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5. ON 3/4TH FREEDOM EARNINGS, CPA EXPECT TO BE OUT-EARNED BY ANZ
BECAUSE OF THE ATTRACTIONS OF A DIRECT ROUTE AND A WIDE-BODI AIRCRAFT. BASED ON 120 PASSENGERS AND 2,500 KGS OF CARGO PE ROUND TRIP FLIGHT FOR CPA AND 240 PASSENGER AND 3,750 KG OF CARGO FOR ANZ, AND ASSUMING THE SAME OPERATING PATTERN IN PARA.4, THE COMPARATIVE 3/4TH FREEDOM EARNINGS A YEAR WOULD BE CPA U.S DOLLARS 8,268,000 (8,268,000): ANZ U.S DOLLARS 16,146,000 (16,146,000).
6. WE CERTAINLY HOPE TO OBTAIN FOR CPA EQUAL TREATMENT WITH ANZ ON THE 3/4TH FREEDOM SECTOR SO THAT PROVISION IS MADE FOR TWICE-
WEEKLY SERVICES BY A WIDE-BODIED AIRCRAFT FOR BOTH SIDES. AS TO
FURTHER CAPACITY WE SUPPORT THE ESTABLISHMENT OF A POOL AGREEMENT WITH PROVISION FOR AN ESCALATION OF FREQUENCY/CAPACITY RELATED TO
A POOL PLANNING LOAD FACTOR AROUND SIXTY FIVE PER CENT. WE WOULD
HAVE NO OBJECTION TO ANZ TAKING THE FIRST SUCH INCREMENT I.E THE FIFTH FREQUENCY.
7. ON 5TH FREEDOM SECTORS, IT WOULD APPEAR REASONABLE TO TRY AND
RESTRICT ANZ TO ONE SERVICE WEEKLY WITH TRAFFIC RIGHTS AND HOPE THAT THE IMBALANCE OF EARNINGS ARISING FROM THIS WOULD BE SUFFICIENT TO BUY A TRUNK ROUTE FOR B.A (ALWAYS SUPPOSING THAT ANZ DO NOT PUT IN A BID FOR A TRUNK ROUTE TO LONDON). IF THIS
PROVES NOT TO BE THE CASE, WE WOULD GO SO FAR AS TO CONCEDE A TWICE WEEKLY DC-10 SERVICE WITH TRAFFIC RIGHTS ON THE HONG KONG/ TOK YO SECTOR. SHOULD THE NEW ZEALANDERS HAVE A DIFFERENT 5TH
FREEDOM POINT ON THEIR SHOPPING LIST INSTEAD OF TOKYO, OUR VIEWS
WOULD APPLY EQUALLY TO THAT POINT.
8. WE HOPE THAT ANZ DO HAVE AMBITIONS TO GO WESTABOUT (OR EASTABOUR VIA USA FOR THAT MATTER) TO LONDON SO THAT A BALANCED AGREEMENT CAN BE REACHED WITH RIGHTS EXCHANGED SEPARATELY ON THE TRUNK AND THE REGION. IN SAYING THIS, WE WISH ALSO TO AVOID A MALAYSIAN TYPE SITUATION WHERE TRUNK RIGHTS WERE BOUGHT FOR B.A
BY REGIONAL CONCESSIONS AT THE EXPENSE OF CPA NOTWITHSTANDING
THAT THE PACKAGE INCLUDED A TRUNK ROUTE FOR THE OTHER SIDE
(OSTENSIBLY FOR POLITICAL REASONS BUT IN FACT TAKEN UP SOON AFTER THE AGREEMENT WAS SIGNED).
MACLEHOSE
FILES
MAED
SWPD
HK & GD
[COPIES SENT TO CAD/DOT]
MR BURROWS MR MURRAY
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