Transatlantic Rate Cut

Pan American World Airways, which has been battling for cut-rate transatlantic tourist fares for more than three years, last week won a notable victory. Trans World Airlines, British Overseas Airways Corp., Air France and the CAB all announced their support of tourist rates beginning next spring. But there was no final agreement on the rates. Pan Am wants to cut the present $395 one-way fare to $225, with a $405 round-trip rate. The other airlines and the CAB want a $265 one-way fare and $477 roundtrip. The proposed rates would also cut 25% from the round-trip fare during the offseason months when travel is lighter. On all tourist flights the airlines expect to carry about one-third more passengers (e.g., 82 on a DC-6B, 60 on a Constellation), charge passengers for meals and do away with such frills as a free bar and free overnight bags.

Next week, at a meeting of the International Air Transport Association in Nice, 54 international lines will be asked to approve the plan, agree on a rate. Even if there is no agreement, tourist flights by next spring are virtually assured. Pan Am, T.W.A. and BOAC are prepared to fly at the tourist rates, no matter what other I.A.T.A. members do.

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