East-West Airlines (Operations) Ltd v Wraith, Kenneth F

Case

[1983] FCA 98

23 May 1983

No judgment structure available for this case.

CATCAWORDS

J u d i c j a l

Review

-

Adminis t ra t ive

Pe 'c is jons

(Jur3jcial

Review)

Act

1977 -

approva l of

d i s c o u n t a i r fare reques ted

-

c o n t e n t s

of

r e q u e s t

-

power

of

C o m m i t t e p

t o

impose

c o n d i t i o n s

-

Independent A i r F a r e s Comrnlttee A c t 1983.

Admin i s t r a t jve Decisions

( J u d i c i a l

Rev iew!

Act

1977

~ 7 . 5 ,

17.

Independent A i r P a r e s Committee Act

Iq81 ss.3,12,16,17,26.

EAST-WEST

A I R L T N E S

(OFERATTONS) LTD. V . KENNCTH F.

WRAITH,

i

-

D R .

D.W.

Z I N I C

and

IIOKJ.

K . M .

C A I R N S

i n t h e i r c a p a c i t y

a s

-

-

---

members of t h e INDEPFFDENT J T R FARES COYYTTTEF.

VG No.

54 of 1 9 R 3

Smi thers

J.

23 May l9R3

Melbourne.

V I C T O R I A

D T S T R i C T

R E G I S T R Y

VG No.

5 4 of 1093

I

1

G E N E R A L

D T V I S J O N

\

!

Between:

E A S T WFST

?IFLIP.rES

? O P E R A T I O \ l S \

L T D .

(app? icant)

And :

KFMVETH

F.

W P A I T H ,

-

DR. D.W.

?TV!< and

HnN.

K.X.

C A T P V S in

thejr capacity a s

mmnhers of the

(Respondents1

J u d q e Makinq Order:

Smithers J.

Date of Orger:

23 March 1983

Where MaPe:

Me1 bourne

O R D E R

THE COURT

ORDERS

THP-T:

1.      The applicatjon be dismissed.

2. The

applicant pay the

respondents'

costs

of the

appljcation.

l

i

VG N o .

5 4 of lQQ7

Between:

E A S T VJrST ATRL, IMES

..

f O P E R A T T O X S 7

1,Tn.

(Applicant)

And:

-

KENN'ZTH F. WRAITH,

DR.

D.W.

7 T N K

and

HON. K . Y .

CAJRNS in

their capacity as

members o f the

(ResponAentsl

Coram:

Smithcrs J.

23 May 1'387

Melbourne

This 1 s an application to review a decision

of the

respondents made F, March l"R3 pursuant to S . 1 7 f 4 1 of the

.

Tndependent Air Fares -

CommiCtce Act. 1 Q R 1 (the Act), the

--

decision heinq that approval be qranted by the respondents (the Committee) to the applicant to charge a discount air fare of '$120 on the round trjp originatjnq jn Sydney or Melbourne on the route Me1 b"urne/Albury/Sy?ney during the

period

March 1 9 x 3 to 30 Anrll

3 9 x 3 .

2.

The applicant is agqrjeved by the imposition of the

time limitation. It seeks a declaration that the limitation

1 s void and of no effect, and that the appllcant is entitled

to continue to charqe the said discount air fare for the relevant service until the approval is revoked pursuant to

s.17(6! of the Act.

It seeks this relief under ss.5 and 16

of the Administrative Decisions (LTudir!:ial Review) Act 1977.

!

The applicant has for some time

operated an air

service between Sydney

and Alhury an? between Albury ancl

Melbourne. A passenger who wished to travel from Sydney to Melbourne would pay the fare determined by the respondents in respect of the services from Sydney to Al.bury and from Alhury to Melbourne, the total fare heinq substantially in excess of s 1 2 0 . 0 0 . In February 1 qR3, thc applicant, f l e s j rinq to

introduce a service from Sydney to Melbourne at a fare which would represent a discount on the fare othcrw~ se payahle hy

passenqcrs travellinq that

journey, sent a telex to the

respondents dated 23 February 19R3 commencing with the words,

"Application in Accordance of Section l7 of the T A F C Act for Approval of a Di scount Air Fare". Tnter alia the trlex .

contained information to the effect that. thc route w a s

Melbourne/Sydney/Melhourne, hy FokPer P77 aircraft, that the

fare was S120 for a round trip, renresentinq A?.35? of currently approved cconomy fare. The telex advisecl that the proposed discount fare would he applied to services cond~~cted

b

l

3 .

L

V

hy the appljcant over the route Melhourne /4 lbury /Sydney. Tt asserted that the justification for approval of the Alscount air fare was that It would constitute incremental revenue to augment the low load factors currently beinq achieved on route. It asserted that the jncrsment-a1 revenue would ensure the maintpnance of the perceived minimal level of air service desired over the route hy improvinq viability and that the approval of the discount air fare could have no effect on the level of approved economy air fares charcred by Ansett and the Australian National Airlines Commission in respect of thelr non-stop turbo jet aircraft on the route. It jndicatecl that the discount airfare would be sold only in respect of round

trips originating from Sydney or Velhourne and that

it

desired to introduce the approved discount fare as from March

1, 1983.

On

25

February

1 q R . 7

the .Committee advised the

applicant that it had given preliminary consideration to the request and that to fulfil its responsthiliti~s under the

IAFC Act it requjred certain addjtional informat-ion. Yhjrteen

items of information were requjred, i-ncludinq the load factor for the past six months on the Melhourne/Alhury, Sydney /Albury rout.es the numbrr of passengers and passenger type

who have travelled on a round trip oriqinatinq in Melhourne

or Sydney in the past six months, the applicant's estimate o f the numher of passenqers who would avail themselves of the proposer? discount, the applicant's anticipaCion of the

. . .

. .

4.

d i l u t i o n

r a t e

from

passcnqers

w h o

c u r r e n t l y

u t j l i z e

t h e

r e t u r n

r o u t e

on

i t s

services,

t h e a p p l . j c a n t ' s o n t i c i p a r i o n

of

t h e

d i l u t i o n

r a t e

from

passengers

who

c u r r e n t l y

u t i l i z e

t h e

one-way

journey e i ther Melbourne t o Sydney or Sydney t o

M e l b o u r n e

b y

f a r e

t y p e

o n

t h e

a p p l i c a n t ' s

s e r v i c e s ,

w h e t h e r

I

a d d i t i o n a l

services would

be

provided because

of

the d i s c o u n t

ra te ,

whether

any

s e a t i n g

r e s t r i c t i o n

would

app ly ,

wha

t

t he

a p p l i c a n t '

a n t i c l p n t e d

h i s

competitor's

response

would

be

i f

I

the

d i s c o u n t

were

approved ,

and

the

a p p l i c a n t ' s

a n t i c i p a t i o n

of

i t s cos t / r evenue

r e s u l t

from

the

d i s c o u n t

to

be

~f

i t s

competitors were

t o lnatch the f a r c .

J t e m s

1.1

a n d

1 7 were

i n

the

fo l lowinq

form: -

" ( 1 1 1

For what

per iod

of

time

d o you

a n t i c i p a t e

t h e d i s c o u n t

will

be

e f f e c t i v e ?

(12'

What

d o

y o u

a n t i c i p a t e

will

he

t h e

n e t

revenue gained

from

the p roposed d i scoun t?

