There can be little doubt that the travelling public generally are not satisfied with BA's performance on the Hong Kong/London route. At least middle class travellers are likely to have put BA's failings down to the absence of competition. Thus for the Hong Kong Government to advocate a second airline as a matter of policy is likely to be welcomed and for the Government not to do so would be criticised, probably severely.
30
The hearings both in Hong Kong and London will be in public. So at least they will be well covered by the press and public interest in the outcome could turn out to be considerable. There is no reason to suppose that public sympathy will not be in favour of CPA (the known, local and reasonably successful airline) rather than the other two applicants (of whom few are likely to have heard). So if CPA fails on a technicality (the legislative prejudices referred to in paragraph 20 above), there is a strong possibility that considerable dissatisfaction will be voiced. Equally there is likely to be discontent if the outcome is no second airline at all, ATLA and CAA having come to differing conclusions and the British Government, which can give directions to the CAA (the Hong Kong Government cannot do so to ATLA), has done nothing to rectify the situation. In either case, there may be public criticism that the British Government is exercising undue control over Hong Kong affairs.
Advice sought
31
(a)
(b)
Members will be invited:
to advise whether the Hong Kong Government should advocate the introduction of a second airline on the Hong Kong/London route;
to note the developments leading up to the hearings by the ATLA and the CAA in November and December respectively.
(The Director of Civil Aviation (Acting) (Mr J. T. THORPE) and the Deputy Secretary for Economic Services (Mr N. M. TAYLOR) will attend before the Council for the discussion of this item).
8th October 1979 (CR 7/951/73 II)
COUNCIL CHAMBER
CONFIDENTIAL