World Aviation: Lower Cost Trippe

Catching his international competitors with their flaps down, Pan American World Airways President Juan Terry Trippe last week proposed a new “thrift class” on jets to Europe. Instead of one-way economy tickets to London that now sell for $270, Trippe would offer the ride for $160 on planes with the same amount of leg room but no meals or hard drinks. The government-owned European airlines, many of them losing money on the run, are expected to howl, but Trippe argues that they would actually increase profits by packing in passengers where galleys used to be. On a Boeing 707, thrift class would carry up to 189 passengers, v. 125 for mixed first and economy class.

Though the Trippe rate would not take effect until next April at the earliest, he wanted to put the other carriers on early alert that Pan Am will press for cheaper travel—as it long has —when the clubby International Air Transport Association convenes next fall. l.A.T.A.’s European lines forced the U.S. to accept higher rates two months ago (TIME, May 24), but the U.S. may well be in a stronger position next fall. Reason: Congress is likely to strengthen the Civil Aeronautics Board’s powers of retaliation against balky foreign lines.

The European lines, and others on the North Atlantic run, may also be moved by Trippe’s argument that a flat thrift-class rate would enable airlines to rid themselves of a variety of cut-rate plans that complicate ticket selling. Trippe would stamp out many of the scarcely profitable charter flights, on which 12% of all airborne U.S. tour ists will go to Europe this year for as low as $250 round trip. Pan Am’s low fare would also eliminate the 25-person group flights ($310 round trip to London), as well as the 21-day excursion flights ($350 in the offseason) and the 5% discounts on all round trips.