The effect of the present structure of international air fares and rates on the operational conditions of the air transport industry

This study analyzes and evaluates the effect of the present structure of international air fares and rates on the operational conditions of the air transport industry. The general methodological approach within which the study was conducted is triangulation. Hypotheses testing and analysis of data have given sufficient evidence to conclude that the present structure of fares and rates has a direct effect on the operational conditions of the air transport industry. Based on this result, three strategic policy alternatives were identified: (1) to retain the present structure as is; (2) to modify the present structure; or (3) to abolish the present structure entirely. In order to determine the relative importance of these three options, Ackoff's criterion for the determination of importance of objectives was applied. It was found that the last option (the option of abolishing the present structure entirely) is more important than the other two options. Consequently, the study recommended a series of steps which will facilitate transformation of the present structure of fares and rates into a more efficient and realistic one.