New Zealand.
There was not however sufficient end to end traffic
which chose to use the BA service to make such a service viable
without combination with UK-Australia Services.
If the BA service
were to cease much of the New Zealand-UK low fare traffic would
filter through Australia to take advantage of the new low fares
between Australia and the UK. This would produce an unfavourable
reaction in New Zealand. The Australians accepted that there was
a problem here to which they would give further consideration.
EUROPE
15 The Australians will make the running with the European countries
with which they have air services agreements (those mainly affected
are Holland, France, W. Germany, Italy, Greece, Yugoslavia). With.
some they intend to negotiate the same line of agreement as with
us i.e. restricted to an exchange of end to end rights. With others
to and from which there is insufficient end to end traffic to support
a service they will terminate their agreements. Some of the
European carriers, notably KLM, have in the past poached some of the UK-Australia traffic by linking back to back services. They will
be excluded from legitimately using the new low fare and on past
But we would not experience will mutter complaints about this.
regard their objections as being of real significance in our
considerations whether to accept or reject the Australian proposal.
US
16 The Australians intend to seek US agreement to a similar
arrangement on the Pacific route. They recognise that, given their liberal civil aviation policy, the US will almost certainly not agree.
What we agree with the Australians is of course none of the US'
Nevertheless there is a danger that the US will regard
business.
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