TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 85

S 840

CONFIDENTIAL

CONFIDENTIAL

HKK 184/1

FM CANBERRA 239830Z JAN 79

TO IMMEDIATE FCO

TELEGRAM NUMBER

54

OF 23 JANUARY

дай д

N=

Jual

વ

See 159

39

NO.

INFO PRIORITY SINGAPORE BANGKOK KUALA LUMPUR JAKARTA HONG KONG (GOVERNOR AND BCARFE)

MANILA

WELLINGTON

MIPT UK/AUSTRALIA AIR SERVICES DISCUSSIONS

1. THE WHOLE OF 23 JANUARY WAS SPENT EXPLORING THE OUTSTANDING PROBLEMS ON THE HONG KONG-AUSTRALIA ROUTES.

FARES

2. APART FROM THE APEX FARES SET OUT IN HONG KONG TELNO 90 THE AUSTRALIAN DEL AGATION TABLED A WHOLE NEW RANGE OF FARES

AT LEVELS HIGHER THAN THOSE PROPOSED IN THE ANNEX TO THE CMD CF 5 AUGUST 1978. IT WAS EXPLAINED THAT THESE NEW FIGURES IN- CLUDED AN ALLOWANCE OF 4% FO THE FUEL PRICE

INCREASE AND ROGERS COMMENTED THAT THIS RAISED THE QUESTION WHETHER A SIMILAR ADJUSTMENT SHOULD BE MADE TO THE FARES ON

THE TRUNK ROUTE.

!

3. THE NEW PACKAGE DID NOT INCLUDE AN APOW FARE. WHEN QUESTIONED AS TO THE REASON FOR THIS OMISSION QANTAS SAID THAT SUCH A FACILITY WOULD BE SUBJECT TO ABUSE BY COMBINATION WITH TRUNK FARES AND THAT ANYWAY. THERE WAS LITTLE OR NO MARKET FOR ONE,

4. WE EXPRESSED DISSATISFACTION AT THE COMPARATIVELY HIGH LEVEL OF THE QANTAS PROPOSED APEX FARE BETWEEN HONG KONG AND E AUSTRALIA (AUST DOLLARS 796 PEAK AND AUST DOLLARS 544 OFF- PEAK) BOTH IN RELATION TO THE UK-AUSTRALIAN APEX FARE(AUST DOLLARS998 PEAK AND AUST DOLLARS 568 OFF-PEAK, FOR ABOUT 2 1/2 TIMES THE DISTANCE), AND TO THE PROPOSED TOUR- BASING FARE BETWEEN HONG KONG AND E AUSTRALIA (AUST DOLLARS 492 PEAK AND A DOLLARS 380 OFF-PEAK. ROWLAND SAID THEY WERE CONCERNED TO MAINTAIN A REASONABLE RELATIVITY ON A CENTS PER SEAT MILE BASIS BETWEEN ALL FARES BETWEEN AUSTRALIA AND REGIONAL

/POINTS AND

CONFIDENTAL