TNAG-0777-FCO40-981-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 168

GR 700

IMMEDIATE

CHER/CAT A

FM HONG KONG 310909Z

CONFIDENTIAL

CONFIDENTIAL

AKKISH OAO. 51

RECEIVED

1EFB978

58

DLEK OFFI

INDEX

PA

Actin

TO IMMEDIATE F.C.O TELNO.125 OF 31 JANUARY 78,

INFO WELLINGTON.

FOLLOWING FOR D.O.T.

See All

*KK 184/3 19771

54

YOUR TELNO. ALLOT 17: U.K/N.Z AIR SERVICES.

1. WE HAVE CAREFULLY CONSIDERED WITH CPA WHAT OUR POSITION SHOULD BE IN THE FORTHCOMING TALKS AND OUR VIEWS ARE AS FOLLOWS.

2. WE HOPE TO OBTAIN FOR CPA A ROUTE FROM HONG KONG TO AUCKLAND VIA AN INTERMEDIATE POINT. ALTHOUGH CPA PLAN TO OPERATE A TWICE (REPEAT TWICE) WEEKLY SERVICE FROM OCTOBER 1978 VIA PORT MORESBY, THEY ARE CONCERNED NOT TO RESTRICT THEMSELVES TO ONLY ONE INTERMEDIATE POINT BECAUSE OF THE POSSIBILITY OF POLITICAL OR OTHER DEVELOPMENTS IN PNG, OR PROBLEMS WITH AIR NIUGINI, PRECLUDING OPERATION VIA PORT MORESBY. IF THE NEW ZEALANDERS WILL NOT ACCEPT A ROUTE HONG KONG/AN INTERMEDIATE POINT/AUCKLAND, CPA SUGGEST A LIST OF INTERMEDIATE POINTS: MANILA, PORT MORESBY, NOUMEA, DARWIN AND FIJI OF WHICH ONLY ONE COULD BE USED, EITHER ONE POINT WHICH COULD VARY WITH DIFFERENT FLIGHTS OR, IF NECESSARY, THE SAME NOMINATED POINT FOR ALL SERVICES OPERATED.

3. AS TO THE COMPARATIVE VALUE OF THE ENVISAGED EXCHANGE OF RIGHTS (MY TELNO.1239 OF 8 DEC 77), IT IS DIFFICULT TO PUT A FIGURE TO THE PORT MORESBY/AUCKLAND SECTOR AS THERE ARE NO SERVICES OPERATING BETWEEN THE TWO POINTS. CPA ANTICIPATE ONLY TWENTY PASSENGER AND 1000 KG OF CARGO PER ROUND-TRIP FLIGHT. FOR ANZ, CPA HAVE ASSUMED PASSENGER AND CARGO UPLIFT FROM THE AVERAGE OF ALL CURRENT OPERATORS ON THE HONG KONG/TOKYO SECTOR: 196 PASSENGERS AND 6000 KG OF CARGO.

4. BASED ON CPA OPERATING 2 X B707 AND ANZ OPERATING 2 X DC-10 THE COMPARATIVE 5TH FREEDOM EARNINGS A YEAR WOULD BE CPA U.S DOLLARS 763,000 (763,000): ANZ U.S DOLLARS 3,487,000 (3,487,000). GIVEN THE MASSIVE IMBALANCE OF 1:4.5, CPA HOPE THAT ANZ COULD BE LIMITED TO ONLY ONE SERVICE WEEKLY ON THE HONG KONG/TOKYO SECTOR UNTIL SUCH TIME AS THEIR B707 SERVICE IS REPLACED BY WIDE-BODIED EQUIPMENT.

CONFIDENTIAL

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