Airline Affairs

TAA is the sixth airline in 1985 to select the V2500 to power its A320s. The engine has now commenced its full scale development programme which will lead to its airworthiness certificate in April 1988 and entry into service a year later. With the TAA order, a total V2500 orders stand at 339 engines for A320s on firm order and option. Ansett, which received its first A320 some nine months earlier than TAA, has opted for the rival GE/SnecmaCFM56-5 for its 8 firm A320s though has yet to make a decision on the choice of powerplant for its 9 optioned aircraft.

TAA will use the A320s to replace their existing 12 150 seat Boeing 727-2008 which by 1990 will have a fleet age of between 12 and 18 years. The A320-200s will have full max payload Sydney/Perth capability irrespective of headwinds and will be configured for 134 seats in a three-class arrangement and 140 seats (like Ansett) in a two-class mode.

TAA also begins taking delivery this winter of 12 112 seat Boeing 737-300s which will be the first to be equipped with the more powerful 22,000lb thrust CFM56-3 engines and an EFIS ‘glass cockpit” replacing the traditional analog version. Along with TAA’s 4 234 seat A30084s, (a fifth A300 is leased to Air Niugini), TAA will consolidate on its 737-300s and A320-200s for the nineties though it may need to acquire more wide bodies by 1990 if present growth continues.

TAA had worked closely with Airbus Industrie from the outset and had helped contribute a number of positive design changes that included low-pressure tyres and a revised undercarriage geometry to ensure low pavement loadings, a mechanised underfloor hold to take LD3 compatible containers, wider fuselage to give additional passenger comfort and ensuring that the aircraft had true trans-continental range.

TAA may well opt to acquire a number of the stretched A320 when that version is ultimately launched by Airbus Industrie. This is the aircraft that TAA really wanted but were unable to get as Al is presently fully committed with developing its current standard-fuselage A320 project in addition to the imminent launch of both the TA9 and TA11 programmes.

 Us Carriers Losing on the North Atlantic:

IATA figures reveal that the solid growth that has marked the North Atlantic over the past three years is beginning to wane. Figures released for the month of October 1985 reveal a decline in passenger uplift coinciding with an increase in available. capacity resulting in a load factor drop of some 13% for US carriers and 3% for the Europeans. This trend reflects the general situation follow- ing a stagnation of growth following an end to the northern summer. The decline is also bad news for Pan American who is in the process of shifting its excess Pacific capacity eastwards to gear up to begin operating more than 200 transatlantic sectors a week from this May.

IATA estimates that there is at present the equivalent of up to 100 empty 350-passenger DC-10s plying the transatlantic each day representing nearly 35,000 empty seats. Load factor overall is now in the low sixties as against the low to mid seventies for the peak 1984/85 season.

A Change of Heart Regarding Airports?:

It was encouraging to see full page advertisements being taken in major newspapers during early February supporting the establishment of Sydney’s second airport at Wilton. What was encouraging was that the adverts were prepared and paid for by local residents, a far cry from the constant anti-airport bashing by political and environmental groups of recent decades.

The airport decision was expected to be handed down by Federal Cabinet in the latter half of February and if Wilton gets the nod then the residents can look forward to the creation of around 7,000 jobs in the construction phase and eventually upwards of 12,500 permanent jobs when the facility is completed. Furthermore, the DotA estimates that an additional 2,300 jobs would be created in a variety of support industries. Good luck Wilton.

 Qantas Discounting Initiated Provokes Fares Bloodbath:

Faced with a decline in passenger uplift through the first half of this year, Qantas moved during early January to introduce heavily discounted economy return tickets to Europe. While the offer, which shaved several hundred dollars off the standard fare, was only available during January it did provoke an instant retaliation from British Airways, Singapore and Malaysia who matched the fare and exceeded it in some cases. Qantas then teamed with BA to offer a discounted fare of only $1686 Sydney/London return, an offer that is really designed to surge the short-term cash flow of both carriers and ensure maximum payloads through the coming year. With the increased capacity on the Kangaroo Route this year it will be interesting to see if airlines will be able to maintain their previously strong load factors in the face of eroding economy class yield.

