Fare Fight (Cont'd)

The airlines were busy cutting each other's throats with imaginary razors. A bitter transatlantic rate war was on--although transatlantic planes for non-priority passengers would not be in operation for some time. But American Airlines promised to whisk the future traveler to London for $235, one way. T.W.A. knocked down its first offer of $263.80 to $193.50. Pennsylvania-Central bid $176. Pan American, an old hand at crunching competition, stunned its rivals by pricing its postwar ticket to London at $148 (Pan Am now charges $525 to Foynes by the northern route. Prewar fare $375).

These pin-up rates for transatlantic service enlivened the continuing Civil Aeronautics Board hearings for North Atlantic route certificates. At the same time these glib rate-cutting promises were committing airlines to start their postwar services at rates as low as 3 1/2-c- a mile--lower than some experts thought could be achieved for three or four years. If transatlantic traffic fails to come up to the airlines' optimistic expectations, operating costs might prove difficult to cover.

But in the long run the. optimism may be justified. The Brookings Institution last week predicted: ten years after the end of the war, airlines will be flying for 3-c- a mile.

This file is automatically generated by a robot program, so reader's discretion is required.