TNAG-0866-FCO40-1076-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 94

4571

GR 515

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 260818Z OCT 79

HER 184/1.

Rave

1900

по

780.51

29 OCT 1979

TO PRIORITY FOREIGN AND COMMONWEALTH OFFICE! J301

TELNO.1504 OF 26 OCTOBER,

INFO PRIORITY CANBERRA.

HISTORY

Taken

F

See 49

YOUR TELNO.504 : U.K/AUSTRALIA AIR SERVICES.

me

26.10

1. AT THE TALKS HELD IN CANBERRA IN JANUARY 1979, ROWLAND AGREED

THAT CPA SHOULD HAVE THE RIGHT TO MOUNT THE SEVENTH B747 SERVICE

ON THE EAST AUSTRALIA ROUTE WHEN THE TRAFFIC GREW TO THE POINT

AT WHICH THREE SERVICES EACH WERE INSUFFICIENT. AS REGARDS THE

TIMING OF QEA REDUCING FREQUENCY FROM FOUR TO THREE B747 SERVICES, IT WAS AGREED THAT THIS SHOULD TAKE PLACE WHEN A DATE EMERGED FOR

THE IMPLEMENTATION OF THE NEW REGIME. ROWLAND CONCEDED THAT CPA

SHOULD BE ENTITLED TO OPERATE SERVICES TO BRISBANE ON THEIR EAST

AUSTRALIA ROUTE AS SOON AS THIS COULD BE JUSTIFIED BY THE TRAFFIC

GROWTH (PROBABLY WHEN CPA MOUNTED THEIR FOURTH SERVICE). ON WEST AUSTRALIA, ROWLAND ALSO READILY AGREED TO THE CPA PROPOSAL TO OPERATE HKG/DRW/PER V.V. THE DATE WHEN CPA WOULD RELINQUISH THEIR FIFTH FREEDOM RIGHTS WAS LEFT OPEN (CANBERRA TELNO.76 OF 27 JAN).

2. BUT WE ARE NOW ASKED TO ACCEPT A PACKAGE WHICH PROVIDES FOR

QEA TO OPERATE FOUR B747 SERVICES ON THE EAST AUSTRALIA ROUTE WITH FULL FIFTH FREEDOM RIGHTS ON MNL/HKG IN EXCHANGE FOR CPA TO OPERATE THREE B747 SERVICES PLUS A HKG/PER SERVICES WITH RESTRICTED FIFTH FREEDOM RIGHTS. UNDERSTANDABLY, THE PACKAGE IS TOTALLY UNACCEPTABLE TO CPA BECAUSE:

(A) THE AUSTRALIANS AGREED THAT CPA SHOULD HAVE THE RIGHT TO

MOUNT THE SEVENTH B747 SERVICE, NOT QEA.

(B) THERE IS LITTLE OR NO VALUE IN THE CONCESSION OF FIFTH FREEDOM RIGHTS LIMITED TO FULL FARE PASSENGERS BECAUSE TRAFFIC

BETWEEN PERTH AND JAKARTA, KUALA LUMPUR AND SINGAPORE IS ALMOST ENTIRELY PLEASURE TRAVEL WHICH WILL MAKE USE OF THE LOW 3RD/ 4TH FREEDOM PROMOTIONAL FARES WHEN THEY ARE INTRODUCED.

CONFIDENTIAL

BUT QEA

/ WISH