Business: The Air Clears

The international air, long clouded by the Anglo-American squall over commercial flying, began to clear last week.

In Bermuda. British and American representatives to the three-week-old air conference reached broad agreement. The U.S. gave in to British demands that minimum fares on North Atlantic routes be fixed by regional conference of the International Air Transport Association (an organization of 44 airlines of 24 nations), subject to periodic review by the U.S. and British Governments. In return, the British gave up their attempt to limit the number of trips to be flown by U.S. airlines, dropped all opposition to the “fifth freedom of the air”—i.e., the right of one nation’s airlines to pick up passengers in a second country, destined for a third.

The U.S. also got commercial landing rights at British military bases held by the U.S. on 99-year lease, promised the British transpacific routes with landing rights at U.S.-owned bases.

If the agreement is finally approved in Washington and London, it will end the current transatlantic rate war, set a pattern for future international air pacts.

While the sun shone, U.S. airlines began to make hay:

¶ American Overseas Airlines, Inc. started regular weekly passenger service from New York to Scandinavia. One-way fares: to Copenhagen, $465; to Stockholm, $495.

¶Transcontinental & Western Air, Inc. this week starts its long-postponed New York-to-Paris service in Constellations. Flying time: 14 hours, 30 minutes. Oneway fare: $375.