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TEXT H
First read the question.
34. The writer of this letter attempts to ___ the views in the editorial.
A. refute
B. illustrate
C. support
D. substantiate
Now go through TEXT H quickly to answer question 34.
October 3rd 199
Dear Sir,
In your editorial on August 31st, there seems to be some confused thinking in attempting to establish a direct relationship between the desire of the OAA airlines to negotiate more equitable agreements with the United States for air-traffic rights and the cost of air travel for the public.
It is simply untrue that the Asian carriers are not looking for increased access to the U.S. market, including its domestic market; they are, as part of balanced agreements that provide equality of opportunity. So long as the U. S. takes the inequitable arrangements enshrined in current agreements as a starting point for negotiation, however, there is no chance that U.S. carriers will be granted more regional rights which further unbalance the economic opportunities available to each side. Most importantly from the consumer viewpoint, it has yet to be demonstrated that in those regional sectors where U.S. carriers currently operate-such as Hong Kong/Tokyo-they have added anything in terms of price, quality of service, innovation or seat availability in peak seasons.
Turning to cost, I am not sure to which Merrill Larrych study you are referring, but it would be simplistic to compare seat-mile costs of narrow-body operation over U. S. domestic sectors with wide-body operation over international sectors; comparative studies of seat-mile costs are valid only if they compare similar aircraft operating over identical sectors. On this basis, International Civil Aviation Organization figures show that Asian carriers are highly competitive. O f course, given its operating environment Japan Air Lines will have high seat-mi le costs, while a carrier based in Southeast Asia, such as Singapore Airlines, w ill have relatively low costs. But it is a fallacy to assume this means ‘higher ticket prices or higher taxes’ for the ‘hapless Asian air traveller’ if he travels on JAL.
The Japanese carriers have to compete in the Asian marketplace with others, and costs cannot simply be passed on to the consumer or taxpayer. The people who really pay the price or reap the reward of differing cost levels are the share holders.
(RICHARD. T. STIRLAND
Director General
Orient Airlines Association
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