ECONOMIC
7 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 would
be considerably outweighed by the gains which they would make from taking over, with Qantas, the traffic carried by Singapore Airways
between London and Australia.
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Consumers at both ends stand to gain considerably from the proposed new low fares. This is in accordance with HMG's policy.
POLITICAL
9 On the political side, Australia would be obliged to renegotiate her Air Service Agreements, in respect of the route to the UK, with Singapore, Malaysia, Thailand, India and a number of European countries. The main implication for both Australia and the UK is with Singapore. Here 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's services (Singapore International Airlines 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 service between Singapore and Australia. They hope to arrange the introduction of cheap fares
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