TNAG-0843-FCO40-1053-Visit-of-Lord-Carrington--Secretary-of-State-for-Foreign-and-1979 — Page 152

BRIEF FOR DR OWEN'S VISIT TO HONG KONG: APRIL 1979

Civil Aviation

Standard of British Airways services to Hong Kong

Line to take

If members of the Hong Kong Legislative Council should raise this with Dr Owen he could say that he is aware that there has been, with some reason, acute dissatisfaction in Hong Kong with the time-keeping of BA's services into and out of Hong Kong. BA has been having more than its share of industrial relations problems and during this winter has of course had to contend with unusually severe winter conditions in the UK. He understands however that the senior management of British Airways has been giving special attention to its Hong Kong services and that there has in consequence been a marked improvement in the last few weeks. UK Department of Trade and Civil Aviation Authority officials are keeping a close watch on the situation.

Background

Hong Kong Government officials and members of the Hong Kong Legislative Council have for some time now been complaining about the standards of BA's services between London and Hong Kong, poor time-keeping and lack of attention to passengers when aircraft have enforced lay-overs en route due to technical troubles. Certainly BA's record has been in the poor to mediocre range for too long and the odd case where passengers are delayed 24 or even 48 hours, which almost inevitably happens from time to time is seized upon, magnified out of all proportion and quoted over and over again as being typical. Many of those who criticise hold the view that BA has a cosy monopoly and does not care. We do not believe the latter to be the case; the Commercial Director of BA assured senior officials of the Department of Trade very recently that he is seized of the importance of getting a very marked improvement in the situation and there is evidence in this last few weeks of that taking effect.

Nevertheless Hong Kong Government officials remain very unhappy about the state of affairs and feel very vulnerable about the continuing BA monopoly on the London Hong Kong route when answering criticisms in the Legislative Council about the poor standard of BA's services. Many in Hong Kong would like to see the Hong Kong based airline, Cathay Pacific, offering a competing service. Recently senior officials of the Hong Kong Government and the UK Department of Trade agreed to conduct jointly as a matter of some urgency an all-embracing study of the UK Hong Kong route, including the possibility of introducing a second carrier (Dr Owen should not mention this other than to the Governor and his officials).