CONFIDENTIAL

(V) (A) -DAL HAVE APPLIED TO ATLA FOR A LICENCE TO OPERATE SERVICES

TO 4 POINTS IN THAILAND. THE APPLICATION WAS PUBLISHED ON

28 FEBRUARY AND WILL PROBABLY BE CONSIDERED BY ATLA AT THE

SAME TIME AS THAT MENTIONED IN PARA 2(1).

(V)

(B) DAL HAVE OBJECTED TO CPA'S ATLA APPLICATION (PUBLISHED

ON 7 FEBRUARY) FOR SERVICES TO AMSTERDAM, DAL'S GROUNDS

ARE THAT THEY ARE ALSO IN THE PROCESS OF PREPARING AN

APPLICATION TO SERVE AMSTERDAM, AND THAT THE CPA

APPLICATION IS MERELY AN ATTEMPT TO STEAL A MARCH ON THEM..

THE TIMING OF ANY HEARING WILL ALSO BE AS FOR THAT

MENTIONED ON PARA 2(1).

(A) DAL'S PROPOSED DEVELOPMENT OF OTHER NON-SCHEDULED

OPERATIONS ARE AS DESCRIBED IN OUR TELNO 644. (WE ARE

RESPONDING SEPARATELY TO YOUR TELNO 454 ON THIS SUBJECT):

(B) AS REGARDS AMSTERDAM, INITIALLY DCA GAVE CLEARANCE

FOR DAL TO APPROACH THE DUTCH AUTHORITIES. IT IS NOT

KNOWN WHETHER SUCH AN APPROACH HAS YET BEEN MADE. HOWEVER,

ON 25 FEBRUARY, DAL SUBMITTED AN APPLICATION TO DCA FOR

PERMISSION TO OPERATE A SERIES OF NON-SCHEDULED FLIGHTS

TO AMSTERDAM. THIS APPLICATION WAS TURNED DOWN BECAUSE

DAL HAD NOT PROVIDED THE REQUIRED EVIDENCE ON SUPPORT.

IN DCA' VIEW, THE APPLICATION RESEMBLES THAT FOR LONDON

(PARA 2 (HK) ABOVE) HN BEING A THINLY DISGUISED

ATTEMPT TO OPERATE SCHEDULED SERVICES WITHOUT FIRST

OBTAINING THE NECESSARY AUTHORIZATIONS:

(C) THERE HAVE BEEN TWO MINOR DEVELOPMENTS ON PARA. 8 OF

OUR TELNO 726 REGARDING DAL'S NON-SCHEDULED OPERATIONS

INTO PRC. FIRSTLY, DAL NOW INTEND TO OPERATE TWICE DAILY

TO GUANGZHOU. SECONDLY, SUR Y K HAS PERSONALLY REQUESTED

DCA'S APPROVAL OF CHARTER FLIGHTS ON 17 AND 22 APRIL

TO CARRY THE BLDC TO AND FROM PEKING, NO FORMAL

APPLICATIONS HAVE BEEN MADE IN EITHER CASE.

3. ON 10 MARCH, THE PRINCIPAL CPA AND DAL SHAREHOLDERS MET TO

DISCUSS MATTERS OF MUTUAL INTEREST. WE HAVE NOT YET LEARNED THE

OUTCOME, BUT WILL REPORT AS SOON AS WE DO.

CONFIDENTIAL

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