1976-05-10

Shaping the Aviation Environment: The Role of Regulatory Authorities with Particular Reference to Freight 760442

The Paper begins by discussing the purpose of regulation, and describes the system used in the United Kingdom. After considering the nature of air freight traffic, it goes on to analyse the economics of belly-hold freight carried by scheduled services. It is concluded that belly-hold freight should, generally speaking, be expected to cover its fully allocated costs. After discussing the economic rationale for restrictions on split charter operations, in which area the UK is carrying out more research and experiments, the point is made that a reformed IATA rates structure would greatly strengthen the competitive position of scheduled carriers.

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