41
GPS
450
IMMEDIATE
EN CLA
FM CANBERRA 120602Z
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A MEK184/1
RECEIVED PANTRY NO. 51
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Action Teken
UNCLASSIFIED
TO IMMEDIATE FCO TEL NO 488 OF 12.12.78
lat
REPEATED INFO SINGAPORE, JAKARTA, BANGKOK, KUALA LUMPUR, HONG KONG (GOVERNOR AND BCARFE)
*
YOUR TELNO 481 : UK/AUSTRALIA AIR SERVICES
582
1. MR NIXON SPOKE IN PARLIAMENT ON 11 OCTOBER AND TABLED A 33 PAGE STATEMENT ON INTERNATIONAL AVIATION POLICY. THE REPORT OF
THE ICAP REVIEW COMMITTEE WAS ALSO RELEASED.
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2. THE GOVERNMENT'S CONCLUSION IS THAT ITS POLICY OBJECTIVES CAN BE ACHIEVED BY SEEKING TO NEGOTIATE AIR SERVICE AGREEMENTS WITH OTHER COUNTRIES BASED ON THE FIRST FOUR FREEDOMS TO PROVIDE FOR THE CARRIAGE OF GENUINE END-TO-END PASSENGERS BETWEEN AUSTRALIA AND EACH OF THE OTHER COUNTRIES CONCERNED. MR NIXON NOTED THAT TOTAL FREQUENCY MAY DECLINE. QANTAS REMAINS THE SOLE DESIGNATED AUSTRALIAN CARRIER AT LEAST UNTIL 1981. NEW FARE STRUCTURES, WHICH WOULD ENABLE MANY PEOPLE TO FLY AT MUCH LOWER COST THAN AT PRESENT, DEPEND ON HIGH AIRCRAFT UTILISATION AND LOAD FACTORS AND ON OVERALL EFFICIENCY OF OPERATION.
3. REFERRING TO THE TALKS WITH THE UNITED KINGDOM MR NIXON SAID QUOTE THESE DISCUSSIONS CONFIRMED THAT, IF THE CHANGES WE PROPOSED ARE INTRODUCED SIGNIFICANT FARE REDUCTIONS WERE POSSIBLE. HOWEVER, BOTH GOVERNMENTS RECOGNISE THAT CHANGED ARRANGEMENTS IMPACT UPON OUR AIR SERVICE AGREEMENTS WITH OTHER COUNTRIES AND THAT IT WOULD BE APPROPRIATE FOR DISCUSSIONS TO BE HELD WITH THOSE COUNTRIES BEFORE ANY FINAL AGREEMENT IS REACHED. UNQUOTE.
4. MR NIXON NOTED THAT THE REPORT EMPHASISED THAT NO ONE COUNTRY CAN UNILATERALLY CHANGE INTERNATIONAL CIVIL AVIATION POLICY. HE SAID QUOTE IN A VERY FEW CASES THE ARRANGEMENTS WILL IMPACT ADVERSELY ON THE CARRIER OR TOURIST INTERESTS OF ANOTHER COUNTRY. ANY INITIAL LOSS OF TOURISM REVENUE TO THOSE COUNTRIES, BECAUSE OF AN INCREASED NUMBER OF PASSENGERS MOVING ON A DIRECT END-TO- END' SERVICE NOT STOPPING OVER EN ROUTE, SHOULD BE OFFSET, WITHIN THE SHORT TO MEDIUM TERM, BY GENERATION OF ADDITIONAL PASSENGERS.
DESTINED FOR THAT COUNTRY UNQUOTE.
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5. NEGOTIATIONS WITH A NUMBER OF OTHER GOVERNMENTS ARE TO PROCEED
/AS