Cof which 70% origniates in Australia)
AG.
would be cut out of the trunk route and would be limited
to services between their country and Australia or UK.
The consequent reduction of services and high utilisation
of aircraft seating capacity would permit cheap through
fares. The Australians see no place for charter flights,
eg Laker, which would cream off the low fare traffic and
so affect the economics of the scheduled services. Laker
are currently considering modifications to their proposals.
Australian (The proposals are described in paragraphs 1 to 3 of the paper.)
Analysis of the proposals
4
Examination of the proposals revealed a number of practical
problems. The Australians have been flexible on these and
there are grounds for thinking that' satisfactory solutions
to them can be found (Paragraph 4).
5 The advantages of the proposals to the UK are that the
lower fares would benefit the consumer and should increase
traffic between Australia and the UK by about one-fifth
to 600,000 one way journeys per year. BA have calculated
that the proposals are in their commercial interests and
estimate a net increase in profit of £5-6m per year
(50 per cent improvement in the profitability of the route).
(Paragraph 5).
6 The disadvantages of the proposals to the UK are likely
criticism (no worse) from the Americans; and, more serious,
possible adverse reaction, either individual or collective,
from the mid-point countries in SE Asia, and India.
Singapore's airline (SIA) and tourism would be worst