Dft FCO Telegram
Confidential
treate
outine
To: RFI:
UK/Australia Air Services
Your Tel 955
HER 184/1.
Hong Kong
Canberra, Hong Kong (BCARFE)
no 81?.?
It wd by helpful to have details of the diversion of traffic which is taking
place and the reasons for it (para 5
Дустик).
We accept that it is highly desirable that the new Hong Kong-Australia fares package should be introduced at the earliest possible date and we are considering what further action we should take with the Australians about this following receipt of Canberra Tels 361 and 465. However we do not see how we can link the necessity for the introduction of the package with the continued retention by Qantas of its present pattern of operations to Hong Kong i.. 4 x8747 p.w., 2 of which go via Manila. The reduction of this frequency to 3 p.w. is linked to the full implementation of ICAP and the dropping of the combination of Hong Kong and Manila on the same services.The total capacity being operated on the Hong Kong-E. Australia route once CPA switch to 3 x B747 p.w. will be 173 B707 capacity equivalents compared with the
the cre existing 18. It is not therefore easy to understand/why, unless the new low fares are introduced, there will be an excess of capacity.
+
vt to..
As to mother it is reasonable that Cantas should mount 4 frequencies as against CPA's 3 this same. issue was argued at length between us when 3A came off the route and CPA did not increase its capacity accordingly so as to match Gantas. At that stage you argued that Qantas nominal capacity had to be de-rated because of the E. Australia- Manila traffic it carried on its Hong Kong services. Are you now arguing differently?
We agree entirely that Qantas should come down to 3 frequencies when they serve Hong Kong direct on all their services but we would not at this stage want to pursue the parity of capacity argument with the Australians whilst
the same services.
antas are still combining Manila and Hong Kong on What is not to say we would not if this looked
like being prolongo+ irdefinitely.