PPIORITY
CYPHER CAT A
FMF CO 2018152
CONFIDENTIAL
(A & TD)
SYLFIDENTIAL.
TO PRIORITY GOVERNOR HOAC KONG TELNO 262 OF 29 PARCH, HIFO SCARFE HUG RUNG.
YOUR TELEGRAM HUMBER 229 AND MY NUMBER 244 AIR FARES.
1. THE DTI HAVE DISCUSSED YOUR POINTS FULLY WITH BOAC.
2. YOUR PARAGRAPH 2. AS YOU WILL BE AWARE, FULL REGARD HAS TO DE PAID IN APPLYING DIFFERENTIAL PRICING TO ALL THE CHARACTERISTICS OF THE PARTICULAR ROUTE CONCERNED. TYPES OF TRAFFIC AND TRAFFIC POTENTIAL IN PARTICULAR HAVE TO BE CONCIDERED CAREFULLY IN DEVISING PRO-OTIONAL FARES AND CARE HAS TO BE TAKEN TO AVOID UNDJE REVENUE PILUTION. NORTH ATLANTIC ROUTES HAVE CO PLETELY DIFFERENT CHARACTERISTICS FROK ANY OTHER GROUP OF ROUTES IN THE WORLD.
3. THE PROMOTIONAL FARES DEVISED FOR LONDON/HONG KONG HAVE BEEN REASONABLY SUCCESSFUL IN PRO NOTING NEW TRAFFIC. FOR INSTANCE IN THE PERIOD APRIL TO DECEMBER 1971, THE ADVANCE PURCHASE EXCURSION (APEX) TARES HAVE BEEN USED BY NEARLY 907 PASSENGERS, AND THESE PASSENGERS FORM ABOUT 71 OF TOTAL TRAFFIC. THE PROPOSED REDUCTION IN THESE FARES FROM £109 TO £187 AND LIBERALISATION OF CONDITIONS (FOR EXAPLE ONE MONTH'S RT J. ADVANCE BOOKING INSTEAD OF TWO) WILL UNDOUSTEDLY PRODUCE EVEN ORE TRAFFIC.
4. OF THE TOTAL TRAFFIC BETWEEN APRIL AND DECEMBER 1971, OVER 725 TRAVELLED AT THE VARIOUS PROMOTIONAL FARES AND TRAFFIC CREASED OVER THE SAME PERIOD OF THE PREVIOUS YEAR BY NEARLY 294. THESE FIGURES DEHORSTRATE THAT PROMOTIONAL FARES BETWEEN HONG KONG AND UK PO PRO OTE TRAFFIC.
5. ON YOUR PARAGRAPH 3, WE HAVE 4 POINTS. FIRSTLY, FOR ADVANCE PURCHASE FARES THE UK RESIDENT WILL HAVE TO BOOK 3 'ONTHS AHEAD FOR A VALIDITY OF 19/45 DAYS, WHEREAS THE HONG KONG RESIDENT WILL HAVE TO BOOK ONLY ONE ONTH AHEAD FOR A VALIDITY OF 19/30 DAYS. SECONDLY, THE WELATIVES OF PCSIDENTS FARES ARE AVAILABLE TO ALL HONG KONG R RESIDENTS WISHING TO BRING RELATIVES OUT, BUT NOT TO UK RESIDENTS. THIRCLY, THE LOW PRICED CHARTER FACILITY IS RESTRICTED TO A VERY
CONFIDENTIAL
/LIMITED NUMBER