Business: Introducing the New Superjet Set

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The new superjets, or "metal angels," as Prince Bernhard of The Netherlands calls them, are being introduced at a hard time for most airlines. Having profited from an annual traffic growth averaging over 16% during the last half of the '60s, U.S. airlines had a meager increase of 3.2% in the recession year of 1970. For this year, the outlook is even bleaker—only 3% growth and a disastrous industry-wide loss of $180 million or so. By adding a total of 8,950 new seats to thousands of already half-empty passenger cabins in this year, superjets have simply compounded an already serious capital problem for the airlines.

South Seas Ventures. Taking a longer view, most airline officials believe that the big planes will prove a wise investment. For one thing, the new subsonic superjets cost an average of $5,000,000 less per plane than the Boeing 747 and, having shorter ranges, can operate profitably on many more routes. The International Air Transport Association predicts that worldwide passenger travel will grow by more than 300% by 1985—a time well within the life-span of any newly made jet—and that the air-cargo business will go up eightfold. Vacation travelers are venturing farther and farther from home on their trips—Europeans to explore Africa, Americans to visit Hawaii and the South Seas. Even if all of IATA's glowing predictions come true, only 6.5% of the world's population will ever have flown on an airplane by 1985—which leaves a huge potential for further growth.