GR 405
PRIORITY
CYPHER CAT A
FM HONG KONG 050752Z
CONFIDENTIAL
CONFIDENTI AL....
TO PRIORITY F C O TELNO 1226 OF 5 DECEMBER 1977
INFO PRIORITY SINGAPORE.
FOR D O T.
UK/SINGAPORE AIR SERVICES.
HKK 184/3.
H..........PLO A REGISTRY NO. 51
6 DEC 1977
DESK OP:17
INDEX
"PA
Acton Take
WITH REGARD TO SIA PROPOSAL TO CPA FOR JOINT TRANS-PACIFIC OPERATION, SOME INFORMATION IS NOW AVAILABLE FOLLOWING MEETINGS BETWEEN BLUCK OF CPA AND LIM CHIN BENG MANAGING
DIRECTOR OF SIA.
2. THE MAIN FEATURES OF THE SIA PROPOSAL ARE AS FOLLOWS: (A) SIA WOULD PURCHASE THREE 747 200 AIRCRAFT WITH G E ENGINES FOR POSSIBLE AVAILABILITY APRIL 1979:
(B) THERE WOULD BE A DAILY SERVICE CONSISTING OF FOUR FLIGHTS PER WEEK BY SIA ON A ROUTE SIN/HKG/HNL/SFO OPERATING UNDER SINGAPOREAN'S TRAFFIC RIGHTS AND THREE FLIGHTS PER WEEK BY CPA ON A ROUTE HKG/TYO/LAX ON UK TRAFFIC RIGHTS:
(C) ONE OF THE THREE AIRCRAFT MIGHT BE REGISTERED IN HONG KONG AND WOULD BE IN CPA COLOURS. THIS AIRCRAFT WOULD NORMALLY TAKE THE . CPA FLIGHTS AND WOULD HAVE CPA FLIGHT AND CABIN CREWS:
(D) MAIN BASE ENGINEERING WOULD PROBABLY BE IN SINGAPORE, WITH SOME LINE MAINTENANCE IN HONG KONG:
(E) COSTS AND REVENUE WOULD BE POOLED WITH EQUAL SHARES BUT CARRIERS WOULD BEAR THEIR INDIVIDUAL MARKETING COSTS:
(F) THE CONTRACT PERIOD WOULD PROBABLY BE 5 YEARS, FAVOURABLE ON A REASONABLE PERIOD OF NOTICE.
3. CPA BELIEVE THAT THE REASONS BEHIND THE SIA PROPOSAL ARE: (A) A DAILY SERVICE IS NEEDED TO MAKE A, TRANS-PACIFIC OPERATION
VIABLE:
(B) CPA MARKETING COULD MAKE IMPORTANT CONTRIBUTION TO WHAT WOULD EFFECTIVELY BE A HONG KONG ORIGINATING TRANS-PACIFIC SERVICE: (C) SUCH CO-OPERATION WITH CPA WOULD LESSEN OUR CONCERN OVER EARNINGS IMBALANCE.
CONFIDENTIAL
/4. CPA HAVE