TNAG-0209-FCO40-245-Application-for-expansion-of-aeronautical-telecommunications-1969 — Page 54

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Board of Trade: United Kingdom Civil Aviation Interest

Because Hong Kong is United Kingdom territory, H.M.G. is responsible for Hong Kong civil aviation matters in the International Civil Aviation Organisation (ICAO). This means that there is a responsibility for ensuring that Kai-Tak is maintained at a standard capable of meeting reasonable requirements in accordance with ICAC Regional Plans.

Next to London, Hong Kong is at present the most valuable international traffic point romaining within United Kingdom responsi- bility. It is valuable first because of the revenue derived by BOAC from services to and from Hong Kong, and second through the important concessions in traffic rights secured for British airlines in exchange for traffic rights at Hong Kong granted to airlines of other countries in air services negotiations.

BOAC estimate that the total revenue (as distinct from profit) derived from Hong Kong passenger services by all the major long-haul international operatore, including BOAC, was about £27.3m in 1967/68. or this total BOAC passenger revenue was about 27.0m to which must be added about £1.5m accruing to JOAC From pool arrangements with Quantas and Air India, giving a total of £8.5m. In addition, though it is extremely difficult to calculate the sum involved with any precision, substantial amual revenue comes to BOAC indirectly through benefits from traffic rights in other countries gained by the use of Hong Kong in air services negotiations. It is, for example, estimated that revenue of some £2.0m cmnually comes to BOAC in this way from Germany and Switzerland alone, und a significant sun iron Italy.

In aldition, BOAC mail pevenue from Hong Kong services in 1967/68 was estimated at about £1.On. It is very difficult to calculate cargo rovenuo, but that was probably between 20% and 25% of passenger revenue taking the lower percentage, about £1.70.

The general picture is then -

1967/68

Passenger revenue

(all international long-haul operators)

£27.3m.

$

Passenger revenuo

Mail revenue

Cargo revenue

BOAC

DOAC

BOAC

£ 8.5m.

£ 1.6m.

£ 1.7.

This leaves out of account, of course, the "indirect" benefits to BOAC mentioned in paragraph 3 above.

It is very clear that in the absence of airport improvements at Kai-Tak :

/ (a).