TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 55

FQ"F IL = L

GR 190

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FM HONG KONG 280783Z JUN 19

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TO ROUTINE FOREIGN AND COMMONWEALTH OFFICE NO

TELNO.8/2 OF 28 JUNE,

INFO SINGAPORE.

D.O.T TELNO.ALLOT 61: SIA SERVICES.

-2 JUL 1979

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aas.

1. WE HAVE NO STRONG FEELINGS ABOUT PROPOSALS IN TEL UNDER REF. HOWEVER, WHEN WE CONSULTED CPA ABOUT THE POSSIBILITY OF SIA SEEKING TO MAKE A COMPLETE SWITCH TO 747S ON THEIR TRANS-PACIFIC ROUTE WITH EFFECT FROM 1 JULY, THEY WERE NOT AT ALL ENTHUSIASTIC, THEY ACKNOWLEDGED THAT THE TRANS-PACIFIC SECTORS WERE OF LITTLE CONCERN TO THEM BUT POINTED OUT THAT THIS VARIATION OF THE ROGERS/PILLAY AGREEMENT WOULD ALSO GIVE SIA INCREASED CAPACITY ON THE SINGAPORE-HONG KONG SECTOR.

2. CPA BELIEVE IT HIGHLY LIKELY THAT SIA WILL WISH TO USE THEIR DC-10S ON THEIR AUSTRALIA AND EUROPE SERVICES TO REDUCE THE EFFECTS OF ICAP, SO RELEASING 747S FOR TRANS-PACIFIC OPERATIONS. THEY SUGGEST THAT AS A QUOTE COMPROMISE UNQUOTE, SHOULD SIA ASK TO BRING FORWARD ANY EXTRA 747 SERVICES THEY BE ALLOWED TO DO SO PROVIDED TOTAL CAPACITY DOES NOT EXCEED 2 X 747 PLUS 2 X DC-19 DURING JULY AND AUGUST.

3. AT PRESENT SIA ARE USING 3 X 707S WEEKLY ON THEIR TRANS-PACIFIC SERVICE BUT THEY HAVE IN MIND TO INTRODUCE ONE 747 TO BEGIN WITH WHEN THEIR DC-10S RETURN TO SERVICE,

MACLEHOSE

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CAD/DOT

FILES

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17 K J G D

MISS BROWN

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