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(iii) Hong Kong Aircraft Engineering Co. Ltd. CPA contribute over
HK$10 million per annum to HAECO who, without the skilled stuff and advanced
equipment which they employ to service CPA's planes, would be unable to
maintain their position as a leading aircraft maintenance and overhaul base
in this area, enabling then to attract work from all over the world to Hong Kong. If CPA's demands did not exist, HAECO could not justify the expenditure in equipient and experienced staff which thereby qualifies them to succeed in this field, and thus put Hong Kong into a prominent position in the air-
craft maintenance world.
(iv) Hong Kong Government.
CPA pay to the Hong Kong Government HK$1.9 million per annum in landing and parking fees, HK$200,000 in rent and rates and HK$400,000 in profits tax and is an important airline contributor. to Hong Kong's revenue. If CPA did not exist, payments made by such. other airlines as replaced CPA would not be so high, since much of the regional traffic generated by CPA would be entirely lost.
(x)
*
Tourism. CPA state that they currently spend HK$4 million per annum in advertising and promotion, of which HK1.5 mil ion is spent in Hong Kong, and therefore contributes to the Hong Kong economy. Of the balance, 80% is directed towards developing traffic in Hong Kong, and thus assists the expansion of Hong Kong's important tourist industry. In addition CPA represents the Hong Kong Tourist Association in Japan, and has joint arrange- ments with them in the United States and the Middle East: It is estimated that CPA bring in 22% of all visitors to Hong Kong, far more than any other airline. From the area actually served by CPA, 30% of Hong Kong vi are carried by the Hong Kong airline, by far outcarrying any of their competitors.
D. CATHAY BACIFIC AIRWAYS' LEGITIKATE AILS
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visitors
The airline's policy is to develop regionally within an area based on Hong Kong and geographically bounded by Korea and Japan in the north, Australia (and possibly New Zealand) in the 'south, and India in the west. There are presently no aspirations to develop beyond this area; within which CPA is undoubtedly the strongest regional carrier, having thus achieved a domination of the regional air for British aviation.