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Show i The Deregulation Act of 1978 has made air travel a mess vvu HIGHLAND DR. (Cottonwood MB, Suke 205) SALT LAKE CITY, UTAH 4117 PHONE (801)272-861- 7 by Christopher Lofting dim School t Doaca TSeotr Mutic Science Europe Soo ' Journal of Commerce Writer MAZATLAN u DAYS 6 NIGHTS 7 (DBL.OCC.) 2 to 6 23 From AIRLINE DEREGULATION sounded simple when proposed by the Carter administration. The airlines, as well as other segments of the transportation sector, C 1VI I were operating PUERTO VALLARTA ZCMI Travel Duly Departure, 6 DAYS 5 NIGHTS (DBL) Services We otter professional travel services 10-- 6 Open Saturday Charge your trip on your Call us now at (801) From ZCMI charge 321-620- DISNEYLAND $ NIGHTS 2 (DBL) 379 CancunCozumel 499 Hawaii 6 days7 nights; Tradewind Continental basic fare. 3 DAYS From Tours. DISNFYWORLD ALSO AVAILABLE FROM $449 00 HAWAII 8 DAYS7 NIGHTS Includes: Dbl Occ . Round Tnp Air, 7 Night Hotel, Tr&ntfert, Fresh Lei Greeting, Hon oluiu City Tour, Baggage Handling, Taxes, Orientation Breakfast briefing, Services of tour conductor, 5 31 to round trip via trom Salt Lake Tour Airlines 811 Oahu, Maui and Kauai; both rates include round trip airfare from Salt lake and hotel accommodations. 1267 (& up) Alaska via Princess Cruises 7 nights double occupancy. Departs San Francisco June 5 - Sept. 18 1456 Mexican Riviera via Pacific Princess (Love Boat"). Departing flights trom SLC to Los Angeles every Saturday until June 12, 1982. 7 nights, stateroom with double occupancy 6-- 7 SL Downtown Cl under and privileges, protections red tape that existed in no other industry. It is the free market system that is supposed to determine the price of steel and most other goods and services. In the airline business, the Air Transportation Association or the International Air Transport were expected to decide among its members without consultation with customers or outside sources what to charge for an airline ticket and recommend that price to the Civil Aeronautics Board. In most cases the CAB gave its approval. The Deregulation Act of 1978 ended that system. The free competitive market would determine the price of airline fares and where airlines flew. The result would be lower fares and better service. SUPPORTERS SAY in the long run this will happen. However, at the moment opponents have evidence that deregulation doesnt work. Many are calling for some form of government control again. result is a The short-termess for the airlines and m their passengers. Rising fuel, equipment and labor costs have made the airline industry a precarious business in these economically uncertain times. All these factors blur the results of deregulation. Dozens of established airlines, in a rush to secure new routes, committed millions of dollars to expansion. New carriers, often undercapitalized, rushed to get into the business. Air fares plummeted to win the traveling publics loyalty. FOR THE AIRLINES, it has meant disastrous losses. For the traveler it meant a temporary slowing of escalating airfares. Slumping profits led to cutting of airline service, reduction of the number of flights available and overcrowding of airplanes. For the business traveler, it has been a particularly confusing time. HONOLULU HAWAII One advantage for business travelers is airlines no longer can count on them as fat cats who will play whatever is asked. Commercial business accounts for the bulk of airline revenues and can no longer be taken for granted. VIRTUALLY EVERY airline has upgraded its business travel services and is romancing the traveling executive as never before. And there is a trend under way to eliminate restricted fares on the most competitive routes. More discounts and fares are unresuper-savstricted and available to those flying on business. er The complexity of determining the best fare of the business traveler may increase with two provisions of the deregulation act that permit rebating and net fares. Prior to deregulation no travel agent was permitted to sell an air ticket for less than the fare, nor could anyone except a travel agent or the airline sell tickets. Although an agent received a commission on each sale of about 10 percent, he was not permitted to rebate any part of it back to a passenger. CAB-approv- THE DEREGULATION Act of 1978 also permits the to "W B 7 AIR SEA Y Fetunn LKUIoL JORDAN. EGYPT. GREEK TURKEY ISLAND. A GREECE f"slc APR AUG Incl Atr, Hotel 8 Day 7 Night Sightseeing, Transfer and more r9 20. 1982 881 From 11, April ISRAEL. $2895 LONDON 1982 CHINA From WASHINGTON D.C. Home 4 DAYS 3NITES Air, Deluxe Hotel and more! ( bartering of tickets for goods and services. Airlines may exchange tickets for advertising, special promotions or any other service it requires. Net fare is the practice of airlines selling seats at a set price without the commission built in. The agencys price to the consumer would be subject to the competition of the marketplace. Those opposed to the net pricing $? Inqutc e Our lowest prices to Europe since 1979. See the wonders of Italy from Milans concept argue that the Duomo to Romes Colosseum. Plus Venice, Florence, Naples, and Pompeii. This Escorted "Italia vacation price includes: 5(Kf of all meals, 1st class and superior tourist hotels, 1st class air conditioned motorcoach and complete touring services of your own American Express Tour Manager. ( Rates are per person, double occupancy, airfare extra.) llitalia About NYC Theatre ' ) Tracing Your SCANDINAVIAN ANCESTRY with Johannon Research Auiitant Ami-riid- Express ( ompanv. 142 For more information, come in or call: AMERICAN EXPRESS TRAVEL SERVICE Carl-Eri- k Lake Salt The II 22 S.A.S. AIR, HOTEL AUG. 4 to 18,1982 2095 (801)272-861- 7 OPEN SATURDAYS 175 South West Temple Salt Lake City, Utah 84101 (801) 328-973- 3 TOGETHER, WE MAKE GREAT VACATIONS. AMERICAN! EXPRESS gej larger agencies would be able to negotiate better deals for their clients, forcing the smaller ones out of business. As yet neither rebating nor net pricing has had much effect on the price of airfares. While there are some agencies discounting tickets and passing on part of their normal commissions to the consumer, most travel agencies and the airlines are discouraging this practice. There is a fear on the part of the travel agency industry that this competition will thin their ranks. The airlines, in turn, have enough problems selling seats without further complications. SI |