P l e a s e p r o b - i d e f u l l

details."

On

2 5 February 19Q3 t h e

a p p l

j c a n t

r e p l i e d

t o

t h e s e

e n q u i r i e s .

I n

answer

t o item

1 1 t h e

a p p l i c a n t

s t a t e d :

" ( 1 1 )

T r i a l per iod

t o 3 0

April.

I Q 9 - 4

w i t h

o F t i o n

t o

e x t e n d

o n

s a v e

o r

v a r i a b l e

b a s i s

sub jec t t o

n e o o t i a t i o n

o f

TAFC"

i n respect

of

item

I:!

t he a p p l i c a n t s t a t e d :

" ( 1 2 )

600 RT

f a r e s monthly

nrosses

D L W

144,000

Mar/Apr

1 ess

commissions

and

advert is jnq

l e a v e s DLRS

qP,000

n e t a a i n ,

less

i n + l i q h t

costs and PSGR overheads

1-eaves

n e t

DLRS

93,000 qa in ."

The

app l i can t a l so s t a t e d t h a t

it

be1 icverl

competitors would

n o t be

ahl e

t o ma tch

t he

fare

u n l e s s

they

adop ted

t he

same

COndlti.onS

a s L?os t /N~st inclu?i.na

a

chanqe of

a i r c r a f t or

', I

4 .   S.

.

crew and a p p l i c a n t

f l i g h t

number

a t Albury.

It

a d v i s e d

t h a t

t h e

was

aiminq

t o

r e a c h

p r i c e

s e n . ; i t i v e

t r a v e l l e r s

who

c i t h e r uso'l

o t h e r means

of

t r a n s p o r t o r

who

cou ld

no

t

a f fo rd

t h e j e t Committee

f a r e s

on

t h e

d l r e c t

r o u t e .

On

1 March

1093

t h e

requeqted

further

informat-Ion,

namely,

(1)

what

specif ic

f1inht .s

formed

t h e hasls

of

t h e

appl icant. ' S

estimat-e:

and

(21

if a c l d l t i o n a l

f l i a h t s

w e r e

necessa ry .

On

1

March

1 9 8 3

t h e

a p p l i c a n t

a d v i s e d

t h a t

i t s

I

r s t i n a t e s were based

on

March

5

lC)F13 scbedu lcs

and

t ha t

i t

a n t i c i p a t e d

c a p a c i t y

b e i n g

aAd?d

t o

an

aqqr twate

of

t h r e e

!

round

t r i p

s e r v i c e s

d a i l y

w i t h

u p

t o

f o u r

r o u n d

t r i p s

d a i l y

a 5

t r a f f i c

d e v e l o p e d .

O n

3

March

1923

t'7e

a p p l i c a n t ,

i n

answer

t o

a

t e l e p h o n e

i n a u i r y

from

t h e

Committee

suppl i e d

in format ion

a s

t o t h e p r o p o s e d f r e q u e n c i e s .

:

On 8 March

19'33

t h e

Committee

informed

t h e a p p l i c a n t ,

as

fo l lows : -

"I r e f e r s u p p o r t i n s

t o

y o u r

t e l e x e s

of

37,

2 5 February,

1

and

2

March

1 9 O 7

r e q u e s t i n o

a p p r o v a l

wi

t h

d e t - a i l s

of o r i g i n a t i - n q

Droposed

d i scoun t

f a r e

of

S 1 2 0

o n

t h e

r o u n d

t r j p

i n

S y d n e y

or

Mel .bourne

over

thP

Route Melbourne-Alhury -

Sydney

on

P37 a i r c r a f t .

I wish t o

a d v i s e

t h a t

f o l l o w i n q

c o n s i d e r a t i o n

of

t h e

i n f o r m a t i o n

p r o v j r l e d ,

t h 2

C o m m i t t e e

h a s

approved,

under

s . 1 7 f 4 '

of

t h e

TAFC

A c t ,

t h r

above

d i scoun t

f a r e

011

t h e

f o l l o w i n g c o n d j t i o n s : "

The

cond i t ions i nc lu r l ed t he fo l

1 owinq:

(1'

a

d i s c o u n t

f a r e

of

$120.00

f o r

r e t u r n

t r a v e l

~ e l h o u r n e / ~ y d n e y

f o r

v i c e

v e r s a )

ava l lab- . !p

wi

tb

ln

tFe

p ~ r l o d

R March to 3 0

6.

A p r i l

1087

j n c l u s i v c .

9 d d i t i o n a l c o n d i t i o n s w e r e t h a t t h e

service

would

be

prnvided

on F27 t h a t t h e f a r e

a i r c r a f t .

o n l y

on

t h e

r o u t e

MelhournefAlburylSydney,

would

be

a v a i l a b l e

on 30 A n r i l

a

r e t u r n basis

on ly ,

each

r e t u r n xourney

to

be

comple

ted

by

1 Q23,

t h a t

it

was

a v a i l a b l e

on

25

r e t u r n

f l i q h t s

a

week

SydneyfAlbury

and

1

e l e v e n

r e t u r n

f l i q h t s

p e r

week

Melbourne/42burp,

that

no

i

o t h e r

d i s c o u n t s

w e r e

a p p l i c a b l e ,

t h a t

EWA

e n s u r e d

t h a t

t h e

c o n d i t i o n s

were

c l e a r l y

o u t l i n e d

i n

a d v e r t l s i n q

and

a t

t h e

time o f

r e s e r v a t i o n o r

s a l e

o f

t i c k e t s .

I t was

also a

s t a t e d

c o n d ~ t i o n

t h a t

t h e

a p p l i c a n t

p r o v i d e

f o r t n i g h t l y

r l e t a l l s

of

i t s

r e s u l t s

o f

t h e

d i s c o u n t

f a r e s

i n c l u d i n a

e s t j m a t e s

of

t h e

source of d j

s coun t

pas senge r s

ca rT ied .

The

Committee

a 1 so

a d v i s e d

t h a t

i n

r e a c h i n g

i t s

d e c i s j o n

it

n o t e d

i t s

I

r e s p o n s i b i l i t y

u n d e r

t h e

A c t

t o

b e

s a t i s f i e d

t h a t

t h e

i n t r o a u c t j o n

o f

a

proposed

d i scount

fa re

was

u n l j k e l y

t o

r e s u l t

i n

economy

a i r

f a r e s

i n

r ' e s p e c t

of

a i r

s e r v j

ces

pr0viclP.d

by

any

t runk

rou

te

ope ra to r

ove

r

t runk

rou te s

1 w i n q

i n c r e a s e d .

It was

submi t ted

by

Mr.

L i d d e l l

f o r

t h e

a p p l j c a n t

t h a t t h e e f f e c t

of

t h e

communica t ions

s e t

o u t

a b o v e

was

t h a t

t h e Committee had

approved

t he

i n r roduc t ion

by

t he

app l i can t

of

t h e

d i s c o u n t

a i r

f a r e

a t t h e

amount

proposed ,

accor r l inq ly

the

app l

l can t

might.

l a w f u l l y

c h a r q e

t h a t

r a t e

u n t ~

l

t h e

approva l was

r evoked

pu r suan t

t o

S . l7(6)

of

the

Ac t .

H e

po in t ed

o u t

t h a t

t h e

Commjttec

ha3

purported

t o mak-

i t s

!

L

i *.

