TNAG-0866-FCO40-1076-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 17

CONFIDENTIAL

C. APART FROM DIRECT SERVICES HKG/SIN VV CPA ALSO OPERATE VIA

BANGKOK, VIA PENANG AND ALSO BEYOND SINGAPORE TO JAKARTA. SIA

OPERATE SERVICES BETWEEN SINGAPORE AND HONG KONG ON TRANS-PACIFIC

SERVICES, ON ROUTES TO TAIPEI AND TOK YO AND VIA BANGKOK TO HONG KONG. WE DO NOT HAVE SUFFICIENT INFORMATION TO IDENTIFY THE

ACTUAL CAPACITY DEDICATED TO 3RD/4TH FREEDOM TRAFFIC. HOWEVER, IN POOL STATISTICS (AND THE CPA/SIA POOL COVERS ALL SERVICES BETWEEN HONG KONG AND SINGAPORE OPERATED BY CPA AND SIA) POOL LOAD FACTORS WERE OCTOBER 78 MARCH 79, CPA: 70.52 PERCENT AND

SIA: 70.82 PERCENT. THESE DECLINED APRIL SEPTEMBER 79, CPA: 69.78 AND SIA: 66.05 PERCENT. CPA EXPECT THAT IN 1980/81, LOAD

FACTORS WILL BE CPA: 67 PERCENT AND SIA: 65 PERCENT. LOAD FACTORS

SHOULD FALL SUBSTANTIALLY IN 1980/81 DUE TO ADDITIONAL CAPACITY

ON THE ROUTE MOUNTED BY 5TH FREEDOM OPERATORS. PAA WILL INCREASE

THEIR HKG/SIN SERVICES TO A DAILY B747SP IN JANUARY 1980 AND JAL WILL MOUNT 4 X DC10 SERVICES JAPAN/HKG/SIN VV FROM APRIL 1980 ON

ANTICIPATED GROWTH OF 10 PERCENT.

D. CPA CURRENTLY OPERATE 10,780 SEATS ON 23 SERVICES PER WEEK.

THIS WILL INCREASE MARGINALLY TO 11,140 SEATS PER WEEK BETWEEN

MAY AND JULY 1980 AND FURTHER INCREASE TO 12,664 SEATS BETWEEN

AUGUST AND DECEMBER 1980. THIS CAPACITY WILL REMAIN THROUGHOUT

1981.

E. CPA PLAN TO COMMENCE A TWICE-WEEKLY B707 SERVICE BETWEEN

HKG/KOTA KINABALU AND SINGAPORE FROM 12 MARCH 1980.

2. AS TO THE ARGUMENTS AGAINST THE GRANT OF ADDITIONAL RIGHTS

TO SIA, KEEP (DCA HONG KONG) WILL SPEAK TO THIS AT THE BRIEFING

MEETING, WE SHOULD BE GRATEFUL IF A COPY OF THIS TELEGRAM

COULD BE GIVEN TO HIM.

CATER

FILES MAED

HK & GD

[COPIES SENT TO CAD/DOT]

MISS BROWN

MR MURRAY

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CONFIDENTIAL