TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 99

HOFO 098/20

NO DISTRIBUTION

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FCO

GR 200

HECK.184/1

2 1 MAR1979

FM HONG KONG 201010Z MAR

HIDEX

UNCLASIFIED

TO IMMEDIATE F.C.0.

TELEGRAM NUMBER 398 OF 27 MARCH, 1979.

23

151ft Reed, EPL, CAA

PLEASEE PASS THE FOLLOWING TO REED OF EPL CAA.

HONG KONG ROUTE.

Space House

4.5 Kingsway

J

Hd MAED

Hd H K+GS

1. THE LETTER FROM REED (CAA) TO DOWNING (DCA) OF 8 AUGUST

1978 REFERS.

2. PARA 14 STATES THAT THE AVERAGE SEAT COST FORECAST FOR THE ROUTE FOR 1978/9 IS APPROX £313 ROUND TRIP IF A 20% ALLOWANCE IS MADE FOR REPLACEMENT COSTS, CAPITAL CHARGES AND PROFIT. WE

WOULD BE GRATEFUL IF YOU WOULD LET US KNOW WHAT AVERAGE SEAT

FACTOR FEATURED IN THE EQUATION AND IF ADMINISTRATIVE OVERHEADS

AND NET COMMISSION PAYABLE BY BA TO THEIR AGENTS WERE INCLUDED

IN ARRIVING AT THIS FIGURE? ADDITIONALLY, WAS FULL ACCOUNT TAKEN OF REVENUE DERIVED FROM THE CARRIAGE OF CARGO AND MAIL? 3. AN ANSWER BEFORE 23 MARCH WOULD BE VERY MUCH APPRECIATED.

MACLEHOSE

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