XN000022-1988-05-04 — Page 12

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WEDNESDAY, MAY 4, 1988

INDEED, THE NEW ARRANGEMENTS DO NO MORE THAN BRING THIS ASSOCIATION INTO LINE WITH SUCH BODIES. HE SAID.

"

MR JACOBS HOPED MEMBERS WOULD AGREE THAT IN TODAY'S CIRCUMSTANCES, IT WAS NO LONGER APPROPRIATE FOR REVENUE то BE HYPOTHECATED.

"THE NEW SUBVENTION ARRANGEMENTS ARE SUFFICIENTLY FLEXIBLE TO ENSURE THAT THE ASSOCIATION CAN CONTINUE TO ENJOY AN APPROPRIATE DEGREE OF AUTONOMY, HE SAID.

"

WHILE AGREEING THAT THE ASSOCIATION HAD DONE AN EXCELLENT JOB IN PROMOTING HONG KONG AS A PREMIER TOURIST DESTINATION, MR JACOBS SAID HE WAS CONFIDENT THAT IT WOULD CONTINUE ΤΟ DO SO REVISED ARRANGEMENTS.

UNDER THE

TURNING TO AIRLINE DESIGNATION POLICY, THE FINANCIAL SECRETARY RESPONDED TO REFERENCES TO THE DIFFICULTIES FACED BY THE TRAVELLING PUBLIC EN GETTING SEATS ΤΟ PEKING AND MANY OTHER REGIONAL AND INTERNATIONAL AIR DESTINATIONS.

"BUT TO ASSERT THAT SUCH DIFFICULTIES ARE CAUSED BY THE HONG KONG GOVERNMENT'S POLICY ON AIRLINE DESIGNATION IS TO IGNORE THE REALITIES OF LIFE IN THE HARD-NOSED WORLD OF INTERNATIONAL AVIATION," HE SAID.

"OUR AIRLINE DESIGNATION POLICY REFLECTS THESE REALITIES."

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MR JACOBS POINTED OUT IT WAS SIMPLY NOT IN THE GIFT OF THE HONG KONG GOVERNMENT ALONE TO DISTRIBUTE ADDITIONAL RIGHTS то ITS CARRIERS.

SUCH RIGHTS HAD TO BE NEGOTIATED GOVERNMENT ΤΟ GOVERNMENT IN WHAT WAS OFTEN A DIFFICULT AND LONG DRAWN-OUT PROCESS, HE SAID.

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'FURTHERMORE, IT IS NOT THE POLICY OF THE GOVERNMENT ΤΟ STRIP AN EXISTING CARRIER OF ITS RIGHTS FOR NO REASON OTHER THAN TO GIVE A SECOND CARRIER A PIECE OF THE ACTION," MR JACOBS CONTINUED.

BE

"AN IMPORTANT ASPECT OF THE POLICY, HOWEVER, WHICH MUST NOT OVERLOOKED, IS THE FLEXIBILITY TO DESIGNATE ADDITIONAL AIRLINES WHERE CIRCUMSTANCES PERMIT.'

H

MR JACOBS SAID THE GOVERNMENT HAD SUCCESSFULLY OBTAINED RIGHTS FOR DRAGONAIR TO SERVE POINTS IN JAPAN, THAILAND AND THE USA.

"WE ARE IN THE PROCESS OF SEEKING RIGHTS FOR THE AIRLINE TO SERVE CERTAIN POINTS IN CHINA WHICH ARE NOT SERVED BY CATHAY PACIFIC.

IN

RIGHTS

FOR

CONTINUAL THEM TO

"AND AS DRAGONAIR'S PLANS EVOLVE WE ARE DISCUSSION WITH THE AIRLINE ON HOW BEST TO SEEK OTHER DESTINATIONS IN THE REGION, HE ADDED.

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