. *

a p p r o v a l

c o n d i t i o n a l

i n t h e

sense t h a t l t was

t o e x p i r e

on

?D

i

A p r i l .

I l e

c o n t e n d e d

t h a t

t h e

a t t e m p t

t o

i m p o s e

t h a t

c o n d i t i o n

wrls

i n v a l j d

and revoked .

i n e f f e c t i v e ,

and

t h a t

t h e

a p p r o v a l

should

remain

in

force

un t i l .

I t

w a s

a

q n p s t i o n ,

h e

said,

a s

t o

w h e t h e r

t h e

c o n d i t i o n

was

" seve rab le"

f rom

the

I

approva l .

He

con tended

t ha t

r evoca t ion

of

an

hpproval

was t o

be

ach

ieved

th rouqh

processes

descr ihc4

i n s . 1 7 f 5 ) and

f f i )

o f

t h e

A c t .

N o

such

r evoca t ion

has

a s

y e t

o c c u r r e d .

All

t h i s

d e p e n d s

upon

t h e p r o p e r c o n s t r u c t i o n

of

s.17

of

t h e A c t .

That

s e c t i o n m u s t o f course h e

c o n s t r u e d

j n

t h e

I

c o n t e x t

i n

w h i c h

it

s t a n d s ,

n a m e l y

t h e

o t h e r

p r o v i s j o p s

of

the

Act .

The

A c t i s c a l l e d ,

"An

Act

t o

e s t a b l i s h

a

Commlttee

t o

r e v i e w t h e h - s i s

on

which

c e r t a i n d o m e s t i c p a s s e n q e r f a r e s

a r e det-ermined

and

t o

de te rmjne

t hose

domes t i c

pas senae r

air

f a r e s " .

I n P a r t

I1 of

t h e Act

the

Comnl t tee

i s

e s t a b l i s h e d .

I n P a r t t h a t t h e f u n c t i o n s

111

i ts

f u n c t i o n s

are

s t .a tea .

Sec t jon

1 2 ( 1 )

p rov ides

of

t h e

Committee

a r e ,

( a )

t o

c o n d u c t ,

i n

a c c o r d a n c e

w i t h

t h i s

A c t

c o s t

a l l o c a t i o n

r e v i e w s

...

( b )

t o conduct ,

... m a j o r

a i r

f a r e

r e v i e w s

a n d

m i n o r

a i r

f a r e

r e v l e w s :

( c )

a f t e r

comple t jon

o f

each

ma2or

a i r

f a r e s

r e v i e w

or

m i n o r

a i r

f a r e s

r e v i e w

t o

d e t e r m l n e

t h e

amount

o r

t h e

economy

a i r f a r e s

t h a t

a r e

t h e

s u b j e c t

of

t h e

review

. . .

( c l )

t.0

a p p r o v e .

i n

a c c o r d a n c e

w i t h

t h i s

A c t ,

proposed

d i s c o u n t a i r f a r e s

. . . "

It

i s t h e

e f f e c t

of

s . 1 5 1 1 )

t h a t upon

r e q u e s t hy

a

passenqer

o p e r a t o r

a

major

a i r

f a r e

r e v i e w

is

under t aken

hy

t he

1

Committee

and

t h e economy

f a r e s

t h a t

may

he

charqed

or

1

rmoposed

t o be

cFarqeP

i n r e s p e c t

of

spec i f l e r l

a i r s e r v i c e s

.

+

R .

.

are

de te rmined

by

t h e Committee.

Section

1 6

p r o v i d e s

t h a t

a

minor a i r fares revlew i s conducted unon a

r e q u e s t hy a

passenge r

ope ra to r

who

s e e k s

a

review

i n

r e s p e c t

of

a

proposed

increase

o

f

no t

more

than

5 per

centum

i n an

economy

a i r

f a r e .

I n

t h e

a b s e n c e

of

such

a

r e q u e s t

t h e

Committee mav

not

conduct

a

m i n o r

a i r f a r e s r e v i e w .

Pursuant t o s.17(1)

of

t h e

A c t ' a

p a s s e n q e r

o p e r a t o r

may

r e q u e s t t h e

Committee

t o approve

a

d i s c o u n t a i r f a r e t h a t

the

ope ra to r p roposes

t o

c h a r q e i n r e s p e c t o f t r a v e l o v e r a n y

:

r o u t e .

S e c t i o n

1 7

i s

i n

t h e

€ o l l o w i n q

terms:-

"Approval

of

d i s c o u n t f a r e s

1 7 .

f l )

A

p a s s e n a e r

o n e r a t o r

m a y ,

i n

a c c o r d a n c e

w i t h

s u b - s e c t j o n

f 2 ) ,

r e q u e s t

t h e

C o m m i t t P e

t o

approve

n

d i s c o u n t

a i r f a r e t h a t t h e

p a s s e n q e r

o n e r a t o r

p r o p o s e s

t o

c h a r q e

i n

r e s p c c t

of

t r ave l

ove r any

route. s u b - s e c t i o n

( 2 )

A

r e q u e s t

u n d e r

f 1)

i n

r e l a t i o n

t o

a

p r o p o s e d

d i s c o u n t

a i r

f a r e

i n

r e s p e c t

of

t r a v e l

o v e r

a

r o u t e

s h a l l

h e

made

by

n o t j c e

i n

w r j t i n q

q i v e n

t o

t h e

Chairman

s e t t l n s

o u t -

(a)

w h i c h e v e r

o f

t F e

f o l l o w i n g

a m o u n t s

i s

a p p l i c a b l e :

i n a

c a s e t o

which

su?-~p.~raqraph ( i i ) does

n o t

a p p l y

-

t h e

amount

(expresser1

as

a

p e r c e n t a g e

of

t h e

e c o n o n y

a i r

f a r e s

charqed by t he

pas sen r Je r

ope ra to r

ove r

t h a t

r o u t e 1

of

t h e

p r o p o s e d

d i s c o u n t

a l r

f a r e :

or

j n

t h e

c a s c

o f

a

r e q u e s t

by

a

pac,s?nqer

operator,

o t h c r

t h a n

9 n s e t t

o r

t h e

Commissjon,

i n

r e s p e c t

of

t r a v e l

o v e r

a

t runk rou te ove r wh ich bo th Pnse t t

and

t h e

C o m m l s s i o n

p r o v i d c

a l r

s e r v i c e s

-

the

amount

frxpresserj

a s a

percen taqe of

t h c

1

,.

9.

i

purposes of sub-section 26f1). approved economy air fares that are, for the

air fares i.n relation to Pmsett and the Commission in relation to that route) of the proposer! discount air fare: and

(b) the proposed 6iscount air fare

conditions

(if

any)

under which the

is

to

he

availabl e.

( 3 )

Where a passenqer onerator requests the

!

Committee to approve a discount alr f a r e , thc Committee shall, before the expiration of 7 days after the Committee obtains such information as it considers necessary to be ohtaine? from the passenger operator who made the request or from

any other

passenger operator in order to qivc its

l

decision on the request.

