Newsdesk – General Aviation

The Committee generally considers that the Darling Harbour issue is only the tip of the iceberg and will during 1986 be examining in great detail such issues as intimidation, outdated regulations, dispensations and most importantly the touchy issue of licence suspensions. This latter topic might even breach aspects of the Australian Constitution and is one the Committee tells us is of paramount interest in view of the submissions they hold on same One aspect of the Committee’s hearings (which were held in Sydney on August 5 and in Canberra on September 18) was that the Committee probed at length as to the amount of money United Telecasters (Channel 10)had lost as a result of the heliport never becoming operational as was originally intended. UTC representatives quoted a figure of $650,000, which it the Department could be shown to have been negligent in its role, could possibly be recoverable, with damages, through litigation.

Legal opinion is divided as to whether a case would exist but whatever happens, it certainly introduces a new aspect to the inquiry as a precedent would be set where an inconvenienced party would be able to sue for damages caused by the actions of a government department (refer following item). The next phase of the Inquiry should be very interesting indeed and needless to say will be fully covered in future editions of this magazine.

New Zealand GA Company Successfully Recovers Sales Tax on Imported Aircraft:

Wellington, New Zealand-based GA operator, Capital Helicopters, has won a landmark battle against the NZ government Customs Department. Customs had incorrectly charged Capital sales tax on a newly imported Cessna 421 Golden Eagle when they had not done likewise with the majority of other aircraft imported into New Zealand. In a landmark decision, that had wide ramifications to Air New Zealand, Customs decided to settle out of court for $NZ42,000 once Capital took legal action against them.

Already we believe that three other operators have now sought legal action against NZ Customs and many more may follow to recover funds that they claim were not owed in the first place. The NZ aviation industry will be watching the progress of writs against the Customs Department with interest.

Will Cessna, Piper and Beech Withdraw From Small Plane Production?:

With their combined sales at an all time low, Cessna, Piper and Beech are now seriously looking at the possibility of withdrawing completely from the production and development of single engined piston aircraft.

Prime mover for the change of heart has been the recent multi-million dollar award of damages against Cessna concerning an aircraft more than two decades old. In the USA private litigation against major companies and institutions has reached plague proportions while the damages allowed in most cases do not reflect a sane assessment of the situation involved in terms of realistic liability. In most cases the aircraft concerned are in the possession of their fourth or fifth owner and the manufacturer (including component manufacturers and suppliers) obviously have no control over how the aircraft is flown, stored or serviced.

Having to carry such heavy public liability on their lower echelon aircraft is now hitting home and thus causing the ‘Big Three’ to reconsider their positions in the marketplace. Statements by one manufacturer suggested that nowadays a premium of up to 30% exists on each new airframe sold, something which the manufacturer pointed out represented a very real impediment to marketing cheaper GA piston aircraft Already Cessna has announced that it will discontinue most of its smaller aircraft from next year onwards. Soon to face the axe are the 340, Stationair 8, Skylane, Cutlass, 152, Golden Eagle, 185, Ag Truck, Ag Husky and Citation I.

Beechcraft meanwhile is not presently producing any aircraft below the Bonanza while Piper’s smallest value single is the Warrior. Bert Rutan has also decided to withdraw from the kit market as a result of the pos- sible effects of litigation.

Schofields Shapes up as the Best Ever:

It’s time for the bi-annual Schofields Air Show again and this year the programme looks by far the best ever. The theme of the show will be warbirds, though naturally the show will feature its usual excellent cross-section of GA involvement and industrial participation. Known to be attending the show will be a number of Mustangs, the Firefly of Mike Wansey, hopefully Col Pay’s Spitfire one or possibly two Furies, the B-25 Mitchell, possibly the Neptune and a large assortment of Harvards and Winjeels. In some ways though, all going well, the star of the warbirds set will be the dual-seat Vampire which was due to test fly as we closed for press The RAAF will be there in force as usual and hope to have their display Sabre back in operation in addition to the usual breathtaking handling demonstration by the new F-18s. Schofields this year kicks off with two trade days on the 7th and 8th November, which include evening seminars on ultralights and advanced technology avionics, and culminates on the 9th and 10th will a full blown air show. The programme certainly looks great so for once lets all hope the weather cooperates!

