V
PP GOVERNOR HONG KONG
PP BCARFE
HONG KONG
GRS 300A
CYPHER/CAT A
FROM D T I 0716552
CONFIDENTIAL
HKK 18411.
R:
See (106,
STRE
NO DISTRIBUTION
x4
HAYED
SEAD.
MAED 3
TO PRIORITY GOVERNOR HONG KONG TELEGRAM NUMBER ALLOT 33 OF 7 FEBRUARY
AND TO PRIORITY BCARFE HONG KONG
INFO KUALA LUMPUR.
UK/MALAYSIA AIR SERVICES YOUR TELEGRAM NUMBER 149 OF
4 FEBRUARY.
WE DO OF COURSE RECOGNISE THE IMBALANCE UNDER THE AGREEMENT AND IN OTHER CIRCUMSTANCES WE WOULD NOT EVEN CONSIDER GRANTING THE MAS REQUEST.
2. WE DO NOT THINK THAT THE INCLUSION OF A REFERENCE TO THE ROGERS LETTER OF 29 SEPT 76 TO MAHADZAR IN THE CMU OF NOV 1977 INVALIDATES WHAT WE SAID IN PARA 3 OF OUR ALLOT 23. ALSO WE WOULD EXPECT THE MALAYSIANS TO SEIZE ON THE CAPACITY INCREASE FROM 3 TO 4 X 707 PERMITTED TO CPA IN THAT CMU ON THE HKG-BKI ROUTE AS MORE THAN ADEQUATE JUSTIFICATION FOR MAS BEING ALLOWED TO MOUNT -3 X B70 7 IN FULFILMENT OF THEIR ENTITLEMENT UNDER THE 1973 CMU.
3.
IS YOUR MAIN WORRY THE POTENTIAL THE INCREASED CAPACITY PROVIDES FOR MAS TO INCREASE THEIR EARNINGS OR DO YOU ENVISAGE A REAL DIMINUTION IN CPA'S ACTUAL EARNINGS ON THAT ROUTE. ACCORDING TO OUR INFORMATION MAS ONLY ACHIEVED AVERAGE CARRYINGS PER FLIGHT IN EACH DIRECTION OF 45 DURING THE YEAR ENDED 31-3-77. THIS IS ONLY 50 PER CENT OF THE CARRYING CAPACITY OF A 8737. WE REALISE THAT AVERAGE LOADS ACHIEVED OVER A YEAR CAN BE MISLEADING BUT UNLESS THERE ARE LARGE DAILY VARIATIONS IN NUMBERS TRAVELLING IT DOES SEEM THAT LIMIATION OF THE 7075 TO 737 CAPACITY IS NOT GOING TO HAVE ANY REAL MEANING.
4. IT IS NOT EASY FOR US TO JUDGE WHETHER A SWITCH BY MAS TO 707S WOULD HAVE ANY DETRIMENTAL EFFECT ON CPA'S SHARE OF POOL REVENUE. IF THIS WERE TO BE THE CASE COULD WE NOT FOR INSTANCE SUGGEST THAT. MAS POOL PRODUCTION SHOULD BE REGARDED AS BEING IN 737 EQUIVALENTS.
5. WILL KUALA LUMPUR PLEASE ENSURE THAT ROGERS SEES THESE EXCHANGES OF TELEGRAMS BEFORE HE SEES THE MALAYSIANS.
NNNN
No comments yet.
Private notes are available after approval.