CONFIDENTAL
OUR APPREHENSION IS HEIGHTENED FOLLOWING CONSIDERATION OF DICTA BY THE CAA IN THE SKYTRAIN LOS ANGELES AND DALLAS/FORT WORTH DECISION (DOTH OF WHICH POSTDATED THE LAKER CASE) BUT IN
WHICH THE CAA EXPRESSED ITSELF TO BE GENERALLY IN FAVOUR OF THE SPHERES OF INTEREST FOLICY (SEE PARAS.33, 34 AND 38 SKYTRAIN LOS ANGELES AND PARAS.56, 57, 58, 61 AND 72 OF THE DALLAS/FORT WORTH CASE).
(1) THE INITIAL GUIDANCE TO THE CAA (CMND.4899), TO THE EXTENT THAT IT MAY BE ARGUED BY THE PARTIES TO BE STILL EFFECTIVE AND CERTAINLY THE 1976 GUIDANCE (CMND.6400) APPEAR TO FAVOUR BCAL AGAINST OTHER APPLICANTS SEE, IN PARTICULAR, PARA. 17 CMND,4399
AND PARAS.6 AND 7 OF CMND.6490 AND, AS TO THE CONTINUED EXISTENCE OF ITS EFFECT, PARA. 12 OF PART 11 CMND.6400. CLEARLY CPA IS PREJUDICED IN THIS RESPECT ALSO.
) THE ANOMALOUS SITUATION EXISTS WHEREBY AIR TRANSPORT LICENCES MUST BE OBTAINED BOTH IN U.K FROM THE CAA (1972 REGS) AND IN HONG KONG FROM THE AIR TRANSPORT LICENSING AUTHORITY (ATLA) UNDER THE AIR TRANSFORT (LICENSING OF AIR SERVICES) REGS 1942. THE REQUIREMENTS OF BOTH SETS OF REGULATIONS ARE SIMILAR PUT NOT IDENTICAL. DIFFERENT CONCLUSIONS REACHED BY THE TWO LICENSING AUTHORITIES OPERATING BY REFERENCE TO TWO DIFFERENT STATUTORY AND OTHER CRITERIA WOULD GIVE RISE TO AN ABSURD SITUATION AND TO PUBLIC CONTROVERSY, BOTH OF WHICH OUGHT TO BE AVOIDED. MOREOVER THE DUPLICATION OF HEARINGS WILL BE REPETITIVE, CUMBERSOME AND COSTLY AND WILL UNDOUBTEDLY CAUSE
SUBSTANTIAL DELAYS.
3. WE BELIEVE THAT THESE DIFFICULTIES MAY, WITH THE POSSIBLE EXCEPTION OF THAT IN PARA.2 (111) ABOVE BE OVERCOME ONLY BY THE INTERVENTION OF THE SECRETARY OF STATE. MORE PARTICULARLY WE CONSIDER THAT THE SECRETARY OF STATE OUGHT, IN EXERCISE OF THE POWERS CONFERRED UPON HIM BY SECTION 4(3)(B) OF THE 1971 ACT, AFTER CONSULTATION WITH THE CAA, GIVE THE CAA DIRECTIONS WHICH WILL ALLEVIATE THE PROBLEMS TO WHICH WE HAVE REFERRED.
4. THE POSSIBLE DIRECTIONS (AND WE SHALL EXPAND UPON THESE LATER)
ARE IN OUR VIEW:-
२.
CONFIDENTAL
/(A) A
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