he was convinced by Sir Freddie Laker's contention that there is a large untapped market for the Hong Kong/London route if fares are pitched at the right level.
So, Mr. Nott concluded that the substantial new traffic likely to be generated over a period by a wider variety of services would offer a reasonable prospect that four operators could, over a period, achieve an economic return on the route.
Present position
14
If Laker is to operate on the Hong Kong/London route, it will require a licence also from the ATLA. In announcing his decision on the appeals by CPA and Laker, the Secretary of State said publicly that he hoped the Hong Kong Government would lend support to the applications which Laker may now wish to renew to the ATLA, and to any applications which BCal and CPA may wish to make to increase the frequency of their services, should they believe it is in their interests to do so.
15.
Having regard to the provision in the licensing regulations which requires it to ensure "the most effective service to the public while avoiding uneconomical overlapping" (see paragraph 5 above) it cannot be guaranteed that the ATLA will grant a licence to Laker so soon after its November decision. From the text of the decision it appears that it was largely that provision in the regulations which led the ATLA to place restrictions on the frequencies to be operated by CPA's B747s (3 times weekly) and BCal's DC10s (4 times weekly) so as to provide (so it appears the ATLA thought) a competing daily service to BA's.
16.
On 23rd June 1980, Laker submitted an application to the ATLA for a licence to mount a daily service (at least) between Hong Kong and London commencing on 1st September 1980, using DC10s, B747s and/or A300 Airbuses. The airline proposes to offer three types of service/fare:
(a)
standard "Skytrain" service (bookable only on the day of the flight except when tickets are sold out in which case tickets may be purchased for the next available flight). Food, if required, would be provided at an additional charge,
CONFIDENTIAL
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