Ansett Again Wraps up the Pacific:

Rapidly expanding eastwards, Ansett Airlines has won managerial control of the new Cook Islands International Airways. It is believed that Ansett plans to operate 767 services to the Islands and onwards to Honolulu under CIIA flight numbers virtually giving it de facto international carrier status. Boeing 767 services would also run from Rarotonga, the Cook Island’s capital, to Tahiti and Auckland.

Ansett already provides similar management expertise and aircraft for Air Vanuatu and Polynesian Airlines and may seek to combine the various carrier’s air routes in order to operate a far-reaching and comprehensive Pacific network that could ultimately extend to Asia and the US West Coast.

 Taa Eager to Break Into Nsw Regional Operations:

TAA have filed a comprehensive submission detailing the benefits of their having traffic rights throughout regional New South Wales. The submission to the Review of NSW Air Services is said to go hand in hand with TAA moving into the finance and operation of a number of quality tourist developments in Northern NSW and the New England region, the very home of East West.

The State is presently served entirely by EWA and Air NSW in second-level RPT terms and provides substantial on-carriage via Sydney that TAA would wish to secure in the light of possibly losing this from EWA once that carrier is able to possibly operate its own major trunk routes in a more deregulated environment.

The Report is expected to be handed to the NSW Minister for Transport, Mr Ron Muloch, by May with a public announcement being made sometime after that date. The Report is expected to recommend a liberalisation of NSW intrastate air routes in a phased campaign intended to offer NSW rural centres a greater level of choice between carriers.

Pan Am to Expand Transatlantic Services:

With the final PanAm service out of Australia occurring on February 10, the giant US carrier has now firmly turned its marketing eyes towards Europe. Tantamount to PanAm’s eventual return to profitability is its increase in transatlantic services which will soon top 206 a week.

The US carrier also has recommenced its long-stalled Russian services using its European-based 737 fleet to serve Moscow, Prague and Leningrad. PanAm is the only US carrier sanctioned to operate in the USSR and is planning to promote its services aggressively in Europe to win a larger share of this potentially high-yield traffic. REPUBLIC

Northwest, Merger Creates America’s Third Largest Carrier:

As we move into the second hall of the nineteen eighties the longer term effects of deregulation certainly appear to be a strengthening of the commuter scene via the double designator system, the emergence of a massive hub and spoke network and the never-ending merging and takeover of rival airlines to form ever larger conglomerates of airlines operating from their fortress-like hubs.

Latest merger is between Republic and Northwest Orient, already two of the larger and more profitable operators in the US. The new combine will provide United with significant competition on the Pacific as Northwest is already the largest US Pacific carrier in addition to being third on the Atlantic. The new combine will total 298 aircraft, many of them new generation transports and will employ 30,000 people.

Taa Boost Number of Cheap Canberra/Melbourne Flights:

TAA has decided to bite the bullet and has doubled capacity on its no-frills F27 service linking Canberra and Melbourne. Two flights a day will now operate (refer p15, Jan AA) which will more efficiently amortize the aircraft and crew in addition to better catering for the great demand that such a service has uncovered. Load factors on the single daily flight were running at better than 80% for much of the time proving the requirement for a discounted propjet service between the two capitals. The normal economy jet fare is $147 while the F27 fare is only $75.

No Decision Yet on Crewing of Taa A320s:

As we closed for press TAA management had not firmly decided on the number of cockpit crew that their new A320 twinjets would carry. The A320 is to be used worldwide as a two crew aircraft though Ansett will follow its Boeing 767 practice and carry a Flight Engineer in a forward-facing crew seat located between and aft of the two pilots.

