The proliferation of discount fares and their understanding by the regulators, or for that matter, by the travelling public, is one of the most complex, if not bewildering aspects of today's airline industry. You may consider it presumptuous for me, representing an aeroplane manufacturer, to comment on airline fares policies. However, as part of an industry directly affected by whether or not airlines are profitable, we are very ‘interested parties'. This interest has invoved us in many discussions with airlines, as well as in Boeing-sponsored studies to understand discounted fares and the basis for their being profitable or unprofitable. Low fares, of course, are only one aspect of a rapidly evolving air transport industry—one which is seeing a new regulatory environment in the United States, new forms of bilateral agreements, and a whole host of fresh marketing ideas.