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POSSIBLY THE AMERICANS) TO DO THE SAME. THEY DO NOT PROPOSE TO ALLOW LAKER OR OTHER CHARTER OPERATORS TO INTRODUCE CHARTER SERVICES BETWEEN AUSTRALIA AND THE UK BECAUSE QUOTE THEY SEE NO REASON FOR GIVING 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 DIFFERENTIAL AS HIGH 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 WRICH, 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
SUBSTANTIAL 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 BEEN INVOLVED IN THE DISCUSSIONS AND BRITISH AIRWAYS HAVE NOT YET
BEEN TOLD WHAT THE AUSTRALIAN GOVERNMENT HAS IN MIND.
OWEN.
FILES
MARQ SWPD SEAD
PS.
HKGD
NAD
MED DEF. D.
PLANNING STAFF
[COPIES SENT TO CAD | DOT]
PS/MRJUDD
PS LORD GERONWY ROBERTS
PSPUS. SIRA DUFF MR BUTHER. HR PORTAZZI
MISS BROWN
HR WEIR
MR MURRAY:
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