TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 124

CONFIDENTIAL

34.

1

AS

We owe the Singaporeans nothing in air services terms; but the Australia/ASEAN conflict has demonstrated this would not prevent them from making a considerable political fuss. They could be expected to receive much more genuine support from the Thais and Malaysians over this issue than they have received in their dispute

with Australia.

Malaysia

35.

1

Like SIA, MAS carries London-Hong Kong cabotage traffic on a sixth freedom basis. However, MAS are less effective i in this market than SIA and are thought to carry less than a quarter of the traffic carried by the latter.

36. We owe the Malaysians nothing in air services terms, However we would be put in a very uncomfortable position if (unlike the Australia/ASEAN conflict) they were to share Singapore's interests in a dispute with us over this issue.

1

2)

B3.

COUNTRIES IN WESTERN EUROPE

France

37. Air France are understood to be less activeas sixth freedomers' between Hong Kong and London than the other European carriers. While the introduction of a competing service on the London-liong Kong route would therefore have some effect upon their carringe, it is likely to be relatively insignificant and is unlikely to disturb UK/France relations.

Netherlands

C

38. With only one service per week, KLM is unlikely to be significantly affected.

Switzerland and Germany

39. Both Swissair and Lufthansa operate a good deal more canacity into Hong Kong than is justified by the requirement for 3rd/4th freedom traffic, Both are significant sixth freedom operators at the top end of the London-Hong Kong market. Both would therefore be likely to be substantially affected by the introduction of a fast service by BCAL or CPA which provided full first class and business class facilities. If the impact on their sixth freedom carriage

as great as seems possible we should need to consider afresh reducing the frequency of their services to Hong Kong.

WHIS

40.

On the other hand, the introduction of whole plane charters Sr Skytrain is unlikely to have substantial implications for the carriers of these two countries.

Scandinavia

41.

A service between Copenhagen and ilong Kong, in the Deir future, would depend heavily on

CONFIDENTIAL