GR 160
IMMEDIATE
CONFIDENTIAL
PA
HKK 18+ |3
(79)
CYPHER CAT A
FM HONG KONG 231024Z
CONFIDENTIAL
No
TO IMMEDIATE F C O TELNO 1191 OF 23 NOVEMBER 1977
INFO IMMEDIATE TOKYO, SEOUL, MANILA, BANGKOK, SINGAPORE.
PLEASE PASS TO DOT AND CAA.
DOT TELNO ALLOT 1373 TO TOKYO OF 22 NOVEMBER: PAN AM TRANS-
PACIFIC BUDGET FARES.
WE ARE ADVISED THAT THE FARES HAVE BEEN FILED IN ALL THE ASIAN COUNTRIES CONCERNED, WITH THE EXCEPTION OF TAIWAN WHERE IT IS INTENDED THAT THEY WILL BE FILED IN THE NEAR FUTURE.
2. AS REGARDS PARA 2 OF THE TELEGRAM UNDER REFERENCE, IN OUR VIEW THE LIMITATION ON THE NUMBER OF SEATS TO BE OFFERED AT THIS LOW FARE (400 PER WEEK IN EACH DIRECTION) WOULD BE UNLIKELY TO CREATE PROBLEMS ARISING OUT OF THE QUOTE SUDDEN AND SUBSTANTIAL REDUCTION IN FARES UNQUOTE: IN SUPPORTING THE NEW FARES WE TOOK INTO ACCOUNT TO THE BEST OF OUR ABILITY THE VARIOUS CONSIDERATIONS WHICH EXIST IN CONNECTION WITH LOW FARES AND THE RESULTANT YIELDS. THE NUMBER OF SEATS IS SUCH PROPORTION OF THE TOTAL SEATS ON OFFER OR SOLD THAT THE NET YIELD REDUCTION IS LIMITED AND IN FACT THERE MAY BE NO REDUCTION AT ALL UNDER CERTAIN CIRCUMSTANCES. THE INTRODUCTION OF THESE LOW FARES IS AN ATTEMPT BY PAN AM TO COMPETE WITH THE DE FACTO FARES BETWEEN HONG KONG AND THE USA WHICH ARE READILY AVAILABLE FROM CERTAIN AIRLINES.
CONFIDENTIAL
13. IF ANY