Declaration of War

Pan American Airways last week made good on a promise. It slashed the New York-London fare from $572, one way, to $275, dropped the roundtrip fare to $495. Thus it became the first airline to set fares on a par with first-class steamer rates.

Down too went its transatlantic air-express rates, from $2.02 per pound to $1.17. Pan Am also shaved passenger rates on the New York -Lisbon run and on many a Latin American route. Signifi cantly, the drop in rates was greatest --as on the Atlantic routes -- where the competition was keenest. Having sunk its knife deep into the hides of competitors, Pan Am then gave it a turn. Said Pan Am: when it gets its new planes now on order (see below) it plans to cut rates again.

Despite ample warning, Pan Am's competitors were caught with their rates up. American Overseas Airlines went on charging $572. Britain's BOAC charges $647 one way, $1,299 round trip. But the American Express Co. was on its toes. On the basis of the new fares, it offered a two-week, all expense air tour of Europe next summer. Price: $850.

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