Word: hsa
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Dates: during 1960-1969
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...immorally, but also illegally. The International Air Transport Association (IATA), which regulates all major transcontinental airlines, prohibits a chartering agency from making a profit or from charging more than "reasonable administrative fees." And though providing no exact definition of "reasonable," IATA clearly disallows two practices commonly attributed to the HSA...
...should earn a commission on receipts from a flight; he must, instead, receive an hourly or weekly wage. That is, as more flights are chartered the benefits of scale economies must be passed on to the passengers. Second, "unreasonable" fees are not made reasonable by passing them on to HSA agencies less successful than the Charter Flights business. In IATA's eyes, it is not enough that the HSA as a whole be non-profit; each flight must also be non-profit...
...first glance, the case against the HSA seems overwhelming. But, in fairness, it should be noted that all airlines do not charge the same prices to all chartering agencies. Chartering operates in a sellers' market, and a travel agent can usually obtain low prices only from those airlines whose business and favor he has carefully cultivated...
...HSA's agent, University Travel Service, has traditionally done its charter business solely with BOAC. Last summer BOAC unexpectedly terminated most of its chartering operations, and UTS was obliged to deal with airlines unfamiliar to it. Unfamiliarity itself probably meant higher charges. Furthermore, because planes are always in short supply, only the very expensive airlines, Swissair and Air France, would negotiate with UTS on such short notice...
...higher costs have understandably necessitated higher HSA prices. But there is, at present, no way of knowing how much of this year's price can be blamed on higher costs. A major Boston charterer has told the CRIMSON that, to his best knowledge of BOAC, Swissair and Air France prices, the HSA charged $30 per passenger in administrative fees last year, and is still charging at least $15 this year. According to this source, the usual amount, and IATA's working definition of "reasonable...