Aquatic Airways Looks to Growth

Formed a decade ago by Vic Walton, a noted test pilot on the Victa Airtourer and GAF Nomad programmes, Aquatic Airways grew slowly during the late seventies using five seat Cessna floatplanes. The company has come a long way in that time and today has a serious capacity problem due to the financial world’s inability to underwrite the investment required by commuter airlines to purchase new aircraft. “Despite our massive growth these past three years and our solid position in a particularly specialised market environment, we are unable to get the financial institutions to lend us capital on the same basis as they lend to other businesses”, stated Vic.

RPT operators generally are not what even a gambler would call a sure thing in the longevity stakes, though Aquatic Airways is different then most and has the numbers on the board to prove it. In the last year, growth was double that of 1984 while 1984 in turn was 100% up on 1983, and so it goes. The problem though for the present summer is lack of capacity. The two seven seat DHC Beavers (AQA & AQV) are presently logging more than 800 hours per annum each with load factors in the eighties. The addition of a third aircraft is imperative if growth is to be fully serviced.

To satisfy this requirement Aquatic Airways has had its eye on a DHC Otter for some time. This aircraft, which is presently operating in Canada, is however fairly noisy by Beaver standards due to its finely tuned exhaust system. To operate the Otter successfully in Australia, Aquatic would have to design an entirely new exhaust system at a cost of several thousand dollars. Additionally, the fall in value of the Australian dollar has also meant that Aquatic would be paying a 20% premium on the Canadian aircraft in comparison with having purchased it a year ago.

All this leads Vic Walton to look favourably upon the purchase of the ex-Barrier Reef Airways Nomad N22 floatplane that is available for between three hundred and four hundred thousand dollars. This particular aircraft (VRQ) was actually trialed by Aquatic in late 1984 and proved environmentally and economically perfect for the unusual disposition of Aquatic’s routes. Seating 13 passengers the Nomad would provide a considerable speed (which must be a ‘first’ for a Nomad!) and comfort advantage over the piston engined Beavers. Negotiations are continuing though Aquatic as always has to fight hard against the traditional conservatism of the financial community which tends to make General Aviation pay for the sins of just a few errant operators.

Aquatic inaugurated RPT services in 1981 with the first of two Beavers and hasn’t looked back. Initially, the airline operated between Palm Beach and Rose Bay, a distance of 18 miles for a flight time of around 13 minutes and at a fare basically less than that of a cab! This route has grown so much that it is now to Aquatic what Sydney/Melbourne is to TAA and Ansett. Introduction of a new jetty at Rose Bay has also helped enhance passenger appeal in addition to turnaround time and a pre-arranged hire car service offers connections to Kingsford Smith Airport or the Sydney commercial district. While on the short side, the Palm Beach/Rose Bay sector is not the shortest. That honour belongs to the Palm Beach/Gosford run which accounts for Aquatic’s local tag as the “four minute airline”. Additionally, in recent times Port Stephens has been added to the list of scheduled services.

Though presently hampered by lack of capacity to accommodate the growth potential that obviously exists, Aquatic Airways is waiting for the outcome of the NSW Government committee of review that is examining the present regulatory setup of 84–transportation. This committee is slated to report to the NSW Transport Minister early in 1986 and a comprehensive report to State Parliament is hoped for by this Easter. Hinging on the conclusions of the report is the future course air transport will take in the state. If the position is totally deregulated, like Victoria and South Australia, then Aquatic will have to look carefully at taking on new routes that they feel merit service.

One such route would be a Lake Delaware/Rose Bay service that would link the hearts of the two cities as never before. Using the Nomad, with its higher disposable payload, Aquatic could operate such a service at a cost and time saving that would open up significant opportunities for both increased business and tourism between the two centres. Another possible route would be from the Port of Newcastle to Rose Bay though Aquatic is not rushing into this one as the market is already well served by a number of established carriers in a relatively flat market.

From the outset Vic’s greatest problem, apart from securing investment capital, has been dealing with the myriad of government departments. Aquatic presently holds 108 licences to cover its small operation. Before gaining approval to operate a new service it has to gain a wide number of often ridiculous approvals from local councils, Department of Transport (NSW), DofA and even the Maritime Services Board who classify a seaplane as a speedboat once it has touched down! Aquatic Airways also spend over $5000 a year in Air Navigation Charges even though they do· not use one single facility in the airways navigation system. All flying is done VFR and the only times this has caused problems is when Sydney Harbour is enjoying one of its winter peasoupers or very high wind states preclude water operations.

Apart from its expanding commuter operations the airline is also actively involved in charter. Primarily this is of a tourist-oriented nature and revolves around servicing the famous high quality restaurants that abound on the Hawkesbury River, north of Sydney. On the weekends particularly, people flock to these locations to celebrate special events or just to enjoy the unusual thrill of flying aboard aircraft from a bygone era.

Aircraft from a bygone era the venerable Beavers may be, but never outdated, which nicely sums up the future prospects of this small airline amidst a world of giants.