( 4 )

If the Committee js satjqfied that -

(a’ the

profitabi1it.y of the operat~ons of that

passenoer operatof in relation to the

provision of air services:

introduction of that proposed discount

air

fare

is

likely

to improve

the

(b)

the lntroduction of that proposed discount alr fare is unlikely to result in economy

air fares in respect

of

air services

provided by any trunk route operator over

trunk routes bclnq increased: and

(C)

the conditions (if

any) under which

that

proposed discount

a 1 r

fare js to

he

available are reasonable and

will

he

applied without discrimination between

persons

or

classe5 of pesons who can

comply with the conditions,

the Committee shall approve the

proposed discount

air fare hut, if the Commit.tee .is not s o satisfied, the Committee shall. not approve the proposed discount air fare.

(5) Where -

(a)

the Committee has approved, 1n relation to a passcnqer operator, a eiscount air fare

in accordance with this

section: and

(b) any passenger operator

qjves

notice

in

wrlting to the Cha3rman

requestinq the

Committee to conduct

R review of the

n -

10.

a v a i l a b i l ~ t y

of

t h a t

d i s c o u n t

a i r

f a r e

o r

t.he

Committee

i s

s a t i s f i e d

t h a t

it

i s

d e s i r a b l e

t o

c o n d u c t

a

r e v i e w

o f

t h e

a v a i l a b i l i t y of

t.hat

discount.

a i r f a r e ,

t h e

Committee

s h a l l d i s c o u n t

c o n d u c t

a

revjew

of

t h e

a v a i l a b i l i t y

o f

t h a t

a i r

f a r e

ancl

s h a l l

c o m p l e t e

t h e

r e v j e w

b e f o r e

t h e

e x p i r a t i o n

of

l A

d a y s a f t e r

t h e

Committee

obtains

such

inFormntion

as

it cons ide r s

necessa ry

t.o

be

oh ta ined

i n o r d e r

t o comple te

the

rev

iew.

I

( 6 ) bfiere -

( a )

t h e

Committee

conducts

a

review OF t h e

a v a i l a h i l j t y

of

a

d i s c o u n t

a i r

c a r e

t h a t

was,

i n

r e l a t j o n

t o

a

p a s s e n q e r

o p e r a t o r ,

approved

by

the

Committee

i n accordance

w i t h

t h l s

s e c t i o n :

a n d

(b)

the

Committee

-

(i.)

i s

satisfied

t h a t ,

i € t h e

C o m m i t t e e

revoked

the

approval

of

t h a t d i s c o u n t

a i r

I

f a r e , t h e p r o f i t a b i l i t y

of

t h e o p e r a t i o n s

of

t h a t

p n s s e n s e r

o p e r a t o r

i n

r e l a t i o n t o

t h e p r o v i s i o n

of

a i r s e r v i c e s

would

n o t he

a d v e r s e l y a f f e c t e d :

( ii) i s a v a i l a h i l i t y o f t h a t d i s c o u n t a i r f a r e

n o t

s a t i s f i e d

t h a t

t h e

c o n t i n u e ?

i S

u n l i k e l y

t o

r e s u l t

i n

a n y

economy

a i r

f a r e s

i n r e s p e c t

of

a i r

s e r v i c e s

p r o v i d e d

by

a

t r u n k

r o u t e

o p e r a t o r

o v e r

t r u n k

I

rou te s

bp

inq

i nc reaspd :

or

f i i i l i s a n y ) u n d e r w h i c h t h a t .

n o t

s a t i s f l e d

t - h a t d i s c o u n t a i r

t h e

c o n d i t i o n s

( i f

f a r e

i s

a v a i l a b l e

a r e

r e a s o n a b l e

or

a r e

h c i n g

a p p l i e d

w i t h o u t

r? i scr imina t ion ,

t h e Committee

s h a l l ,

by

n o t i c e

i n

w r i t i n q

q i v e n

b y

t h e

C h a i r m a n

t o

t h a t

p a s s p n q e r

o p e r a t o r ,

r e v o k e

t h e

a p p r o v a l

o f

t h a t

d i s c o u n t

a i r

f a r c

and, where s h a l l he

SUC?

a

n o t i c e

i s q i v e n ,

t h e

Commit-t.ee

decmecl

n o t

t o

h a v e

a p p r o v e d

t h a t

d i s c o u n t

a i r

f a r e .

(7)

In

conduc t ina

a

review of

a

d i s c o u n t

a i r

f a r e

i n

a c c o r d a n c e

with

t h i S

s e c t i o n ,

t.he

Committee

s h a l l

h a v e

r e q a r r !

t o

t h e

f a c t

t h a t

a

d i s c o u n t

a i r

f a r e

app roved

by

t he

Commi t t ee

I n

r e l a t i o n

t o

a

Fassenqe r

ope ra t -o r

i n

r e snec t

of

t r a v e l

ovpr

a

r o u t -

may

he

cha rqe? ,

i n

acco

rdance

w i t h t h i s

A c t ,

b y a n y o t h e r p a s s e n q c r o p e r a t o r

j

n

r e s p e c t o f t r a v e l o v e r t h a t r o u t e .

I'

S e c t i o n

2 6

p r o v i d e s

a

M i n i s t c r i a l

s a n c t i o n

i n

t h e

n a t u r e

o f

an

excl.usion

from

t h e

u s e

o f

c e r t a j n

a i r f i ~ l d s

where

an

opera tor

charqes ,

demands ,

co l lec ts

o r

rece ives

economy

a i r

f a r e s

t h a t

a r e

n o t

approved

a i r

f a r e s

o r

who

a d v e r t j s e s

t h a t

h e

w i l l

c h a r g e

s u c h

f a r e s

o r

c h a r q e s ,

demands,

c o l l e c t s

o r

r e c e i v e s

a

d i s c o u n t

a i r

f a r e

i n r e s p e c t

of

a

r o u t e t h a t

i s n o t

an approved d i scoun t a i r

fare

f o r t h a t

rou te or t h a t is n o t approved.

a d v e r t i s e s

t h a t

h

e

w i l l

c h a r g e

a

d i s c o u n t

a i r

f a r e

It

i s

i m p o r t a n t t o n o t e t h a t u n l e s s

the

Comrni t t e p

3 S

s a t i s f i e d

of

t h e

m a t t e r s

s p e c i f i e d

i n

s . 1 7 f 4 '

t h e

Committee

s h a l l

n o t

a p p r o v e

" t h e

p r o p o s e d

d i s c o u n t

a i r

f a r e " .

C)n

t h e

o t h e r

h a n d ,

i f

it

is

so

s a t i s f i e d

t h e r e

i s

a

d u t y

on

t h e

Committee

to

app rove

" the

p roposed

. d i scoun t

a i r

f a r e " .

To

a s c e r t a i n t h e p r o p o s e d d i s c o u n t a i r f a r e o n e t u r n s

t o

s . 3

and

s.1 7(1\ where it appears

tha t .

it

i s

a

d i s c o u n t a i r f a r e t h a t

t he

pas senge r

ope ra to r

p roposes

t o

charqe

i n

r e s p e c t

of

t r a v e l

o v e r

a n y

route.

An

o p e r a t o r

may

wish

t o

i n t r o d u c e

a

.

d i s c o u n t a j r

f a r e f o r a n i n d e f i n i t e p e r i o d

or

f o r

a

s p e c i f j e d

p e r i o d

or

p e r i o d s

commencjnq

a t o n c e

o r

on

a

f u t u r e

d a t e

o

r

d a t e s .

The period

chosen

i s ,

I

t h i n k ,

i n e v i t a h l y

an

element

of

" t h e

d i s c o u n t

a i r

f a r e

t h a t

t h e

p a s s e n q e r

o p c r a t - o r

proposes

t o charqe

i n

r e s p e c t

of

t r a v e l

o v e r "

t h e

r e l e v a n t

r o u t e .

