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services (London-Bombay-London).
We would not want to cut Air
India's reciprocal services with the UK. There is little traffic
between India and Australia and the Australians may be prepared
to allow Air India to serve the route alone.]
HONG KONG
We do not believe that
5 The Australian proposal will not-adversely affect Hong Kong
or Cathay Pacific Airways on the route between E. Australia and
although HK. still has reservatiais.
Hong Kong The much less significant route between W. Australia
and Hong Kong on which CPA operates three services a week via
Jakarta and Kuala Lumpur would be affected. The Australians
think the end to end traffic would support two services a week.
The Hong Kong Government and CPA are being brought into the
negotiations.
EUROPE
With
6 The Australians will make the running with the European countries
with which they have air services agreements (those mainly affected
are Holland, France, W Germany, Italy, Greece, Yugoslavia).
some they intend to negotiate the same line of agreement as with
us i.e. restricted to an exchange of end to end rights. With others
to and from which there is insufficient end to end traffic to support
a service they will terminate their agreements. Some of the
European carriers, notably KLM, have in the past poached some of
the UK-Australia traffic by linking back to back services.
will be excluded from legitimately using the new
past experience will mutter complaints about this. But we would
not regard thei objections as being of real significance in our
They
low fare and on
considerations whether to accept or reject the Australian proposal.
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