X
because they stop at Frankfurt and the Frankfurt/Bangkok
sector accounts for a significant proportion of their
capacity). The Australians are confident that services
from Thailand to Australia would be viable. The Australians
would probably reduce Qantas services to Thailand but they
would not want to give the Thais a monopoly. Thailand,
like Malaysia will lose the ability to carry through traffic
at the new low fare from Australia to Europe and will gain
from the exclusion of Qantas from the sectors west of
Bangkok, and from reduction of its services between
Australia and Bangkok. The net effect on Thai International
revenue should be minimal. The same considerations apply
to tourism in Thailand as to those in Malaysia.
INDONESIA
4
Indonesia would lose some tourist stop-over traffic
both on the Australia-Europe route and on the Australia
Hong Kong route.
However she is already concerned to
confine air traffic exchanges to the third and fourth
freedoms; and may gain from an increase in Australian tourists
taking advantage of the new low fares to visit Indonesia.
On balance her air services/tourist interests are not
likely to be more than marginally affected.
Nonetheless
they might for political reasons respond to a strong appeal
from Singapore to ASEAN solidarity. If they were to go so
far as to deny overflying rights they could block CPA's
services to East and West Australia. Qantas and BA could
avoid Indonesian airspace and the Indonesian FIR (Flight