The Fare Play Continues

As they try to sort out the bewildering tangle of air fares, vacationers planning summer trips to Europe can be sure of one thing: it will cost more. Last week 86 airlines belonging to the International Air Transport Association (IATA) agreed on a 6% fare increase on North Atlantic routes that will go into effect May 1. The new rate will boost the standard economy fare by $42, to $806, for a London-New York round trip and from $968 to $1,010 for a New York-Rome return economy ticket. Hikes in excursion fares used most frequently by tourists were somewhat smaller. A summer "peak season" 22-to 45-day New York-London return ticket will rise $34, to $527, and the prepaid tariff for tickets ordered two months in advance will increase by $11, to $410.

Initially, there had been hopes that the fare increases, which are still subject to approval by the U.S. Civil Aeronautics Board and foreign regulatory agencies, would be accompanied by a simplification of the crazy-quilt system of airline rates that now leaves passengers and travel agents alike confused. On the North Atlantic routes, there is a total of nine different lATA-approved rates, ranging from the standard first-class and economy tariffs through excursion fares to group-and age-related reduced rates. Those fares do not include the various charter deals now offered by many of the airlines and travel agencies (TIME, Jan. 19).

While perplexing, the crazy quilt can sometimes mean good travel bargains, provided the passenger and travel clerks can figure out the best rate. A ticket bought two months in advance under one scheme enables a traveler to fly from New York to Paris and then return to New York from Madrid for only $338, v. $658 standard economy fare.

Different Rates. The airlines insist that in principle they favor simplified fares, but they also find the differing rates an effective way of attracting new passengers. While cut-rate fares are of less consideration to business travelers, who must fly where and when the job dictates, they appeal to vacationers, who are often willing to fly at less convenient times and to schedule trips far in advance to save a few dollars. Fully 80% of Pan American's transatlantic passengers take advantage of cut-rate fares.

Within the U.S., fares are also going up. Last week the CAB approved a 2% fare increase, following a 1% increase only a month earlier. The higher prices are intended to reduce the huge losses suffered last year by most of the nation's major airlines (TWA alone lost $86.3 million and Eastern $49.7 million). As a result, the basic New York-Chicago economy fare will rise $2, to $76, by April. Unfortunately, the increases leave the domestic fare structure fully as complicated by discount and promotional rates as the international picture. To save 30% on domestic flights by major U.S. airlines, for example, a traveler must book at least 14 days in advance, pay ten days before departure and stay at the destination between seven and 30 days--with an additional discount available for flying late at night. But the amount of these discounts will be reduced on June 1.

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