Setting the Record Straight:

On page 65 of this issue, in the second paragraph of the advertisement for the Australian Aviation College, the advertiser states that this is the only integrated training school in existence. Just to quality the statement, which had gone to press before it was noticed to be ambiguous, the advertiser wishes us to point out to readers that although Cessnock-based CATA is an integrated flight training school, the AAC is still the only one deliberately structured to a tertiary level of training.

 DC-3 Anniversary Spectacular Gains Momentum:

Aeronautica, with the backing of TNT, Radio 2UE, Ansett, British Airways and the Northern Territory Tourist Commission have now secured the presence of seven and possibly nine Douglas DC-3 aircraft for the 50th-anniversary celebrations to be held in Sydney during mid-December.

Highlight of the anniversary will be a massed flypast at 1410hrs on Saturday 14th December when at least seven aircraft will overtly Sydney. Seats can be booked on four of the participating aircraft which will provide passengers with a once-in-a-lifetime opportunity to fly formation with so many Dakotas. Joy flights will take place over the weekend of 14th and 15th and at 1530hrs on Tuesday 17th December a Rebel Air DC-3 will duplicate the first ever flight of the DC-3 right to the moment of takeoff.

Participating aircraft will come from Rebel Air, Golden West Airways, Air North, Mackay Air Museum, RAN and hopefully from the RAAF and Air Queensland. For further details contact Mike Clayton on (02) 588-6862.

Us GA Production Continues Depressed:

Production of General Aviation class aircraft in the US remains depressed despite a US Federal investment allowance expiring on December 31st, 1985.

Up to July there had been 1,175 aircraft built as against 1,227 for the same period last year. Exports though were stronger with some 193 aircraft exported as against 177 last year. Production for the month of July 1985 stood at 197, a significant gain over July 1984 when only 141 aircraft were produced The continuing sales depression is mirrored in Cessna having to lay off more than 1000 workers this year while Beech has also furloughed 750 since May. Piper had already closed three of its four plants and lost several thousand employees over the past eighteen months as it now concentrates on its new facility at Vero Beach.

The only market segment to show growth was in turboprops, with 200 delivered as against 123 last year (+63%) while piston twins showed the greatest decline with only 126 being built as against 204 (-38%) last year Piston singles with 772 v 818 (-6%) and corporate jets with 77 v 82 (-6%) were fairly steady. Overall though the total billed value to date is the same at $US826m.

Bestseller, in terms of numbers produced, from Beech was the Bonanza with 82, followed by the King Air with 75, 27 of which were the new Model 300 and finally 20 Barons Beech had produced 47 aircraft in July for a total of 193 worth $US50m.

Cessna’s biggest seller was still the venerable 172 with 156 sold. This was followed by the 152 with 67 built (and soon to terminate production), the 210 with 44, 303 with 10, while the new Caravan saw 32 produced as against 18 Conquest 1s and 10 Conquest 2s Citation production remained strong with 52 produced, 31 of which were the Citation S2. Cessna produced 86 aircraft in July for a total of 493 worth $50m.

Pipers best seller was the Malibu with 62 produced followed by the Archer with 55, Warrior with 46, Saratoga with 38, Seminole with 17,Dakota with 13 and the Mojave with 12. Piper also delivered 20 Cheyennes, 13 of which were the new 400LS Piper produced 37 aircraft in July for a total of 324 worth $23m.

Awa Takes Advantage of Diners Club Facilities:

Amalgamated Wireless (Australasia) Limited have announced an improvement to their existing credit arrangements through extension of the existing Diners Club Fuel Card to include avionics parts and service.

Following the contraction of the carnet system operated for many years by the fuel companies agreement was reached between Diners Club and GAA for the introduction of the now established ‘Fuel Card’ which allows pilots to purchase fuel and lubricants without having to carry large amounts of cash. In announcing the new facility AWA’s GA Manager Bernie Smith said that the Diners Club ‘Fuel Card’ would solve a longstanding problem for pilots and operators as holders of these cards will now be offered goods and services throughout the national network of AWA facilities without having to establish company credit arrangements, or the need to carry cash just in case’.