An

a p p l i c a t i o n

for

approva l

wh ich

d id

no t

d i sc losc

\

12.

1

t he

pe r lod

du r inq

wh ich

i t was

Droposed

hy

t h e

o p e r a t o r

t o

I

cha rge

t he

d i scoun t .

f a r e

woulil

n o t ,

1

t h i n k , p r o p o s e s

s a t i s f y

t h e

requi rements

o f

s . 1 7 ( 1 ) .

T f

t h e

o p e r a t o r

t o

cha rqe

t h e d i s c o u n t h o l i d a y s

f a r e

o n l y

w i t h

r e s p e c t

t o

t r a v e l

i.n

school

o r

some p e r i o d

r e l a t i n g

t o

some

even t

t empora r i ly

a f f e c t i n g

demand

for

t - r a v e l ,

and

f a i l s t o d i s c l o s -

t h e p e r i o d

or

o c c a s i o n

w i t h

r e s p e c t

t o

which

it

i s

i n t e n d e d

t o

c h a r q e

t h e d i s c o u n t i n d e f i n i t e

f a r e

t h e n ,

a n

a p p l i c a t i o n

would

r e l a t e

t o

a n

I

p e r i o d

a n d

would

n o t

t r u l y

r e f l e c t

t h e

a c t u a l

proposal

and

would

mislead the Corrmit tee .

I t

i s

s u g q e s t e d

t h a t

a

l i m i t a t i o n

o f

t h e

p e r i o d

f o r

which

it

is proposed

t o c h a r g e

t h e

d i s c o u n t

a i r

f a r e

i s

a

m a t t e r

t o

be s e t out i n

t h e

r e q u e s t

a s

a

m a t t e r

f a l l i n q

w i t h i n

t h e

s c o p e

of

t h e e x p r e s s i o n " c o n d i t i o n s

(1f any\

under

VJhiCh

t h e

d i s c o u n t

a i r

f a r e

j s

t o

h e

a v a i l a h l e " .

S e e

i

s.l7(2)(b)

of

t he

Ac t .

I t

i s

p o i n t e d

o u t

t h a t

nolrhhere

i n t h e

s t a t u t o r y

p r o v i s i o n s

i s

t h e r e

a n y

e x p r e s s

referent-e

t o such

p e r i o d s

or

occas ions .

However

i t i s my

v i e w ,

t h a t

t h e

c o n d i t i o n s

r e f e r r e d

.

t o i n d i s c o u n t .

s.l7(2)fb\ a r e

t h e

c o n d i t i o n s

upon

which

the

p roposed

a i r

f a r e ,

~f approved,

a n d wh i l e i n f o r c e ,

i s t o he

ava i lab1 e

to

passengers .

Condi t ions

such

a s

t h e

t y p e

of

a j r c r a f t

t o

which

t h e

d i s c o u n t

f a r e

was

a p p l j c a b l e ,

or

t h e

I

ayes

of

persons

t o whcm

t h e d i s c o u n t

f a r e

would

h e a v a i l a b l e

would

bc

c o n d i t i o n s

w i t h i n

t h e

s c o p e

o f

s . l 7 ( 2 ) ( b ) .

I t

i s

\

1

!

v

1 3 .

n o t

t o be

douh

tcd

t ha t

app rova l

of

a is wi th in

cliscount a j r f a r e

t o he

charqed

dur ing

a

l imit-ed

per iod

t he

compr tencc

of

t h e

C o m m i t i e e .

The

d e f i n i t i o n

o f

t h e

r e l e v a n t

p e r i o d

i s

n o t

a

c o n d i t i o n

of

t h e

c o n t i n u a n c e

of

t h e

a p p r o v a l

a s

a n

o p e r a t i v e

a p p r o v a l .

I t

i s

n o t

i n

t h c

n a t u r e ,

f o r

i n s t a n c e ,

o f

a

c o n d i t i o n

s u b s e q u e n t

w h i c h

b r i n q s

l e g a l

r e l a t i o n s

t o

a

n

end

on

the

happeninq

of

some e v e n t .

The so ca l led

concl i t lon

i s b u t a

c o n s t i t u e n t element

of

what

i s

approved.

A t t h e end

of

t h e p e r i o d

the approva l comes

t o an

end

not

bccause

of

t h e

happening

of

some

e v e n t

b u t

because

o f

i t s

n a t u r e .

The

c r i t i c a l e l e m e n t i n t h e c u r r e n t p r o b l e m

i s

t h e l r l e n t i f i c a t i o n

o f

t h e

p r o p o s e d d i s c o u n t

f a r e .

I n

r e l a t i o n

t o

t h e

s u b j e c t

m a t t e r

t - h e r e

a r e ,

i n

a

s e n s e ,

two

k i n d s of

what may

h e

c a l l e d

c o n d i t i o n s

w h j c h c a l l

f o r

c o n s i d e r a t i o n .

F i r s t

t h e r e

a r e

t h o s e

c o n d i t i o n s

u n d e r

which,

when approva l is g iven ,

and

whi le

it

p e r s i s t s ,

a

a i r

€ a r e will

be

a v a i l a b l e

t o passenqe r s .

The

o t h c r

i s

t h e

so

c a l l e d

c o n d i t i o n

upon

which

the

Committee

miqht

be U n d e r

prepared

t o

approve

a

p r o p o s e d

d i s c o u n t

a i r

f a r e .

t h e

l a t t e r

t h e r e

would

obv ious ly

be

a

q u e s t i o n

o

f

t h e

p e r i o d

for

which

the

approva l

w a s

t o

be

g r a n t e d .

T h i s

l a t t e r

k i n d

of

" c o n d i t i o n "

i s

no t , l l r n l t a t i o n

one

t o be a p p l i e d hy t h e Commjttee by

way

of

q u a l i f i c a t i o n

o r

of

what

i s

r eques t ed

hy

t he

o p e r a t o r .

I t i s what

i s requested

which

m u s t ,

under

S . 17(Al

be

approved

or not

approvcd

and

it

i s n o t

f o r

t h e

Commil.teP

i t s e l f

t o a l t e r it.

I f

a

r e q u e s t

i s made

f o r a

f a r e t o be

.

1   14.

,

'0

.

approved ,

.

for

example ,

for

an

un l imi ted

per iod ,

and

the

Committee

i s

u n w i l l i n g

t o

g r a n t a p p r o v a l f o r t h a t p e r i o d .

hu t

i s

w i l l i n g

t o g r a n t

it

i n

r e s p e c t

o f

a

l i m i t e d

p e r i o d ,

t b e

Commlttee

may

i n v i t e

t h e

o p e r a t o r

t o

s u b m i t

an

amended

proposal . .

I f

it

does

so,

t h e

amended

proposal

m a y

he

approved .

I f

n o t ,

and

t h e Committee

remains

of

t h e same

mind ,

t h?

r eques t

w

i

l

he

l

r e fused .

The

problem

of

l i m i t i n n

or

n o t l i m i t i n g t h e p e r i o d

of

ope ra t ion -o f an approva l

i s

n o t

r e a l l y o n e what. is proposed.

of

a p p l y m g

c o n d i t i o n s .

