TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 179

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4. ON THE OTHER HAND ROGERS IS NOT SURE WHAT LEGAL RIGHT WE WOULD HAVE TO REJECT A UNILATERAL FILING BY ANZ. THE ABSENCE OF AN

AIR SERVICES AGREEMENT COMPLICATES THIS QUESTION, ROGERS WILL BE GRATEFUL IF CAIR 1 (DOT) AND THE CAA WILL INVESTIGATE THIS URGENTLY. IF WE HAVE THE LEGAL RIGHT TO DO SO IT MIGHT BE PREFERABLE TO REJECT THE FILING AND TO ACCEPT THE PROBABILITY THAT ANZ WOULD NEVERTHELESS SELL THE FARE FOR TRAVEL FROM THE NEW ZEALAND END,

5. THE QUESTION OF BRITISH AIRWAYS' RESPONSE IF ANZ ACT IN THIS

MANNER IS ONE WHICH WILL NEED TO BE DISCUSSED CAREFULLY WITH BA,

THE ALTERNATIVES SEEM TO BE 1

A. FOR BA TO FILE THE END-TO-END LOW FARE WHICH THEY DISCUSSED

WITH ANZ IN THE COURSE OF THE MEETING IN WELLINGTON LAST WEEK

AND ON WHICH A LARGE MEASURE OF AGREEMENT WAS REACHED : OR B. TO SELL TICKETS ON THEIR THROUGH SERVICES BETWEEN THE UK AND

NEW ZEALAND BASED ON THE SUM OF THE UK/AUSTRALIAN APEX FARE PLUS AN ADD-ON REPRESENTING THE LOWEST FARE FOR THE TASMAN CROSSING.

THE FORMER MAY BE COMMERCIALLY PREFERABLE WHILE THE LATTER MAY BE BEST FROM THE POLITICAL POINT OF VIEW.

6. REFERENCE PARA 2 OF WELLINGTON'S SECOND TUR ROGERS UNDERSTANDS FROM BA THAT AFTER CAREFUL CONSIDERATION THEY HAVE HAD REGRETFULLY TO DECLINE ANZ'S OFFER OF THE LEASE OF A DC 10 SINCE THE PERIOD FOR WHICH IT WAS AVAILABLE WAS TOO SHORT FOR THEM TO MAKE ECONOMIC USE OF IT. BA UNDERSTANDS THAT ANZ ARE NOW OFFERING IT ELSEWHERE- AND THAT THEY ARE NOT LIKELY TO HAVE ANY GREAT DIFFICULTY IN FINDING A TAKER.

7. ROGERS WILL BE OUT OF TOUCH OVER THE WEEKEND BUT IS DUE TO ARRIVE IN BANGKOK ON TUESDAY 13 FEBRUARY AND WILL BE GRATEFUL IF FURTHER

TELEGRAMS ON THIS SUBJECT ARE COPIED TO HIM THERE.

HAWLEY

FILES

MISS BROWN

MAED

MIL STRATTON

SPD

SEAD

HK ~GD NAND

MA MURRAY

2

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