Business: The Red Baron Strikes Again

WHILE thousands of young Americans were taking advantage of cut-rate fares and jetting to Europe this summer, executives of 40 international airlines voluntarily grounded themselves in Montreal. In 40 days of meetings they tried to reach an agreement on a new set of transatlantic fares to be charged by all members of the International Air Transport Association (I.A.T.A.). The 108-member cartel has dictated the price of international air travel for 26 years, but by the time the meeting adjourned last week, it was no longer dictating. It had managed to work out a complex compromise, and the agreement may come apart...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!