I t

j s o n e

of

d e s i q n a t i n g

I

The words " i f

a n y "

i n

s.l7f?)(b) would b e

incongruous

i f t h e p e r l o r l s

or d i scoun t

o c c a s i o n s d u r i n g

or

o n

which

it

was

proposed

t o cha rge

t he

f a r e

were

r eqa rc l ed

a5

cond i t ions unde r

s . l 7 ( 2 \ ( h ) , because

every

proposal .

t o

cha rqe

a

d i s c o u n t

a i r

fare

m u s t ,

of

i t s v e r y

n a t u r e ,

r e l a t e

t o

a

p e r i o d

or

p e r i o d s

o r

o c c a s l o n

o r

o c c a s i o n s .

The

p e r i o d

may

b e

o f

i n d e f i n i t e

or

d e f i n i t e

d u r a t i o n

b u t

it

m u s t

e x i s t .

!*en

t h e

a p p l i c a n t

d e f i n e s

t h e

p e r i o d

i t

proposes

t o

cha rqe

an

approved

d l scount

fa re

it

i s

n o t ,

i n o rd ina ry

l anquaqe

s t a t i n g

a

c o n d i t i o n

subject

CO

which

an

approved

discount

f a r e

i s

a v a i l a b l e .

The

q u e s t i o n

i s

what

i t

was

t h a t

' c o n s t i t - u t e d

t h e

p roposa l

of

which

t h e

a p p l i c a n t

c o u l d

s a y

and

r l jd

s a y ,

"I

p r o p o s e t o c h a r q e t h i s

alr

f a r e

i n

r e s p e c t

of

a i r t r a v e l o v e r

my

route".

Tha t

f a r e

m u s t

be

i den t - i f i ed

by

r e f e r e n c e

t o

t h e

:

communica t ions

be tween

the

par t les .

The

c r i t i c a l

d o c u m e n t s

a r e

t h e

a p p l i c a n t ' s

t e l e x

of

2 3

F e b r u a r y

19F13,

t h e

,

Y

1 5 .

.

Comml t t ee ' s

t e l ex

of

2 5

February

1 0 R 3

and

the

Commlt tee ' s

t e l e x

o f

R

March

laR3.

The c r l t i c a l

q u e s t i o n

i s whe the r ,

t he

app l

l can t

was seekinq

approval

o f

a

p r o p o s a l

t o

c h a r a e

t h e

s p e c i f i e d

d i s c o u n t

f a r e

d u r i n q

t h e

p e r i o d

e n r l i n q

30

Apri l

1983

or

a

p roposa l

t o

c h a r q e t h ? d i s c o u n t f a r e i n d e f i n i t e l y .

The

t e l e x

o f

2 3

February

1943

containecl,

a

r e q u e s t

f o r

t h e

a p p r o v a l

o f

a

d i s c o u n t

a i r

f a r e

w h i c h ,

u n l e s s

nodif iecl

or

e x p l a i n e d ,

c a l l e d

for

a

d e c i s i o n of

approval

or

non-approval..

The

Committee

souqbt

fu r the r

i n fo rma t lon

wh

ich

it

cons idered

necessary

i n o r d e r

t o

g i v e

i ts d e c i s i o n .

On

75

February

1983,

it asked,

" 1 1 .

For

what

period

of

time d o you

a n t i c i p a t e

t h e

d i s c o u n t

will

be

e f f ec t ive?"

The re

j s

an

ambigu i ty

l u rk ing

i n

these

words .

They may mean

"for h p w

l o n g

d o

y o u

a n t i c i p a t e

t h a t

t h e

d i s c o u n t

w i l l

a t t - r a c t

pas senge r s

wllo

woulrl

n o t

o t h e r w i s e

t r a v e l ? " .

I t

may

mpan

" f o r how

long d o you

propose t o cha rge

t he

p

roposed

d j scoun t

f a r e s ?

' I .

Whichever

It

m e a n t ,

t h e

a p p l i c a n t

r e p l i e d

" I I .

Tr ia l

per ior l

t o 30

A p r i l ,

1983 w i t h

opt ion

t o extend

on

same

or

v a r i a b l e

basls

s u b j e c t

t o

n e q o t i a t i o n

w l t h

I A F C . "

I t

i s

n o t

s u q g e s t e d

t h a t

i n

c o n s t r u i n q

e i t h e r

t h e

q u e s t i o n

or

t h e

answer ,

he lp

i s to

he

found

i n

a n y o t h e r p a r t i c u l a r q u e s t i o n s

or

answers.

Lookina

a t t h e

words

however

it i s my conc lus ion

t h a t

on

2 5

Februa ry

t he

applicant

was

i n t i m a t j n q

t o

t h e

I

l

Committee

t h a t it proposed

t o c h a r y e

t h e

d i s c o u n t

f a r e

f o r

a

t r i a l period . endlnq

3 9

Apri;

and

i f

s a t i s f i e d

w i t h

t.he

resu l t s ,

t h e r e a f t e r

i n d e f i n i t r l y ,

and

i f

n o t

satisfied, t o

I

'V

16 .

.

nego t i a t e

w

l

th

t he

Commi t t ee

fo r

app rova l

o f

rl

d i s c o u n t

a i r

f a r e on some new and a s

y e t

u n s t a t - e d

b a s i s .

T h i s

a n s w e r

m u s t ,

J

t h i n k ,

b e

r e g a r d e d

a s

i n c o r p o r a t e d

i n

t h e

r e q u e s t .

Accord inq ly

t he

r eques t

has

t o

be

cons t rued

as

a

rccluest ,

i n

accorr?ance

with

S . ] 7, f o r t h e a p p r o v a l

of

a

d i s c o u n t a i r f a r e

t h a t

t h e

a p p l i c a n t

p r o p o s e d

t o

c h a r a e

d u r i n q

t h e

p e r i o d

ending

30

A p r i l

1953 h u t

i n

r e s p e c t

of

which

it

d j d

n o t ,

at

t h e d a t e Whether

o f

t h e

r e q u e s t ,

o t h e r w i s e

p r o p o s e

t o

c h a r q e .

it

e v e r

w o u l d

p r o p o s e

t o

c h a r g e

t h e

f a r e

i n

c o n t e m p l a t i o n a f t e r

3 0

A p r i l

1 0 8 3 was

q u i t e

u n c e r t a i n .

So

f a r

!

a s t h e r e

i s

r e f e r e n c e

t o

a

f u t u r e a p p l j c a t i o n

for

a

v o r j a t i o n

on t h e r e l a t e s t o

p r o p o s a l

s u c h

r e f e r e n c e

may,

I

t h i n k ,

h e

i q n n r e d .

I t

mere

f u t u r e p o s s i b i l i t i e s .

I t

i s

t o b e n o t e d t h a t l f

a

p roposed i i l s coun t

r a t e

is

a p p r o v e d

e i t h e r

f o r

a

s p e c i f i e d

p e r i o d

or

i n d e f i n i t e l y

t h e

I

o p e r a t o r

i s

not

obllged

by

law

t o

c o n t i n u e

t o

c h a r q e

t h a t

f a r e .

T h a t

would

seem

t o

follow

froT t h e

p r o v i s i o n s

of

s . 2 6 f 6 )

which

].ay

the

founr l a t jon

fo r

t he

impos i t i on

o f

a

s a n c t i o n

upon

an ope ra to r

who

charqes an un-approved djscount

fa re .

