TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 219

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Australia

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20

RR HONG KONG (GOVERNOR)

RR HONG KONG (BCARFE)

GR 240

CYPHER/CAT A

FM DOT 201215Z

RESTRICTED.

REGI

26 JUL1977

MRR 184/345

:

Duk

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JOT/CA)

129

HKGD 3.MGD

TO ROUTINE HONG KONG (FOR GOVERNOR) TELNO ALLOT 85 OF 20 JULY INFO CANBERRA, HONG KONG (FOR BCARFE)

1.

UK/AUSTRALIA AIR SERVICES.

WE ARE REQUIRED UNDER PARA 2 OF ANNEXE B OF THE JULY 1974 CMU TO AGREE WITH THE AUSTRALIAN AERONAUTICAL AUTHORITIES THE CAPACITY RATIO OF THE L1011 BEFORE IT GOES INTO OPERATION.

2.

140 SEATS SEEMS TO BE THE RATED CAPACITY OF THE 3707 FOR THE PURPOSES OF ESTABLISHING A UNIT OF CAPACITY IN THE CMU. ON THAT BASIS THE L1011 SHOULD QUALIFY AS 2 UNITS. ON THE OTHER HAND QF OPERATE 392 SEATS IN THEIR 747S AND ARE RATED AT ONLY TWO AND ONE HALF. APPLYING THE TRUE L1011/B747 SEAT RATIO TO TLO AND ON HALF PRODUCES A FIGURE OF 1.8 FOR THE L1011.

3.

IF THERE IS ANY INDICATION THAT OF MAY BE DIFFICULT IN AGREEING TO CX'S 3 X L1011 PLUS 3 X 707 FROM NEXT APRIL WE MIGHT BE WELL ADVISED TO TRY FOR A FIGURE LOWER THAN 2, POSSIBLY EVEN ONE AND ONE HALF, THOUGH THIS SEEMS TRANSPARENTLY LOW. AT 2 TOTAL UK CAPACITY FROM APRIL NEXT YEAR WOULD WORK OUT AT 13 UNITS AGAINST QF CAPACITY OF 11 AND ONE HALF UNITS. ADMITTEDLY QF WILL HAVE LED BY ONE AND ONE HALF UNITS FROM DECEMBER 1977 TO APRIL 1978 BUT THEREAFTER, ON THE ASSUMPTION THAT QF MAKE 1 X 747/707 SUBSTITUTION PER YEAR AND CX 1 X L1011/707 SUBSTITUTION THE UK IS GOING TO BE EITHER AHEAD OF OR EQUAL WITH THE AUSTRALIANS FOR THE NEXT 3 YEARS. PERHAPS THE BEST SOLUTION IS TO GO FOR ONE AND THREE QUARTERS.

MAY ME HAVE YOUR VIEWS.