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CONFIDENTIAL
ANNEX A
IMPLICATIONS FOR THE COUNTRIES AFFECTED AND THEIR LIKELY
REACTIONS
SINGAPORE
1 There are two aspects. First, the ability of through
passengers, particularly from Australia, to stop over in Singapore for say a couple of days and continue their
journey with the same carrier at a through preferential fare
will be removed. This will significantly affect the tourist
trade in Singapore. Secondly, it will be necessary for both
countries to impose an appreciable cut on SIA' services (SIA's operations make a significant contribution to the Singapore economy). Out of London, these are likely to be
reduced from a daily service to two or three a week and the Australians propose considerably to reduce services between Singapore and Australia (from 14 to about 5 a week). revenue loss to SIA could be of the order of 20 million per
annum. The Australians hope to arrange the introduction of
cheap fares between Australia and Singapore to encourage the
growth in tourist trade from Australia for stays for longer
then the present one or two days. It is fairly certain,
however, that Singapore will be seriously upset at the
immediate loss which she will suffer.
week).
IC
The
MALAYSIA
2 The Australians may decide to withdraw antas from the
Malaysia-Australia service altogether and leave it in th
hands of MAS. Malaysia will lose the ability legally to
carry through traffic at the new low fare from Australia to Europe. Malaysian Airline Sprtem (IA), will however
rain from
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