TNAG-0965-FCO40-1184-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 45

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by which, as the Attorney General said last November, we are bound, the Authority considers that the case for a fourth carrier has not been made out.

41.

Figures have been supplied to the Authority, at its request, as to the availability of low-fare seats on the route from mid-December 1980 to mid-January 1981. These have been received from all the carriers and clearly there is a shortage over some of that period but it is only critical on the London Hong Kong sector for a period of about 10 days. This is probably the sharpest peak period of the year and as Christmas is on the same day everywhere it must be difficult to take aircraft off other routes to cater for it.

42.

We are satisfied that it is totally uneconomic to provide for air services which cater for maximum peak traffic. By lifting the frequency restrictions on BCal and CPA this will allow these airlines to mount extra sections

at peak times and CPA have undertaken to put on a further 747 flight per week from mid December. BCal will follow with a DC 10 in the spring of 1981 in time for that year's summer peak. BA, while not commiting themselves, did say they would consider extra services, particularly in December on the

London

Hong Kong sector and we hope this will result in more

flights being provided. As both BCal and CPA achieve a daily flight the three carrier regime will be providing, between them, a total number of seats in excess of 637,000, even allowing for mid-point traffic, a capacity which should satisfy the market demand within the period of the existing licences.

F. Decision

43.

The Authority therefore grants the applications of BCal and CPA to remove the frequency restriction on their licences and refuses Laker's application.

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