TNAG-0778-FCO40-982-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 215

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THE EXTRA FREQUENCY, IT WAS NOT IN HIS VIEW JUSTIFIED IN THAT MUCH OF THE PERTH UK TRAFFIC THAT CURRENTLY TRANSITTED

SINGAPORE WOULD WEF 1 APRIL GO ON THE MORE DIRECT ROUTE.

WE EXPLAINED THAT IT WAS NO PART OF THE CPA INTENTION TO GO

INTO THE MARKET FOR PERTH UK TRAFFIC OVER SINGAPORE.

IT WAS SIMPLY THAT A SERVICE VIA SINGAPORE BETWEEN HONG KONG

AND PERTH WAS SOMEWHAT MORE ATTRACTIVE TO THEM THAN ONE VIA

JAKARTA. ROWLAND PROMISED TO LOOK INTO IT AND GIVE US A

RESPONSE BY THE END OF NEXT WEEK IF POSSIBLE.

Ca THE CONCORDE SURCHARGE FOR THE COMBINATION FARE

BETWEEN AUSTRALIA AND THE UK. WE EXPLAINED THAT THERE

REALLY WAS NO SATISFACTORY BASIS ON WHICH ONE COULD JUSTIFY EITHER A 15% OR A 20% SURCHARGE. WE QUITE UNDERSTAND WHY QANTAS FAVOURED A 20% SURCHARGE BUT WE DOUBTED WHETHER THERE WAS ANY REAL EVIDENCE TO SUSTAIN THE VIEW THAT THIS

WOULD APPRECIABLY AFFECT THE SLIDE-OVER FROM QF FIRST CLASS AS OPPOSED TO WHAT IT WOULD BE WITH A 15% SURCHARGE. THERE WAS A 20% SURCHARGE ON THE ATLANTIC AND A 15% SURCHARGE ON THE BAHRAIN SERVICE BUT THESE WERE SIMPLY INDICATORS OF WHAT THE MARKET WOULD BEAR. 15% WAS THE BA ASSESSMENT OF

WHAT THE SINGAPORE-LONDON MARKET WOULD BEAR. NO FIRM AGREEMENT WAS REACHED BUT THE AUSTRALIANS PROMISED TO

HAVE ANOTHER THINK ABOUT THEIR POSITION.

D.

SURFACE SECTOR ON THE YE 270 FARE UK-AUSTRALIA. THE AUSTRALIANS SAID THAT THEY WERE BEING SUBJECTED TO VERY HEAVY PRESSURE FROM THE AUSTRALIAN TRAVEL INDUSTRY

FOR AN EXTENSION PERIOD BEYOND 31 MARCH 1978 OF THE SURFACE SECTOR PROVISION IN THE YE 270 FARE. THEY WERE OBVIOUSLY SLIGHTLY EMBARRASSED ABOUT HAVING TO ASK FOR THIS FURTHER EXTENSION BUT APPARENTLY THERE HAS BEEN

WIDE-SPREAD SELLING OF THE FACILITY BEYOND 1 APRIL AND

IT WOULD CLEARLY CAUSE GREAT PROBLEMS FOR THEM IF WE WERE

TO REFUSE, WE SAID THAT IT WAS A MATTER FOR REGRET THAT THIS HAD HAPPENED BUT IN THE CIRCUMSTANCES WE WOULD PROBABLY AGREE TO AN EXTENSION TO END OF THE NORTHERN SUMMER PERIOD PROVIDED IT WAS MADE ABUNDANTLY CLEAR TO THE AUSTRALIAN TRAVEL INDUSTRY THAT THIS WOULD BE THE END.

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/ E. THERE WERE