21.

Press and public reaction to Mr. Nott's decision has been very favourable, with appreciation being expressed particularly of the grant of a licence to CPA. Mr. Nott's "open skies" policy, and the wide choice of services, facilities and fares that this will bring about, has been welcomed by the travelling public. Although there has been no particular support expressed for Laker (the airline is not well known in Hong Kong) its expressed intention is to cater for the bottom end of the market, with a low-fare, no frills service, and criticism of the Government could be expected that the needs of the man in the street are being ignored, were the Government to stand in the way of Laker being licensed in Hong Kong.

The licensing systems in Hong Kong and London

22.

This whole exercise has thrown up certain weaknesses in Hong Kong's air transport licensing system and further weaknesses in the application of both the ATLA and CAA systems to the cabotage route. The intention now is shortly to seek Members' advice on possible changes.

Advice sought

23.

Members will be invited:

(a) to note the latest developments regarding applications to join BA on the Hong Kong/ London route; and

(b)

to advise whether the Hong Kong Government should support

(i)

(ii)

Laker's new application to the ATLA to serve the Hong Kong/London route; and

any applications by BCal and/or CPA to have removed the restrictions on their frequencies on the route

so far as the Hong Kong Government is properly able to do so having regard to the evidence presented at the hearings in support of such applications and the legal criteria binding upon the ATLA.

(The Director of Civil Aviation (Acting) (Mr. J.T. THORPE) and the Principal Assistant Secretary for Economic Services (Mr. R.J. POLE-EVANS) will attend before Council for discussion of this item.)

27th June 1980

(CR 7/951/73 VI)

CONFIDENTIAL

COUNCIL CHAMBER

機密

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