PRIORITY
CYPHER/CAT A
GR 325
FM HONG KONG 160703Z
CONFIDENTIAL
CONFIDENTIAL
TO PRIORITY F.C.O TELNO.1268 OF 16 DECEMBER 77,
INFO SINGAPORE.
FOR DOT.
HKK
184
114
•OP...
C
19 DEC W
INDEX
No la
YOUR TELNO.ALLOT 143: U.K/SINGAPORE AIR SERVICES.
1. CPA ESTIMATE THAT ELIMINATION OF THE ONCE WEEKLY SIA FREIGHTER SERVICE HKG/SIN WILL RESULT IN A REDUCTION IN SIA'S EARNINGS BY THE ORDER OF U.S DOLLARS 40,000 (40,000) PER MONTH AND A GAIN TO CPA OF ROUGHLY THE SAME, BEARING IN MIND THAT SIA AND CPA PRESENTLY OPERATE THE FREIGHTER SERVICE ON THE SAME DAY. IT IS ALSO ESTIMATED THAT SIA'S 5TH FREEDOM EARNINGS TRANS-PACIFIC WILL BE THE ORDER OF U.S DOLLARS 50,000 (50,000) PER MONTH: THIS IS
BASED ON PAN AM DATA OVER THE CENTRAL PACIFIC ROUTE AND LIKELY
YIELDS.
2. THERE IS THEREFORE AN INCREASE IN THE SIA 5TH FREEDOM IMBALANCE BUT EMBRACED WITHIN AN OVERALL TOTAL ADVANTAGE TO CPA. THE
PROPOSALS COULD BE SEEN AS STRENGTHENING THE POSITION SHOULD WE WISH ADDITIONAL 5TH FREEDOM CARGO RIGHTS EX SINGAPORE IN THE
FUTURE.
3. THE POINTS MADE IN PARAGRAPH 2 OF MY TELNO.1205 OF 26 NOVEMBER STILL APPLY. A DEAL ON THE BASIS PROPOSED IS IN HONG KONG'S
GENERAL INTERESTS AND HAS OUR SUPPORT.
4. SIA HAVE NOW FILED THEIR SCHEDULES FOR THE PERIOD 1 JANUARY TO 31 OCTOBER 1978. THE SCHEDULES INCLUDE THE PROPOSED TRANS- PACIFIC FREIGHT SERVICES FROM 1 APRIL 1978 WITH 707F AIRCRAFT DEPARTING SIN 0215 LT WEDNESDAY AND SATURDAYS ARRIVING HKG 0625 AND DEPARTING 0745, TO GUM/HNL/SFO.
GUM/HNL/SFO. THE SCHEDULES DO OF COURSE ALSO SHOW THE ONCE WEEKLY 707F SERVICE SIN/HKG/SIN WHICH WE NOW SUGGEST SHOULD BE TAKEN OFF IN ORDER TO PROVIDE THE ACCEPTABLE
SOLUTION.
5. WE AGREE WITH PARAGRAPH 4 OF YOUR TEL UNDER REF, AND AWAIT
YOUR FURTHER ADVICE.
ROBERTS
FILE S:
H K & G D (5).
SEAD MAED
[COPIES SENT TO CAD/DOT]
MR STRATTON
MR BURROWS
CONFIDENTIAL