There

1s no

sanct ion

provir

ler

l

for d i s c o u n t

charging

an

approved

economy

f a r e

i n s t e a d

of

a n

a p p r o v e d

f a r e .

N o t w i t h s t a n d l n q

t h i s

I

t h i n k

t h a t

l n

c o n s t r u i n a

t h e

commuT1ications

b e t w e e n

t h e

p a r t i e s

t h i s

f e a t u r e

i s

n o t

o f

importance.

I t i s not t o

h e

t h o u g h t

t h a t

t h e

a p p l i c a n t

and

t h e Committee were

speaklnq

of

an

approval

t o

he

qiven

o the rwlse

t han

as an

approval

t o

h e

i m p l e m e n t e d .

W i t h e r

h

!

I

1

17.

' V

I

party would express its attitude

on any othor hasis. It

I

would he most inconvenient that an approval should continue in €orce when it was iqnored. A l s o the criteria specifjril in

s.17(4) could not satisfactorily be considerad on any such

basis. Almost i nevitably neqotiations €or anproval must

proceed on the basis that an approval sought is souqht to be

implemented.

The applicant's proposal. contains two el.ements.

The

applicant states, in an absolute sensc, that, it proposes to chars.? the discount fare durinq the period ending 30 April

I

lq83. It a1.so states that it proposes to charqe the discount

fare thereaft-er if the trial period turns out satisfactorily to it. It is my view that S .l7 is not concerned with proposals which are only conditional. The Comvlttee 5s not required CO give a decision under s . 1 7 ( 4 ) in rei-ation to a discount fare which the appllcant proposes to charqe only If some condition is fulfil1 ed. Save in so far as the proposal related to the period expirinq on 30 April 1 0 8 3 it was a proposal to charge the discount fare if the applicant was

satisfled

wlth the results obtained

in

the

trial perlod.

:

.

There was not before the

Committee a proposal to charge that

disc0ur.t fare.

When the applicant referred to an "option to extend

on the same or variable hasis subject to neqotiation wlth

I A f C " it expressed an lntent.3on that the period in wliich the

1R.

d i s c o u n t

f a r e

was

t o be

charged

was t o come t o an end u n l e s s

t h e

a p p l l c a n t

c h o s e

t o

e x t e n d

t h e

per lod .

I t

i s

t h e

word

“opt ion“

which

1 s

so

c r i t i c a l .

Of

c o u r s e

it

was

necessa ry

t h a t t h e p r o m p t l y a f t e r t h e

d e c i s i o n

t o

approve

or

n o t

approve

should

he

made

Committee

had

t h e i n f o r m a t i o n

i t r e q u i r e d .

l

A t

t h a t

s t a g e

it

r e q u l r e d

a

des iqna t - ion o f . t h e

t r a v e l

i n

r e s p e c t

of

wh ich

t he

r eques t

was

made.

I t

c o u l d

n o t

d e a l

w i th

a

r e q u e s t

w h i c h

d e a l t

w i t h it was a f a r e

a

d i s c o u n t

a i r f a r e

of which

it

cou ld

no t

be

s a i d

t h a t

t h a t

the

a p p i i c a n t

a c t u a l l y

p r o p o s e d

t o cha rge .

Under

t h e ~ r o v i s i o n s o f

s.17(4)

t h e

i n t r o d u c t i o n

of

an

a i r

f a r e

h a s

t o he

consir lercd

with

r e s p e c t

t o

t h e

p r o f i t a b i l l t y

o f r e s u l t i n q

t h e

a p p l l c a n t

a n d

t h e

l i k e l i h o o d

of

s u c h

i n t r o d u c t i o n

j n

a n

i n c r e a s e

of

e x i s t i n g

economy

a i r

f a r e s

o

f

a n y

t r u n k

r o u t e

o p e r a t o r

o v e r

i

I

t r u n k

routes .

I t

i s a p p a r e n t a

d i s c o u n t

a i r

f a r e

w h i c h

m i g h t

1

I

or

might

no t

be

a d o p t e d

b y

a n

a p p l i c a n t

f o r

a n y

p a r t i c u l a r

i

I

!

p e r i o d

would

p r e s e n t

d l f f 1 c u l t i e s

i n

a s s e s s i n q

t h e

e f f e c t s

I

l

t h e r e o f

f o r

t h e

p u r p o s e s

of

S. 1 7 ( 4 ) .

T t

i s

h a r d l y

s u c h

a s

I

c a n

be

t h o u g h t

t o

h e

wi t h i n

t h e

c o n t e m p l a t i o n

o f

t F e

l e g i s l a t u r c .

Such

a

d i s c o u n t .

f a r e

c o u l d

b a r r l l y

f i t

t h e

c o n c e p t

of

“ t h e

i n t r o d u c t i o n

o f “

t h e

d i s c o u n t

f a r e

i n

accordance wi th

S. 17

( 4 ) ( a ) and

f b )

.

!

The

p r o v i s i o n s

i n

s.l7(51(h)

a p i l

s . 1 7 f f i )

c o n f e r r i n g

on

t h e

C o m m i t t e e

t h e

power

t o

r e v l e w

t h e

a v a j l a b i l i t y

o

f

a

n

a p p r o v e d

d i s c o u n t

a i r

f a r e

r e q u i r e

c o n s i A e r a t . j o n .

R u t

I

do

n o t

t h i n k

t h e y

a f f e c t

t h e

c o n s t r u c t i o n

of

s.17(1)(?)(3\

and

J

'F

l Q .

c

( 4 ) .

The

p r o v i s i o n s

f o r

r e v i e v

arc? r e l e v a n t

t o

t h e

s i t u a t i o n

which

a r i s e s where

a

d i s c o u n t

a i r

f a r e

h a s

h e e n

a p p r o v e d

i n

r e s p e c t

o f

a

p e r i o d

e l t h e r

f l x e d

or

i n ? e f i n i t e

i n

d u r a t i o n ,

and t h e r e c a l l s f o r r e c o n s i d e r a t i o n

i s

a

chanae

i n

t he

r e l evan t

c i r cums tances

wh ich

of

t h e s i t u a t i o n .

I t

was

a rgued

t ha t

t he

form

and

subs t ance

of

t h e

approval

was

t h a t

t h e

Committee

approved

t h e

a p p l i c a n t ' s

p r o p o s a l

f o r

a n

i n d e f i n i t e

p e r i o d ,

s u b j e c t

t o

a

c o n d j t i o n ,

t h a t

t h e

a p p r o v a l

was

n o t

t o c o n t i n u e heyonr?

30

A p r i l

l q R 3 .

I t was

s a i d

t h a t

t h e r e

was

no

s t a t u t o r y

a u t h o r i t y

t o

impose

such

a

c o n d i t j o n

a n d

t h a t

bc inq

so,

t h e

c o n d i t i o n

was

void

and

the

approva l

for

an

i n d e f i n i t e

p e r i o d p e r s i s t e d .

The form

of

the

approval

may

l e n d

s u p p o r t

t o

t h i s

!

view.

B u t

J

t h l n k

t h a t

on

reading

the

document

a5 a whole,

and

i n

t h e

c o n t e x t

o f

t h e

f o r e q o i n g

t e l e x

m e s s a g e s ,

it

approves

the

c h a r a i n q

o f

t h e

d i s c o u n t

f a r e

o n l y

f o r

t h e

s t a t e d

p e r i o d .

