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THE ASEAN SIDE AND TOO MUCH HAD HAD TO BE CONSIDERED IN TOO SHORT A TIME. ROWLANDS CLAIMED THAT THE QUALITY OF THE ASEAN DELEGATION UNDER MOHAMMED NOOR DID NOT ALLOW FOR PROPER NEGOTIATIONS. THE AUSTRALIANS HOPE FOR A MORE RELAXED ATMOSPHERE IN THE KUALA LUMPUR MEETING AND ALREADY THERE IS TALK IN BOTH CAMPS OF EXTENDING IT BEYOND 4 MAY. HOWEVER NOOR IS AGAIN EXPECTED TO LEAD FOR ASEAN.
4. ROWLAND THOUGHT THAT ASEAN UNITY WOULD PROBABLY HOLD FOR THIS MEETING, BUT THERE WERE APPARENT CRACKS IN IT. THE PREPARATORY MEETING OF ASEAN OFFICIALS IN EARLY APRIL WAS EXTENDED AND A FURTHER MEETING HAD BEEN ARRANGED FOR 29-30 APRIL. ROWLANDS CLAIMS THAT MAS, THAI INTERNATIONAL, PHILIPPINE AIRLINES AND GARUDA ALL WANT THE SECTOR FARES TO AUSTRALIA TO BE ON AN END-TO-END BASIS AND CONFINED TO THIRD AND FOURTH FREEDOM TRAFFIC, BUT SIA OPPOSE THIS.
QANTAS REPORTED THAT MAS AND THAI INTERNATIONAL WERE BOTH INTERESTED IN THE POSSIBILITY OF GETTING SIA'S CAPACITY TO AUSTRALIA REDUCED. THERE IS ALSO APPARENTLY SAME CONFUSION
AMONGST ASEAN AIRLINES ABOUT
(A) THE APPROPRIATE LEVEL OF NORMAL FIRST-CLASS AND ECONOMY FARES TO AUSTRALIA AND
(B) HOW TO HANDLE THE LIKELY INCREASES IN ALL FARES ON THE SECTOR BECAUSE OF HIGHER FUEL COSTS.
5. THE AUSTRALIAN VIEW IS THAT THEY NEED TO MAKE A POLITICALLY ATTRACTIVE OFFER TO ASEAN AT THE KUALA LUMPUR MEETING.
WE DISCUSSED THE THREE MAIN OUTSTANDING ISSUES IN DEPTH: ACCESS FOR ASEAN AIRLINES TO THE AUSTRALIA-UK THROUGH TRAFFIC AT THE SPECIAL LOW FARES: CAPACITY OF THESE AIRLINES BETWEEN THEIR COUNTRIES AND AUSTRALIA: AND STOPOVER FARES.
BOTH DELEGATIONS CONFIRMED THEIR VIEW THAT UNRESTRICTED ACCESS TO THE THROUGH TRAFFIC WOULD UPSET THE VIABILITY OF THE LOW FARES SYSTEM. WE AGREED THAT ASEAN AIRLINES CAPACITY SHOULD CCLOSELY MATCH DEMAND AND AVOID LEAVING ANY SURPLUS WHICH WOULD BE AN INDUCEMENT TO CARRY END-TO-END TRAFFIC. REVISED STATISTICS WERE PRODUCED AT THE MEETING WHICH INDICATED THAT AUSTRALIA'S PROPOSAL FOR CAPACITY FOR SIA WAS TOO HIGH.
/ THIS.
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