New Zealand News

Air New Zealand paid $32. 5 million for a 47% holding – it already owned 30% of the shares- giving it a total of 77%, and thus giving it control of 95% of the country’s domestic air services.

Air New Zealand’s managing director, Mr Norman Geary, said Mount Cook would continue to operate as a separate commercial entity. It could only be beneficial for the smaller airline, which could now plan ahead with confidence, he said.

Not so happy was Peter Grayburn, chairman of the Newmans Group which established the small airline, Newmans Air, early this year. Newmans (two de Havilland Dash 7s) was steadily building an upmarket business in direct rivalry on Mount Cooks routes. The takeover was a direct reversal of the Government’s open skies policy, said Mr Grayburn.

Part of the final block of shares acquired by Air New Zealand was bought from the Goodmans Group, and the rest from Dominion Breweries which had given Goodmans nomination rights for the whole 47%. Goodmans has a large shareholding in Newmans.

In a final legal tangle, Goodmans was barred from acquiring the whole block, while Air New Zealand on appeal was allowed to bid for the total.

So the struggle over Mount Cook was between two competitors. Had Goodmans gained control, Newmans and Mount Cook would probably have merged. The final court decision was apparently influenced by belief that major ownership by Air New Zealand was the lesser of two evils.

NZ Atc Overhauled

After years of piecemeal patching to keep its outdated air traffic control system functioning effectively, the Ministry of Transport has announced a major overhaul.

Top of the list in the National Air Traffic Services Plan (NATS) is secondary surveillance radar, in widespread use in most other Western countries for more than a decade. Other expenditure includes the replacement of the 1950’s primary radar, and a sweeping overhaul of communications and message switching systems.

Most of the $86 million plan should be completed by the early 1990s. It appears to owe much to the drive of Air Commodore Stuart McIntyre, who was appointed Director General of Civil Aviation in 1984 – with the unspoken mandate to get things moving following years of neglect, rafts of inquiries and reports, and the lingering embarrassment of Civil Aviation’s implication in the Mt Erebus crash. Despite McIntyre’s swift movement, there are signs it might come only just in time. In September, the country’s 300 controllers and 230 flight service officers were predicting action that could bring airline services to an indefinite stop unless the plan was speeded up. The gripe goes back at least ten years when controllers noticed that at certain approach speeds, aircraft literally disappeared from the screens of the old 1940s technology Marconi primary radar. The so-called “blind speed” problem was fixed after a fashion by grafting modern transistor gear into the valve era componantry. But servicing and out-of-order periods meant frequent use of taxing procedural control.

This and a heavy reliance on other manual procedures (controllers in Auckland and Wellington write up to 2000 progress slips a day, a job done in modern airports by computerised printouts) has resulted in a continuing exodus from the country of experienced people, and a heavy strain on those who stay.

In July, as the result of a Government-commissioned survey, Professor George Shouksmith, a psychologist, came out with an alarming report which said controllers were working at twice their normal capacity in peak hours. He warned: “In a system like air traffic control which is relatively intolerant of errors, one wonders at the wisdom of ever having a controller working at capacity. ”

Stern words, and CA immediately ordered controllers to cut back, even at the cost of delaying departures and putting aircraft into lengthy holding patterns.

The old PS radar (maximum radius about 120 miles) is located at Wellington, Ohakea, Auckland and Christchurch. These will be replaced with the addition of five SSR. Envisaged later is a centralised control system for the country.

Since most larger aircraft leave the maker these days fitted with transponders, the cost ($2000 to $40,000 per aircraft) is not expected to break the industry.

Also scheduled for early implementation is a simplified system for allocating airspace. Government approval for NATS was expected very soon.

Anz Puts 767 Into Service

Air New Zealand’s first Boeing 767ER flew into Wellington on September 10, after setting a non-stop flight record (9456kms) for a General Electric engined type on delivery on the leg from Everett to Nadi.

The choice of Wellington was not arbitrary. For the past four years, Qantas has had the capital city’s trans-Tasman services to itself thanks to the short runway and the Boeing 747SP. Latterly the Australian airline had added its 767ER to its nine services a week into Wellington.

Wellintonians have grown very fond of Qantas, and a major tussle is brewing as the local carrier tries to win back some of the 500,000 passengers flown by Qantas in this period.

Air New Zealand’s 767 will be used for the rest of this year exclusively on the trans-Tasman, with an emphasis on Wellington, and on domestic flights. Each airline will fly five weekly services out of Wellington on the Tasman.

During its absence from Wellington, the local airline is estimated to have forgone some $200 million in revenue annually, and this has hurt. While the company had increased its overseas passenger traffic markedly since 1982 (it rose by 10. 3% last financial year), the uptake of New Zealanders on its international services has fallen proportionately. The split was 50-50 four years ago; now 67% of occupied seats are filled by other nationals.

While part of this can be attributed to economic reasons, there is no doubt more New Zealanders are looking outside the national carrier when going abroad.

Since Wellington is not a gateway for overseas tourist traffic as is Auckland and Christchurch, the performance of both companies in competing for the slice of international traffic will be an indicator of this trend.

