CONFIDENTIAL
Air Services Asean
to which ASEAN
country's doe Xlus
his apply.
Defensive briefing
1
There are no points to raise with ASEAN members generally.
2 There was some difficulty in air services with ASEAN
during 1979 and 1980 as a result to the Australian policy at
that time which sought to exclude ASEAN carriers from access to
low fare traffic between London and Australia passing through
their territories. This dispute, in which we were necessarily
involved, was satisfactorily resolved in 1981 when reasonable
access to both through traffic and stopover traffic at the low
Super Apex fares available to UK and Australiancarriers was
formally extended to the ASEAN carriers on the route as well.
3
In an
Fares continue to be a problem however since all the ASEAN
carriers discount quite freely below the agreed rates.
attempt to deal with their situation BA have recently entered the
market at the same reduced levels, with CAA approval. We have
informed the ASEAN Governments of BA's action and BA are in touch
with the ASEAN carriers with a view to withdrawing their reduced
fares if the ASEAN carriers agree to do the same. If the matter is
raised Lord Carrington should point to discussions between the
airlines as the best way to resolve what is essentially a
commercial problem, but they are of course entitled to take the
matter up with the UK aeronautical authorities (i.e. Department of Trade) if they wish, in accordance with the terms of our various
Air Services Agreements. No undertakings should be given beyond
consider a promise to consult and if matching fares are proposed.
CAIR1
Department of Trade
14 January 19 2