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At the end of a long and (in every sense) exhaustive hearing at which a large quantity of written material was produced, largely related to the potential traffic on the route, the Authority granted a licence to
both BCal and CPA but refused Laker's application. The licences to BCal and CPA were each for a daily service, subject to an initial frequency limitation of 4 services a week for BCal and 3 a week for CPA, such limitations to automatically lapse in April 1982. Those two airlines, however, were to be at liberty to apply to lift the restrictions earlier if they considered circumstances so
warranted.
9.
The Authority said it considered this would provide sufficient immediate capacity to meet current demand, together with some over-capacity to stimulate competition, and would provide a daily service, in competition with BA, catering for all classes of passengers but would not put such over-capacity on the route as to be contrary to the wording of Regulation 11 of the Air Transport
Licensing of Air Services) Regulations. This Regulation
reads as follows :
"11.
In exercising their discretion to grant, or to refuse, a licence and their discretion to attach conditions
to any licence the Licensing Authority shall have regard to the co-ordination and development of air services generally
with the object of ensuring the most effective service to the public while
avoiding uneconomical overlapping and generally to the interests of the public, including those of persons requiring or likely to require facilities for air transport, as well as those of persons providing such facilities. In particular the Licensing Authority shall have regard to the following matters