TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 214

GR 355

PI ITY

CYPHER/CAT A

FM HONG KONG 170527Z

CONFIDENTIAL

CONFIDENTIAL

HKK 184

RECEIVED I REGRINE.

INDEX

2 4 OCT 977X

CER

пра

MYSTRY Action Taken

20

TO PRIORITY F.C.0 TELNO.1039 OF 17 OCTOBER,

INFO PRIORITY CANBERRA.

HONG KONG/EAST AUSTRALIA SERVICES.

سا

10

1. ON 11 AUGUST CPA WERE FINALLY ADVISED BY BRUNEI THAT TRISTARS

COULD OPERATE ON THEIR EAST AUSTRALIA SERVICES VIA BRUNEI BUT

THAT PRIOR DISCUSSIONS SHOULD TAKE PLACE WITH RBA. AT A SUBSEQUENT BRIEF PRELIMINARY TALK RBA ADVISED THAT THEY WOULD OPPOSE CPA'S APPLICATION UNLESS RBA WERE ALLOWED TRAFFIC RIGHTS HKG/TPE AND/OR JAPAN. A FURTHER DIFFICULTY IS THAT CPA IS UNABLE TO ROUTE THROUGH BRUNEI SO AS TO COMPLY WITH THE PRESENT OPERATIONAL HOURS

OF THE AIRPORT.

2. CPA ARE ALSO CONCERNED REGARDING THEIR FUTURE POOL ENTITLEMENT ON EAST AUSTRALIA ROUTE. UNDER CURRENT POOL CAPACITY AGREEMENT THEY ARE ENTITLED TO FLY SEVEN B707S WEEKLY, BUT HAVE CHOSEN TO FLY ONLY SIX. ON THE BASIS OF OPERATING THROUGH BRUNEI WITH TRAFFIC RIGHTS, THUS DERATING THE CAPACITY OF THE TRISTARS, THEY HAD ANTICIPATED NO PROBLEM IN OPERATING A MIX OF THREE TRISTARS AND THREE 3707S WEEKLY FROM APRIL 1978. THE SITUATION IS NOW

LESS CLEAR BECAUSE:

(A) IF BRUNEI IS ONLY AVAILABLE AS A TECHNICAL STOP, THEY COULD NOT DERATE THE TRISTARS AND THEREFORE COULD NOT JUSTIFY THREE TRISTARS AND THREE B7075 AS BEING EQUIVALENT TO SEVEN

B707S.

(B)

TOTAL MARKET FOR ALL CARRIERS HKG/AUSTRALIA HAS DROPPED IN LAST THREE MONTHS BY THREE POINT FOUR PERCENT. AT POOL MEETING IN MID-NOVEMBER THEY MAY HAVE DIFFICULTY IN JUSTIFYING

SEVEN B707S OR THEIR EQUIVALENT.

CONFIDENTIAL

13. AS HKG/AUSTRALIA