U.S. RULING ON QANTAS

Press, Volume XCVIII, Issue 28866, 10 April 1959, Page 11

U.S. RULING ON QANTAS

Reprisals Expected (Rec. 9.30 p.m.) WASHINGTON. April 9. Diplomatic officials said in Washington last night the Australian and British Governments were now expected to carry out “reprisals” against United States airlines for a Civil Aeronautics Board ruling yesterday against Qantas Empire Airways, Ltd. The CA B. ruled unanimously that foreign airlines could not carry from one American city to another unless the passengers wene either leaving or entering the United States. Qantas had requested the board’s ruling. The airline wanted permission to carry domestic passengers from New York to San Francisco, two intermediate points on its route from London to Melbourne.

Supporting the Qantas position were the Australian and British Embassies, the British Overseas Airways Corporation, and Japan Air Lines.

The United States Air Transport Association and several American domestic airlines opposed the move, contending that it would mean more competition for domestic airlines. Diplomatic officials said last night that as a result of the ruling the Australian Government was now expected to prevent Pan American Airways from continuing its present practice of carrying passengers between Melbourne and Sydney. These officials also noted that the British Government had said

previously that an unfavourable ruling would force Britain to reconsider its policy. They said retaliatory action by the British could affect the Pan American route between London and Hong Kong and also routes in the West Indies.