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8. APPROACHES TO MID-POINT COUNTRIES

HE AUSTRALIANS HAVE NO FIRM PLANS AS TO HOW AND IN WHAT ORDER THEY SHOULD APPROACH THE MID-POINT COUNTRIES TO ACQUAINT THEM OF THEIR INTENTIONS. THEY CLEARLY SEE THE NEED TO TRY AND SECURE THEIR POSIT- ION WITH INDONESIA AS ONE OF HIGH PRIORITY SO AS TO SAFEGUARD

THEIR OVER-FLIGHT POSITION. MALAYSIA AND THAILAND COME NEXT IN THEIR ORDER OF PRIORITY. THEY FEEL CONFIDENT THEY CAN SECURE THEIR ACQUIESCENCE AND THUS FORESTALL ANY GANGING UP ATTEMPTS BY SINGAPORE. THEY ARE CONCIOUS OF THE IMPORTANCE OF TIMING IN ALL

THIS.

9. TRANSTIONAL PERIOD

IN DISCUSSION IT EMERGED THAT THERE WERE SERIOUS PROBLEMS THAT WILL ARISEQUN THE TRANSITIONAL PERIOD OF THE INTRODUCTION OF THE NEW SCHEME. THEY STEM FROM (A) THE DATE AT WHICH THE NEW FARES COULD BE BROUGHT INTO EFFECT, (B) THE DATES AT WHICH CAPACITY REDUCTIONS BOTH FOR BA AND QF AND FOR THE INTERMEDIATE CARRIERS CAN AND SHOULD BE BROUGHT INTO EFFECT, AND (C) THE DATE OF ANY PUBLIC PRONOUNCEMENTS IN AUSTRALIA ABOUT THE NEW FARES. IT IS DESIRABLE THAT THE PERIOD BETWEEN (C) AND (A) SHOULD BE KEPT TO THE MINIMUM SINCE INTENDING PASSENGERS WILL HANG BACK. THIS IS ALREADY HAPPENING TO SOME EXTENT, IT WAS AGREED THAT IT WOULD BE DESIRABLE THAT (5) AND (A) SHOULD BE COINCIDENT BUT THAT THIS WOULD NOT BE ENTIRELY POSSIBLE IF ONLY BECAUSE OF THE MANY VARIABLES INVOLVED, BOTH BA AND OF WILL REQUIRE FOR CORPORATE PLANNING PURPOSES TO TAKE DECISIONS VERY SOON NOW AS TO CAPACITY THEY INTEND TO DEPLOY ON THE ROUTE FROM 1 APRIL ONWARDS.

REGARDING THE CAPACITY CHANGES THAT WILL NEED TO BE EFFECTED AS

BETWEEN AUSTRALIA AND INTERMEDIATE COUNTRIES THE TIME REQUIRED

WILL VARY ACCORDING TO THE TERMS OF THE INTER-GOVERNMENTAL AND INTER-

AIRLINE AGREEMENT BETWEEN THE AUSTRALIANS AND THOSE COUNTRIES. SO FAR AS SINGAPORE, THE MOST IMPORTANT COUNTRY IN THIS RESPECT, IS

CONCERNED THE AUSTRALIANS NOW BELIEVE AFTER TAKING LEGAL ADVICE

THAT THE CAPACITY REDUCTIONS OF SIA BETWEEN SIN AND AUSTRALIA CAN

TAKE EFFECT SIX MONTHS FROM THE DATE OF SERVE NOTICE OF TERMINATION

OF THEIR COMMERCIAL AGREEMENT WITH SIA. IN SOME OTHER CASES, NOTABLY WITH THE EUROPEAN COUNTRIES WITH WHOM AUSTRALIA PROPOSES TO TERMINATE SERVICES, THE PERIOD COULD BE RELATED TO THE PERIOD OF NOTICE OF TERMINATION OF THE RELEVANT ASAS.

13. ON THE UK SIDE, WHERE CAPACITY REDUCTIONS ON THE SINGAPORE ROUTE ONLY ARE INVOLVED, THE TIME INVOLVED WOULD DEPEND ON WHETHER REDUCTION BY BOTH BA AND SIA WOULD BE APPROVED BY NEGOTIATION OR WHETHER IT BECAME NECESSARY TO SERVE FORMAL NOTICE

OF TERMINATION OF THE AIR SERVICES AGREEMENT.

11. CHARTERS

3

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