CODE 18. 17
Goodenough
Mr Morland
Mr Burrows
Reference....
#KK 184/1.
REGIVE
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UK/NEW ZEALAND AIR SERVICES AGREEMENT
No of No
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1. Mr Rogers will lead the UK delegation for ASA talks with the New Zealanders in Wellington on 16 February. DOT are taking the view that these talks should not prove too difficult on substance, although there might be some oomplications because of the need to balance the interests of BA and CPA.
2. DOT are still waiting for a formal Hong Kong input, but they understand that CPA are eager to take over the rights which BA previously held on the route between Hong Kong and New Zealand. However Air New Zealand (ANZ) are known to want rights at Port Moresby on their services to Hong Kong. Unfortunately, there is an agreement between the Hong Kong and Papua New Guinea (PNG) authorities which allows Air New Guinea the monopoly on this route until they have built up the service. If the New Zealanders cause difficulties for CPA because ANZ cannot be given these rights, the DOT are quite prepared, as a quid pro quo, to allow them instead "points beyond" Hong Kong to Japan, which ANZ have to date been denied.
3. British Airways' interests are rather more straightforward they want to maintain their twice-weekly service to Auckland (via Singapore rather than via Hong Kong). DOT believe that this should be acceptable to the New Zealand authorities. However, BA are quite keen to introduce a cheap rate "end-to-end" fare which would only be available to passengers flying non-stop on the London/ Auckland route. Air New Zealand does not fly direct to London, but they do pick up a fair amount of London-originating traffic at Singapore and Hong Kong, and may not therefore be willing to allow BA the potential commercial advantages of this cheap rate.
4. DOT have little idea what, if anything, the New Zealanders may be after and assume that apart from seeking rights at Port Moresby they will wish to contain the activities of the two British airlines rather than expand the operations of ANZ, eg by requesting rights to London. DOT are, in any case, very relaxed about allowing ANZ rights to London. They do not foresee any particular difficul- ties arising out of these negotiations.
26 January 1978
CC:
Mr Cook SWPD
Mr Thompson HKGD
Sporzettan
G Hall
зеном
Maritime Aviation & Environment Dept
1
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