Cheap and short range is a contradiction in terms if one is talking about cost per mile. Fig. 1 is from “American Aviation” for December 1964; it shows cost and revenue of US domestic operations in 1964. Over the average trip of 680 miles there was a margin of about 10 per cent of revenue over cost. At 200 miles, however, there was a deficit of 30 per cent. If the average 10 per cent margin were to be maintained at present fare levels, cost would have to be reduced by 35 per cent—no mean task.

The reasons for relatively high costs on short sectors are well known. Block speed is low; frequent stops consume much time on the ground and so utilisation of aircraft and crews is low; the outcome is that the output in seat miles per annum, and hence the revenue earning ability, is reduced. Landing fees and Station costs are spread over a smaller revenue.