RESTRICTED
417
MDLIAN 2809
ASIANA. MOREOVER, EXISTING 5TH CARRIERS (BA, SWISSAIR AND THAI) WERE SOON TO BE JOINED BY ALITALIA AND AIR INDIA. THUS THERE WAS AMPLE SCOPE FOR 3RD/4TH AND 5TH FREEDOM CARRIERS TO MEET ANY
LIKELY UP-TURN IN THE MARKET DURING THE REST OF THE YEAR (AFTER DECLINING EACH MONTH TO THE END OF MAY, JUNE TRAFFIC SHOWED A MODEST 0.07''INCREASE).
5. SHIN MADE NO EFFORT TO JUSTIFY HIS PROPOSAL FOR DOUBLING
EXISTING ALL-CARGO CAPACITY. WHEN CHALLENGED, HE CLAIMED THE RECENT PUBLIC STATEMENTS MADE BY THE KOREAN AIR AND ASIANA MANAGERS IN HONG KONG THAT VIRTUALLY ALL AIR CARGO UPLIFTED IN HONG KONG WAS TRANSPORTED DIRECT TO USA WERE ''PERSONAL VIEWS AND NOT AUTHORISED BY THE RESPECTIVE AIRLINES'.
6. IT WAS EVENTUALLY AGREED THAT BOTH SIDES SHOULD MONITOR MARKET DEVELOPMENTS CLOSELY AND MEET IN SEOUL BEFORE THE END OF FEBRUARY 1992 TO REVIEW THE KOREAN REQUEST FOR CAPACITY ADJUSTMENT. IN
PROPOSING THIS TIMESCALE WE HAD IN MIND THAT IF ANY INCREASES WERE JUSTIFIED, THEY COULD THEN BE APPLIED W.E.F. THE SUMMER 1992 OPERATING SEASON. MEANWHILE WE AGREED TO THE ROK REQUEST THAT
ASIANA SHOULD BE ALLOWED TO USE THEIR NEW B747 COMBI AIRCRAFT ON
UP TO TWO SERVICES PER WEEK IN PLACE OF THEIR EXISTING B767 AIRCRAFT ALBEIT RESTRICTED TO B767 CAPACITY FOR PASSENGERS AND CARGO (I.E. NO MAIN DECK CARGO CARRIAGE).
7. ON (B) ROUTE ADJUSTMENTS SHIN ONCE AGAIN PROPOSED THAT BANGKOK SHOULD BE ADDED AS A BEYOND POINT FOR THE ROK AND THAT A
POINT IN JAPAN SHOULD BE ADDED AS A BEYOND POINT FOR HONG KONG. APART FROM EXPLAINING THAT KOREAN TOURISTS PREFERRED TO TAKE MULTI-SECTOR HOLIDAYS IN THE REGION AND THAT THE ROK HAD HAD ENJOYED SUCH RIGHTS IN THE PAST, SHIN OFFERED NO REAL JUSTIFICATION FOR HIS REQUEST. GIVEN THAT CPA THE ONLY HONG
KONG AIRLINE CURRENTLY DESIGNATED TO SERVE KOREA OPERATE ON AVERAGE TEN SERVICES PER DAY DIRECT FROM HONG KONG TO JAPAN, AND SINCE THE JAPANESE GOVERNMENT ARE UNWILLING TO AGREE TO ANY INCREASE TO OUR 5TH FREEDOM TRAFFIC RIGHTS, WE SAW LITTLE POINT IN PURSUING SHIN'S PROPOSAL PRO TEM.
-
-
8. ON (C) ASA SEPARATION SHIN EXPLAINED THAT HE WAS AWARE THAT WE HAD SIGNED OUR OWN ASAS WITH A NUMBER OF COUNTRIES AND THAT ROK WERE KEEN TO TAKE STEPS NOW TO PROVIDE FOR THEIR BILATERAL AIR SERVICES WITH HONG KONG AFTER 1997. HE THEN SUGGESTED THAT E SHOULD BEGIN NEGOTIATING A SEPARATED ASA. WAKELING EXPLAINED THE PURPOSE OF AND BACKGROUND TO OUR ASA
2
PAGE
RESTRICTED