TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 94

Guidelines given by the Malaysian and United Kingdom Governments

te their airlines for the purpose of determining capacity increases

For the purpose of determining capacity increases the airlines

shall, as far as practicable, be guided by the following:-

a)

Schedules should be arranged in such a way as to maximise

the spread of services available to the public;

b) Planning seat factors should be established for capacity

planning purposes. In arriving at these factors the airlines

should have regard to the fact that different types of traffic

warrant different seat factors: for example, a factor of 55%

might be appropriate for on-demand traffic, and one of 72% for

Apex fare traffic. If these seat factors averaged between the

two airlines concerned can be demonstrated to have been achieved

over a period of at least six months, the airlines should make

recommendations to their respective Government for increases in

capacity.

Such planning seat factors should be subject to review at the

request of either party, but the burden of proof would lie with

the airline which wished to vary a previously agreed planning

seat factor.

c) Planning for future increases should take account of all traffic

on the agreed routes, but should also reflect the fact that a high

[

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proportion of traffic on the routes is TOD) third/fourth freedom

traffic.