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The Cathay Pacific example is perhaps unique and we would recommend and support your amendment provided Cathay Pacific were required to meet the requirements of the British legislation and air transport licensing Authority based in the United Kingdom solely, i.e., if the powers of the Hong Kong Government to have their own Air Transport Licensing Authority were withdrawn as to British airlines.
We as a Company have recently been on the receiving end
Under of the Air Transport Licensing Authority in Hong Kong. normal circumstances, one would not contest other than by Appeal through the legal processes as we know them in England, but in this case there were several aspects that by no standards would one call democratic. For example the Hong Kong Government announced prior to the hearing that it had already made up its mind, that it preferred Cathay Pacific as the home-based airline, and of course, they were duly licenced after an eight day hearing. The ATLA Panel was selected after the Hong Kong Government's view became known all of whom had Government or Cathay Pacific connections and several of whom resigned after this had been pointed out by us. The Hong Kong Government is a judge in its own cause. It is beyond coincidence that our application is the only one to be denied in the 31 years history of the regulation of Air Transport in Hong Kong.
Another undemocratic part of this procedure is that there is no Right of Appeal.
It would therefore follow that if the amendment were to be accepted as it stands, the situation would be that Cathay Pacific would enjoy all the benefits and obligations of being a British airline under the 1971 Act plus the Hong Kong preference, whilst at the same time every other British Airline including British Airways would be subject to the Air Transport Licensing Authority in Hong Kong.
To summarise it our view that all British Airlines, whether based in the U.K. or overseas should be regulated by only one Authority and that Authority should be the CAA here in London applying English law.
Enclosure
Yours sincerely,
Sir Freddie Laker