TNAG-0869-FCO40-1079-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 43

GRS 575

CONFIDENTIAL

FM FCO 251730Z SEPT 79

TO IMMEDIATE PEKING

CONFIDENTIAL

TELEGRAM NUMBER 557 OF 26 SEPT

INFO HONG KONG

233

7661 - 1

Hack 184/2= RELIVED IN REGNTRY NO. A

27 SEP 1974-

OFSK

INDEX

AS STAY. Ara

254

PEKING TELNO 823: CAAC USE OF HEATHROW/GATWICK

1.

PARA 3 OF TUR. WE ACCEPT THAT THE CHINESE HAVE

A POINT, WHICH WE CANNOT SIMPLY IGNORE. AT THE SAME TIME, HEATHROW'S FOURTH TERMINAL, FVEN IF OPEN BY 1984, WILL ONLY BE ABLE TO ACCOMMODATE AIRLINES ALREADY THERE: AND BA'S ECONOMIC ARCUMENTS FOR NOT MOVING PART OF THEIR 2747 OPERATION TO GATWICK ARE VERY STRONG, EVEN THOUGH THEY WILL NOT CUT MUCH ICE WITH THE CHINESE. BA HAVE ALSO HELD OUT AGAINST

A SPLIT OF B747 OPERATIONS THROUGHOUT THE DISCUSSIONS ABOUT

THE POSSIBLE MOVE TO GATWICK OF AIR SERVICES TO CANADA.

THE ARGUMENTS ARE:

(A) BA WOULD NEED TO MAKE VERY EXPENSIVE INVESTMENT IN NEW GROUND FACILITIES AT GATWICK FOR HANDLING THE HIGH VOLUME OF PASSENGERS, LUGGAGE AND CARGO ASSOCIATED WITH B747 OPERATIONS. IN ADDITION, A

NEW HANCAR WOULD BE REQUIRED SPECIFICALLY TO HANDLE

AND MAINTAIN B747 AIRCRAFT. THE COST OF THIS

ALONE IS ESTIMATED AT SOME, 9 MILLION.

(P) BA'S 747 OPERATION IS AIMED TOWARDS MAKING THE

OPTIMUM USE OF AIRCRAFT OPERATIONAL TIME. THIS

MEANS THAT AN INDIVIDUAL B747 IS NOT NECESSARILY

USED EXCLUSIVELY ON A SINGLE ROUTE BUT RATHER IS

SWITCHED AROUND TO FLY A COMBINATION OF DIFFERENT

SECTORS. FOR EXAMPLE, AN AIRCRAFT ARRIVING AT HEATHROW FROM SAY JOHANNESBURG MAY WELL TAKE A NEW FLIGHT NUMBER AND THEN BE OPERATED OVER THE NORTH

ATLANTIC. SPLITTING THEIR FLEET FOULD THUS CREATE

CONSIDERABLE SCHEDULING DIFFICULTIES FOR BA AND

1

CONFIDENTIAL

/HAVE ADVERSE