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THAT SINGAPORE HAS A CASE FOR BEING ALLOWED TO COMPETE FOR STOPOVER TRAFFIC, AND THAT THE RETURN STOPOVER FARE SHOULD BE NO HIGHER (DOLLARS A 225) IN RELATION TO THE ICAP RETURN FARE THAN IT HAS BEEN IN THE PAST (1.E. SOMETHING ON THE LINES OF THE IDEA PILLAY AND ROGERS DISCUSSED IN JANUARY MYTEL NO. 36 OF 19 JANUARY REFERS). NO DOUBT SIA WILL CONTINUE, AS IN THE PAST, TO OFFER DISCOUNTS ON THIS, AND THIS LEADS ME TO CONCLUDE THAT WE AND QANTAS SHOULD NOT SEEK TO CONTROL THEIR COMPETITION THROUGH THE FARE STRUCTURE AS WE HAVE DONE IN THE PAST, AND ARE SEEKING NOW TO DO, BUT BY SETTING LIMITS TO THEIR CAPACITY BY LIMITING THE NUMBER OF FLIGHTS THEY MAY OPERATE BETWEEN AUSTRALIA AND SINGAPORE, AND SINGAPORE AND LONDON. I STILL THINK THAT IF WE CAN OFFER A REASONABLE STOPOVER REGIME, THE OTHER ASEAN COUNTRIES MAY WELL COME TO FEEL THAT THEIR CIVIL AVIATION INTERESTS WHICH ARE NOTHING LIKE AS INVOLVED WITH THE TRUNK ROUTE AND THEIR GENERAL CONCERN WITH THEIR RELATIONS WITH AUSTRALIA WILL ENCOURAGE THEM TO SUGGEST TO SINGAPORE THAT THEY SETTLE ON IT.
BUT I FANCY THAT THERE IS A LENGTHY ROAD OF NEGOTIATION AHEAD
BEFORE WE GET TO THAT POINT.
9. FINALLY, FOR ALL THEIR CLAMOUR AGAINST DUOPOLIES, SIA HAS FIXED UP A NUMBER OF BILATERAL EXCURSION FARES ITSELF. THE 1977 CIVIL AVIATION REPORT GIVES A LIST OF THE FARES OF THIS. SORT WHICH WERE INTRODUCED IN 1977 BETWEEN SINGAPORE ON THE ONE HAND AND TEHRAN, PARIS, SWITZERLAND, BRUSSELS, SCANDINAVIA, ITALY, USA (WEST COAST) AND USA GENERALLY. THE TERMS AND CONDITIONS MAY NOT BE THE SAME AS THE ICAP REGIME, BUT THIS EVIDENCE OF SIA'S DUOPOLISTIC PRACTICES IS AT LEAST INTERESTING,
HENNINGS.
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HK & GD MR BUTLER MISS BROWN MR MURRAY
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