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The Secretary of State for Trade.
9th April 1980
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Cathay's use of Rolls Royce engines as opposed to BCAL's use of American ones: S. 3(1)(C) of the Statute specifically enjoins CAA to have regard to such matters and by failing to do so it fell into error of law,
(v) the advantages of the B747 for carrying daily and seasonal peaks with the minimum stress to the facilities and the already stretched runway capacity at Gatwick and especially at Kai Tak Airport, which currently is operating at 80 per cent of its annual capacity and very close to its peak capacity several hours daily,
(vi) the benefits to the travelling public of:
(1) Cathay's greater commitment to the route arising from their position as the Hong Kong flag carrier:
(2) Cathay's greater accessibility to pressure in Hong Kong from both public and HKG to correct any imperfections in its servicing of the route if and when they arise:
(3) Cathay's greater knowledge, experience and facilities to serve the special needs of the Asian travelling public, both in flight and on the ground and when making travel arrangements:
(4) Cathay's greater commitment to serve the route end-to-end compared with BCAL's expressed intention to use the route as a springboard into the Far East, as shown by their Chairman's evidence (day 1 p. 24) and their applications to extend the route to Manila and Taipeh, with the consequent risk of delay, unfavourable capacity allocation to Hong Kong passengers, and so on, such as plagued the route previously when BA extended past Hong Kong:
(5) Cathay's extensive Asian and Pacific network of routes and offices which is far better able to serve the needs of persons from Europe travelling the region than is any skeleton organisation able to be set up by BCAL.
(b) The CAA attached insufficient weight to the evidence
as to:
(i) "the lower cost per seat kilometre" of the B747 (paragraph 149) with its consequent advantageous effects upon (1) fares, and (2) engergy conservation:
Cont'd
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