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Dear Secretary of State,
REGIS HOUSE,
43-46, KING WILLIAM STREET,
LONDON, EC4R 9BE
12th September, 1979.
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CATHAY PACIFIC AIRWAYS.
I recently became aware that a letter had been sent by John Steele of the Department of Trade, on 27th July, audressed to the Chairman of the CAA, BAA and certain United Kingdom airlines, seeking comment on a proposal to amend Section 3 of the Civil Aviation Act, 1971. I understand that our level adviser has already written to John Steele, making relevant comment, but I hope that you will not mind my writing personally to you on this matter, so far as it relates to Cathay Pacific Airways' recent application to the CLA br a licence to operate between longkong and London,
Taving now had the opportunity to consider carefully the nosition in which CPA is likely to find itself when its application comes up hefore the CAA, and having taken expert advice on the matter, I felt that I must record my considerable concern at the very serious discriminatory bing inherent in Section 3 of the Civil Aviation Act 1971. It would now appear to me that this is of such proportion as to seriously prejudice CPA's chances of success, as compared with those of the other applicants.
CPA have, as you know, somewhat reluctantly accepted the ruling that they must compete for a licence with the other carriers both U.K. based - who have ambitions to serve the route, notwithstanding the fact that the route has for many years been served exclusively by British Airways, with no opportunity for reciprocal services by the Hongkong based carrier. What we find