BRIEF 9
A
TEXTILE MISSION TO HONG KONG
LONDON HONG KONG AIR SERVICES
BACKGROUND
1
Until this year British Airways was the only carrier providing a direct service on the London Hong Kong route. Earlier this year the Hong Kong Air Transport Licensing Authority (ATLA) licensed British Caledonian and Cathay Pacific to operate alongside British Airways. Laker Airways had also applied to the Hong Kong ATLA but were turned down. To operate the route British Caledonian and Cathay also required licences from the Civil Aviation Authority here and they together with Laker made applications to the Authority. The Authority, however, decided to licence only British Caledonian. The exclusion by the Authority of Hong Kong's own airline, Cathay Pacific, caused great resentment in Hong Kong and concern was expressed about the harmful effects which the Authority's decision might have had on this country's relations with Hong Kong. Cathay, British Caledonian and Laker appealed to the Secretary of State against the Authority's decision and after considering these appeals and the representations of the Hong Kong Government, Mr Nott decided to reverse the Authority's decision on the applications of Cathay and Laker and uphold the Authority's decision on British Caledonian's so that the three carriers would be licensed alongside British Airways. In announcing his decision on 18 June, Mr Nott said that he concluded that the substantial new traffic likely to be generated over a period by a wider variety of services would offer a reasonable prospect that four operators could, over a period, achieve an economic return on this route. Mr Nott also expressed the hope that the Government of Hong Kong would lend support to any renewed application by Laker to the Hong Kong ATLA for the necessary licence to enable Laker to commence services. The Hong Kong Government subsequently said that they would support Laker's application. Laker did in fact make a renewed application and a hearing before the Hong Kong ATLA is likely
to be in October.
2
Mr Nott's decision has been generally welcomed in Hong Kong an
has alleviated the resentment caused by the CAA's decision not to licence Cathay Pacific. Cathay Pacific commenced their service on 17 Julv and British Caledonian commenced theirs
on 1 August.