long journey is nevertheless good.
(ii) Laker could not operate the charter service for
which they have made formal applications to the CAA
and thus the stimulus of competition from a third
carrier would not be present. We have told Laker
in confidence of the proposals and, although we have
said that we have not yet made up our minds how to
respond, we have given no grounds for optimism
that the decision will favour Laker.
(iii) The possibility of criticism from the Americans.
There is a sharp difference in concept between the
Australian proposals and the more liberal line
adopted by the Americans. The Australians do not
think that the Americans will accept their proposals
for similar arrangements on the Australia/USA
route.
traffic by American carriers through diversion from
Australia/USA/UK to the direct Australia/UK route
because the number of passengers who travel by the
former is very small; they do so for their own
reasons and price is not the major consideration.
We could come in for some criticism from the
Americans if we accepted the proposals, even if it
is no business of theirs, but HM Embassy in
There is little or no risk of loss of
Washington see no serious implications for
bilateral UK/USA air service relations.
The
Embassy believe that the US's primary concern will
probably be to use its own considerable bargaining
power to resist the introduction of similar
Pentictive timer in its own bilateral ain
E