TNAG-0777-FCO40-981-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 162

8

territories to submit thers to the Authority in good time because of the

need to take decisions which keep these tariffs broadly in step with their

international equivalents.

10. The position regarding cabotage tariffs wholly between British overseas

territories is less clear since, unlike those to and from the UK, they are not

subject to the statutory procedures set out in the CAA Regulations. In practice,

airlines usually file their proposed tariffs with the CA for approval and the

Authority then consults the territories concerned who, it appears, have equal

jurisdiction. Providing there is no disagreement, the Authority is able to

approve the proposals but it is doubtful whether it can do so against the

wishes of the overseas territories unless it could be demonstrated that not

to approve would put the UK in breach of its international obligations.

To demonstrate such a breach it would probably be necessary for a foreign contry

(or countries) to complain formally that international fares were being under-

mined by those in affect on the cabotage route. The position is further

complicated by the fact that there is often no British carrier on these

cabotage routes. The Authority has no, or doubtful powers to require a non UK airline (even one using aircraft registered in a cabotage territory, unless

they were used for flights to and from the UK) to submit an economic justification.

It is possible that some overseas territories may have the necessary powers

but, in their absence, the only pressure which could be brought to bear would

be to refuse to approve the airline's tariff proposals until the necessary

justification was forthcoming. Generally, however, these problems are somewhat

academic and in practice these tariffs rarely cause difficulties.