CONFIDENTIAL
7. As regards BA's position, they would be rabidly opposed to the 3-carrier solution which would be the worst possible out- come for them. Indeed all three airlines argued against this solution in front of the CAA. As between BCAL and CPA they are less concerned at the prospect of competition from BCAL, mainly because CPA (in which they have a 15% share) would be in a better position to offer dis-counted fares to travellers from the beyond. points in Asia which they serve. However, BA affect to be con- fident even at the prospect of competition from CPA since they consider this airline, which is starting to lose money, ill-adapted to competition in the big league.
8.
To complete the picture, I should record that Adam Thomson, the Chairman of BCAL, gave a press conference in Hong Kong at which he is judged to have played a lot of hostile bowling with considerable skill. Mr Draper of BA also gave a press conference whilst I was in Hong Kong, in which he sought to nail the story that BA had engineered the CAA decision; his remarks were impar- tially reported in the Hong Kong press.
9.
To sum up my conclusions:-
i) There is very real feeling on the subject in Hong Kong.
This is no less strongly felt for being largely irrational, ie that the decision was not fair' to Hong Kong.
ii) The neatest solution from the political stand-point would
be a direction by Mr Nott in favour of dividing the licence between BCAL and CPA. But this makes little sense from the economic point of view, or from the standpoint of the consumer, and therefore Mr Nott is unlikely to be attracted to it.
iii) However the matter goes we need to give thought to the
question of how to get HMG's case across in Hong Kong.
сс
Miss Brown Miss Stoddart Mr Gardiner
25 April 1980
Mech Busker
M St E Burton
Maritime, Aviation and Environment
Department
CONFIDENTIAL
No comments yet.
Private notes are available after approval.