› CONFIDENTIAL
ANZ TABLED THROUGH FARES WHICH, IN RECOGNITION OF THE PROBLEMS SENTED BY SINGAPORE, THEY PROPOSED SHOULD BE AVAILABLE ONLY REPEAT ONLY ON THE AUCKLAND-LOS ANGELES-LONDON ROUTE. THEY PROPOSED THAT AT THE PEAK SEASON (WHICH WOULD LAST FOR 9 MONTHS OF EACH YEAR) THESE SHOULD BE AT VIRTUALLY THE PRESENT LEVEL AND WITH THE PRESENT CONDITION WHICH ALLOWS STOPOVERS AT THE INTERCHANGE POINT (IN THIS CASE LOS ANGELES) ONLY, DURING THE OFF-PEAK PERIOD THE FARE WOULD BE AT MUCH THE SAME LEVEL AS UNDER BA'S PROPOSAL AND, LIKE IT, WOULD
NOT ALLOW STOPOVERS.
THE NEW NEW ZEALANDERS PRESSED US VERY HARD TO ACCEPT THE ANZ PROPOSALS AND SAID THAT, IF WE WOULD, THEY WERE PREPARED TO ACCEPT THOSE PUT FORWARD BY BA. HEALY SAID THAT IN THE FACE OF MOUNTING PRESSURES HIS MINISTER WAS ANXIOUS TO MAKE AN ANNOUNCEMENT ABOUT FARES TO THE UK BY THE END OF THIS WEEK. HE HINTED THAT, FAILING AGREEMENT WITH US, NEW ZEALAND NIGHT DECIDE TO GO IT ALONE. WE WOULD THEN HAVE A POLITICAL PROBLEM WITH NEW ZEALAND ON OUR HANDS. 19. HOWEVER, ROGERS DECLINED TO ENTER INTO ANY COMMITMENTS AT THIS STAGE. EVEN IF THE BA PROPOSALS WERE FULLY ACCEPTABLE TO BOTH GOVERNMENTS, HE COULD NOT AGREE THAT THEY SHOULD BE ANNOUNCED AT THIS JUNCTURE SINCE THIS MIGHT INFLAME ASEAN PASSIONS. IN ADDITION, ANZ'S PROPOSALS RAISED ACUTE PROBLEMS OF DISCRIMINATION (WHICH, UNLIKE I C A P, COULD NOT BE JUSTIFIED ON ECONOMIC GROUNDS) BETWEEN ONE ROUTE AND ANOTHER. HE THOUGHT IT MIGHT BE POSSIBLE TO MELD THE BA AND ANZ PROPOSALS (OR SOMETHING LIKE THEM) INTO A PACKAGE THAT PROVIDED FOR
(A) STOPOVER FARES NOT NECESSARILY ALL AT THE SAME LEVEL:
(B) THROUGH FARES, WITH A TRANSFER FROM ONE CARRIER TO ANOTHER BUT
WITHOUT STOPOVER: AND
(C) THROUGH FARES WITHOUT A TRANSFER FROM ONE CARRIER TO ANOTHER AND
WITHOUT STOPOVER.
11. AS REGARDS (A) ABOVE, HE WOULD NOT BE TOO WORRIED BY THE CONTINUATION OF THE EXISTING STOPOVER FARE: SINCE ALTHOUGH HE COULD NOT DISCLOSE THE FIGURES THAT HAD BEEN CANVASSED IN DISCUSSION WITH THE AUSTRALIANS LAST WEEK, AND STILL LESS COULD HE FORETELL WHAT THE OUTCOME OF THE NEGOTIATIONS WHICH THE AUSTRALIANS HAD PROPOSED MIGHT DE, IT DID NOT LOOK AS IF IT WOULD BE TOO FAR REMOVED FROM THE EVENTUAL OUTCOME. ON THE OTHER HAND, ANZ'S PROPOSED OFF-PEAK FARE COULD NOT BE JUSTIFIED ON COST-RELATED GROUNDS AND THE WHOLE CONCEPT OF (B) ABOVE WOULD UNDERMINE AUSTRALIA'S POSITION AND OUR OWN IN THE PROSPECTIVE NEGOTIATIONS WITH SINGAPORE. HE DID NOT
3 CONFIDENTIAL
/RULE