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(V) THEY SUPPORT THE INTRODUCTION OF NEW PROMOTIONAL FARES ON
THE ROUTE BUT MAINTAIN THAT THESE COULD HAVE BEEN INTRODUC
WITHOUT THE REVOLUTION IN ESTABLISHED AIR SERVICES ARRANGEMENTS
WHICH THE AUSTRALIANS ARE NOW SEEKING.
B. HONG KONG-EAST AUSTRALIA ROUTE.
(*) CPA'S MAJOR RESERVATION ON THE AUSTRALIAN PROPOSALS IS THE REDUCTION OF FREQUENCIES FROM FIFTEEN TO SIX SERVICES WEEKLY. THEY CLAIM THAT THE BUSINESS TRAVELLER WOULD INEVITABLY
SUFFER FROM THE LOW FREQUENCY ON THE ROUTE IN ATTEMPTING TO OBTAIN ON-DEMAND SPACE AT SHORT NOTICE IN PEAK PERIODS, SINCE HIGH LOAD FACTORS WOULD BE THE COROLLARY OF VERY LOW FARES. ANOTHER CONSEQUENCE WOULD BE THE DIVERSION OF TRAFFIC TO 6TH
FREEDOM CARRIERS.
(11) CPA FEEL THAT FOR THE ORDERLY DEVELOPMENT OF THE ROUTE,
THERE SHOULD BE AGREEMENT TO OPERATE WITHIN A 3/4TH COMMERCIAL POOL AND WOULD WISH THIS MADE A CONDITION OF THEIR ACCEPTANCE OF THE AUSTRALIAN PROPOSALS.
C. HONG KONG-WEST AUSTRALIA ROUTE.
(1) CPA ARE FIRMLY OF THE VIEW THAT A HKG/PER V.V. DIRECT SERVICE WOULD NOT REPEAT NOT BE VIABLE BOTH NOW AND FOR THE
FORESEEABLE FUTURE. THEY ARE, HOWEVER, ANXIOUS TO MAINTAIN THE IMPORTANT HONG KONG/WEST AUSTRALIA LINK TOGETHER WITH THE CONNECTION WITH DARWIN. IF THE ICAP PROPOSALS ARE IMPLEMENTED, CPA WOULD BE PREPARED TO OPERATE THE ROUTE HKG/DRW/PER V.Vv. ONCE WEEKLY, INITIALLY WITH B707 AND FROM 1980 ONWARDS WITH L-1011 (UNLESS THE SERVICE HAD TO BE TERMINATED DUE TO UNPROFITABILITY).
(11) THIS SERVICE WOULD REQUIRE SOME ROUTE SCHEDULE AMENDMENTS:
(A) THE TRANSFER OF DARWIN FROM U.K ROUTE 11. TO U.K
ROUTE 111: AND
(B) THE ADDITION OF BRISBANE TO U.K ROUTE 11.
(111) IN RETURN FOR THE SURRENDER OF THEIR EXISTING VALUABLE
5TH FREEDOM RIGHTS ON U.K ROUTE 11 AND 111 AND IN ADDITION TO THE AMENDMENTS AT (11), CPA WOULD WISH IT ESTABLISHED GOVERNMENTALLY THAT THE 7TH B747 FREQUENCY ON ROUTE 11 BE RESERVED FOR OPERATION BY CPA WHEN POOL TRAFFIC JUSTIFIES AN
INCREMENT.
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/D. LOSS OF