenue for a given amount of traffic. The Americans are not happy about present cargo-rate levels, however, as is evident in item 4 of the recent US policy statement (see above). A glance at the chart on this page shows the dominating size of the combined three United States international air cargo carriers. This supremacy extends to the highly competitive North Atlantic where, in contrast to the experience of US carriers in the passenger business, their share of the cargo market is actually increasing rather than decreasing. In spite of the size and efficiency of US airline participation there is general content amongst those in the business that the new rate structure is about the best that IATA has yet devised to suit the diverse needs of the moment. The growth rate of almost 30 per cent per annum in the inter national air cargo business during recent years has been spectacular; but because of the high operating costs of converted piston- engined equipment, and of a totally inadequate cargo rate structure, the industry has not made a profit out of civilian business. The root of the rate problem has been that the airlines with reasonably low-cost specialized freight aircraft have been in the minority at cargo rate conferences. Rate structures have generally been drawn up to maximize the revenue for those airlines using cargo as a fill-up for the relatively small under-floor compartments of passenger aircraft, with the result that the rates have not attracted the bulk of traffic needed by the operators of specialized cargo aircraft. Now that, for example, over the North Atlantic, PanAm, TWA, TCA, and no doubt shortly Air France, Alitalia, BO AC, KLM, Lufthansa and Swissair are (or have announced plans for) operating large turbofan cargo aircraft, there is a greater degree of common interest among carriers in drawing up the rate structure, which should therefore lead to a better matching of the operating cost character istics of the aircraft and the rate which the cargo can stand. Over the North Atlantic, where international air cargo is busiest and most competitive, the new table of charges shows an increase in the general cargo rate of about 14 per cent for small consignments and eliminates the majority of rate-reducing weight-break points above 500kg. However, to encourage the growth of traffic in certain commodities sensitive to air cargo, a number of special commodity rates have been re-introduced and in the case of 31 items a series of rate reductions at weight-breaks above 7,000kg have been introduced. For instance, between London and New York the highest commodity rate at 8s per kg (applying to hooks, snaps, buttons and buckles, with a minimum qualifying weight of 45Kg)
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