LNB/AW
11 December 1979
D F Murray Esq, CMG
Assistant Under Secretary for Foreign
& Commonwealth Affairs
Room 90
Foreign & Commonwealth Office
Downing Street West
London SW1
British Caledonian
British Caledonian Airways Limited
London Airport-Gatwick
Horley Surrey England RH6 OLT
Telephone: 01-668 9311 Crawley (0293; 27890 Cables: Scotair Gatwick Telex: 87161 BCAL. G
قع معه
Dear Mr Murray,
I think that you should be aware of a controversy which has been brewing between British Caledonian Airways and the Hong Kong Government and which, unless quickly resolved, will boil over in public this week with considerable force.
Following seven days of exhaustive hearing, the Hong Kong Air Transport Licensing Authority recently granted licences both to Cathay Pacific Airlines and B.CAL to operate scheduled services over the London-Hong Kong route. The Authority decisively rejected the position of the Hong Kong Government that only Cathay be licensed to inaugurate three services weekly. ATLA correctly found that the public required at least an additional daily service, a type of operation proposed by B.CAL. However, ATLA accepted B.CAL's alternate proposal that both it and Cathay share the route at an initial frequency respectively of four and three services weekly.
As you know, ATLA is established as the organ of the HK Government with exclusive and paramount powers to decide questions of air transport policy. Its decisions are subject to neither review by nor appeal to any other branch of government, including the Governor.
The Civil Aviation Authority on Thursday will begin its hearings as to the licensing of additional carriers for the London-Hong Kong route. The proceeding is a matter of considerable public interest, and repre- sentatives of the Hong Kong press and television are coming to London to cover this event in depth.
ATA
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