TNAG-0780-FCO40-984-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 38

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GK 340

PRIORITY

CYPHER CAT A

FM HONG KONG 25%900Z

CONFIDENTIAL

Thii

CONFIDENTIAL

HKK184

NO. 51

INDEX

TO PRIORITY F C O TELNO 1833 OF 25 AUGUST 1973.

INFO HONG KONG GOVERNMENT OFFICE LONDON.

FOR CAA.

AIR FARES.

KY

a. Taxon

FURTHER TO HKG DCA'S AFTN SIGNAL TO CAA OF 19 AUGUST CONCERNING

THE PAN AM FILING OF 26 JUNE FOR NORTH AND CENTRAL PACIFIC FARES

PACKAGE, DCA HAS RECEIVED A CABLE FROM JAPAN AIR LINES IN TOKYO

URGING HIM TO DISAPPROVE THE PACKAGE, FOR THE FOLLOWING REASONS: A. ELIMINATION OF THE COMMON FARE STRUCTURE WOULD CREATE

DISCRIMINATORY FARE LEVELS OVER THE DIFFERENT US GATEWAY POINTS

AND WOULD CONSEQUENTLY DEPRIVE THE ORIENT AIRLINES ASSOCIATION'S

TRANS-PACIFIC CARRIERS OF THE COMPETITIVE OPPORTUNITIES WHICH

HAVE BEEN BESTOWED UNDER THE PRINCIPLE OF FAIR AND EQUAL

OPPORTUNITY OF THE BILATERAL AGREEMENTS.

B. THE PROPOSED DECOMMONRATION WOULD ALSO DEPRIVE CONSUMERS OF

FLEXIBILNY IN DETERMINING THEIR TRAVEL ITINERARIES. THEY WILL

HAVE SUCH FLEXIBILITY ONLY WHEN THEY ARE WILLING TO PAY A PRICE PENALTY FOR SUCH ALTERNATIVES. THE DECOMMONRATION WOULD NOT

SERVE THE PUBLIC INTERESTS, ALTHOUGH IT MAY SATISFY THE PAROCHIAL INTERESTS OF A PARTICULAR AREA.

C. PROPOSED CANCELLATION OF GROUP FARES WOULD HARDLY FIT INTO THE

LOCAL TRAVEL PATTERN IN THE ASIAN MARKET.

2. THE JAL CABLE IS SENT ON BEHALF OF THE TRANS-VALIFIC

CARRIERS OF THE DAA, (CAL, KAL, JAL AND PAL) WITH THE SUPPORT OF

CATHAY PACIFIC..

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CONY IDENTAR

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