TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 8

2

CAA

C Paragraph 6 of the Guidance would still apply;

although it indicates some preference for British Caldeonian, it does not appear to exclude the grant of a licence to any of the applicants. will no doubt have in mind that, as a long-haul cabotage route, the London-Hong Kong route is

sui generis.

On the question of vires, we are advised that there is substantial doubt whether a direction to the CAA to treat CPA

on all fours with British airlines would be intra vires. We

Mr Nott, however,

acknol wedge that the contrary is arguable.

took his decision not--to issue such a direction on paicy grounds

(para 2 of our telno 672). These grounds are still valid and we

-see no reason

-see no reason to ask him to reconsider his earlier decision.

(it was 10 diff all is to mal- o cose for making ]

a (we

3 We agree that Mr Nott is likely to become involved in the consideration of the application, because it would be surprising in the circumstances if no appeal was made against whatever decision the CAA may come to. An appeal would be likely whether or not the Secretary of State had previously given a direction that all the applicants should be on equal footing, We share your hope that a public dispute can be avoided. The comments which we made in paragraph 5 of our telno 672 are of course relevant to the appeal stage.

and whether

or not

ATLA

CAA and I

had reached the

same conclusion.

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