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GRS 346
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FM FCO 111300Z HAY 82
TO PRIORITY BANGKOK
TELEGRAL NUMBER 220 OF 11 MAY
INFO HONG KONG GOVERNOR
UK/THAILAND AIR SERVICES CONSULTATIONS
1.
TALKS WERE ADJOURNED ON 7 MAY AFTER 3 DAYS AND WILL BE RESUMED
ON 31 MAY IN BANGKOK.
2.
AS EXPECTED THE THAIS REQUESTED THE ELIMINATION OF THE REQUIRE
MENT FOR THEIR SERVICES TO LONDON TO MAKE TWO INTERMEDIATE STOPS
EN ROUTE. THE UK SAID THAT IT WOULD PREFER TO CONTINUE WITH THE
PRESENT ARRANGEMENTS WHICH WILL CALL FOR ALL THREE THAI INTERNAT-
IONAL SERVICES TO MAKE TWO INTERMEDIATE STOPS AS FROM 1 JULY 1982.
WE WOULD HOWEVER ATTEMPT TO MEET THE THAI REQUIREMENTS BY BRINGING
FORWARD THE REVIEW OF THE INTER-GOVERNMENTAL AND INTER-AIRLINE
ARRANGEMENTS WHICH WAS IN ANY CASE DUE IN EARLY 1983. WE ALSO
OUTLINED CPA'S REQUIREMENTS FOR 3 SERVICES ON THE ROUTE HONG KONG
- BANGKOK-MIDDLE EAST-EUROPE..
3.
CPA'S REQUIREMENTS HAVE TO BE AGREED BETWEEN THE TWO AIRLINES
IN THE FIRST INSTANCE. IN THE COURSE OF DISCUSSION BETWEEN CPA
AND THAI INTERNATIONAL IT EMERGED THAT THE LATTER WERE NOT READY
TO AGREE AT PRESENT BUT A NUMBER OF POSSIBILITIES WERE DISCUSSED
INCLUDING THE OPERATION OF THE SERVICES IN A TRIPARTITE POOL
INVLOVING CPA, THAI INTERNATIONAL AND LUFTHANSA. THE MATTER WILL
NOW BE PURSUED FURTHER AT AIRLINE LEVEL.
4.
AN EXAMINATION OF THE TRAFFIC ON THE BANGKOK-LONDON ROUTE
REVEALED THAT BETWEEN 35-50 PERCENT OF THAI INTERNATIONAL'S END TO
END TRAFFIC WAS SIXTH FREEDOM TRAFFIC AND THAT CURRENT CAPACITY
LEVELS COULD IN ANY CASE ONLY BE SUSTAINED ON THE BASIS OF
SUBSTANTIEL TRAFFIC TO INTERMEDIATE POINTS. THIS MADE THE
RELAXATION OF CURRENT REQUIREMENTS TO SERVE THOSE INTERMEDIATE
POINTS DIFFICULT FOR US TO AGREE.
5. IN ORDER TO RESOLVE THE DIFFICULTY THE UK PROPOSED A PACKAGE
TO BE NEGOTIATED AT A SECOND ROUND OF TALKS. THIS WOULD INVOLVE
THE PHASED RELAXATION OF THE REQUIREMENTS FOR INTERMEDIATE STOPS
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