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(e) whether consideration has been given to reviewing the present policy on the purchase of such air-tickets; if so, what are the details; if not, whether the Government will consider adopting other arrangements to purchase such air-tickets, such as placing orders with the airline charging the lowest fares or introducing other forms of competition?
Answer:
Mr President,
The answers to the questions raised are:
(a) Government has an agreement with British Airways (BA) and Cathay Pacific Airways (CPA) under which air-tickets (from any airlines) for civil servants on overseas duty visits have to be purchased through Jardine Airways (BA's general agent) or CPA. Air-tickets for civil servants on overseas training are not covered by the agreement, and can be purchased through any travel agent which accepts direct payment by the Treasury.
(b) The passage agreement with BA and CPA basically covers Government's duty and school passages, but Government may also make use of the contract fares for other passages to and from the United Kingdom. The main features of the agreement are:
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(i) BA and CPA provide air-tickets at reduced fares on the Hong Kong - United Kingdom direct route (the UK route); and
(ii) air-tickets on non-UK routes (from any airlines) have to be purchased through Jardine Airways or CPA.
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Government entered into an agreement with the two airlines because the service required by Government was and remains mainly passages on the Hong Kong - United Kingdom direct route the bulk of which relate to school passages. Until 1994 only With the BA and CPA provided direct-route service to the United Kingdom. exception of Virgin Atlantic Airways (VAA) which started operating on the Hong Kong - United Kingdom direct route in 1994, the other airlines do not provide direct- flight service on this route and therefore are unable to participate. We are discussing with BA and CPA the possibility of including the service of VAA in the current agreement.