UK/AUSTRALIA AIR SERVICES
INTRODUCTION
1 The attached joint DOT/FCO paper describes Australian proposals for radical revision of the air services arrangements between Australia and all countries with
services to Australia; and their implications for the UK.
At the end of talks with Australian officials held from
12 to 23 June, UK officials undertook to put the proposals
to UK Ministers, explaining that the Australian Government required a British commitment in principle before
approaching any other countries.
What reply should we make
to the Australians?
The recommendation below has been
agreed by DOT and FCO officials.
Australian proposals
2 The proposals result from a review of Australia's international civil aviation policy. They have been approved
by the Australian Cabinet. Their aim is to achieve lower
air fares, for which there is strong domestic political
pressure in Australia, and to continue an adequate frequency
of on-demand scheduled services serving all the main cities
of the country.
3 The proposals envisage direct end-to-end services to those countries where the traffic will support them on an
economic basis. Intermediate stops would be cut out
except where they are necessary for refuelling.
In terms
of the Australia-UK route, through carriage would be restricted to Qantas and BA. Airlines of mid-point countries
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