CONFIDENTIAL

objective guidelines laid down by the International Air Transport Association (IATA). Additionally traffic distribution rules made by

the Secretary of State for Transport under section 31 of the

Airports Act 1986 restrict the operation of certain kinds of traffic

at peak times at Heathrow and Gatwick. Cathay Pacific's complaint

is that the rule for Gatwick bars movements by all-cargo aircraft

from the peaks (as defined by the scheduling committee) unless

specific prior dispensation has been given by the airport operator. The rationale for this rule is that cargo flights are generally less time critical than passenger flights, and that the proportion

of cargo carried on freighters (as opposed to in the holds of passenger aircraft) has declined and is now very small. CPA tried

to obtain three additional slots for their Gatwick-Hong Kong service

for the summer season 1988. In the event they have been successful

in obtaining two extra slots

-

though not quite at the times they

required. Given the pressure of demand for slots at Gatwick, CPA

seem to have been more than fairly treated.

13.

If the matter is raised, it would be most appropriate to

suggest that CPA continue their discussions with the Department of Transport and Gatwick Airport.

Hong Kong Department

June 1988

CONFIDENTIAL

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