Word: musts
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Dates: during 1970-1979
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Veterans and neophytes alike need to be tough because they must face "the ground barrier." The ordeal begins when the passenger tries to telephone the reservations center. Either the line is busy or a recorded voice says reassuringly, "Your call is being automatically held..." And held and held. Waits of up to ten minutes are common and some are as much as 35 minutes. The volume of calls is up about 35% at most airlines, and each call lasts longer while the clerk figures out the lowest fare and plots the routes over which it is applied. One Eastern reservations...
...round trip New York-London, vs. $764 for regular economy class. Or, for the same price, the passenger can buy a ticket on the day of departure and "stand by," hoping for a seat. The peril: none may be available. The second is APEX (Advanced Purchase Excursion), which must be bought three or four weeks in advance. The price: $399. The advantage: a confirmed reservation. Domestically, there is an absolute plethora of fares. The Big Four?United, American, TWA and Eastern?all offer a Super Saver fare that cuts 30% to 50% off regular economy rates, but tickets must...
Whether they can or cannot do so will depend largely on the cheap fares. They are so low that carriers must continue to attract more passengers just to break even. The airlines are now making sizable profits because six out of ten passengers are still paying the regular tariff, and those fares provide enough revenue to cover the expenses of the flight. Hence, proceeds from the low-fare passengers, who fill up the remaining seats, are gravy...
...even point has risen from 55% to 62% of capacity?that is, it makes money only when 62% of the seats are filled. Shuddering at the prospect of the CAB'S approval of another 70% reduction in some fares, Delta President Garrett declares: "At some point, the fare structure must be stabilized. There is no way you can cut fares 70% and continue to profit, because costs are simply too high...
Still lower fares are only part of Carter's plan for the airlines. His goal is total deregulation. The Government would continue to police safety, but the companies would be unencumbered by other federal regulations. For example, a line must now go through a lengthy CAB examination before it can win a new route, and once that route is granted, must provide satisfactory service or face CAB sanctions. Under the White House plan, the airlines would be free to start or stop service wherever they liked. Some small communities that have already lost their rail service would probably be deserted...