international operators, including BOAC, was about £27.3m. in
1967/68. of this total BOAC passenger revenue was about £7.Om. to
which must be added about £1.5m. accruing to BOAC 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 annual 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.Om. annually
comes to BOAC in this way from Germany and Switzerland alone, and
a significant sum from Italy. In addition, BOAC mail revenue from
Hong Kong services in 1967/68 was estimated at about £1.6m. It is
very difficult to calculate cargo revenue, but that was probably
between 20% and 25% of passenger revenue taking the lower
percentage, about £1.7m. Total estimated BOAC revenue from Hong Kong services in 1967/68 is therefore £10.8m; this leaves out of account
the indirect benefits to BOAC from traffic rights in other countries
obtained by trading rights at Hong Kong.
12. It is difficult to quantify with any accuracy the value of all
traffic rights obtained elsewhere for British airlines by trading
rights at Hong Kong. In the complex of air services negotiations
it is not always clear what benefits are specifically attributable
to the grant of rights at Hong Kong. Theoretically, the value of rights obtained elsewhere should equal the value of rights granted to
foreign airlines in Hong Kong; this means that they should be not less, in terms of total revenue, than the passenger revenue of £20m. per
annum derived by foreign airlines from rights in Hong Kong, as indicated in paragraph 11.
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