Clipped Wings

IATA bows to "open skies"

Anew era dawned last week for passengers flying international airlines.

Yielding to the revolutionary changes that have occurred in the travel business, the 108-member International Air Transport Association (IATA) abandoned its 33-year-old role as the industry's fare fixing cartel. It also gave up its authority to regulate in-flight meals, drinks and enter tainment, and will henceforth confine itself to such noncompetitive matters as safety standards, security and ticket exchange arrangements.

The clipping of IATA'S wings was a direct if delayed result of the "open skies" policy pursued by the U.S. Civil Aeronautics Board, which in its drive for deregulation encouraged the start of Laker Airways' cut-rate transatlantic Skytrain service as well as the cheap-fare plans that swept the U.S. carriers. The end of administered fares will heat up competition in the briskly growing air-travel market. The IATA carriers' revenues totaled $39.1 billion in 1977, and are expected to climb another 10% this year. But without IATA to coordinate international fare agreements, many lines and their governments will probably become entangled in complicated bilateral and multilateral negotiations to fix prices and frills.

IATA spokesmen profess to believe that no orgy of price cutting is ahead, insisting that fares are "at rock bottom now," at least over the North Atlantic; they also maintain that the airlines will not be going "hog wild" in the service area. Yet there are already some welcome signs of movement in this direction. The quality of meals in coach may benefit from competitive pressure. Indeed, Air France has begun giving economy passengers a choice of two main courses plus fruit, cheese and wine, as well as free use of movie earphones.

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