5
Although I espouse the ideal I do not suggest that it is proving a
realistic target in the short term.
"In the case of the London-Hong Kong route, relations with
foreign governments were happily not an issue. It is know!I
to use the jargon as a cabotage route. In my judgement the decision
on the number of carriers turned above all on the assessment I had to
make of the effect of greater competition on traffic demand.
One point
of view is that steady growth of the existing market is the most that
can be expected. The other, more radical, view is that new types of
service and new types of low fare will open up a much wider market,
and draw in hitherto untapped sources of traffic. It will attract, to
use Freddie Laker's expression, the forgotten men and women at the
bottom end of the market".
"I concluded that the substantial new traffic likely to
be generated over a period by a wider variety of services and fares
offered a reasonable prospect that four carriers could over a period
achieve an economic return. I therefore accepted the argument of
Cathay and Laker that they should be licensed on the route in addition
to British Airways and BCAL.
"I believe also that British airlines have lost business
in the recent past to our international competitors between Europe and
Hong Kong and this must partially be attributed to the past restriction
to one carrier.
"My decision does not necessarily mean that four competing
services will be on offer immediately. The timing of commencing flights,
the frequency, and indeed whether they want to fly at all, are matters
for the airlines themselves. Before new airlines come onto the route
they require licences from the authorities both here and in Hong Kong.
The necessary