CONFIDENTIAL
3. ON REGIONAL SERVICES, WE EXPRESSED DISAPPOINTMENT THAT PAL HAD NOT ACCEPTED THE NEW DRAFT POOL AGREEMENT WITH CPA. WE SAID THAT CPA WERE DISSATISFIED WITH THE FRUSTRATION OF THEIR EFFORTS WITHIN THE EXISTING AGREEMENT TO OBTAIN JUSTIFIED INCREASES IN THEIR CAPACITY AND NO LONGER WISHED TO REMAIN IN POOL WITH PAL. WE PROPOSED INSTEAD A MECHANISM FOR CAPACITY INCREASES WITH A NEW CAPACITY FALL-BACK AND PROVISION FOR RECOURSE TO GOVERNMENTS IN THE EVENT OF DISAGREEMENT. DISCUSSION WITH PAL, HOWEVER, MADE IT CLEAR TO CPA THAT ACCEPTANCE WAS UNLIKELY OF ESSENTIAL PROPOSALS IN THE MECHANISM TO FREE THEM FROM PAL'S UNDUE RESTRICTION OF INCREASES IN CAPACITY. EVENTUALLLY, CPA DECIDED THAT A POOL WAS THE LESSER OF THE
EVILS, IF PAL AGREED TO THE NEW DRAFT PREVIOUSLY REJECTED, WITH SLIGHT AMENDMENT TO THE PLANNING LOAD FACTOR, AND SO LONG AS PAL'S EARLIER DEMAND FOR AN INCREASED POOL PAYMENT LIMIT WAS RESISTED. WE ALSO SOUGHT PROVISION IN THE CMU FOR THE AIRLINES TO HAVE RECOURSE TO GOVERNMENTS IN THE EVENT OF DISPUTE ABOUT CAPACITY INCREASES. ALL THESE POINTS WERE ACHIEVED AND THE AIRLINES WERE ASKED TO PRESENT THE NEW AGREEMENT FOR APPROVAL WITHIN A MONTH.
4. WE WERE NOT SUCCESSFUL IN OBTAINING CEBU AS A NEW ROUTE POINT. TIANSAY SAID THAT THE PHILIPPINES HAD REFUSED IT TO OTHER ASEAN COUNTRIES AND WOULD BE EMBARRASSED IF THEY GAVE IT TO US NOW. THE GRANT OF IT TO THE PRC WAS MEANINGLESS IN PRACTICAL TERMS. WHEN THE INFRASTRUCTURE AT CEBU WAS IMPROVED, HOWEVER, HE SUGGESTED THAT THE UK WOULD BE THE FIRST TO OBTAIN RIGHTS TO IT. WE SHALL NEED TO CONSIDER AT THE APPROPRIATE TIME WHETHER WE SHOULD REQUEST RIGHTS THROUGH THE DIPLOMATIC CHANNEL, BUT THE FILIPINOS MAY SEEK A PRICE,
5. WE TOOK THE OPPORTUNITY TO TIDY UP THE ROUTE SCHEDULE TO THE ASA AND TO AGREE THREE NEW ARTICLES FOR THE ASA.
6. COPIES OF THE SIGNED DOCUMENTS FOLLOW BY BAG.
C
COPIES SENT TO CAD[BOT]
MAGD SEAD HILYGD
NTD
MISS BROWN
FIR MURRAY
CONFIDENTIAL
No comments yet.
Private notes are available after approval.