Touchdown for Britain?

In the international football game be tween Pan American Airways' free com petition and Great Britain's controlled competition, Pan Am had made a brisk first down. It had cut its New York to London fares from $572 to $275. Then Britain had Pan Am penalized: its flights were cut from five a week to two. Pan Am tried a ground gainer: it offered to raise its fares to $375, as suggested by Britain. But Britain called time out, and appealed to the umpire.

Pan Am, said Britain, must accept the principle that the International Air Transport Association, recently formed by the airlines of some 24 nations, shall fix minimum international fares. Until Pan Am agrees to this principle, it can fly to London only twice a week, even at $375. Pan Am refused to agree to I.A.T.A.'s rule, planned a trick play.

Pan Am announced that it will continue to carry passengers to Shannon, Eire, for $247. Passengers must find their own way from Shannon, near Dublin, to London (they could go by plane twice a week if they were lucky, or by taxi, bus, boat and train--a trip which sometimes takes two days). Twice a week, Pan Am will fly all the way to London but has not yet set the fare. Furthermore, said Pan Am, it will soon start flying to France at fares comparable to the $275 rate.

This upset the French, ready to sign an air pact with the U.S. The French, no more ready than Britain's BOAC to compete with U.S. airlines, were not so sure now that they wanted U.S. airlines flying into their country at such low prices.

Almost unnoticed in the excitement was the tacit admission of American Overseas Airlines that Pan Am's rate-cutting might have been justified. American too cut its New York-London fare to $375. This, it admitted, was still too high. But, it said piously, it would ask I.A.T.A. for permission to reduce fares further, thus conforming to Britain's rules.

Nor did American's deal with the British to fly to London seven times a week (while Pan Am was cut down to two) now look so smart. CAB has warned American that if Pan Am is held to two flights, then American must reduce its flights to two also. If this happens, Britain and controlled competition will have made a touchdown. It will have succeeded in keeping U.S. transatlantic flights to a minimum till it feels it is strong enough to win the competitive game.

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