TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 269

This

the Civil Aviation Act 1971 if it would fall to be so treated

but for the situation of its principal place of business.

last phrase means that it shall be treated as a British airline

if it is controlled by UK nationals (see Section 23(3) of the

Civil Aviation Act 1971). The reason is that at present an airline

based in a Colony such as Gibraltar or Hong Kong is at a disadvantage

when applying to the Civil Aviation Authority for an air transport/

because it is not a "British airline" for the purpose of section 3(1)

of the Act of 1971.

licence

The matter has reached the present stage following the making of

strong representations by the Hong Kong Government on behalf of

Cathay Pacific Airways and a vigorous campaign in the UK by Swires

in relation to an application by Cathay Pacific Airways to be

licensed to operate a scheduled service between the UK and Hong Kong,

a route on which British Airways already operates. Similar

applications have been submitted by British Caledonian and Laker

Airways. Parallel applications were made to the Hong Kong

Air Transport Licensing Authority which recently rejected the

application by Laker but decided to license British Caledonian

and Cathay Pacific Airways. The hearing before the Civil Aviation

Authority has been completed but it does not seem likely that a

decision will be announced before the end of February.

Whatever

the result an appeal to the Secretary of State seems certain.

It would not be proper, in view of the Secretary of State's appellate

to comment

function, for the Minister/on the case at present before the

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