TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 56

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HONG KONG

AS REGARDS HONG KONG, THE DELEGATIONS AGREED ON A NEW PACKAGE OF FARES FOR BOTH THE EAST AND WEST COAST ROUTES WHICH, AS ON THE

KANGAROO ROUTE, WILL PROVIDE MAJOR BENEFITS TO THE CONSUMER.

THE PACKAGE PROVIDES FOR A SUBSTANTIAL REDUCTION IN THE NORMAL -

ECONOMY FARE AND THE INTRODUCTION OF A BUSINESS ECONOMY CLASS FARE

ASSOCIATED WITH AN UPGRADED LEVEL OF SERVICE.

THE PACKAGE ALSO INCLUDES NEW ATTRACTIVELY PRICED ADVANCE PURCHASE

EXCURSION FARES FOR INDIVIDUAL TRAVEL AND ARRANGEMENTS WHICH WILL

PROVIDE A BASIS FOR CHEAPER PACKAGE TOURS IN BOTH DIRECTIONS,

ALTHOUGH SOME DETAILS HAVE YET TO BE FINALISED, THE NEW FARES ARE

EXPECTED TO BE INTRODUCED AT AN EARLY DATE.

THE AUSTRALIAN GOVERNMENT HOPES TO NEGOTIATE SIMILAR FARE ARRANGEMENT FOR CONCURRENT IMPLEMENTATION ON OTHER ROUTES IN THE ASIAN REGION.

CHARTERS

THE DELEGATIONS ALSO TURNED THEIR ATTENTION AGAIN TO THE POSSI- BILITY OF INTRODUCING REGULAR PASSENGER CHARTER SERVICES AT A MODEST

LEVEL ON THE KANGAROO ROUTE.

BOTH DELEGATIONS RECOGNISED THE POTENTIAL ATTRACTION OF THE COMPE- TITION THAT THIS. WOULD PROVIDE FOR THE ESTABLISHED AIRLINES. HOWEVER, THE RANGE OF NEW FARES WILL ONLY BE VIABLE IF THE TWO SCHEDULED CARRIERS CAN BE ASSURED OF VERY HIGH LOADS. IT IS ALSO AN OBJECTIVE OF BOTH GOVERNMENTS TO MAINTAIN AN ADEQUATE FREQUENCY OF SERVICES

TO ALL THE MAIN AUSTRALIAN GATEWAY POINTS AT SOME OF WHICH THE

AMOUNT OF TRAFFIC IS AT PRESENT SMALL.

THESE AND OTHER FACTORS RAISE PRACTICAL PROBLEMS REGARDING THE TIMING AND MANNER OF INTRODUCTION OF CHARTER SERVICES. IT WAS AGREED TOYUDY THESE PROBLEMS. FURTHER AND TO TAKE ACCOUNT OF THE EXPERIENCE GAINED FROM A REASONABLE PERIOD OF OPERATION OF THE

NEW REGIME.

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