N/R.
154
GR 612
PRIORITY
CHER CAT A
FM WELLINGTON 240535Z
CONFIDENTIAL
CONFIDENTIAL
HKK. 18/
27 FEB 1978
INDEX
NO
TO PRIORITY F C O TELNO 53 OF 24 FEBRUARY 1978
INFO GOVERNOR HONG KONG.
OUR TELNO 43: UK/NZ AIR SERVICES.
1.
X OFFICES
脱い
PA
Aton
YESTERDAY'S DISCUSSIONS WERE MAINLY TAKEN UP WITH A DETAILED
EXAMINATION OF THE MECHANISM FOR MATCHING CAPACITY TO DEMAND WHICH WE HAD TABLED. DETAILED EXAMINATION SHOWED THAT, APART FROM THE PROBLEM OF THE INITIAL IMPACT OF CPA'S INTRODUCTION ON TO THE HKG-AKL ROUTE, WE APPEARED TO HAVE REASONABLY MET NEW ZEALAND GOVERNMENT'S ANXIETIES, ALTHOUGH THROUGHOUT THE DISCUSSION ANZ REMAINED UTTERLY INTRANSIGENT AND EVEN REFUSED TO PRODUCE ANY FIGURES TO SET BESIDE THOSE WE HAD PRODUCED. IT WAS LEFT THAT NEW ZEALANDERS WOULD CONSIDER, OVERNIGHT, SOME WAY OF OVERCOMING THE REMAINING HURDLE.
2. IT SOON BECAME CLEAR TODAY THAT AFTER FURTHER DISCUSSIONS BETWEEN NEW ZEALAND OFFICIALS AND ANZ, NZ SIDE WERE NOT PREPARED TO ACCEPT THE CONCEPT OUTLINED IN PARA 3 OF TEL UNDER REFERENCE. THEY WERE QUITE ADAMANT THAT CPA SHOULD NOT COME ON TO THE HKG-AKL ROUTE UNTIL AFTER ANZ HAD INCREASED THEIR CAPACITY TO 3XDC10S AND WERE OPERATING AT A 63 PERCENT SEAT FACTOR. THEY
REHEARSED ALL THEIR ARGUMENTS THAT THIS WAS JUSTIFIED IN THAT ANZ CAPACITY OF 3XDC1ØS BALANCED THE BA CAPACITY OF 2XB747 ON
THE TRUNK ROUTE.
3. ROGERS STATED CATEGORICALLY THAT WE WERE NOT SEEKING A MONOPOLY ON THE TRUNK ROUTE AND HE WAS NOT PREPARED TO COUNTENANCE ANZ EXERCISING A MONOPOLY ON THE HKG-AKL ROUTE OTHER THAN FOR A VERY LIMITED PERIOD: HE WOULD NEED A GREAT DEAL OF PERSUADING TO EXTEND THIS PERIOD BEYOND 39 SEPTEMBER 1978. FURTHERMORE HE STATED THAT HE COULD NOT ACCEPT THAT ANZ SHOULD INCREASE THEIR CAPACITY TO 3XDC13 BEFORE CPA CAME ON TO THE ROUTE. ON THE CONTRARY CPA SHOULD BY DEGREES INCREASE THEIR CAPACITY TO 2XL1011 BEFORE ANZ WAS PERMITTED ANY INCREASE IN ITS CAPACITY. WE WERE ANXIOUS NOT TO SWAMP THE ROUTE WITH CAPACITY AND OUR PROPOSALS WERE DESIGNED TO ENSURE THIS.
CONFIDENTIAL
/4. IT