CONFIDENTIAL

but it will be for HMG to seek the necessary traffic rights

with the PRC. DAL have also applied to for permission to

operate scheduled services to the UK (London and

Manchester), the Netherlands and points in the USA.

Non-Scheduled Services (Charter Flights)

4.

Permission to Dragonair to operate a regular series

of charter services to London was refused by DCA Hong Kong

in February, on the grounds that DAL had failed to show

that there was a genuine demand that could not be met by the existing scheduled

scheduled carriers (CPA, British Airways and

British Caledonian).

publicly

stated Hong Kong policy.

This is in

accord with

CONFIDENTIAL

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