TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 26

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CPA'S FIGHT FOR AIR RIGHT HAS GREAT SIGNIFICANCE

(Editorial in Kung Sheung Daily News, 23.3.80)

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More socially conscious Hong Kong residents have always said: “in the eyes of the British people, Hong Kong is only a hen that lays golden eggs. As long as it continues to lay eggs, other matters are not important," Of course, the saying represents one side of the picture only and may not be entirely accepted by the public. However, taking into consideration a recent dispute over the righ: to operate a second air service between Hong Kong and London, one cannot help thinking that more and more Hong Kong people may have been driven to take such an attitude.

The British Civil Aviation Authority (CAA) announced on 17th of this month that it has approved an application by a British-based airline, the British Caledonian Airways (BCA), the right to operate the London-Hong Kong routs, whereas an application by a Hong Kong-based airline, the Cathay Pacific Airways (CPA), has been turned down.

In fact, because of the fact that negotiations on the right to operate an air route involves a wide range of matters, it is not uncommon for airlines applying for extending landing rights and opening new air routes to be turned down. There may not be any special political significance in their applications being rejected.

Eut the reason given by the British Civil Aviation for rejecting an application by Cathay Pacific Airways for a licence to operate a second air route between Hong Kong and London is hardly convincing. Not only are CPA officials dissatisfied, but also the people of Hong Kong have expressed resentment. The generai feeling is that the CAA is stili taking a colonial attitude towards Hong Kong and that it would protect Britain's commercial interests at the expense of Hong Kong.

Over the past 30 years, British Airways (the former BOAC) has been given the sole right to operate the Hong Kong-London route.

Because of Hong Kong's favourable geographical location, being an important cc..munication link in Southeast Asia as well as a necessary stop-over for the popular Asian air routes, there have been many cases in the past in which the British Goverment, in negotiations on behalf of British Airways with other countries on air rights, has been able to get its way in the end by using Hong Kong as a trump

ca:d.

In July and August last year, the governments of Britain and Hong Kong decided at the same time that instead of allowing one airline monopolising the route

the between Hong Kong and London, other British-financed airlines should be given opportunities to operate so that there could be higher standard of services. Soon, British Airways made an announcement to reduce its flights from 11 to seven every week from February 1 this year to make way for other airlines to operate this route as well. This was a wise agreement between the Government and the company.

There has been a significant growth in the business of the Hong Kong-based Cathay Pacific Airways in recent years. The airline's fleet has been expanded to include the newest wide-bodied passenger planes the Lockheed Tristar and the Jumbo Bocing

747.

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Because of this, the company submitted its application immediately after airlines were invited to apply for operating the Hong Kong-London route. Apart from . CPA, two other British-based airlines the Laker Airways and the British Caledonian

Airways also expressed interest in the new service.

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