TNAG-0965-FCO40-1184-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 28

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come from persons or bodies who may reasonably be

considered to have a legitimate interest in the matter, pursuant to Regulation 8, and were so certified by His Excellency the Governor.

3.

A preliminary meeting of all interested parties was held on 18th October 1980 where matters of procedure and other preliminary points were discussed and agreed.

B. Historical

4.

In November 1979 the Authority had before it applications by British Caledonian Airways (BCal), Cathay Pacific Airways (CPA) and Laker Airways (Laker) each to operate a daily service on the London Hong Kong

route.

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London

5.

All applications were opposed by the then sole carrier, British Airways. BCal opposed CPA and Laker and CPA opposed BCal and Laker.

6.

British Airways, while it formally opposed all the applications, said that it accepted that there was room for one other airline, but no more. The Hong Kong Government supported that view and also said that unless one of the other applicants was found to have made out a demonstrably better case, CPA should be that other air- line, mainly on the basis that the Government considered it to be the equivalent of Hong Kong's flag carrier.

7.

Laker did not oppose any of the applications but said they were in favour of granting all of them and let the market sort out who should survive, if the

traffic could not support a four carrier regime.

It was, however, its case then as it is now that the market can support all four because Laker's presence will bring in a substantial number of new passengers and it was a fast growing area for low-fare travel.