TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 30

There

of the ways on interest policy set out in paragraphs 7 and 8 of the

argument in this and in previous cases on whether any part

Gui dara

༔ ཟད༔ར

of Trata. only 20th

7 and

Nurvived the decision in Laker Airways Limited -V- Department

Court of Appeal found that those paragraphs were ultra vires they affected Laker Airways, and the Authority accepts that

the dead not necessarily render paragraphs 7 and 8 void in their entire/ However, it seems to follow from the decision that if paragraphs

Aquire the Authority to refuse BCal a licence to operate in BA's sphere interest without BA's consent and vice versa, then they amount to a directher than guidance and are ultra vires the Secretary of State's powers inction 3(2) of the Act.

In order to be intra vires they must

constit. ly guidance, and guidance must leave the Authority with some discretion In appropriate cases to allow each airline to operate in the other' men of interest.

Be that # 11 may, the Authority has on a number of occasions

most recently

in its ley ntatement of November 1979 - said that it agrees with the

generali

the spheres of interest policy. However, here the Authority

The purpose of

consider that it is entitled to look at the raison d'être of the policy, which is summer unit in paragraph 4 of the November policy statement. the poll. In to ensure that where there is foreign competition on a route, British Mentors concentrate on meeting that competition and do not waste thei resourcen by competing with one another.

This is particularly important where

under the Interal arrangements between the UK and the foreign Government a carriers Wild be competing only for the remainder. share of market has been reserved for the foreign carrier and British

There is no place for the

policy on the London/Hong Kong route where no part of the market share has been reserved Inny carrier and the Authority can regulate competition between

all the appiors.

cases before it on its merits, because there is nothing in Section 3(1)(a) or The Authority concludes therefore that it is free to consider each of the (b) of the Aet or in the spheres of interest policy which compels it automatically to find for or against any one of the parties to the case. The Need Competition on the London-Hong Kong Route

The evidere of the Hong Kong Government shows that the service provided by BA on the non-Hong Kong route has been inadequate to an extent which has inspired patent public comment in Hong Kong. Regularity and punctuality passenger and fare levels and standards of cabin service have both attracted

W insufficient capacity has been provided for all categories of

The Hong Kong Government recognised, as does the Authority, that

have been

criticism.

BA has tak steps to improve the situation, but considered that it was still far from >tisfactory.

against the

its days a

While BA did not accept all the criticisms levelled ervice, it accepted they were to some extent justified. Although

it objecten in the applications, it was realistic enough to accept that

monopoly carrier on the route were numbered. The Authority at this must be so. BA has shown itself unable to respond

considers

adequately

and the s

The Merits

The Author

Section 23

Persistent criticism of the service it is providing on the route of competition from another licensed carrier is clearly needed.

the Applicants' Proposals

is satisfied that all the applicants meet the requirements of and (3) of the 1971 Act namely that they are fit to operate

on the Leong Kong route, that they have adequate finances for the

purpose a

by UK nationale.

propose ta Far East

This bene: to the G

any new S→

auch righ

hat they are incorporated in the UK or Hong Kong and controlled

The Authority welcomes the fact that all the applicants Gatwick, because the introduction of a scheduled service to the

Gatwick will contribute significantly to its development. uld be increased if the licensed operator also obtained rights the Authority has based its decision on the assumption that it licenses should be capable of operating profitably without

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