WEDNESDAY, JUNE 18, 1980
DECISION ON AIRLINES BASED ON VIRTUES OF COMPETITION
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THE SECRETARY OF STATE FOR TRADE, THE RT HON JOHN NOTT, SAID LAST (TUESDAY) NIGHT HIS DECISION TO ALLOW THE APPLICATION FOR THREE NEW AIRLINES TO SERVE THE LONDON-HONG KONG ROUTE WAS BASED ON A STRONG BELIEF IN THE VIRTUES OF COMPETITION IN THE INTERESTS OF CONSUMERS AND PRODUCERS ALIKE.
MR NOTT MADE THE COMMENT AT THE DRAGON BOAT DINNER OF THE HONG KONG ASSOCIATION AT THE DORCHESTER HOTEL, LONDON, SHORTLY AFTER HE ANNOUNCED HIS DECISION EARLIER IN THE DAY AT THE HOUSE OF COMMONS.
HE SAID HIS BELIEF WAS FUNDAMENTAL TO THE PHILOSOPHY AND +INDEED TO THE COMMERCIAL SUCCESS OF HONG KONG,+
AND HE ADDED THAT HE WAS NOT SATISFIED WITH THE PRESENT TIGHTLY REGULATED INTERNATIONAL CIVIL AVIATION ARRANGEMENTS.
+1 BELIEVE THAT A MORE LIBERAL MARKET ENVIRONMENT WOULD PROVIDE AIRLINES WITH THE ABILITY TO OFFER A VARIETY OF PRODUCTS AT A RANGE OF PRICES TO SATISFY ALL SECTORS OF CONSUMER DEMAND, HE SAID.
THIS, HE SAID, WOULD BE MORE SATISFYING TO CONSUMERS AND WOULD ALLOW THE AIRLINE INDUSTRY TO CONTINUE TO GROW AND DEVELOP TO THE BENEFIT OF BOTH GOVERNMENT AND CONSUMERS.
MR NOTT SAID HE WAS AWARE THAT CIVIL AVIATION HAD A VERY DIFFICULT YEAR. THIS WAS NOT BECAUSE OF ANY LACK OF DEMAND FROM AIRLINE PASSENGERS, BUT BECAUSE OF SUDDEN HIGH INCREASES IN FUEL PRICES.
HE CITED BRITISH AIRWAYS AS HAVING A NINE PER CENT PASSENGER GROWTH LAST YEAR AS COMPARED TO 1978.
*THE PROSPECTS FOR 1980 ARE THEMSELVES UNCERTAIN, BUT THE AVIATION MARKET HAS PROVED ITSELF DYNAMIC IN THE PAST THROUGH ALL THE FLUCTUATIONS IN THE WORLD ECONOMY, AND FOR THAT REASON ALONE IT WOULD BE A MISTAKE TO DECIDE OUR LONG-TERM AVIATION POLICY BY REFERENCE TO JUST SHORT-TERM CRITERIA THAT WOULD BE AN ARGUMENT FOR FOSSILISATION FROM A FEAR TO TAKE A VIEW FOR THE FUTURE, SAID MR
NOTT.
BEFORE THE AIRLINES COME ONTO THE ROUTE, THEY REQUIRE LICENCES FROM BOTH THE UNITED KINGDOM AND HONG KONG.
*THE NECESSARY ACTION HAS BEEN TAKEN AT THE LONDON END, BUT THE AIR TRANSPORT LICENSING AUTHORITY IN HONG KONG HAS SO FAR LICENSED ONLY THREE SERVICES A WEEK BY CATHAY AND FOUR BY BCAL, AND HAS TURNED DOWN LAKER'S APPLICATION, HE SAID.
IN REJECTING THE ORIGINAL LAKER PROPOSAL THAT ALL THE APPLICANTS SHOULD BE LICENSED ON THE GROUNDS THAT THIS WAS CONTRARY TO THE AIR TRANSPORT REGULATIONS IN HONG KONG, HR NOTT SAID THAT THE HONG KONG AUTHORITY OBSERVED, AND I QUOTE THEIR WORDS THAT THE LAKER APPLICATION FITS IN WITH THE GENERAL ECONOMIC APPROACH ICH HAS MADE HONG KONG WHAT IT IS TODAY.'
/+IF THERE