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CONFIDENTIAL
UK/AUSTRALIA AIR SERVICES
1 The Australian Government has recently completed a review
of its international aviation policy. In March Australian
officials told a team of UK officials in Canberra that they
were considering a number of options and would consult them
when their ideas were clearer. At talks in London from 12 to
23 June they presented the most extreme of their March options;
a scheme for radical revision of the air services
arrangements between Australia and all countries with
services to Australia. These had been approved as a basis
for negotiation by Australian Ministers. Detailo are at
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2 The main objectives of the Australian scheme are lower
fares and a continuation of on-demand scheduled services
which would serve all the main cities of Australia. Although
the Australians propose to negotiate this scheme with all
their air services partners, the trunk route to the UK is
crucial. The main effect here would be to restrict through
traffic to BA and Qantas. Airlines of countries lying along
the route at present carry around of the traffic all the
way from Australia to the UK and vice versa by linking
services to and from the UK and from and to Australia at
their home base. Under the new scheme end to end travel
at through fares would only be possible on BA and antas.
Passengers wishing to travel via an intermediate point on
other airlines could do so but not on the through flights
and only by purchasing conannte mickote of the gre
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