This report was commissioned in order to review current intelligence on the U. S. supplemental airline industry, to explore its future prospects, and to assess the long-term market for Douglas aircraft. Facts, figures and opinions were derived mainly from information supplied from the 13 supplemental carriers and the National Air Carrier Association (NACA). Informal discussions were also held with staff on the CAB, the ATA, and prominent tour operators. The publication of this report coincides with the enactment of Public Law 90-514, which effectively removes the legal barriers against unlimited development of inclusive Tour Charters (ITC). The low fares possible in this new class will provide opportunities of vacation air travel to a hitherto untapped income bracket, and there is widespread confidence throughout the supplemental airline industry that they are on the threshold of tremendous growth. The first section contains a commentary of the U. S. supplemental airline industry as a whole and an analysis of the 13 carriers. A series of tables and charts illustrates the relative place of supplemental carriers in the total U. S. airline industry and examines comparative growth rates. A map illustrates the geographical extent of area authority, and operating cost differences between supplemental and scheduled carriers are discussed. The position of tour operators is also reviewed. The second section contains a review of the future of the supplemental airline industry and forecasts of traffic growth. The main conclusion is that the U. S. supplemental airlines as a whole will be a billion dollar industry by 1973, exceeding both U. S. local service and all-cargo operators in total revenues. If present growth trends continue, the passenger-mile total by the mid-1970s could be twice that of the local carriers and up to half that of all the scheduled U. S. international carriers combined.

  • Corporate Authors:

    McDonnell Douglas

  • Publication Date: 1968-11

Subject/Index Terms

Filing Info

  • Accession Number: 00073485
  • Record Type: Publication
  • Report/Paper Numbers: C1-804-1313
  • Files: TRIS
  • Created Date: Sep 5 1974 12:00AM