XN000022-1985-11-20 — Page 3

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WEDNESDAY, NOVEMBER 20, 1985

SIR JOHN EXPLAINS AIR TRANSPORT POLICY

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THE MOST HEAVILY TRAVELLED AIR ROUTES TO AND FROM HONG KONG ARE ALREADY WELL SERVED BY SEVERAL ESTABLISHED OPERATORS AND THE GOVERNMENT HAS THEREFORE DECIDED THAT AS A GENERAL RULE, DESIGNATION IN RESPECT OF ROUTES AVAILABLE TO HONG KONG WILL BE LIMITED TO ONE AIRLINE PER ROUTE.

IN A STATEMENT ON AIR TRANSPORT POLICY AT THE LEGISLATIVE COUNCIL TODAY, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID THE AIRLINE FIRST LICENSED BY THE AIR TRANSPORT LICENCE AUTHORITY FOR A ROUTE WOULD NORMALLY BE THE ONE TO BE DESIGNATED FOR THAT ROUTE.

SIR JOHN SAID THAT TO OPERATE SCHEDULED SERVICES ON ANY GIVEN ROUTE, AN AIRLINE ALREADY HOLDING AN AIR OPERATOR'S CERTIFICATE MUST, AS A FIRST STEP, OBTAIN THE REQUISITE LICENCE FROM ATLA, AN INDEPENDENT BODY ESTABLISHED UNDER THE AIR TRANSPORT (LICENSING OF AIR SERVICES) REGULATIONS TO DETERMINE LICENCE APPLICATIONS.

+ITS TERMS OF REFERENCE FOR DOING SO ARE LAID DOWN IN LAW IN SOME DETAIL, BUT GENERALLY SPEAKING IT MUST HAVE REGARD TO THE CO-ORDINATION AND DEVELOPMENT OF AIR SERVICES WITH THE OBJECT OF ENSURING THE MOST EFFECTIVE SERVICE. TO THE PUBLIC WHILE AVOIDING UNECONOMICAL OVERLAPPING,+ SIR JOHN SAID.

+AN ATLA DECISION ON A LICENCE APPLICATION IS FINAL,+ HE ADDED.

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.301 SIR JOHN SAID THE NEXT STEP WAS FOR THE AIRLINE TO BE DESIGNATED UNDER THE RELEVENT AIR SERVICES AGREEMENT TO EXERCISE RIGHTS ON THE ROUTE FOR WHICH IT HAD BEEN LICENSED OR, IF

THE RIGHTS DID NOT EXIST, FOR A DECISION TO BE TAKEN AS TO WHETHER THOSE RIGHTS SHOULD BE SOUGHT.

+DESIGNATION AND THE DECISION ON WHETHER TO SEEK ADDITIONAL RIGHTS ARE MATTERS FOR HMG ACTING ON THE ADVICE OF THE HONG KONG GOVERNMENT.

+WHERE THE RIGHTS EXIST, IT IS ONLY IN THE MOST EXCEPTIONAL CIRCUMSTANCES THAT A GOVERNMENT CAN DECLINE TO ACCEPT DESIGNATION OF AN AIRLINE, SIR JOHN SAID.

SIR JOHN SAID INTERNATIONAL AIR TRANSPORT WAS HIGHLY REGULATED AND AIR TRAFFIC RIGHTS WERE NOT AVAILABLE TO EVERYBODY.

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+SUCH VALUABLE RIGHTS ARE JEALOUSLY GUARDED AND GOVERNMENTS SEEK TO RETAIN THE MAXIMUM SHARE FOR THEIR OWN AIRLINES. OFTEN THERE IS ONLY ONE INTERNATIONAL CARRIER, WHICH MAY WELL BE WHOLLY OR PARTLY STATE-OWNED.

/+CONSEQUENTLY, MANY,