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GRS 370.
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HONG KONG 240850Z AUG 79
FM
TEAMMED
TEMMEDIATE F C O
TELEGRAM NUMBER 1207 OF 24 AUGUST
39
LA
HOW TENIS LONG
RECEIVED IN RECISTRY NO. 51 2 8 AUG 1979
INDS
REGIS
Actio
INFO HONG KONG GOVERNMENT OFFICE LONDON,
PROPOSED FARE INCREASES ON HONG KONG/LONDON ROUTE.
1. YOU WILL WISH TO KNOW THAT THE DIRECTOR OF CIVIL AVIATION
HAD DISPATCHED THE FOLLOWING AFTN MESSAGE TO THE CIVIL AVIATION
AUTHORITY :
QUOTE
FOR AIR TRANSPORT LICENSING SECTION EPL CAA.
1. IN RESPECT OF THE PROPOSAL BY CIVIL AVIALTION AUTHORITY TO
VARY THE CABOTAGE AIR TARIFF, PUBLISHED IN THE CIVIL AVIATION AUTHORITY OFFICIAL RECORD SERIES 2 OF 7 AUGUST 1979, THE GOVERN-
MENT OF HONG KONG HEREBY OBJECTS IN ACCORDANCE WITH THE PROVISIONS
OF REGULATION 10 OF THE CIVIL AVIATION AUTHORITY REGULATIONS 1972.
2. THE GROUNDS ON WHICH THE GOVERNMENT OF HONG KONG OBJECTS ARE
AS FOLLOWS :-
A. INFORMATION AVAILABLE TO THE HONG KONG GOVERNMENT INDICATES
THAT THE NORMAL ECONOMY FARE BETWEEN LONDON AND HONG KONG HAS
FOR SEVERAL YEARS BEEN SET AT A HIGHER LEVEL THAN WOULD BE JUSTIFIED BY COSTS OF AN EFFICIENT CARRIER AS DESCRIBED IN PARA 16 OF THE UK DEPARTMENT OF TRADE'S POLICY GUIDANCE GIVEN TO THE CIVIL AVIATION AUTHORITY IN 1976. (CMND 6400).
B. IN SO FAR AS THE PROPOSAL CONCERNS NORMAL ECONOMY FARES BETWEEN HONG KONG AND LONDON THE HONG KONG GOVERNMENT BELIEVES THE
PROPOSED INCREASE WOULD BE AN UNFAIR IMPOSITION ON BUSINESS
TRAVEL FROM LONDON TO HONG KONG AND VICE VERSA, THE RATE PER
MILE OF THE PRESENT NORMAL ECONOMY FARE FROM HONG KONG TO LONDON IS ALREADY ABOUT 23 PERCENT HIGHER THAN, FOR EXAMPLE, THE PROPOSED
BUSINESS FARE FROM HONG KONG TO LOS ANGELES.
C. LACK OF CONSULTATION BETWEEN THE CAA AND THE HONG KONG
GOVERNMENT REGARDING THE PROPOSAL.
/3. THE
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