TNAG-2310-FCO40-3350-Air-services-between-Hong-Kong-and-China-1991 — Page 25

3.

NON-SCHEDULED SERVICES

Points to make:

Hope that some reciprocity will be granted

will

granted to Dragonair in developing new non-scheduled routes. Confident that the interests of travelling public can be better served by co- operation and join efforts between Hong Kong and the mainland.

Background

Most of the non-scheduled services between Hong Kong and the PRC are operated in the form of regular chargers, which are approved on a month by month basis. In January 1991, PRC airlines together operated 68 regular charters per week to 17 cities, whereas Dragonair can only operate 14 weekly charters to 4 points. Dragonair's applications to operate to new points have been ignored repeatedly by CAAC. In the absence of any reciprocity, we have little alternative but to take a firm line by not approving any application by CAAC for new routes or for additional capacity on existing routes. CAAC is now under increasing pressure from those provincial and municipal authorities (such as Ningbo in Jiangsu and Nanning in Guangxi) wishing to establish direct air links with Hong Kong to adopt a more flexible approach.

4.

TRANS-ASIA ROUTEING

Points to make:

Understand that access to the trans-Asia routeing by British airlines, including Hong Kong-based airlines, will be discussed at the next round of UK/PRC air services talks. satisfactory outcome would emerge after the talks.

Background

Hope that

Access to the trans-Asia routeing will reduce the average flight time of CPA's non-stop services to Europe by around 50 minutes. The Chinese are aware of our interest in this routeing but have not named the price so far. It is expected that the matter will be discussed at the next round of UK/PRC trunk route talks. Meanwhile, CAAC have given approval to CPA to use the trans-Asia routeing on a contingency basis during the Gulf war and this is working well.