Page 6-Tuesday, July 31, 1979-The Michigan Daily
Airlines
approve
fare hikes
to meet
fuel costs
GENEVA, Switzerland (AP) - Air
travelers face a new round of fare in-
creases ranging from nine per cent to 15
per cent, planned for Sept. 1 to help
major world airlines make up for rising
fuel costs.
The new fares and cargo rates,
agreed to yesterday by the airlines at
the International Air Transport
Association (IATA) conference here,
are subject to approval of the respec-
tive governments.
It was not known how the accord
would affect U.S. airlines on inter-
national routes. The new fares are ex-
pected to be announced before the end
of this week.
MAJOR AMERICAN international
carriers could not provide details of
how IATA's decision would affect their
fares. Airline industry officials said
Pan American World Airways, Trans proval from the 63 airlines represented
World Airlines (TWA), Braniff Inter- at the talks.
national and Northwest do not par- IATA spokesman Gordon Ruddick
ticipate in IATA's tariff coordinating said the new fares for the North Atlan-
conference, but deal directly with tic route, scene of a fare war in recent
agencies that regulateair fares. years, would be "on the top end of the
National Airlines does coordinate its middle range."
trans-Atlantic fares with the IATA It was the second round of hikes this
group, but a spokesman for the Miami- year to help keep up with the explosion
based carrier said details were not of fuel prices which have doubled
available yet. during 1979. The first round, in March,
TWA and Pan Am have asked for al10 produced increases of between five and
per cent increase in trans-Atlantic seven per cent.
fares, but the U.S. Civil Aeronautics
Board has not yet acted on the request, IATA estimates that its member
a spokesman for TWA said. He said airlines will have to cope with an
overseas fares require the approval of average worldwide 16 per cent increase
regulatory agencies in the countries in operating costs from fuel alone.
connected by a given route. The new fares were to have gone into
CONFERENCE sources said the effect Oct. 1, but airlines realized the
complex package won unanimous ap- delay would mean additional losses.
Determined travelers
g etbar gain tieet
WEDNESDAY IS MONDAY N ADU rm. S M., SUN.
GUEST NIGHT' K. EWE. A NOUDATS $3.50
"BARGAIN DAY" TWO ADULTS M0N.-TNUR.EVE $3.00
$1.50 UNTIL 5:30 ADMITTED FOR THE ALL MATINEES $2.50
*RIlE OFM II TO1$ 1A .5
I-
From The Associated Press
Thanks to legislation passed by
Congress last -year, the airlines have
more freedom than ever to raise - and
lower - ticket prices. New bargain air
fares appear almost daily.
It is even possible to find bargains
that make flying on some routes
cheaper today than five years ago, ac-
cording to a Civil Aeronautics Board
(CAB) survey of half a dozen routes.
DETERMINATION and adaptability
are the key to saving money. Ticket
sellers and travel agents may not
necessarily quote the cheapest price.
You have to ask questions - lots of
them - and you may have to change
your plans to take advantage of a
bargain. "There are many, many
discounts, but you've got to fit into the
scheme of things," said Jack Yohe, of
the CAB's consumer protection
division.
Here are some questions to ask to
make sure you get the best deal:
" Are there discounts for flying
during the week? If so, what days are
covered? For some airlines, the
"weekend" begins on Thursday; for
others, it doesn't start until Friday.
" Is it cheaper to fly at night? And,
again, what is the exact definition of
"night?"
" What sort of time limits are there?
" Are there cancellation penalties?
" How far in advance do you have to
buy your ticket?
" What kinds of discounts are
available for children?
" Does your bargain ticket entitle you
to regular service?
" Do stopovers cost extra?
" Is a round-trip automatically
cheaper than two one-way fares?
erwi HMERTIN"
K)r~i CWISE u
NO ONE EVER WILL! ...The FIRST Certified
Crazy Person's Comedy
-AS -WOD PETER ALAN
FALK ARKIN
: l
(UPPER LEVEL) PG (UPPER LEVEL)
SHOWS DAILY AT SHOWS DAILY AT
1:10-3:35-7:15-9:45 1:15-3:40-7:20-9:50
Some OPEC nations
cutting oil production
SHOWS DAILY AT
1:00-3:30-7:00-9:35
'.ALLLEN' . wker. . wo.kqr, '
. scech.ens.1..f.fn.." vno
SHOWS DAILY AT
1:00-3:30-7:00-9:35
ARE YOU READY FOR
A GOOD TIME?
BILL MURRAY,
NEW YORK (AP) - Just as world oil
supplies are coming back into balance,
some members of the Organization of
Petroleum Exporting Countries
(OPEC) are cutting production to try to
head off an oil "glut" that would bring
down prices.
Although many of the nations
decreasing production claim they are
doing so to conserve their dwindling
supplies of oil, industry analysts say it
is also being done in an attempt to
maintain the cartel's high prices. An
oversupply - or glut - of oil could un-
dermine the $18-to-$23.50 a barrel price
structure voted by the cartel a month
ago.
World oil supply and demand are now
balancing after the shortage in the first
half of this year that was caused by the
Iranian revolution.
THE EQUILIBRIUM stems from a
combination of reduced demand by oil-
consuming nations and a recent supply
increase by Saudi Arabia, OPEC's
largest member. The Saudis are raising
production this quarter by one million
barrels a day, to 9.5 million barrels
daily, in an attempt to stabilize the
world oil market and moderate further
price increases.
The base price of OPEC oil has risen
42 per cent this year.
Many analysts speculate that the
Fearing that, some OPEC members
are cutting supplies.
"IT'S CLEAR that we're coming into
a balanced condition, but it could all
blow up in our faces," said Larry Gold-
stein, an analyst at the Petroleum In-
dustry Research Foundation, an
analysis group supported by oil in-
dustry funds.
Nations reported in recent days to be
preparing cuts in production include:
" Algeria, which has cut back sales to
oil companies by 20 per cent. Oil in-
dustry sources speculate the Algerian
oil is not actually being removed from
the world oil market but instead is
being sold on the more lucrative spot
market or being used to feed Algeria's
rapidly expanding refinery system.
" Nigeria, which is said by industry
sources to be considering cutting
production by at least 10 per cent.
Nigeria's oil fields, which like those in
Algeria produce some of the world's
best oil, have been running at full
capacity for several years, and
Nigerian officials have often said they
would like to throttle back.
" Kuwait, which had been discussing
cutting production by as much as 25 per
cent next April and has pushed that
date up. "We've been told they're going
to cut back as of the first of the year,"
said Fuller McGowan, a spokesman for
Gulf Oil Co., one of Kuwait's major