CONFIDENTIAL
(136)
115233 MDLIAN 8771
E
HKC 184/2
AAir Johnty
2 2 NOV 1990
agree
with this approach.
CONFIDENTIAL
FM HONG KONG
TO ROUTINE FCO
TELNO 3433
OF 21100OZ NOVEMBER 20
INFO ROUTINE DTP (FOR IAD), PEKING SHANGHAI
سلام
from 20/11
HKC 18412
YOUR TELNO 936 : HK/PRC NON-SCHEDULED SERVICES
1. AS REPORTED IN CHAN (ASNU)'S LETTER DATED 5 SEPTEMBER TO LORD (DTP) AND COPIED TO YOU AND PEKING, DRAGONAIR IS HAVING DIFFICULTIES IN SEEKING CAAC'S APPROVAL TO INTRODUCE RECIPROCAL
SERVICES ON SOME OF THE NON-SCHEDULED ROUTES PRESENTLY OPERATED BY PRC AIRLINES. AS YOU MAY ALREADY KNOW, AS FAR AS NON-SCHEDULED ROUTES ARE CONCERNED THERE IS A HUGE IMBALANCE IN TERMS OF MARKET ACCESS AND CAPACITY IN FAVOUR OF THE PRC AIRLINES. THE PRC
AIRLINES TOGETHER OPERATE 78 WEEKLY REGULAR CHARTERS FROM 17
POINTS TO HONG KONG WHEREAS DRAGONAIR IS ALLOWED ACCESS TO ONLY 4 POINTS WITH 17 WEEKLY SERVICES. WHILE IT IS NOT OUR INTENTION TO ATTAIN EXACT PARITY WITH THE CHINESE, IT IS IMPORTANT THAT, FOR OBVIOUS POLITICAL AND COMMERCIAL REASONS, DRAGONAIR SHOULD BE GIVEN THE OPPORTUNITY TO SHARE AND DEVELOP NON-SCHEDULED ROUTES, WHICH ARE LIKELY TO BE CONVERTED INTO SCHEDULED ROUTES AT A LATER STAGE. HOWEVER, DESPITE INTENSIVE LOBBYING BY DRAGONAIR, CAAC HAS UP TO NOW IGNORED DRAGONAIR'S APPLICATIONS TO OPERATE NON- SCHEDULED SERVICES TO FUZHOU, XIAN, WUHAN, QINGDAO, SHANTOU AND NINGBO.
2. CAAC HAS, THROUGH INFORMAL CHANNELS, ADVANCED A VARIETY OF REASONS WHY DRAGONAIR'S APPLICATIONS FOR NEW ROUTES CANNOT BE ENTERTAINED. THESE INCLUDE THAT THE AIRPORTS CIQ FACILITIES ARE ''UNSUITABLE'' FOR USE BY FOREIGN AIRLINES (QINGDAO, WUHAN), THE AIRPORTS/AIR CORRIDORS ARE CONTROLLED BY THE MILITARY (XIAN, FUZHOU) ETC. THESE REASONS ARE HARDLY CONVINCING, SINCE IF THE AIRPORTS/AIR CORRIDORS CAN BE USED BY THE PRC AIRLINES, THEY SHOULD ALSO BE GOOD ENOUGH FOR DRAGONAIR.
3. AT THE SAME TIME, CAAC HAS APPLIED TO OPERATE TWO NEW ROUTES (NINGBO AND NANNING) AND TO INCREASE CAPACITY ON SOME OF THE EXISTING ROUTES. (CHINA EASTERN ACTUALLY STARTED ADVERTISING AND MARKETING THEIR PROPOSED NINGBQ/HONG KONG SERVICE WITHOUT WAITING FOR CAD'S REPLY.) IN THE TOTAL ABSENCE OF RECIPROCITY AND IN ORDER TO BREAK CAAC'S OBDURACY, WE HAVE NO ALTERNATIVE BUT TO
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CONFIDENTIAL
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