Moves Progress to Produce the Robin Light Aircraft Range in Australia:

Moves are underway by Jim Owen of Paxford Aviation to locally build the Robin R2160 and ATL primary trainers in Australia following the collapse of the R2160 line in Quebec earlier this year. Paxford, which will ultimately have a new name to reflect the change in their operation, will be developing a production facility at Bankstown airport. Production of Australian-built R2160s is hoped to commence by next Easter while the ATL will follow later in 1986.

Meanwhile, Paxford will have their first ATL in Australia hopefully in time for display at the Schofields Air Show and foresee a huge market for this aircraft in the years ahead. “The ATL has already sold well in Europe and with the demise of all competitive trainer production, even the Cessna 152 in 1986, the ATL will be in an ideal market situation”, stated Jim Owen Paxford claim that dual training costs on the ATL will be more than a third cheaper than present C152 and Tomahawk aircraft while the acquisition cost will be around $55,000 *Powered by a 2050cc VW flat-four, the ATL will perform the same primary training function at a fraction of the Direct Operating Costs of present aircraft” stated Jim Owen.

 Aerial Fire Bombers for Victoria This Summer:

The Fire Protection Branch of the Victorian Dept of Conservation, Forests and Lands has issued a tender for the supply of aerial fire fighting services for the period extending November to April, 1986. This follows the success of emergency firebombing operations during the tragic fires of two years ago where a large fleet of rotary and fixed-wing aircraft assisted in controlling fires in strategic locations long enough for ground units to either get them under control or safely evacuate threatened civilians.

First Dornier 228 Aircraft for Australia:

The National Safety Council of Australia has entered an agreement with Dornier to evaluate a Dornier 228-200 series aircraft for its Hyperbaric Emergency Service along the eastern seaboard of Australia.

This aircraft will be the first Dornier 228-200 series to be imported into Australia. The aircraft has a number of special features, which made it attractive to the NSCA.

These include the Dornier’s high wing design coupled with its short take off and landing capability, its high speed and exceptional loiter performance. The roomy cabin together with a large cargo door offers good cargo space which is considered essential to carry such large items as transportable decompression chambers The Dornier will if successful, replace two of the NSAC’s Nomad N22B aircraft currently in service.

 Aviation Problems Under Review:

Aviation Minister, Peter Morris, and General Aviation Association President, Barry Follows, have announced that a committee is being set up to explore ways in which communication and understanding between the Department and aviation operators could be improved.

The committee will have four industry members: Mr Barry Thompson, Executive Secretary of the GAA (plus three others to be named later) while the Department will be represented by Mr John Wright, head of the newly-formed Flying Operations Branch.

The Minister said the Department of Aviation had developed a number of initiatives aimed at improving communication with industry. However, a recent survey of members of the General Aviation Association showed there were still substantial difficulties between the Department and those subject to its regulation.

As an initial step towards developing a more cooperative relationship, the General Aviation Association has proposed a review and the Department is happy to fully participate.

The review will take place over the next few months after which the committee will report to the Secretary of the Department of Aviation with proposals for improving communication. It will also comment on possible improvements to the Department’s regulatory review procedures, administration and regulations.

 Cessna Scraps the Citation I:

Cessna has decided to discontinue production of the 7/8 seat Citation I jet. Sales of the smallest Citation have been steadily waning in recent years as more and more purchasers have opted for the larger, more capable Citation S2. Cessna’s entry to the jet market was via the original Citation 500 back in 1972. Some 349 500s were built between 1972 and 1977 when the type was updated to become the Citation I. A further 345 Citation have been produced up to the present time.

Cessna is actively pursuing marketing of the improved performance Citation S2 and 3 models as nowadays Citation sales account for more than two-thirds of total Cessna revenue. Over 1300 Citations have now been delivered worldwide.

