GRS 1100
PRIORITY
CYPHER CAT A
FM CANBERRA 056630Z
CONFIDENTIAL
CONFIDENTIAL
HKK 184/1
RECEIVED IN REGISTRY O. 51
8 AUG 1978
DESK OFFICER
INDEX
NO
TO PRIORITY FCO TELNO 398 OF 15 AUGUST
PA
RECOTRY
Action Taken
есе
(461
INFO ROUTINE HONG KONG (GOVERNOR AND BCARFE), WELLINGTON, DELHI, SINGAPORE, KUALA LUMPUR, JAKARTA, BANGKOK, WASHINGTON, MANILA, BAHRAIN, PARIS, BONN, ROME, THE HAGUE, VIEENA, BELGRADE, JOHANNESBURG, ATHENS, OTTAWA
MY TEL NO 387
UK/AUSTRALIA AIR SERVICES DISCUSSIONS
1. DISCUSSIONS WITH THE AUSTRALIANS CONTINUED UNTIL THE LAST MINUTE BEFORE THE TEAM WAS OBLIGED TO LEAVE ON 5 AUGUST. SATISFACTORY UNDERSTANDINGS HAVE BEEN REACHED ON A NUMBER OF THE PRACTICAL ISSUES THAT WERE OUTSTANDING AT THE CONLCUSION OF THE LONDON TALKS BUT SOME STILL REMAIN.
2. FARES
AFTER LENGTHY DISCUSSIONS BOTH IN PLENARY AND IN AIRLINE WORKING GROUPS PROVISIONAL AGREEMENT WAS REACHED ON A COMPLETE FARE STRUCTURE FOR THE LONDON-AUSTRALIA ROUTE, THIS HAS OF NECESSITY CALLED FOR COMPROMISES FROM BOTH SIDES BUT BA ARE SATISFIED THAT THE PROPOSED FARE STRUCTURE WILL YIELD A SATISFACTORY OPERATING PROFIT AT THE AGREED CAPACITY LEVELS AND OPERATING PATTERN. THE AGREED NEW LOWEST LEVEL FOR THE APEX FARE IN THE OFF- PEAK PERIODS IS AUSTRALIAN DOLLARS 563. BOTH SIDES AGREED HOWEVER THAT THEIR AIRLINES SHOULD SUBJECT THE PROPOSED STRUCTURE TO FULLER EXAMINATION SO AS TO BE ENTIRELY SATISFIED THAT THERE WOULD BE NO OBVIOUS LOOP-HOLES FOR UNDERCUTTING OF THE THROUGH FARES BY OTHER AIRLINES USING THE SUM F SECTOR FARES.
3. CAPACITY
IT WAS AGREED THAT BOTH BA AND OF WOULD OPERATE ?
X B747 P.W. AND THAT THIS WOULD INCLUDE WHATEVER CAPACITY ALLOWANCE BA NEEDED FOR OPERATIONS TO NEW ZEALAND. FOR CAPACITY PLANNING PURPOSES THE FILL-UP TRAFFIC WHICH IT WAS AGREED THAT BA AND QF COULD CARRY ON THEIR RESPECTIVE THIRD AND FOURTH FREEDOM SECTORS TO AND FROM GULF POINTS WOULD NOT BE TAKEN INTO THE RECKONING.
4. NEW ZEALAND
CONFIDENTIAL
IT WAS
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