TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 125

CONFIDENTIAL

a.

b.

attracting some London-Hong Kong traffic freedom operation over Copenhagen; and

to a sixth

clawing back from other European operators (notably Lufthansa and Swissair) Scandinavian traffic which they carry to and from Hong Kong.

42. If a

competing carrier were introduced on to the Iondon- Hong Kong route the prospects for a service between Copenhagen and Hong Kong would therefore be set back,

簪

43. Since the Scandinavian traffic tends to be at the top end of the market the effect of introducing normal scheduled services by

CAL or CPA would be greater than if the competition took the form of whole plane charters or Skytrain.

0.

Syria

44.

INTERMEDIATE COUNTRIES

Syria is not 21 signatory of JASTA and we do not therefore have a right to the first and second freedoms. Syria is, however, in a key position since it lies astride one of the main routes hetween Europe and the Orient. The Syrians exploit this to obtain concessions for Syrian Arab Airlines.

45. Syrian Arab Airlines operate 4x8747(SP) per week between Damascus and London whereas BA only operate 2xVC10 per week. This disparity in capacity is a reflection of the benefits BA énjoy from being able to overfly Syria with both Concorde and -subsonic aircraft on their eastern routes. After discounting for Concorde, the price attributable to subsonic overflight is estimated at about £1m a year.

If a

second carrier were to Come on the route it would be for decision whether that carrier should meet part of the cost of compensating Syria for overflying rights

and, if $0, how. This would apply to any competing service, although so far the Syrians have levied tribute for the use of their airspace from the scheduled airlines rather than the charter operators

India

46. Although India is a signatory of JASTA, the Indians are well aware of the importance; of Indian airspace for the routes between Europe and the Orient/Australia, jand they have not hesitated to threaten to denounce LASTA when the going has got rough.

47.

The price RA effectively pay for unlimited overflight of India on services to and from points to the east of India is the exclusion from their pool with Air India of the latter 1 between London and New York from its daily 8747 service.

earnings

These

CU

DENTIAL