4. THE ABOVE FIGURES TAKE NO ACCOUNT OF GROWTH, NETTHER DO THEY TAKE ACCOUNT OF THE FACT THAT THAI INTERNATIONAL MAY COME MORE INTO THE JKT HKG MARKET NOW THAT THEY HAVE MORE CAPACITY BETWEEN BKK HKG. THE DISAPPEARANCE OF PAA AND JAL FROM THE ROUTE WILL SO HAVE SOME SMALL EFFECT BUT ALL IN ALL THE PICTURE IS NOT LIKELY TO BE MUCH DIFFERENT FROM THAT PAINTED IN PARAS 2 AND 3.
5. THIS HAS THE MAKINGS OF A RECIPE FOR HEAVY FARE DISCOUNTING,
SIN
JKT
6. WOULD IT NOT BE IN CPA'S COMMERCIAL INTEREST TO MAKE A MORE GRADUATED APPROACH TO CAPACITY INCREASES MORE IN KEEPING WITH TRAFFIC DEMAND. SAY INITIALLY 4XL1011 WITH FULL RIGHTS AND
KUL UNRESTRICTED CAPACITY HKG
JKT PLUS 3 X B707 HKG PER, BEING MATCHED BY GARUDAS 4 X DC10 JKT - HKG PLUS 3 X DC8 DPS HKG (OR POSSIBLY EVEN 3 X DC10 IF THAT WAS CONSIDERED AN ACCEPTABLE DEAL). INCREASES COULD THEN BE CONSIDERED IN THE COURSE OF NORMAL POOL DISCUSSIONS AND IF AGREED BETWEEN THE AIRLINES COULD BE MOUNTED SUBJECT TO GOVT APPROVAL.
7. IT APPEARS THAT GARUDA HAS LOST INTEREST IN SERVICES BEYOND HKG TO JAPAN, PRESUMABLY BECAUSE THEY CANNOT GET CORRESPONDING RIGHTS FROM THE JAPANESE. IF HOWEVER THEY WERE TO RESUME AN INTEREST AND SEEK PERMISSION FOR SOME OR ALL OF THEIR SERVICES TO GO BEYOND HKG TO JAPAN WE WOULD NOT BE IN FAVOUR OF CONTINUING TO GIVE THEM A CAPACITY ADVANTAGE ON THIRD/FOURTH. IF THE INDONESIANS CONTESTED THIS WE COULD POINT TO THE CONSIDERABLE FINANCIAL BALANCE IN THEIR FAVOUR, WHEN THEY OPERATED BEYOND HKG AND ALSO HAD A CAPACITY ADVANTAGE.
8. FOR BCARFE. IF THE INDONESIANS SHOULD RAISE ANY TRUNK ROUTE PROPOSALS YOU SHOULD SAY THAT YOU ARE NOT PREPARED TO DISCUSS THEM.
9. YOUR TEL ALLOT 32. CONCUR IN GRADED APPROACH SUGGESTED IN ALLOT 4.
NNNN