:
rowling with the propelsin for u
vice end for whole plane charters under
an ABC regime. Although I put it tactfully, this
was badly received. The Hong Kong representatives
reminded me of their legal position mentioned in
para 4 of my Allot 1 of 15 February.
They claimed
equal jurisdiction with HMG in respect of both
scheduled services and charters between UK and Hong
Kong if operated by any airline except BA. They
cited a case some 20 years ago when an airline
approved by the Hong Kong Air Transport Licensing
Authority (ATLA) had been blocked by HMG and made it
plain that they would not hesitate to do the same
in reverse. Things are further complicated by the
fact that, unlike our position with the CAA, no-one
decisions
can overturn the ATLA's deerees and that the ATLA's
terms of reference as laid down in the Air Transport
Regulations are long out of date.
3.
Strongly held,
Given the policy/attitudes of the Hong Kongers
and the CAA, this threatened a serious confrontation
not merely between the airlines but more importantly
between the statutory bodies and governments in
London and Hong Kong. There was the possibility of
a legal wrangle as well.
4.
I therefore suggested that, before any of the .
formal procedures were started, we might have informal discussions which would include the FCO, the
CAA, and (if the Hong Kong Government wished) the
ATLA. These would be designed to elucidate the facts
(including the room for competition in the market,
BA's performance, and the legal situation); to assess
the various options; to consider the implications for
/our
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