GR 365
PERITY
CYMER/CAT A
FM HONG KONG 280701Z
CONFIDENTIAL
CONFIDENTIAL
#KK, 184/1
MAY 1978
AX OFF.
194,
TO PRIORITY F.C.O TELNO.535 OF 28 APRIL 78,
INFO WELLINGTON, PORT MORESBY.
по
PA
238
YOUR TELNO.89 TO WELLINGTON HKG/POM/AKL AIR SERVICES.
1. CPA HAVE CONDUCTED A FURTHER EVALUATION OF THE HKG/POM/AKL
ROUTE AND CONCLUDED THAT, SINCE THEIR LAST STUDY SOME MONTHS AGO, THERE HAS BEEN A VERY SEVERE DROP IN YIELD ON THIS ROUTE.
THIS IS LARGELY CAUSED BY THE RECENT INTRODUCTION OF BUDGET
FARES FROM USA ACROSS THE PACIFIC AND BY THE SUPER APEX FARES
BETWEEN AUSTRALIA AND THE U.K WHICH HAVE DIVERTED TRAFFIC AWAY
FROM THE HONG KONG ROUTE HENCE THE INTERNAL ADVERTISING
CAMPAIGN REPORTED IN WELLINGTON TELNO.144. ADDITIONALLY, THE
GENERAL NEW ZEALAND ECONOMIC SLUMP HAS DEEPENED AND, APPARENTLY, THERE IS LITTLE OPTIMISM OF A TURN FOR THE BETTER, AT LEAST IN
THE MEDIUM TERM.
2. ALSO OF CONSIDERATION IN STARTING SERVICESON THIS ROUTE, IS
THE POSSIBILITY OF RADICAL CHANGES TO CPA'S FLEET (MY TELNO.452 REFERS) WHICH WOULD RESULT IN B707'S BEING PHASED OUT OVER THE
NEXT TWO AND A HALF YEARS. THIS PUTS A LARGE QUESTION MARK OVER
ANY MEDIUM TERM B797 SERVICE.
3. AGAINST THIS BACKGROUND, CPA HAVE MADE A RADICAL CHANGE OF
PLAN IN THAT THEY WOULD NOT EXPECT TO START SERVICES ON THE HKG/POM/AKL ROUTE BEFORE 1989: THEY DO RETAIN A CONSIDERABLE LONGER TERM INTEREST IN OPERATING ON THIS ROUTE AND, AT THE FORTHCOMING TALKS, WE HOPE THAT SUCH A ROUTE CAN BE OBTAINED
WITH TRAFFIC RIGHTS ON ALL SECTORS AND WITH PROVISION FOR
TRISTAR SERVICES.
1
14.
CONFIDENTIAL