GR 275
CYPHER/CAT A
CONFIDENTIAL
RECEIVED
vitt spelarangan, men taille de de dunken to defend in
(242
SAAR
· 2 MAY 1978
DESK OFF..
INDEX
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PA
AUT
MO. 40. 51
CRET «
Adjon Taken
FM HONG KONG 280943Z
CONFIDENTIAL
TO ROUTINE F.C.O TELNO.540 OF 28 APRIL 78,
INFO JAKARTA, HONG KONG GOVT OFFICE LONDON.
по
wilf
DOT TELNO.ALLOT 64: U.K/INDONESIA AIR SERVICES.
1. THERE ARE TWO ASPECTS TO THE CPA REPLY, OPERATIONAL FEASIBILITY AND ECONOMIC VIABILITY.
2. IN THE CASE OF HONG KONG/EAST AUSTRALIA. ROUTES, THEY BELIEVE
AN ACCEPTABLE ROUTE COULD BE OPERATED ON A TRACK HONG KONG/MANILA/ GUAM/PORT MORESBY TO SYDNEY AND MELBOURNE. ON THESE SERVICES, THEY WOULD BE FACED WITH SUBSTANTIALLY INCREASED FLYING TIME AND A REQUIREMENT FOR EN-ROUTE TECHNICAL CALLS AND CREW SLIPS AT EITHER GUAM OR MORE LIKELY PORT MORES BY. THESE FACTORS WOULD COMPLETELY DESTROY THE VIABILITY OF CPA'S HONG KONG/EAST AUSTRALIA
SERVICES WHILE, AT THE SAME TIME, THEY WOULD EXPECT TO SUFFER
A CONSEQUENTIAL LOSS OF THE MAJOR PART OF THEIR TRAFFIC TO QUANTAS
AND 6TH FREEDOM OPERATORS' FASTER SERVICES.
3. AS FOR HONG KONG/KUALA LUMPUR/WEST AUSTRALIA SERVICES, CPA
WOULD BE FACED WITH UNACCEPTABLE ECONOMIC AND OPERATIONAL PROBLEMS THE CURRENT SERVICES ARE ONLY MODESTLY PROFITABLE WITH REVENUE DERIVED FROM TRAFFIC TO AND FROM JAKARTA BEING A CRITICAL COMPONENT. THE LOSS OF SUCH REVENUE ON THE SECTORS HKG/JKT KUL/JKT AND JKT/PER AND VICE VERSA, TOGETHER WITH A VASTLY INCREASED FLIGHT TIME KUL/PER ON A ROUTE CIRCUMNAVIGATING NORTH
SUMATRA, WOULD RESULT IN LOSSES WHICH CPA COULD NOT SUSTAIN. FROM AN OPERATIONAL VIEWPOINT, CPA CONSIDER A ROUTE KUL/PER VIA THE COCOS ISLANDS WOULD BE UNACCEPTABLE.
CONFIDENTIAL
74. IN SUMMARY,