 New Commercial Pilot Training Scheme a First for Aviation Industry:

After years of negotiations, the Parafield-based Australian Aviation College looks like it has succeeded in obtaining some form of tertiary assistance in providing pilot training to CPL standards. The course actually provides more than just a CPL, it provides an Associate Diploma in Civil Aviation which provides additional background on operating aircraft with advanced technology. The course includes formal instruction in mathematics, physics, electronics and computer studies. Additionally, the course can be followed by a Degree Course leading to a Bachelor of Applied Science – Civil Aviation.

By achieving official sponsorship of an undergraduate status course the appropriate student not only saves money in gaining his CPL but acquires a significant level of additional science-based training not normally included in such a course. The Australian Aviation College claim that this would normally assist greatly in the graduate gaining employment in the industry once his formal training was completed.

 New Lean Piper Ready to Fight Back in 1986:

Piper has now fully settled into its new production facilities at Vero Beach in Florida. During 1984/85 the GA manufacturer closed its long-established Lock Haven, Quehanna and Lakeland facilities in favour of a centralised design, sales and manufacturing facility at its existing plant at Vero Beach.

Established in 1937, Piper has so far produced more than 128,000 aircraft which topped in 1979 when 5,255 aircraft were delivered. Today, employment at Piper has fallen from a peak of 8,000 in 1979 to only 1,500 set to produce around 600 aircraft this year. Though much smaller now the company is looking forward to 1986 with renewed confidence as its production costs are now much lower on a per unit basis while marketing concentrates on a number of aircraft types sharing unique market positions in terms of the competition. Two of these aircraft, the 400mph cruise speed Cheyenne 400LS (which was due to arrive in Australia mid October and will feature in an Airtest early next year) and the advanced Malibu spearhead Piper’s 1986 marketing effort backed up by stalwarts such as the Warrior, Chieftain, Saratoga and Seneca III. Malibus are presently being produced at the rate of 9 a month and this looks like being increased to cope with demand. Cheyenne production, concentrating on the IIIA and 400LS is increasing.

Piper executives still however feel pessimistic about the liability insurance situation which they claim is the single greatest impediment to the viability of producing low-value single-engine aircraft. “From the high yield turboprops we can spread the financial burden of insurance but with smaller singles, the per unit debt can exceed $US60,000, a staggering amount to have to pay for such an Illogical reason” stated a senior Piper executive. The US GA manufacturers, AOPA and in- deed every official body involved with US aviation is lobbying to have the liability insurance situation clarified by Congress to stop the rash of seemingly unjustified law suits presently being filled against a number of manufacturers.

 Cessna Looks to Growth:

Sales and earnings improved during the first nine months of Cessna’s 1985 financial year, which ended June 30, compared to the same period a year ago.

During the first three quarters, sales increased 22 percent to $543m from $444m last year. Cessna reported a net profit of $27m compared to a net loss of $17. 2m in 1984.

Aircraft revenues reached $478m on 656 units in the first nine months, up significantly from $373m and 556 units last year. Aircraft deliveries in the third quarter totalled 201, worth $138m, up in units from 181 a year ago. but down in revenues from $151. 7million.

Fanjet, propjet and single-engine piston aircraft sales were up during the first nine months compared to last year, but twin-engine piston deliveries were down Eighty Citation business jets were delivered during the period, compared to 63 in the first three quarters of financial 1984. Propjet shipments, which included 23 of the new Caravan 1 utility aircraft, totalled 58 versus 28 in the same period last year Single-engine piston aircraft deliveries increased to 480 compared to 411 in 1984, while twin-engine piston aircraft sales declined to 38 from 54 a year ago.

The most encouraging development during the third quarter was the increased order rate for the Citation S/11. More than 40 Citation S/11s have already been delivered since this improved aircraft entered service less than a year ago.

 Gulfstream and Chrysler Officially Tie Knot:

The purchase of a majority shareholding by Chrysler Corporation in Gulfstream Aerospace was made official in August. Chrysler purchased virtually the entire existing stock in Gulfstream for $US310m in cash and an additional $US327m in promissory notes. All three major American auto manufacturers are now heavily involved in aviation. Hughes was purchased by General Motors in June while Ford has been heavily involved in electronics and missiles for many years now.