Word: chartering
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...halves and Swiss army knives. U.S. knapsack sales so far this year are way up. A SERIOUS PROBLEM FOR THE TOURIST TRADE IN THE CARIBBEAN, HAWAII AND THE U.S. SOUTH. Some resorts in those areas have already been hurting for more than a year, partly because of competition from charter flights and low group fares to Europe. Round-trip economy fare from New York to Miami is $166; from Chicago to Jamaica, $286; Chicago to Hawaii, $346. Asks one Eastern Air Lines vice president: "How can we sell a kid on going to Miami when he can go to London...
...more than 50% below the normal summertime economy fare. Under some circumstances it will now cost only $16 more to fly from the West Coast to Europe than to New York City. The price war is also bringing fares down to the level of those charged by the charter airlines. In response, at least one major charter carrier is planning to offer $100 round-trip flights from London to New York for "senior citizens"; the age limits are still uncertain...
Among those most anxious to see it end quickly are leaders of the nonscheduled airlines that are the backbone of the charter-flight business. Last year nearly 20% of all transatlantic passengers traveled on charter flights. Now, with the Viet Nam War grinding down and with Government contracts to ferry G.I.s being scrubbed, charter carriers are facing overcapacity. Meanwhile, the charters' competitive advantage in the form of lower fares to Europe has evaporated-at least as far as youngsters are concerned...
...while the charter lines and scheduled carriers face some rough times, Europe's hoteliers and restaurateurs are beginning to dance to the tune of jingling cash registers. The Continent is likely to be so crowded with the beard-and-blue-jeans set this summer that many tourists will have to camp out in the parks, plazas and piazzas...
...Mayor John Lindsay, frustrated in yet another annual campaign to wrest sufficient funds from the state legislature for his city of 7,870,000, last week suggested a kind of urban declaration of independence. At an international Conference on Cities, Lindsay said that the Federal Government should charter the largest urban centers in the U.S. as "national cities," with broader financial support from Washington and the power to deal directly with federal agencies instead of depending upon state legislatures dominated by rural and suburban interests...