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to operate 4 flights a week and to CPA for 3 flights a week.
meantime have announced that they intend to reduce their flights
from 11 to 7 a week, though, since there will also be fewer inter-
mediate stops, the number of seats available between London and
Hong Kong will remain virtually the same.
4. The CAA hearings opened in London on 13 December 1979 but were
adjourned until 25 January as there had not been time to hear all
the evidence. CPA, supported by the Hong Kong Government, are still
bidding for exclusive rights to the second service. British
Caledonian and LakerAirways have protested about the support given
by the Hong Kong Government to CPA. British Caledonian in particular
are incensed that the Hong Kong Government are not prepared simply
to support the decision reached by their own ATLA.
5.
It is difficult to predict the outcome. The Hong Kong
Government representatives are pessimistic about CPA's chances
of getting exclusive rights. If, as is likely, the CAA's decision
results in an appeal, the matter will go to the Secretary of
State for Trade. One factor which could possibly affect Mr Nott's
decisions is the likelihood of early legislation to amend
Section 3 of the Civil Aviation Act. At present this Section
operates to the disadvantage of CPA as it gives preference to
British-based airlines.
Hong Kong and General Department
4 January 1980
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