4571
GR 515
CONFIDENTIAL
CONFIDENTIAL
FM HONG KONG 260818Z OCT 79
HER 184/1.
Rave
1900
по
780.51
29 OCT 1979
TO PRIORITY FOREIGN AND COMMONWEALTH OFFICE! J301
TELNO.1504 OF 26 OCTOBER,
INFO PRIORITY CANBERRA.
HISTORY
Taken
F
See 49
YOUR TELNO.504 : U.K/AUSTRALIA AIR SERVICES.
me
26.10
1. AT THE TALKS HELD IN CANBERRA IN JANUARY 1979, ROWLAND AGREED
THAT CPA SHOULD HAVE THE RIGHT TO MOUNT THE SEVENTH B747 SERVICE
ON THE EAST AUSTRALIA ROUTE WHEN THE TRAFFIC GREW TO THE POINT
AT WHICH THREE SERVICES EACH WERE INSUFFICIENT. AS REGARDS THE
TIMING OF QEA REDUCING FREQUENCY FROM FOUR TO THREE B747 SERVICES, IT WAS AGREED THAT THIS SHOULD TAKE PLACE WHEN A DATE EMERGED FOR
THE IMPLEMENTATION OF THE NEW REGIME. ROWLAND CONCEDED THAT CPA
SHOULD BE ENTITLED TO OPERATE SERVICES TO BRISBANE ON THEIR EAST
AUSTRALIA ROUTE AS SOON AS THIS COULD BE JUSTIFIED BY THE TRAFFIC
GROWTH (PROBABLY WHEN CPA MOUNTED THEIR FOURTH SERVICE). ON WEST AUSTRALIA, ROWLAND ALSO READILY AGREED TO THE CPA PROPOSAL TO OPERATE HKG/DRW/PER V.V. THE DATE WHEN CPA WOULD RELINQUISH THEIR FIFTH FREEDOM RIGHTS WAS LEFT OPEN (CANBERRA TELNO.76 OF 27 JAN).
2. BUT WE ARE NOW ASKED TO ACCEPT A PACKAGE WHICH PROVIDES FOR
QEA TO OPERATE FOUR B747 SERVICES ON THE EAST AUSTRALIA ROUTE WITH FULL FIFTH FREEDOM RIGHTS ON MNL/HKG IN EXCHANGE FOR CPA TO OPERATE THREE B747 SERVICES PLUS A HKG/PER SERVICES WITH RESTRICTED FIFTH FREEDOM RIGHTS. UNDERSTANDABLY, THE PACKAGE IS TOTALLY UNACCEPTABLE TO CPA BECAUSE:
(A) THE AUSTRALIANS AGREED THAT CPA SHOULD HAVE THE RIGHT TO
MOUNT THE SEVENTH B747 SERVICE, NOT QEA.
(B) THERE IS LITTLE OR NO VALUE IN THE CONCESSION OF FIFTH FREEDOM RIGHTS LIMITED TO FULL FARE PASSENGERS BECAUSE TRAFFIC
BETWEEN PERTH AND JAKARTA, KUALA LUMPUR AND SINGAPORE IS ALMOST ENTIRELY PLEASURE TRAVEL WHICH WILL MAKE USE OF THE LOW 3RD/ 4TH FREEDOM PROMOTIONAL FARES WHEN THEY ARE INTRODUCED.
CONFIDENTIAL
BUT QEA
/ WISH