TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 8

CONFIDENTIAL

(1) REVENUE TO BE CALCULATED BY MULTIPLYING THE GROSS NUMBER OF

PAX BY 60 PERCENT OF THE FULL ECONOMY FARE (FCU):

V (11) REVENUE PAX PAYING LESS THAT 25 PERCENT OF THE FULL ECONOMY

FARE TO BE EXCLUDED:

111) CARGO TO BE INCLUDED AT 60 PERCENT OF THE OVER 45 KG CARGO

RATE.

IV) CARRIERS TO PROVIDE EACH OTHER WITH REVENUE CALCULATIONS,

BASED ON THE ABOVE PRINCIPLES, ON A MONTHLY BASIS1

FARES AND FARES DISCOUNTING.

5. CPA CONSIDER THAT TO ATTEMPT TO CURTAIL THE ISSUE OF

NON-ENDORSABLE TICKETS IS IMPRACTICAL IN VIEW OF THE MANY

DIFFERENT TYPES OF LEGITIMATE DISCOUNTED TICKETS ISSUED BY

AIRLINES, IT WOULD BE ALMOST IMPOSSIBLE TO POLICE ANY SUCH SYSTEM

ISSUING A AS MAS COULD ALWAYS FIND A ''LEGITIMATE'' REASON FOR NON-ENDORSABLE TICKET.

6. WE HOPE THAT CPA CAN ARRANGE AN EARLY MEETING WITH MAS, ON WHICH

A REPORT WILL FOLLOW IN DUE COURSE.

ROBERTS

[

"COPIES SENT TO CAD/DOT

COPIES TO

FILES

MAED HK JG D

SEAD

FED

NAMD

MISS BROWN

MR

MURRAY

MR HALL

HONG KONG GOVT OFFICE

LONDON

2.

CONFIDENTIAL