With Ansett opting for a third crewmember many within the industry feel that a precedent has been set for industrial confrontation if TAA should employ the aircraft as a two crew operation. TAA FEs have via the Australian Airlines Flight Engineers Association (AAFEA) worked out a viable redundancy and retraining scheme which admits to the emerging technologies found in new design airliners. Though it has still to be formalised both TAA and Ansett (and probably Qantas at a later date) will provide their FEs, regardless of age, the opportunity to train as pilots if they so wish. Obviously, this would be more desirable for those FEs below the age of forty though the position is aided somewhat by the fact that around a third of current FEs are also private pilots. TAA is meeting with the AAFEA and their pilots later this year to come to a working agreement on the two crew issue and a firm decision on the crewing fate of the A320 may have to await the outcome of this conference which will be chaired and deliberated upon by a non-involved party acceptable to all concerned.

Meanwhile Australian Aviation believes that there is a move within the Qantas element of AAFEA membership to go it alone and form their own breakaway union in a similar fashion to that of the Australian International Pilots Association (AIPA) breaking away from the Australian Federation of Air Pilots (AFAP) in the late seventies. Apparently Qantas FEs are worried that industrial action within domestic airline AAFEA ranks will bring them into conflict in a matter that they have no issue with, namely the crewing of the A320. On the other hand Qantas will ultimately be ordering the new Boeing 747-400 (refer Update, this issue) and Qantas FEs will then have to face a similar redundancy situation though it is believed that many Qantas FEs are already looking seriously at upgrading to pilot status.

Whatever the outcome, the likelihood of Australian domestic and international airliners being flown by a greater number of experienced pilots who have come up through the ranks as this is good news for safety as the overall technical experience these new pilots would have would certainly stand them in good stead in the event of an incident due to technical reasons.

 Cathay Pacific and the Australian Connection:

We are indebted to Don Stewart, a long time reader of AA, for his bringing us up to date on the previously unpublished contribution made by Ivan Holyman and ANA to the establishment of Cathay Pacific in the late forties. Don himself flew for ANA during the late forties and early fifties, went to the UK to work with Bristol and opted out of aviation on his return to Australia during the sixties. He went on to become Managing Director of Hammersley Iron and finally Chairman of Peko and Energy Resources of Australia.

Apparently both Ray Farrell and Syd deKantzow, the Australian founders of Cathay Pacific (refer p25, November 85 AA) sought assistance in the early days from ANA to the extent that Ivan Holyman had quite a lot to do with the emergence of the fledgling Orient carrier. ANA provided several aircrews for DC-4 operations while ANA also trained CX DC-3 aircrew in Australia.

The setting up of HAECO was also a Holy- man recommendation and ANA supplied initial LAME’s on secondment in order to get the organisation operating. In those days of course ANA was pioneering a Pacific service which it later lost to BCPA and finally Qantas. Holyman apparently had the dream that the new TAA and Qantas could operate all international services west of Australia and ANA would take the eastbound share. ANA at that time was even operating courier services to Japan in support of the Australian occupation forces. In the end, though both time and luck were not on ANA’s side and the airline was ultimately taken over by Ansett in 1957. It is good to see through the contribution made to what is today one of the world’s most successful carriers by a group of pioneering Australians.

United Takes Wing:

United Airlines has signed joint marketing agreements with Lufthansa, Air France, SAS and Alitalia to further solidify its market projection in Europe. The giant US airline, which currently operates around 320 aircraft and will have more than 460 by the end of the decade, will now concentrate on schedule coordination and joint promotions with its new European allies. This move will not only strengthen greatly the marketing potential of the four European carriers concerned but will allow United an enormous potential additional market which it can fly on its extensive domestic US route network.

Meanwhile, the giant US carrier initiated services to Australia on Tuesday 11th February as part of its $US750m takeover of PanAm’s Pacific routes. The transfer involves 10 countries: Japan, Korea, Singapore, Taipei, Taiwan, PRC, Hong Kong, Philippines, New Zealand, Thailand and of course Australia presently via Sydney and Melbourne. United has taken on some 900 foreign ex-PanAm ground staff in addition to merging into the UAL seniority system 1,200 flight attendants and 430 pilots. In addition to PanAm’s Pacific route structure, UAL acquired 11 747s and 6 L1011- 500s to support its already sizeable fleet of long-haul 747s and DC-10s. With its newly created link-up with the previously mentioned European carriers and its new Pacific network, United is set to become a much larger force than ever before. As a part of its major growth phase through the mid-eighties, the carrier has also embarked upon a substantial domestic route and frequency expansion that saw an additional 30 extra flights a day added to the schedule during January alone. United presently has more that 1,550 departures in the US each day!

