The Attorney-General, Mr. John Griffiths, who spoke on behalf of the Hong Kong Government, said in his summing-up at the hearings that Cathay Pacific Airways, which had long been using Hong Kong as its base, had a deep understanding of needs in Hong Kong and was willing to accept public opinion. Mr. Griffiths added that with the advantage of holding the air right over the Persian Gulf, and if the number of passengers in this route exceeds the number the British Caledonian Airways can take with its 270-scat DC-10 fleet, then CPA will be able to meet the excessive demand by its 747 Jumbos, particularly during peak periods. Details of the hearings were published in this paper on November 20, 1979.
The British Civil Aviation Authority held its hearings in December last year. On March 17, its decision was announced: British Caledonian Airways was allowed to operate a second air service beurzen Hong Kong and London, while the CPA's application was rejected.
The British Civil Aviation Authority has not given any reason for its decision, nor has it stated the terms or criteria upon which the decision was based. It was only natural and right that the decision has aroused strong reactions from various sectors.
An analysis of the reactions to the decision showed that both public opinion and present circumstances are in favour of CPA's fight for the right to operate the air service. In short, CPA is in a favourable position to raise objections to the wrong decision of the CAA. The following facts are proof of this:
(1) Local industrial and business leaders have strongly urged the authorities
concerned to review Hong Kong-British relations from the-perspective of transport and Hong Kong's ability to protect airspace. In their view, the CAA has made a political decision in awarding British Caledonian Airways the right to operate the air service, and in so doing, the CAA has not considered Hong Kong's right to run its own affairs as a business centre.
(2) The Director of the Hong Kong General Chamber of Commerce, Mr. Jinumny McGregor, has pointed out that Britain had not taken into consideration trade reciprocity which it has been sking Hong Kong to stick to. Mr. McGregor thought that the CAA had not only disregarded Hong Kong's interests, but had actually harmed Hong Kong's interests.
(3) The Hong Kong Government Secretariat indicated yesterday that the
Government would make some "response" when CPA lodges an appeal. This shows that the Government will probably support CPA's bid to win the right to operate the air service.
The statement by CPA's deputy chairman, Mr. Duncan Bluck, also should not be overlooked. Mr. Bluck outlined the reasons why CPA should be awarded the licence to operate the air service:
(1) The CAA's decision was based on its contention that flights on the
Hong Kong-London air service is domestic, and as such they should be operated by a British airline. It is obvious, therefore, that the Hong Kong- based CPA was being discriminated against.
(2) CPA has always been observing the spirit of trade reciprocity. All its
aircraft are installed with British Rolls Royce engines and other British-made spare parts.
(3) When two countries or two places open air services between them, the general practice in the aviation industry has been for the right to operate the service. to be shared between the places in a fair and equal manner. The British authorities have exploited Hong Kong's colonial status in its decision to give two British airlines the right to operate the route.
To sum up.