Pan American Airways has won Civil Aeronautics Board approval to offer a $20 standby fare on its daily flight from Dulles International Airport to Kennedy Airport in New York. The fare becomes effective April 17. The CAB also approved a $30 reserved-seat fare. The normal Washington-New York fare is $40 one way.

In another action, the CAB announced it will allot new low "Holiday" fares proposed by Lufthansa to go into effect today between the U.S. and Germany. At the same time, the board asked the State Department to seek approval of Pan Am's proposed "budget" fares by the West German government, which has expressed dissatisfaction with them.

Both Pan Am and TWA serve West Germany and have advance purchase excursion fares liek Lufthansa's Holiday fares. However, Pan Am's proposed budget fare - where the passenger selects the week of departure but the carrier selects the day - is $40 less than the Apex and Holiday during the summer and has been objected to by the West German Government.

The CAB said it decided to approve Lufthansa's new low fare in the hope that the West German government "would be similarly forthcoming" when faced with economically justified low fare proposals by U.S. carriers.