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Wednesday, 23 August 1972
Page: 317

Senator MULVIHILL - Has the Minister for Civil Aviation noted the methods used by the Government of the Republic of Ireland in successfully resisting the demands of United States airlines? Does he not think that the Irish Government's policy of conducting such a battle in public could be emulated by both Qantas Airways Ltd and the Australian Government in their revenue battle with the mammoth United States airlines?

Senator COTTON - The situation in the Irish discussions with the United States is quite different from the situation between Australia and the United States. The Irish Government has a perfect right to adopt whatever process it cares to adopt in stating its views. We were dealing with the problem of over-capacity which we resolved most satisfactorily with the United States Government, achieving with it the first and only regulatory system that the United

States Government has ever engaged in with bilateral arrangements. This was evidenced recently by the withdrawal from the Pacific traffic of one frequency by American Airlines Inc., and the contemplation of withdrawal of another one, based upon the acceptance by both countries that the capacity was greater than the market would stand at present. The justification for the Australian point of view is that we have been proved to be correct. Our estimates of the traffic figures have been shown to be right and the regulatory system that we have engaged in with the United States has worked.

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