TNAG-0871-FCO40-1081-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 79

G.S. 166

CONFIDENTIAL ## 機密

For discussion

on 16th October 1979

XCC(79)97 Copy No.. Page 1

MEMORANDUM FOR EXECUTIVE COUNCIL

HONG KONG'S AIR LINKS WITH BRITAIN

34 of

of 40

Introduction

(a)

(b)

The purpose of this memorandum is:

to inform Members of the latest developments regarding the possibility of another airline joining British Airways (BA) on the London/Hong Kong air route; and

to seek Members' advice on whether as a matter of policy the Hong Kong Government should advocate the introduction of a second airline

on the route.

Background

2

The constitutional, historical, economic and financial relationships between Hong Kong and Britain make the London/Hong Kong air route Hong Kong's most important international air link.

3

The se relationships bring about a demand for air services between Britain and Hong Kong which in 1978 amounted to

approximately 190, 000 passengers including virtually all types of passenger

1, 488 tonnes of mail

11,000 tonnes of freight.

The nature of the demand requires that the services should be operated by direct flights with the minimum number of intermediate stops and offering a high standard of availability, regularity, punctuality and confort and with a full spectrum of rates and fares.

The cabotage route

4

It is unusual for a major inter-continential air route to be | served by a single scheduled carrier. But because of Hong Kong's constitutional relationship with Britain, the cabotage route linking Hong Kong and London is served as a de facto monopoly by BA (which has been exempted, as far as this route is concerned, from the provision of the

CONFIDENTIAL

機密