GRS 575
CONFIDENTIAL
FM FCO 251730Z SEPT 79
TO IMMEDIATE PEKING
CONFIDENTIAL
TELEGRAM NUMBER 557 OF 26 SEPT
INFO HONG KONG
233
7661 - 1
Hack 184/2= RELIVED IN REGNTRY NO. A
27 SEP 1974-
OFSK
INDEX
AS STAY. Ara
254
PEKING TELNO 823: CAAC USE OF HEATHROW/GATWICK
1.
PARA 3 OF TUR. WE ACCEPT THAT THE CHINESE HAVE
A POINT, WHICH WE CANNOT SIMPLY IGNORE. AT THE SAME TIME, HEATHROW'S FOURTH TERMINAL, FVEN IF OPEN BY 1984, WILL ONLY BE ABLE TO ACCOMMODATE AIRLINES ALREADY THERE: AND BA'S ECONOMIC ARCUMENTS FOR NOT MOVING PART OF THEIR 2747 OPERATION TO GATWICK ARE VERY STRONG, EVEN THOUGH THEY WILL NOT CUT MUCH ICE WITH THE CHINESE. BA HAVE ALSO HELD OUT AGAINST
A SPLIT OF B747 OPERATIONS THROUGHOUT THE DISCUSSIONS ABOUT
THE POSSIBLE MOVE TO GATWICK OF AIR SERVICES TO CANADA.
THE ARGUMENTS ARE:
(A) BA WOULD NEED TO MAKE VERY EXPENSIVE INVESTMENT IN NEW GROUND FACILITIES AT GATWICK FOR HANDLING THE HIGH VOLUME OF PASSENGERS, LUGGAGE AND CARGO ASSOCIATED WITH B747 OPERATIONS. IN ADDITION, A
NEW HANCAR WOULD BE REQUIRED SPECIFICALLY TO HANDLE
AND MAINTAIN B747 AIRCRAFT. THE COST OF THIS
ALONE IS ESTIMATED AT SOME, 9 MILLION.
(P) BA'S 747 OPERATION IS AIMED TOWARDS MAKING THE
OPTIMUM USE OF AIRCRAFT OPERATIONAL TIME. THIS
MEANS THAT AN INDIVIDUAL B747 IS NOT NECESSARILY
USED EXCLUSIVELY ON A SINGLE ROUTE BUT RATHER IS
SWITCHED AROUND TO FLY A COMBINATION OF DIFFERENT
SECTORS. FOR EXAMPLE, AN AIRCRAFT ARRIVING AT HEATHROW FROM SAY JOHANNESBURG MAY WELL TAKE A NEW FLIGHT NUMBER AND THEN BE OPERATED OVER THE NORTH
ATLANTIC. SPLITTING THEIR FLEET FOULD THUS CREATE
CONSIDERABLE SCHEDULING DIFFICULTIES FOR BA AND
1
CONFIDENTIAL
/HAVE ADVERSE