GPS 430
IMMEDIATE
YPHER CAT A
FM BANGKOK 280838Z OCT
CONFIDENTIAL
CONFIDENTIAL
TO IMMEDIATE F C O TELNO 530 OF 23/19/77
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HKK 18+/3.
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RFI IMMEDIATE HONG KONG (FOR GOVERNOR AND BCARfe).
UK/THAI AIR SERVICES
58
FROM ROGERS
1. WE REACHED FULL AGREEMENT ON A NEW ROUTE SCHEDULE, A CMU AND ASSOCIATED AIRLINE AGREEMENTS JUST AFTER MIDNIGHT LAST NIGHT AND WE ARE SIGNING THIS AFTERNOON. WE HAD ALSO HOPED TO BE ABLE TO EXCHANGE DIPLOMATIC NOTES COVERING THE NEW ROUTE SCHEDULE AT THE SAME TIME, BUT THIS IS NOT GOING TO BE POSSIBLE AS IT HAS FORMALLY TO BE REFERRED TO THE HEAD OF THE NEW REVOLUTIONARY
COUNCIL. THERE IS HOWEVER AN UNDERTAKING IN THE CMU THAT THE EXCHANGE OF DIPLOMATIC NOTES WILL BE COMPLETED WITHIN TWO WEEKS.
2. ON THE TRUNK ROUTE, TG WILL BE ALLOWED TO OPERATE 3 DC1ØS FROM 1 APRIL 1978 ON A RESTRICTED ROUTE ING. ALTHOUGH ON THE FACE OF IT THIS IS AN INCREASE IN CAPACITY THEY WILL IN FACT BE EXTENSIONS OF EXISTING FRANKFURT SERVICES. THUS THEIR EFFECTIVE CAPACITY BETWEEN BANGKOK AND LONDON WILL BE REDUCED. THIS SHOULD HAVE THE DESIRED EFFECT OF CUTTING THAI INTERNATIONALS SIXTH FREEDOM TRAFFIC BETWEEN AUSTRALIA AND THE UK. TO THE EXTENT THAT THIS CONTINUES, THE BA/TG COMMERCIAL AGREEMENT REQUIRES TG TO PAY BA 15% OF THE REVENUE TG DERIVE FROM THEIR UK-AUSTRALIA SIXTH FREEDOM TRAFFIC VALUED AT AGREED RATES FOR BOTH CARGO AND PAX. THIS WILL ACT AS A FURTHER DISINCENTIVE. ON THE OTHER HAND, BA WILL HAVE TOTAL FLEXIBILITY BOTH AS TO CAPACITY AND ROUTE POINTS
OPERATED.
3. ON THE REGIONAL ROUTES TG AND CX HAVE CONCLUDED A COMMERCIAL AGREEMENT. COVERING 3RD/4TH FREEDOM TRAFFIC. THIS GIVES EACH AIRLINE THE ENTITLEMENT TO OPERATE 50% OF THE TOTAL AGREED CAPACITY
CONFIDENTIAL
/WHICH
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