Business: 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...

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