The Air New Zealand 767ER has a seating configuration of 18 business and 202 economies, compared with Qantas’ split of 18- 192. It will provide New Zealanders with their first upper rated domestic fares – passengers flying business were to pay a flat rated $20, no matter how long the flight.

The airline’s other two 767s will be delivered in 1986, In March and September. The machines General Electric CF6-80A engines are well set up for major servicing in the installation established for serving DC-10 engines (CF6-50) at Mangere.

Fire Crash Services Reduced

While there is no acknowledgement of robbing Peter to Pay Paul, crash firemen are becoming increasingly jumpy about Government plans to reduce their numbers and chop some services. Most recent to go is Auckland Airport’s trouble-prone SRN hover- which was meant to be responsible for aviation rescue and firefighting on the 300 square kilometres of tidal mudflat and channel of the surrounding Manuda Harbour. Rescue in this area has long been a sore point and if planners had their time over agin, the airport might have been located elsewhere.

So far, hovercraft have proved the only vehicles capable of operating on all parts of the harbour, but a smaller backup machine bought three years ago proved a costly failure. Auckland crash firemen are now left with a jet boat and a fleet of Zodiac rubber dinghies which, they say, are wholly incapable.

While the SRN was managed to drag out a number of half-drowned boaties it was never used in an aircraft emergency. The only chance it had was five years ago when an Air New Zealand F27 on a positioning flight went into the water 200 metres short of the runway, and two drowned. The SRN was undergoing one of its interminable repair periods.

Government’s attitude towards the service is in line with general policy, user pay. Since there is no ICAO requirement for rescue outside the airport ground perimeter, CA is not obliged to service the Manukau or the water on two sides of Wellington Airport. Pilots are accepting the CF cutbacks with equanimity, but cabin crew have threatened strike action. In common with overseas authorities who follow the same policy, Civil Aviation faces the impossible job of putting over a message that flies in the face of emotion. Put bluntly, it says the risk has to justify the cost.

Anz Posts Record Profit

Air New Zealand achieved a record annual profit, earning a net $133. 6 million after tax for the year ended March 31. The operating profit of $153. 6 million was nearly double the same result for 1983-84.

Total revenue for the year was up by $260 million to $1160 million, and the overall revenue load factor went from 68. 2% to 72. 7%- Managing director, Mr Norman Geary predicted a flattening out or reduction in the operating result for this year as cost pressures, new competition on the Pacific and the purchase of new aircraft were felt on the company’s cost structure.

He said there was much instability in the industry, and forecast continued fluctuation in financial results of individual airlines, with fewer and stronger airlines eventually emerging.

Briefs. . . . .

• Why did Air New Zealand not choose the new Boeing 737-300 when it decided earlier this year to replace its six early model 737s with the 200 model? According to managing director Norman Geary, the cost of the 200s was $17. 5 million (US) apiece while the 300s are $24 million (US). “For $7 million, you would get an extra 20 odd seats. While we were aware of the improved fuel burn per seat, the higher capital cost offset this advantage for out purposes. “We’ve been very happy with the 200, and it suits our route structure perfectly. ” • The RNZAF was expected to have all its 15 BA Strikemaster aircraft back in the air by mid-October following the discovery of varying degrees of cracking in wing spars on 11 aircraft. Repairs were being carried out by the Service following the arrival of parts from England.

Three New Zealand bodies are pressing to set up international air services two of them solely freight. Two of them, Pacific Air Freight and an unnamed body set up by Barr Brothers Ltd, of Auckland, claim that the reluctance of Australian authorities to grant rights could jeopardize plans.

Pacific Air Freight is well advanced with plans to lease a stretched DC-8 freighter for services to Los Angeles, returning via Australia. It has gained the green light from New Zealand and US authorities.

Barr Brothers plan a no frills jumbo jet passenger service across the Tasman. It also has the approval of its own Government, but bilateral talks with the Australian Government recently ended without result.

The third is a joint venture international freight service involving former Air New Zealand chairman, Mr Bob Owens. It is understood Mr Owens has discussed plans with Ansett chief, Sir Peter Abeles.

“So far, we are not a long way down the track,” Mr Owens said. “But we hope to begin moving soon. ” The proposed company, tentatively labelled Union Airways, has been looking at aircraft including the 747 Combi and stretched DC-8 for leasing. Mr Morrie Davis, former Air New Zealand chief executive is advising.

• It was one of those horrible sights watched by a large and bemused audience – domestic passengers at Auckland Airport ganging up for the peak hour rush to points south.

Along comes a tractor towing an Air New Zealand jumbo around the outside of the waiting F27s and B737s. With the delicacy of a surgeon’s scalpel, the wing tip of the jumbo catches the vertical fin of a Friendship, and lops it off at the base.

Result: one jumbo out of service for two days, and a Friendship for much longer. The company had to fly in a new fin ($130,000) and a new rudder ($90,000) from Fokker.

An Auckland newspaper awarded the tractor driver its weekly “Hot Water” award, a flashy electric kettle. The poor chap was too embarrassed to claim it.