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have been able thus far to offset higher wage rates by economies in personnel and other savings.  Again, it is not possible to measure the effects, if any, which inter-U.S. competition has had upon this aspect of our international air transport operations.

  Pooling. A recent development in Europe is the creation of a number of pools or groups of carrier which propose to act in concert in a various phases of traffic, scheduling and operation.  The principal groups so far announced include Air Union, composed of Sabena, Air France, Lufthansa and  Alitalia; and the Commonwealth group, including British Overseas, British European, Qantas (Australia), Tasman Empire, Air India, Trans-Canada, British West Indies, a number of African carriers and a variety of local airlines in present or former British colonies or possessions.  In addition, Scandinavian Airlines (itself a consortium of the Danish, Swedish, and Norwegian airlines) has entered into schedule pooling arrangements with Swissair within Europe. KLM Royal Dutch Airlines, originally a member of Air Union, has had discussions with these two carriers.[[footnote 1]]

  It should be stressed that so far as actual agreements for pooling or traffic sharing are concerned, these groups have not made much progress.  Numerous discussions have been held but few firm agreements reached.  To the extent that such groups or pools may constitute a competitive threat to our carriers, the threat is prospective rather than present.  It is, however, very real.

[[footnote]] In addition, a number of European carriers have bilateral arrangements with other carriers.  Thus British European Airlines and Air France have essentially a pooled operation between London and Paris; and Air France has joint operation with Japan Airlines for French-Japanese service.[[/footnote]]

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