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GK 340
PRIORITY
CYPHER CAT A
FM HONG KONG 25%900Z
CONFIDENTIAL
Thii
CONFIDENTIAL
HKK184
NO. 51
INDEX
TO PRIORITY F C O TELNO 1833 OF 25 AUGUST 1973.
INFO HONG KONG GOVERNMENT OFFICE LONDON.
FOR CAA.
AIR FARES.
KY
a. Taxon
FURTHER TO HKG DCA'S AFTN SIGNAL TO CAA OF 19 AUGUST CONCERNING
THE PAN AM FILING OF 26 JUNE FOR NORTH AND CENTRAL PACIFIC FARES
PACKAGE, DCA HAS RECEIVED A CABLE FROM JAPAN AIR LINES IN TOKYO
URGING HIM TO DISAPPROVE THE PACKAGE, FOR THE FOLLOWING REASONS: A. ELIMINATION OF THE COMMON FARE STRUCTURE WOULD CREATE
DISCRIMINATORY FARE LEVELS OVER THE DIFFERENT US GATEWAY POINTS
AND WOULD CONSEQUENTLY DEPRIVE THE ORIENT AIRLINES ASSOCIATION'S
TRANS-PACIFIC CARRIERS OF THE COMPETITIVE OPPORTUNITIES WHICH
HAVE BEEN BESTOWED UNDER THE PRINCIPLE OF FAIR AND EQUAL
OPPORTUNITY OF THE BILATERAL AGREEMENTS.
B. THE PROPOSED DECOMMONRATION WOULD ALSO DEPRIVE CONSUMERS OF
FLEXIBILNY IN DETERMINING THEIR TRAVEL ITINERARIES. THEY WILL
HAVE SUCH FLEXIBILITY ONLY WHEN THEY ARE WILLING TO PAY A PRICE PENALTY FOR SUCH ALTERNATIVES. THE DECOMMONRATION WOULD NOT
SERVE THE PUBLIC INTERESTS, ALTHOUGH IT MAY SATISFY THE PAROCHIAL INTERESTS OF A PARTICULAR AREA.
C. PROPOSED CANCELLATION OF GROUP FARES WOULD HARDLY FIT INTO THE
LOCAL TRAVEL PATTERN IN THE ASIAN MARKET.
2. THE JAL CABLE IS SENT ON BEHALF OF THE TRANS-VALIFIC
CARRIERS OF THE DAA, (CAL, KAL, JAL AND PAL) WITH THE SUPPORT OF
CATHAY PACIFIC..
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