CO
TIAL
DECADES BRITISH AIRWAYS HAVE BENEFITTED VERY SUBSTANTIALLY FROM THE GRANTING OF TRAFFIC RIGHTS TO FOREIGN CARRIERS TO SERVE
HONG KONG. THEY CONTRAST THIS WITH THE PRESENT DECISION BY THE CAA
WHICH HAS PREVENTED THE HONG KONG AIRLINE FROM PARTICIPATION ON A CABOTAGE ROUTE TO WHICH IT IS CLEARLY ENTITLED IN THEIR OPINION.
THE FORMER POSITION WAS JUST SUPPORTABLE: BUT THE PRESENT POSITION WITH A UK BASED DUOPOLY ON THE ROUTE IS NOT. AN ADDITIONAL POINT
IS THAT CPA HAS SUFFERED IN TERMS OF TRAFFIC RIGHTS IN THE EAST ASIAN REGION (SINGAPORE, MALAYSIA AND CHINA FOR INSTANCE) SO THAT
BA CAN BENEFIT.
J
IT IS ALSO TO BE NOTED THAT HONG KONG IS UNIQUE AMONG DEPENDENT
TERRITORIES IN HAVING A MAJOR AIRLINE OF ITS OWN AND AN ECONOMY SUFFICIENTLY DEVELOPED TO GENERATE A SUBSTANTIAL PROPORTION OF THE TRAFFIC ON THE ROUTE. IT IS VERY DOUBTFUL IF SUCH A SITUATION WAS IN MIND WHEN THE CIVIL AVIATION ACT 1971 WAS ENACTED.
THE POLITICAL SOLUTION
THE HONG KONG GOVERNMENT ACCEPTS THAT IT WOULD BE POLITICALLY DIFFICULT FOR THE SECRETARY OF STATE TO REPLACE BCAL BY CATHAY ON APPEAL. BUT THE PROBLEM WOULD BE SOLVED BY FOLLOWING THE DECISION OF THE HONG KONG ATLA AND LICENSING BOTH BCAL AND CATHAY.
THERE IS GOOD REASON TO BELIEVE THAT SUCH A DECISION WOULD REMOVE THE DANGERS DESCRIBED ABOVE. SO FAR AS THE VIABILITY OF A
THREE CARRIER REGIME IS CONCERNED, THE HONG KONG GOVERNMENT REPEATS WHAT IT SAID IN ITS APPEAL DOCUMENT, NAMELY:
''THIS SOLUTION WAS STATED BOTH BEFORE ATLA AND BEFORE CAA BY BCAL
TO BE AN EQUITABLE ARRANGEMENT WITH WHICH THEY WERE PREPARED TO LIVE. HKG AND CATHAY ARE NOW ALSO PREPARED TO ACCEPT SUCH AN ARRANGEMENT. SO FAR AS THE THINNESS OF THE ROUTE IS CONCERNED, SUCH AN ARRANGEMENT WOULD HAVE THE ADVANTAGE OF BEING AN INCENTIVE TO THE CREATION OF FURTHER TRAFFIC, BOTH BY RECOVERING THAT WHICH PRESENTLY IS CARRIED FROM THE FAR EAST TO EUROPE BY OTHER AIRLINES AND BY STIMULATING NEW TRAFFIC (THEREBY FURTHERING THE ECONOMIC OBJECTIVES OF S.3(1)(C)). IT IS JUST CONCEIVABLE TOO THAT SIR FREDDIE LAKER IS RIGHT AND THERE ARE, AS HE SAID, ''A LOT OF PASSENGERS STILL TO BE BEATEN OUT OF THE BUSHES''- THOUGH NO DOUBT
NOT TO MANY AS HE HOPED IN WHICH CASE THE ROUTE COULD PROVE FATTER THAN ONE THINKS. TRAFFIC FORECASTING IS AN INEXACT SCIENCE.
ACCORDINGLY HONG KONG GOVERNMENT ASKS YOU TO VARY THE DECISION OF THE CAA BY LICENSING CATHAY TO FLY UPON THE ROUTE HONG KONG /
LONDON/HONG KONG WITHOUT LIMITATION: ALTERNATIVELY TO GIVE A
-8-
LAL
!
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