GPS 290
RESTRICTED
FM HONG KONG 26025øZ FEB 82
TO PRIORITY FCO
RESTRICTED
TELEGRAM NUMBER 191 OF 26 FEBRUARY
INFO HONG KONG GOVT OFFICE LONDON, MANILA
пе
UK/PHILIPPINES AIR SERVICES.
BY NOW YOU WILL NO DOUBT HAVE LEARNED THAT CPA HAVE MADE REPRESENTATIONS TO THE PHILIPPINES CIVIL AERONAUTICS BOARD ABOUT
THE PLANNED IMPLEMENTATION WE F 1 MARCH OF 'STANDARD TICKETING FOR CONTRACT WORKERS'' IN THE PHILIPPINES. THE SCHEME (A COPY OF THE PAL INTERNAL MEMO DESCRIBING IT FOLLOWS BY BAG) HAS TWO MAIN
FEATURES:
(A) ALL LABOURERS TRAVELLING FROM THE PHILIPPINES TO WORK ON CONTRACT OVERSEAS ARE TO BE TICKETED ONLY ON PHILIPPINES AIR LINES
TICKET STOCK.
(B) ONLY CARRIERS WITH 3/4TH FREEDOM RIGHTS ARE TO BE PERMITTED TO CARRY SUCH TRAFFIC AT APPROVED RATES. APPARENTLY 5TH AND 6TH
FREEDOM OPERATORS MAY CARRY THE TRAFFIC ONLY AT IATA RATES, UNLESS THEY COME TO SOME ARRANGEMENT WITH PAL..
2. THE SCHEME HAS RECEIVED A CERTAIN AMOUNT OF PUBLICITY IN THE REGIONAL TRAVEL PRESS. THE OFFICIAL JUSTIFICATION FOR THE SCHEME IS TO SAFEGUARD PHILIPPINE CITIZENS TRAVELLING TO WORK OVERSEAS FROM ILLEGAL AND UNETHICAL COMMERCIAL MALPRACTICES BY
AIRLINES, LABOUR RECRUITERS AND TRAVEL AGENTS''. HOWEVER, IT WILL ALSO HAVE THE EFFECT OF IMPROVING PAL'S FINANCIAL POSITION AND THAT OF THEIR AGENTS AT THE EXPENSE OF OTHER AIRLINES
OPERATING TO THE PHILIPPINES.
3. CPA HAVE WRITTEN TO US ABOUT THE SCHEME SEEKING ASSISTANCE. THEY ACKNOWLEDGE THAT THEY ARE 6TH FREEDOM CARRIERS IN THIS MARKET IN PARTICULAR TO THE MIDDLE EAST BUT POINT OUT THAT PAL THEMSELVES DO A GOOD DEAL OF 6TH FREEDOM BUSINESS THEMSELVES IN
HONG KONG, ESPECIALLY ON TRANS-PACIFIC ROUTES BUSINESS WHICH IS, AS USUAL, VERY DIFFICULT TO QUANTIFY. IN ADDITION THIS SCHEME IS TO BE APPLIED TO THE MANIL-HONG KONG ROUTE ON WHICH CPA DO HAVE
RIGHTS AND IT SEEMS TO US THAT ON THESE GROUNDS ALONE THE SCHEME CONSTITUTES A BREACH OF ARTICLE 6 OF THE AIR SERVICES
AGREEMENT.
4. BA'S REACTION SO FAR HAS APPARENTLY BEEN MUTED BUT THEY SHOULD
HAVE SOME INTEREST AS A 5TH FREEDOM CARRIER, TO ABU DHABI.
5. WE SHOULD BE GRATEFUL FOR YOUR VIEWS.
MACLEHOSE
:
LIMITED MAED SEAD TRED HK aj D
RESTRICTED
COPIES TO
HONG KONG HOUT OFFICE,
LONDON
COPIES SENT TO
CAIR/DOT
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