ADVICE
1.
We are asked to advise the Hong Kong
Government ("Government") in the following circumstances.
2.
Applications have recently been made to
the Civil Aviation Authority ("the Authority") by Laker
Airways Limited ("Laker"), British Caledonian Airways
́Ltd., ("BCAL"), and Cathay Pacific Airways Limited
("CPA"), each for a Scheduled Service (Class I) Licence
to fly a direct service on the London/llong Kong route
("the route") a service in which British Airways ("B.A.")
have hitherto enjoyed a monopoly.
Government ("Government") have for some years been
concerned at the degree of public dissatisfaction
existing in Hong Kong over the quality of the service
provided by BA over the route and favour the granting
licence to a second airline. One of the three
of a
The Hong Kong
applicants for a licence, CPA, is an airline based
locally in Hong Kong (though effectively controlled
by a British holding company) which has over recent
years grown in status and reputation to a stage where
it would be well capable of providing an efficient
service on the route.
3.
Despite its effectively British control,
(which would for instance satisfy the test set out in
Section 22(3)(b) of the Act) CPA does not fall within
the definition of a "British airline"
as set out in
Section 3 of the Civil Aviation Act 1971 ("the Act").