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REVISED DRAFT
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 its 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,...
who at present carry about a quarter of the through traffic,