TNAG-0780-FCO40-984-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 176

CONFIDENTIAL

GPS250

PRIORITY

CYPHER CATA

FM FCC 2017002-

CON

DENTIAL

PA

#kk 184/1

TO PRIORITY HONG KONG (GOV AND BCARFE) TELNO 567 OF 20 JULY

INFO CANBERRA

UK/AUSTRALIA AIR SERVICES

See (432

? 1 JUL 1978

405

MO. 51

407) YOUR TEL 886

Nola

1. WE ARE SORRY YOU ARE DISAPPOINTED WITH THE MATERIAL PROVIDED BY

THE AUSTRALIANS.

2. WE HOPE NEVERTHELESS THAT THIS TOGETHER WITH CPA'S OWN MATERIAL - WILL SUFFICE FOR CPA TO MAKE AN ASSESSMENT OF THE VIABILITY OF THE PER/HKG ROUTE

A) WITH 3/4TH HKG-PES TRAFFIC ONLY

(B) WITH COMBINATION OF

(1) HKG-PER, HKS-JKT, HKG-KUL 3/4TH FREEDOM TRAFFIC

(11) HK3-PER, HKG-SIN, HKG-KUL 3/4TH FREEDOM TRAFFIC

MAKING APPROPRIATE ALLOWANCES FOR WHATEVER TRAFFIC IT IS ESTIMATED WILL ACCRUE TO CPA FROM THE RESTRICTION OF SIA AND MAS SIXTH FREEDOMING ABILITY, AND WHATEVER ADDITIONAL TRAFFIC IT IS ESTIMATED WILL BE GENERATED BY THE LOWER FARES.

3. REGARDING THE E. AUSTRALIA ROUTES IT WOULD APPEAR THAT THE 3/4TH ONLY TRAFFIC BETWEEN HKG AND E. AUSTRALIA IN 1977 WOULD NOT WARRANT MORE THAN 3 X 747 P-W EACH. WHILST CPA CONTINUE TO OPERATE 707S ON THE ROUTES THERE WOULD HOWEVER BE NO PROBLEM OVER MAINTAINING AT LEAST A DAILY SERVICE BETWEEN THE TWO CARRIERS WHICH WE UNDERSTAND YOU ARE ANXIOUS TO RETAIN AS A MINIMUM, CPA WILL NO DOUBT ADDRESS THEMSELVES TO WHETHER A DAILY SERVICE BETWEEN THE TWO CARRIERS WITH 747S WILL BE JUSTIFIED WHEN CPA MOVE OVER TO 747S ON THE ROUTES IN 1979. THIS WE UNDERSTAND, FOR REASONS WHICH ARE NOT VERY CLEAR, WILL NECESSITATE AT A MINIMUM 4 X 747 P-W SACH CARRIER. NATURAL GROWTH, PLUS WHATEVER EXTRA TRAFFIC IS GENERATED BY THE LOW END TO END FARES, PLUS WHATEVER TRAFFIC IS WON BACK FROM PRESENT SIXTH FREEDOM OPERATORS MAY SUFFICE TO WARRANT THE TWO EXTRA

FREQUENCIES BY B747.

OWEN

[COPIES SENT

то CADI DOT

T]

FILES

MAED

HKOG D

SWPD

MR BUTLER

MISS BROWN

CONFIDENTIAL