CONFIDEN TI AL
11) ALTHOUGH THE NEW PATTERN OF OPERATION WOULD APPEAR TO LEAVE ONLY ONE DAY UNCOVERED (CANBERRA TELNO.387 OF 4 AUG, PARA.9), WE ARE NOW ADVISED BY CPA THAT THE AGREED INTEGRATED SCHEDULE FOR THE TWO AIRLINES WILL, IN FACT, LEAVE TWO DAYS UNCOVERED AND THAT
• IT WOULD NOT BE POSSIBLE TO PROVIDE A BETTER SPREAD OF SERVICES.. THIS IS A VERY UNSATISFACTORY SITUATION.
(111) IT HAS NOT BEEN GOVERNMENT POLICY TO MAKE AIR SERVICES ARRANGEMENTS CONDITIONAL UPON A COMMERCIAL POOL AGREEMENT EXCEPT WHEN THE NATURE AND/OR PRACTICES OF THE OTHER SIDE'S AIRLINE(S) MAKE SUCH AN ARRANGEMENT A PRE-REQUISITE FOR CPA'S VIABLE OPERATION. THERE IS NO SUCH FEAR WITH QANTAS AND THEREFORE WE COULD NOT AGREE TO CPA'S SUGGESTION TO IMPOSE SUCH A CONDITION. IF,. HOWEVER, THE AIRLINES FREELY NEGOTIATE SUCH, AN AGREEMENT, WE WOULD NOT STAND IN THE WAY BUT WOULD REQUIRE THE POOL TO BE SUBJECT TO H.M.G APPROVAL.
C. HONG KONG-WEST AUSTRALIA.
IT IS IN THE PUBLIC INTEREST TO SECURE THE ROUTE SCHEDULE. AMENDMENTS TO PROVIDE FOR CPA TO OPERATE A ROUTE HKG/DRW/PER AND
WE STRONGLY SUPPORT THIS AS AN OBJECTIVE.
D. FARES.
THE CONCEPT OF A THREE-TIER FARE STRUCTURE WITH DISTINCT AREAS AND STANDARDS OF SERVICE IS ATTRACTIVE TO US. ALSO, THE HONG KONG TOURIST ASSOCIATION HAVE CONCLUDED THAT THE NEW PROMOTIONAL FARES PROPOSED ARE LIKELY TO BE BENEFICIAL TO HONG KONG'S TOURISM
INDUSTRY.
4. CONCLUSION.
THE CRUX OF THE PROBLEM FROM OUR VIEWPOINT LIES IN THE LOSS OF 5TH FREEDOM RIGHTS ON CPA'S WEST AUSTRALIA SERVICES TOGETHER WITH. THE PROPOSED PATTERN OF OPERATION ON HONG KONG/EAST AUSTRALIA SERVICES. SUBJECT TO OUR RESERVATIONS ON THESE ISSUES, AND IF ASEAN REACTION DID NOT PROVE TO BE MUCH OF A PROBLEM, WE WOULD HAVE NO MAJOR QUARREL WITH THE ICAP PROPOSALS. IN THE LONG TERM; THE CURTAILMENT IN GROWTH OF AIRCRAFT MOVEMENTS CONSEQUENT ON END-TO-END SERVICES AND ELIMINATION OF TRANSIT PASSENGERS COULD BE OF PASSING BENEFIT IN EXTENDING THE CAPABILITY OF OUR SINGLE RUNWAY IN MEETING THE NEEDS OF TRAVELLERS TO/FROM HONG KONG.
4. CONFIDENTIAL
/IMPLEMENTATION
No comments yet.
Private notes are available after approval.