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1989 - June DOT Ord. & Dec. [1] (June, 1989)

handle is hein.usfed/dotod0400 and id is 1 raw text is:                                                                           /Z
                                                                        853

                                                      Order 89-6-1

                      UNITED STATES OF AMERICA
                    DEPARTMENT OF TRANSPORTATION
                      OFFICE OF THE SECRETARY
                          WASHINGTON, D.C.        SERVE -JUN 7

            Issued by the Department of Transportation
                      on the 1st day of June, 1989


 Agreement adopted by the Tariff
 Coordinating Conferences of the                   Docket 46279
 International Air Transport Association :       R-1 through R-3
 relating to North/Central Pacific
 passenger fares


                               ORDER
Various members of the International Air Transport Association
(IATA) have filed an agreement with the Department under section
412(a) of the Federal Aviation Act of 1958 and Part 303 of the
Department's Procedural Regulations. It was adopted by mail
vote. l/

The agreement raises first, business and economy class fares
between Honolulu/San Francisco and Beijing/Shanghai to levels
currently approved by governments and effective in tariffs.

We will approve the agreement. Based on our review of the
information submitted and other relevant material, we conclude
that the agreement will not result in fares that are unlawful or
injurious to competition in the markets at issue. In particular,
our approval of the proposed premium first and business class
fares is consistent with Department policy as stated in
Order 85-3-8, March 4, 1985. We allow carriers wide latitude in
pricing these fares, which are generally sensitive to market
demand and other competitive pressures that obviate the need for
regulatory intervention in most circumstances. We will also
approve the proposed normal economy fares, over which we maintain
regulatory supervision. Even with the increases proposed here,
these fares remain well within our regulatory ceilings as formed
by the Standard Foreign Fare Level plus total upward fare
flexibility.

Acting under the Federal Aviation Act of 1958, as amended, and
particularly sections 102, 204(a), 412 and 414:


1/ IATA memorandum TC31 MV/P 0239.

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