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preferring the DC10 over the 747 since it would not be big enough to cope with the peak traffic. Moreover, CPA were at present the only airline concerned with Middle East staging rights and would therefore be able to fill empty seats with Middle East traffic.
They had
6. Mr Adrian Swire referred to the "moral" obligation of HMG in the matter. In 1974, the CPA Board had originally decided to buy DC10s but had consented to change to an order for Tristars as a result of arm-twisting by the British Government. received from Mr Michael Heseltine, then Minister for Aerospace and Shipping, a letter urging them to do this. At Swires' request, Mr Heseltine had now sent a copy of that letter to Mr Nott.
7. A further point was that CPA had intended to apply for rights on the London route much earlier but had been dissuaded from this in order to preserve British Airways' interests. The Hong Kong Government at that stage had not wanted a row with HMG and had not therefore become involved. It was only later when dissatisfaction with the British Airways service grew that CPA were allowed to put in an application. This pressure on CPA had been kept up over a period of years, mainly under a Labour Government.
8. Apart from Tristars, CPA had also bought 747s with Rolls- Royce engines and intended to go on with purchases worth about €10 million per annum. Their application specified the 747s for the London route and they believed that this was the most sensible proposal. Nevertheless they could, if necessary,
also operate Tristars on the route if two stops were made.
9. Mr Blaker asked for Swires' views on the capacity of the route. Mr Adrian Swire said that CPA believed that there was only room for one other carrier at the moment but that demand would build up. At present their appeal asked for a reversal of the CAA decision and an exclusive licence for CPA. If, however, for political reasons it seemed necessary they would be prepared to operate a shared route with British Caledonian Airways.
10.
Mr Blaker asked how many flights per week they envisaged operating. Mr Adrian Swire said initially that they planned 4 per week but they realised that that might not be enough at weekends when one 747 and one DC 10 might be necessary. They understood that if British Caledonian wanted to operate 7 flights per week they would have to put in a new application to the Hong Kong Air Transport Licensing Authority (ATLA).
11. Mr Blaker asked about the possible effect on CPA's regional services. Mr Adrian Swire said that they were concerned about this if, for instance, Philippine Airways had a route to London and CPA did not, they would lose out in the region by being unable to offer through tickets and other facilities.
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