DIR
387
CONFIDENTIAL
GRS 295
CONFIDENTIAL
FM HONG KONG 240915Z AUG 79
RELEVED IN A
INDLY
2 8 AUG 1979
NO. 51
گا
No 1 2288
X
TO IMMEDIATE D O T
TELEGRAM NUMBER ALLOT 52 OF 24 AUGUST
INFO SINGAPORE
Se 388
YOUR TELNO ALLOT 74: UK/SINGAPORE AIR SERVICES.
R
1. DCA RESPONDED TO SIA'S REQUEST FOR APPROVAL TO SUBSTITUTE TWO 8727'S FOR THE DC10 ON THEIR SIN/BKK/HKG SERVICE AS ADVISED IN TUR.
SUBSEQUENTLY, SIA OFFICIALS VISITED BOTH CPA AND DCA TO PURSUE THE SUBJECT FURTHER. THE VISIT WAS FOLLOWED BY THE LETTER FROM SIA TO DCA DATED 16 AUGUST, COPIED TO YOU, SEEKING RECONSIDERATION OF THEIR REQUEST. NEITHER WE NOR CPA ARE PERSUADED BY THE REASONS PUT FORWARD BY SIA.
2. WITH REGARD TO SIA'S ARGUMENT CONCERNING REDUCTION OF CAPACITY, CPA ADVISE THAT ONLY ONE DC10 ON LEASE TO SIA, WHICH IS SHORTLY TO BE RETURNED, IS CONFIGURED WITH 295 SEATS (ALL ECONOMY): THEIR
OTHER DC10'S HAVE 270 SEATS.
3. FURTHERMORE, SIA'S REQUEST STILL AMOUNTS TO A SECOND DAILY FREQUENCY SIN/BKK/HKG VV, CPA ARE OF THE OPINION THAT THE ADDITIONAL SIA SERVICE WILL RELY HEAVILY ON FIFTH FREEDOM TRAFFIC ON THE BKK/HKG SECTOR. SINCE CPA AND TAI HAVE INCREASED CAPACITY ON THIS SECTOR SUBSTANTIALLY, CPA SEE NO REASON TO PERMIT A FIFTH FREEDOM CARRIER THE OPPORTUNITY TO CREAM OFF MORE TRAFFIC THAN
NECESSARY.
4. ADDITIONALLY, THE FOLLOWING CHANGES TO THE ROGERS/PILLAY AGREEMENT HAVE ALREADY BEEN MADE TO SIA'S ADVANTAGE:
A. A THIRD FREIGHTER ACROSS THE PACIFIC,
B. TRAFFIC RIGHTS ON THE HKG/GUM SECTOR,
C. THE EARLY INTRODUCTION OF 4 X B747 ON THE TRANS-PACIFIC ROUTE,
1
CONFIDENTAL
15. SUATSer
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