POSSIBLY THE AMERICANS) TO DO THE SAME. THEY DO NOT PROPOSE TE ALLOW LAKER OR OTHER CHARTER OPERATORS TO INTRODUCE CHARTER SVICES
BETWEEN AUSTRALIA AND THE UK BECAUSE QUOTE THEY SEE NO REASON, OR
IVING LAKER AN ASSURED PROFIT BY ENABLING HIM TO UNDER-SUPPLY THE
MARKET FOR CHEAP TRAVEL ON A YEAR-ROUND BASIS LEAVING QANTAS AND
BRITISH AIRWAYS WITH EVEN WORSE DIFFICULTIES THAN AT PRESENT
ARISING FROM THE SEASONAL PEAKS AND TROUGHS AND THE DIRECTIONAL
FLOWS, FROM THE NEED TO SERVE WIDELY SEPARATED POINTS IN AUSTRALIA,
AND FROM THE RESPONSIBILITY FOR MAINTAINING THE ON DEMAND SERVICES
WHICH ARE ESSENTIAL FOR BUSINESS AND SOME TYPES OF LEISURE TRAVEL
UNQUOTE. HOWEVER, IN ORDER TO PREVENT QANTAS FROM BECOMING TOO
COMPLACENT THEY PROPOSED TO ANNOUNCE THAT THE AUSTRALIAN GOVERNMENT
WOULD REIVEW ITS POLICY OF SINGLE DESIGNATION IN THREE YEARS' TIME.
ROWLAND TOLD ROGERS PRIVATELY THAT LAKER HAD NOT HELPED HIS CASE
BY WRITING TO ALL THE MEMBERS OF THE AUSTRALIAN CABINET CRITICISING
MR NIXON. THIS HAD BEEN PARTICULARLY ILL RECEIVED SINCE MR NIXON
WAS REGARDED AS ONE OF THE ABLEST MEMBERS OF THE CABINET.
13. THE AUSTRALIAN GOVERNMENT'S PREFERRED SOLUTION TO THE DIFFICULT-
IES OF SEASONAL PEAKS AND TROUGHS OF DEMAND IS TO HAVE A DIFFERENT I AL
AS HICH AS TWO TO ONE BETWEEN SEAT PRICES (AT THE BOTTOM END OF
THE MARKET) AT THE PEAK AND AT THE TROUGH.
14. THE AUSTRALIAN HAVE CARRIED OUT A FULL ANALYSIS WHICH, THEY CLAIM, SHOWS A VERY SUBSTANTIAL QUOTE OVERALL WELFARE GAIN UNQUOTE THROUGH THE CHANGE FROM THE PRESENT SYSTEM TO THE ONE NOW ENVISAGED.
AT OUR REQUEST THEY ARE NOW PRODUCING AN ANALYSIS OF THE LIKELY
EFFECT ON AIRLINE ECONOMICS WHICH THEY AIM TO PRESENT LATER THIS
WEEK.
15. HAMILTON (GENERAL MANAGER OF QANTAS) IS IN LONDON WITH A
SUBSTANT FAL BACK-UP TEAM AND ARRANGEMENTS HAVE BEEN MADE FOR A
CORRESPONDING TEAM FROM BRITISH AIRWAYS TO BE AVAILABLE FOR
CONSULTATION IF REQUIRED. SO FAR, HOWEVER, THE AIRLINES HAVE NOT DEEN INVOLVED IN THE DISCUSSIONS AND BRITISH AIRWAYS HAVE NOT YET
DEEN TOLD WHAT THE AUSTRALIAN GOVERNMENT HAS IN MIND.
OVEN.
FILES
MARQ
SWPD SLAD HKG D NAD. MED DEF.D.
PLANNING STAFF
PS:
[COPIES SENT TO CAD | DOT].
PSIMR JUDD
PS/LORD GERONWY ROBERTS
PS(PUS. SIRA DUFF Me BUTLER. MR PERTARY-I
MISS BROWN
MR WEIR FIR MURRAY:
ONEDENTIA