CONFIDENTIAL
WISH TO RETAIN FULL FIFTH FREEDOM RIGHTS ON THE HKG/MNL SECTOR. (C) ALTHOUGH CPA HOPE TO REPLACE THEIR TWICE-WEEKLY HKG/KUL/ JKT/PER SERVICE WITH A ONCE-WEEKLY HKG/DRW/PER SERVICE ON A TRIAL BASIS FOR UP TO SIX MONTHS, THEY DO NOT ACCEPT THAT THIS
PROVIDES FOR ANY RECIPROCAL CONCESSIONS TO QEA FOR EITHER A FREQUENCY OR ROUTING ADVANTAGE ON THE EAST AUSTRALIA ROUTE. ANY CONCESSION MUST BE IN TERMS OF A RECIPROCAL WEST
AUSTRALIA SERVICE FOR QEA,
3. CPA PROPOSE THAT QEA BE PERMITTED TO CONTINUE TO OPERATE FOUR B747 SERVICES UNTIL THE END OF 1979 AND THEN REDUCE FREQUENCY TO THREE B747 SERVICES TO BE OPERATED ON A 3RD/4TH BASIS. CPA WOULD ADD THE SEVENTH FREQUENCY FROM MAY 1980 ON THE HKG/MEL/SYD ROUTE. IN THEIR SUBMISSION (COPIED TO BCARFE WHO WILL FORWARD TO DOT), CPA HAVE PROVIDED FIGURES ON TRAFFIC FORECASTS AND LOAD FACTORS TO
JUSTIFY THE PROPOSED SERVICES.
4.
IN THE LIGHT OF THE AGREEMENT REACHED WITH THE AUSTRALIANS IN JANUARY 1979, AGAINST A BACKGROUND OF US AND CPA BEING EXTREMELY
RELUCTANT TO ACCOMMODATE THE ICAP PROPOSALS, WE HAVE EVERY SYMPATHY
WITH THE VIEWS NOW BEING EXPRESSED BY CPA. THEIR SCHEDULES TO
AUSTRALIA, INDONESIA AND MALAYSIA HAVE ALL BEEN DISRUPTED TO NO GOOD PURPOSE. IT SEEMS CLEAR THAT THE AUSTRALIANS ARE IN A STATE
OF DISARRAY (OF THEIR OWN MAKING) AND ARE TRYING TO FREE THEMSELVES
FROM COMMITMENTS MADE AT THE JANUARY TALKS. WE TRUST THAT THEY
CAN BE MADE TO HONOUR TTHEM
MACLEHOSE
FILE S:
MAED
SPD
HKGD
[COPIES SENT TO CAD/DOT]
COPIES TO: MR ROBERTS) MR STABLES)
MISS BROWN
2
CONFIDENTIAL
CAIR/DOT
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