TNAG-0514-FCO40-579-Purchase-of-wide-bodied-aircraft-by-Cathy-Pacific-Airlines-1974 — Page 93

GRPS 620

CONFIDENTIAL

IMMEDIATE

RECEIVED IN

CYPHER CAT A

REGISTRY No. 51

- 6 FEB 1974

FM HONGKONG 019900%

CONFIDENTIAL

For Stuart

To there any

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>

HKK 211 12 Sixernment eyouty in SoPA.

TO IMMEDIATE D T I TELEGRAM NUMBER ALLOT 8 OF 1 FEBRUARY. 1974

TO ROGERS FROM WILSON.

YOUR ALLOT 12.

;

WHEN BLUCK RANG YESTERDAY TO BRIEF ME ON LATEST DEVELOPMENTS

HE CLAIMED TO BE UNAWARE OF ANY CPA UNDERTAKING TO CONSULT

D TO BEFORE REACHING DECISION WHICH HAD NOW BEEN REACHED ON

MIXTURE OF OPERATIONAL AND COMMERCIAL CONSIDERATIONS.

thier.

2. SINCE I FIRST ADVISED D. LE B. JONES ON 17 AUGUST OF CPA'S INTEREST IN WIDE-BODIED AIRCRAFT, I HAVE SENT STEADY FLOW OF PRESS CUTTINGS AND LETTERS ON THIS GENERAL SUBJECT. IN PARTICULAR I SENT DETAILED BACKGROUND INFORMATION (PARTICULARLY IN RELATION TO ROLLS ROYCE) WHICH LED KAL TO PREFER DC10 TO LOCKHEED TRISTAR: AND PARAGRAPH 5 OF MY LETTER CA/26/5 OF 26 NOVEMBER TO KNIGHTON REPORTED IMPRESSION THAT CPA WOULD PROBABLY CHOOSE DC10. THOUGH

I BELIEVE PILOTS GENERALLY PREFER TRISTAR HANDLING CHARACTERISTICS, DC10 IS ALLEGEDLY BETTER ON RANGE AND WOULD PROVE MORE PROFITABLE AIRCRAFT ON CPA NETWORK. FURTHER IMPORTANT CONSIDERATION IS THAT LOCKHEED IS JUDGED TO BE LESS SAFE AS A COMPANY THAN DOUGLAS : SO THAT, EVEN IF AIRCRAFT MERITS WERE EQUAL, PURCHASING AIRLINES NATURALLY PREFER COMPANY WITH MORE STABLE PROSPECTS.

INDEED,

3. I HAVE NO REASON TO SUPPOSE THAT CPA'S DETAILED ANALYSIS OF COMPETING TYPES (WHICH YOU SAW IN PROGRESS DURING YOUR OCTOBER VISIT HERE) WAS IN ANY WAY PREJUDICED AGAINST TRISTAR. MY IMPRESSION IS THAT CPA WOULD ITSELF BE HAPPY IF THEIR OBJECTIVE ANALYSIS LED TO TRISTAR CHOICE. THOUGH DECISION AGAINST TRISTAR WILL, OF COURSE, LEAD TO INFERENCES BEING DRAWN (YOUR PARA. 5 REFERS), LITTLE CAN BE DONE (EXCEPT BY MANUFACTURERS IMPROVING PRODUCT) IF THOSE INFERENCES REFLECT OBJECTIVE TRUTH. EVEN IF CPA WERE SOMEHOW STILL PERSUADED TO TAKE TRISTAR, FACT OF THAT PERSUASION WOULD SOON BE KNOWN IN AIRCRAFT PURCHASING CIRCLES

AND DOUGLAS COULD BE COUNTED UPON WORLD-WIDE TO DEVELOP ARGUMENT THAT ONLY POLITICAL PRESSURE CAN OVERDUE DC10'S SUPERIORITY AS

DETERMINED BY OBJECTIVE AIRLINE CHOICE.

CONFIDENTIAL

14:

I UNDERSTAND