ODE 18-77
CO-AUG-1993
17:10
BRITISH TRADE COMMISSION
RESTRICTED
Reference
P.02
COMMERCIAL IN CONFIDENCE
servicing. The vary act of moving the huge hangars from Kai
And if one Tak to the new airport would be immensely costly.
of the other consortia won the heavy engineering franchise, the only way that they could recruit their engineers would be by poaching from HASCO. They could only do this by increasing salaries.. All these factors meant that aircraft engineering at the new airport was inevitably going to be high-cost operation. over time.
A.
The full implications would only become apparent
Mr John explained how he saw his new role as an export promoter. He would want to help British companies both through his HAECO connections and through AEL. He had already sent Mr Murray, DTI a list of all British companies with which AEL and HAECO dealt. He was awaiting from Mr Murray lists of potential new suppliers. (He told me subsequently on 2 August, that he had just written again to Mr Murray).
5. As an illustration of what he could do for British companies, he mentioned another proposition that he had just put to Hu Yizhou who had been in Hong Kong last week for a Cathay board meeting. Hu had expressed great personal concern about the spate of áir accidentsˇin China. Stewart John had offered him a partial solution. There were eight British Tri-stars, only ten years old, (Cathays are twenty years old) sitting unused in the Mojave Desert. He proposed to Hu that these should be taken on a wet lease by CAAC painted in CAAC colours but crewed by British Airways crews and serviced by HAECO in Hong Kong. The eight aircraft could, between them, cover four of the main traffic routes within China. HAECO's reputation and expertise could ensure that they kept flying. Hu Yizhou had been very attracted by the proposition and has asked for brochures and more details which Stewart John was about to pass on to him. Whether anything will come of this remains to be seen. It would seem extraordinary for CAAC to accept foreign crews flying for them. But CAAC must indeed be concerned about their safety record. The close relationship between Cathay and HAECO means that Cathay aircraft can be air-borne much more than the average international airlines. Their twenty-year-old Tri-stars are still giving as good service as ever. They are indeed virtually new planes, having over the years had virtually all their parts and equipment replaced. CAAC had nothing to compare with HASCO. Despite arrangements with Rolls Royce for full transfer of technology on maintenance of Rolls Royce engines, CAAC still did not have the confidence or the skills to do this. CAAC engines came to HAECO for servicing.
6. Comment: Much of the above is no doubt old news. I have recorded it because it illustrates for me the considerable value that Mr Stewart John can bring to the UK export effort. His enthusiasm, expertise, and connections
and connections can stand us in good stead.
2 August 1993
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