I

do

n o t

r e a d

it

a s

an

approval

for

an

i n d e f i n i t e p e r i o d w i t h a n

i n c o n s i s t e n t

and

unlawful

condi

t

ion

a t t a c h e d

thereto.

Of

c o u r s e

j f

t h e

r e q u e s t

r e l a t e d

t o

a

.

p roposa l

t o

c h a r g e

t h e

d i s c o u n t

f a r e

f o r

a n

i n d e f i n i t e

perlod, and t h e

a p p r o v a l

was

q r a n t e d

i n

r e s p e c t

of

a

pe r iod

ending on 3n Apri l 1983, t h e

s i t u a t i o n

would

he

t h a t

t h e

Commit tee

had

fa j lcd

t o

a p p r o v e

" t h e

p r o p o s e d

d i s c o u n t

a i r

f a r e " .

B u t

it

is

my

v i e w

t h a t

t h e

C o m m i t t e e

c o r r e c t l y

in t ended

t o dea l

on

ly

w i th

t he

uncond i t iona l

p roposa l

be fo re

.-

-

I

*

; ‘F

m.

.y

il, namely,

the proposal

t o ch r l rqe

t he

d i scoun t

f a r e

d u r i n q

the

per iod

ending

30 Apr i l 1083.

It remains t o observe

tha t

whichever

way

the

p

roblem

i s approached it is fundamenta l

tha t

a11

tha t

was

approved o n

l

F! March 1983

was

“the

above

d j s c o u n t

f a r e ? .

The

above

d iscount

fa re

was ,

accorc i inq

to the terms of

t h e

t e l e x

of

t h a t

d a t e ,

t h a t

for

which

approval

was

requested,

“with

suppor t lng

detai ls

of

p roposed

d i scoun t

f a r e

o f

S130.00

of

round

t r i p o r i g i n a t i n g

j n Syrlney

or

Melbourne

over

the

rou te

Melbourne/Alhury/SyAney

on

F27

a i r c r a f t . ” .

Aqain

one

m u s t

r e t u r n

t o

I d e n t i f y

t h e

p r o p o s e r ?

4 i s c o u n t

f a r e .

And

t h a t

f a r e

appears

t o

he

t h a t

w h i c h

t h e it proposed t o

a p p l i c a n t

h a d

s t a t e d ,

an?

t r u t h f u l l y

s t a t e d ,

t h a t

c h a r q e

i n

r e s p e c t

of

a i r

t r a v e l ,

narne1.y

i n

r e s p e c t

of

t r a v e l

d u r i n g

t h e

p e r l o r l

ending 30 A p r i l 1oP3.

Accordinqly,

1 do n o t t h i n k i t open t o

I

c o n s t r u e t h e a p p r o v a l

e x p r e s s d

i n the

Commit tee‘s

t e lex

o f

8

March 1963 as an

approval

opera t ing

for

an

i n d e f i n i t e

p e r i o d

w i t h

r e s p e c t

t o

rl

d i scoun t .

r a t e

with

a n

i n c o n s i s t e n t

c o n d i t i o n a t t a c h e d .

I f , a s I

t h i n k ,

t h e

p r o p o s e d d i s c o u n t

fare was

a

f a r e

i n r e s p e c t of

which

the

o n l y

e x i s t i n q

p r o p o s a l

was

t o charge

It u n t i l 30 April 1°A3,

t h a t i s a l l , on

any

vlew,

t h a t was,

or could be, approved.

Thp f a c t

t h a t

t h e

l i m i t a t i o n

of

t h e

p e r l o d

i n

t h e

p r o p o s a l

was

s t a t e d

a s

a

c o n d i t i o n

o r

r e s t - r i c t i o n

should

be

reaarded

3 s

e x e q i t i c a l

or

by

way

o f

Q

3 1 .

' 'F ' v .

emphasis,

b u t it would

n o t

e n l a r q e

t h e

l e g a l

e f f e c t

o f

t h e

a c t u a l words

of

approval .

On

i t s proper

c o n s t r u c t i o n it

does

n o t o p e r a t e s t a t e s t h e quantum

b y

way

of

de feasance

of

something

qranted.

I t

of

what

was

qran ted .

As

a

r e s u l t

t h e

s i t u a t i o n

i s

n o t

o n e

r a i s i n q

c o n s i d e r a t i o n s

o f

t h e

s e v e r a b i l i t y o r o t h e r w i s e o f t h e t i m e

1 i m i t a t j o n .

I f ,

c o n t r a r y

t o

the

v i ew

expre-ssed

above,

it were

t h a t

t h e

p e r i o d

d u r i n q

w h i c h

t h e

o p e r a t o r

d e s i r e d

t h e

approval

OF t h e

d i s c o u n t

f a r e

t o a v a i l a b i l i t y

remain

i n w i t h i n

o p e r a t i o n ,

o u q h t

t o be

regarded

as

a

c o n d l t i o n

o f

t h e

!

meaning of s.17f2)(b) of t h e Act,

t h e n jt. would

fo l low, a s

l

i n d i c a t e d

a b o v e ,

t h a t

i t

i t s e l f

w i t h

a l l

o t h e r

s u c h

c o n d i t l o n s .

c o n s t i t u t e d

t h e

d i s c o u n t

a i r

f a r e

p r o p o s e d

t o be

!

c h a r g e d

i n

r e s p e c t

oE t r a v e l o n t h e

r e l e v a n t

r o u t e .

T t would

f o l l o w

t h a t

i f

t h e

r e a u e s t

w e r e

g r a n t e d

t h e

o r a n t

w o u l d

o p e r a t e

i n r e s p e c t

of

a

f a r e proposed

to be

charsef i d u r i n g

t h e

s t a t e d

p e r i o d .

I n

t h a t

c a s e

t h e

l a n q u a q e

of

t h e

t e l e x

of

8 March

19R3

s t a t i n g

t 5 e

time

limit

as

a

c o n d i t i o n wou1.d

a c c o r d

l i t e r a l l y

w

i

t

h

t h e

t e r m s

o f

t h e

p r o p o s a l

a s

I

have

i n t e r p r e t e d

it

w i t h

i t s

i n - b u i l t

t 3 m e

1 i m i t .

So

t o

e x p r e s s

t h a t

" c o n d l t i o n "

would

be

w i t h i n

t h e

l e o a l

c&mpetc.nce of

t h e

Commj t t e e .

I t

w o u l d

n o t

o p e r a t e

as

a

q u a l - i f i c n t i o n

o r

modif lcat- ion of

t h e

t e r m s

o f

t h e

r e q u e s t

or

t h e

a p n l i c a n t ' s

proposal..

1L

2 2 .

which T

a r r i v p i s t h a t on Q March

1'787 t h c Cornmittre

apnro-rr3

a

d i s c o u n t

a i r

f a r e

o n

s n e c i f i e d

c o n d i t i o n s

w h i c h

t h e

app l i can t

p roposed

t o

c h a r q e

i n

r e s p e r t

of

t h e

s p e c i f i e d

r o u t e

r l u r ina

t he

pe r iod

e n d i n q

on

7 0

Apri l

1983

and

n o

1 oncler.

The

a p p l i c a t i o n

m u s t

t h e r e f o r e

b e

d i s m i s s e d

w i t h

costs.

i

I

l '

.

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