CONFIDENTIAL

Thailand.

These applications are being considered and are

likely to be heard by ATLA in the second quarter of 1986.

Non-Scheduled Services (Charter Flights)

6.

Charter

flights fall

outside the bilateral ASAS;

approval themselves from the

ends of the route.

DAL

airlines seek the necessary

aeronautical authorities at both ends

have, since their inception, mounted occasional charter

flights mainly to Malaysia and Thailand. DCA Hong Kong

have n ow given permission for DAL to approach the

aeronautical authorities in a number of countries about

charter services (PRC, Japan, Korea, Malaysia, Philippines,

thailand and the Netherlands). Permission to operate a

regular series of charter services to London was refused by

DCA Hong Kong at the beginning of 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 carriers

(CPA, British Airways and British Caledonian). This is in

accord with the publicly stated Hong Kong policy. DAL have

n ow resubmitted a further, more detailed application for

charter services to

to the UK which is still being considered

HMG i is not able to intervene.

by DCA Hong Kong.

7.

to

Frequent attempts by DAL to operate charter services

the PRC have been largely thwarted by the slow response

of CAAC. The Ambassador in Peking has complained to the

MFA about this and Dr Wilson has also

raised the subject

So far only very limited

with the Chinese Ambassador.

operations to Xiamen have been approved by the Chinese.

UK/PRC Air Service Relations

8.

The

emergence of DAL as a fledgling airline in Hong

Kong

has also complicated Our bilateral air service

relations with the PRC. The Secretary of State may recall

raising the question of obtaining a fairer deal for CPA on

routes between Hong Kong and China with Wu Xueqian in June

1985.

CONFIDENTIAL

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