TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 19

CONFIDENTIAL

BACKGROUND NOTE

(Not for use)

AIR SERVICES BETWEEN LONGON AND HONG KONG

Cathay Pacific Airways (CPA), the British Caledonian (BCAL?

and Laker Airways have each applied to the Civil Aviation

Authority (CAA) here and to the Hong Kong Air Transport Licen-

sing Authority (ATLA) for a licence to serve the London-Hong Kong

route. British Airways which at present has a monopoly on the

route is opposing the applications.

2.

The Hong Kong ATLA will hold its hearings from 5-13 November.

The CAA hearings follow on 13/14 and 19/21 December. Both the

Hong Kong ATLA and the CAA are independent bodies.

Although they

can hear evidence from Government they will reach their own con-

clusions on the applications before them.

3.

conclusions.

Although both bodies will take their decision on virtually

the same evidence (and the CAA will already know the ATLA views)

there can be no guarantee that they will reach exactly the same

There is no precedent for dealing with a possible

conflict as there have never before been parallel hearings in

London and Hong Kong on the same application.

(BOAC, now British

Airways, was exempted by the Governor of Hong Kong in 1964 from

the requirement to obtain a licence from the ATLA.) To overcome

this problem the Hong Kong Government suggested that a single

hearing should be held in Hong Kong by the ATLA augmented for

/this

CONFIDENTIAL