demand services.
Also there were a number of widely separated
important traffic centres in Australia and it was vital that the
new low fares should be available to all these traffic centres; t
could only be satisfactorily done through scheduled services.
7 The implications of these proposals can be grouped under three
practical and economic; aviation policy and internatio
headings:
political relations.
PRACTICAL AND ECONOMIC
(i) General
8 The economic implications are that BA would lose their rights
to carry traffic between the Gulf, India and Singapore on the one
hand and Australia on the other. The first two of these are of
little significance. BA calculate that the loss of the third wou
be considerably outweighed by the gains which they would make fro
taking over, with Qantas, the traffic carried by Singapore
International Airways (SIA) between London and Australia.
9 In discussion, the Australians have shown themselves flexible
on a number of points which we and BA have put to them. They ha
made considerable concessions to us in agreeing that BA flights
call at two Australian cities instead of the one originally
envisaged, and that the new low fare should be available on an
individual on-demand basis, instead of part charter, in the hand
of wholesalers. They seem to be sympathetic towards a different
regime or concession within the proposed regime in respect of ca
(ii) Concorde
10 We explained that the proposed arrangements could not apply
there were to be any chance of a viable UK-Australia operation b
It would be quite impossible for such an operation to
Concorde.
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