DOGABE
CONFIDENTIAL
SIR Y K PAO'S CHEVENING WEEKEND 15-16 MARCH 1986
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X. CIVIL AVIATION: DRAGONAIR AIRLINES (DAL)
Background
1. The Secretary of State for Transport will be lunching
with Sir Y K Pao on 19 March when Sir Y K will no doubt
raise the future of DAL. There are a number of outstanding
issues concerning DAL's wish to operate both scheduled and
non-scheduled services to destinations in the Far East and
Europe that must be resolved before the airline can
establish itself as a commercially viable operation.
Detailed questions on the future of DAL should be raised
with Mr Ridley.
2.
I t was
DAL' s origins are shrouded in mystery.
incorporated in Hong Kong in September 1984, following the
signing of the Joint Declaration which envisages special
treatment for airlines incorporated in and with their Head
offices in Hong Kong.
It met these criteria but not the
normal requirements in our Air Service Agreements (ASAs)
that i t should be owned and controlled by
by HMG, HKG or
British Nationals, and was originally owned and controlled.
by Chinese interests. In May 1985
1985 DAL acquired a Boeing
737 aeroplane and was granted an airline operators
certificate by the Director of Civil Aviation (DCA) Hong
Kong.
Scheduled Services
3.
To operate international scheduled services from Hong
Kong an airline must first of all be licensed by the Hong
Kong Air Transport Licencing Authority (ATLA)
(ATLA) to operate on
specific routes. Once an ATLA licence has been obtained
CONFIDENTIAL
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