There is a risk that the ASEAN leaders could point out that our association with the Australian scheme is at variance with our professed concern for ASEAN. ASEAN have expressed concern to the Australians at the possible harmful effects in ASEAN countries if stopovers are not permitted and the hope that the Australian Government would give careful consideration to ASEAN interests. Opponents of the scheme will also criticise it as being protectionist and a cartel between the two national airlines. There is also a risk that the ASEAN countries and India will over-react to the immediately evident disadvantages of the scheme for them, and be sceptical of the benefits, particularly of the Australian contention that there will be an increase in longer-stay tourists to make up the loss from stop-over tourists. It will be up to the Australians to convince the countries concerned that Australian tourists will fill the gap; there is no likelihood of British tourists in any number taking their holidays in SE Asia.
(c) Europe
With
The Australians intend to negotiate the same kind of agreement with some European countries as with us (probably Yugoslavia, Greece, Italy and FRG and possibly Netherlands), ie restricted to an exchange of end-to-end rights. Frequency of services would have to be reduced probably by up to 50% depending on the route. others (probably France and Austria and possibly Netherlands), if end-to-end traffic is not enough to justify a service, they will terminate their agreements. They believe that European opposition will not be strong enough to block the scheme. The Dutch have already publicly expressed disquiet at the scheme, describing it as protectionist, and contrasting Australia's position with its opposition to alleged
alleged Community protectionism.
(a) New Zealand
We may need to consider with New Zealand the possibilities for introducing a new low fare between New Zealand and the UK to complement the UK-Australia low fare. Otherwise much of the New Zealand-UK traffic will filter through Australia to take advantage of the low fare there and this will re-act to Air New Zealand's disadvantage.
Air New Zealand does not in fact operate all the way to the UK but she does carry traffic to the three gateway points of Singapore, Hong Kong and Los Angeles at specially structured fares.
Hong Kong
This would have
8 The Australians wish to introduce the same scheme on the route between Australia and Hong Kong. implications for CPA's services between Hong Kong on the one
No comments yet.
Private notes are available after approval.