UK Tightens up on Airliner Safety:

The UK CAA has issued revised dates for the compulsory fitment of fire blocker seat cushions and emergency escape path lighting. Owing to an increase in availability, the date for introduction of fire blocker seat materials has been bought forward six months from December 1, 1987 to July 1 that year.

Fire blocker prevents the seat from igniting or giving off noxious fumes for a far longer period than normal. No seat cushion material could ever be totally flameproof in practical terms though fire blocker enables a better chance of evacuation prior to the presence of lethal fumes, the greatest killer in most cabin fires.

New CAA rules also are being implemented to enhance the emergency evacuation procedures from aircraft. Research, and practical experience have proven that the number of exits, and their clear approach, is the vital factor in expediting a safe evacuation within the guidelines of the 90-second rule. Therefore UK registered airliners will have to either increase seat pitch where there is an emergency exit or remove the seat immediately alongside that exit to ensure that the exit is clear at all times. This writer has noted on a number of occasions that seat backs actually have been ranged alongside an exit, I wonder how many passengers would honestly appreciate that the seat back can lay forward in an emergency? The DotA sent a special safety team to Eng land late last year to analyse the results of the Manchester 737 accident and the Department is shortly to issue guidelines as to similar safety requirements concerning lavatory smoke alarms, fire blocker coverings (which are coming on the new 737-300s) and accessibility of emergency exits.

Ansett Launches Special Exhibi- Tion to Commemorate 50th Anniversary:

On Monday, 17 February 1986, Ansell Airlines celebrated the 50th anniversary of its first commercial flight from Hamilton, in Western Victoria, to Melbourne’s Essendon Airport.

It was also a Monday, on 17 February 1936, when the airline’s founder, the late Sir Reginald Ansett, boarded a single-engine Fokker Universal with a full complement of six paying passengers to launch an airline that was to become a permanent part of Australian life. To mark this historic inaugural flight and 50 years of aviation achievement, Ansett is launching a a mobile exhibition that will visit every State of Australia over the next eight months.

A highlight of the exhibition will be a Fokker aircraft (refer to Warbirds p86, Jan AA) similar to Ansett Airways’ original flagship, the Fokker Universal, VH-UTO. This second aircraft was discovered some years ago in a field in Austria, restored by Ansett to as-new condition and painted in the original livery.

“The Wonder of Travel Comes to Town” traces the history of Ansett through to today and is the largest exhibition of its kind ever mounted in Australia. Packed into two 12 metre pantechnicons and towed by massive Scania prime movers, the display will also feature a full size Boeing 727 cockpit simulator; an aircraft cabin section; past flight attendant uniforms; a space ride for children; historic photographs of aviation events and aircraft; merchandising material and displays depicting Ansett and its products in the eighties.

East West Gets a Place in the Sun:

East West Airlines won Queensland Government approval during January to operate over a number of prime Queensland intrastate routes. The new EWA ports will include Rockhampton, Mackay, Cairns, Townsville, Proserpine and Mt. Isa. The Queensland Government has long been a supporter of interstate deregulation though has been slow to deregulate its own intrastate services. The route approvals to East West foreshadow not so much total deregulation but an effort by the Government to increase competition within the long intrastate routes in the north. EWA will use its standard 45% discount fare strategy and is expected to develop further tourism interests to complement its new routes.

East West late last year paid $6m for the Lindeman Island resort which was previously owned by the Queensland State Government Insurance Office. The airline plans to spend more than $34m on the resort which will include a 737-capable airstrip. The problem EWA will now have of course is servicing its rapidly expanding Australia-wide network without additional aircraft. The airline has been trying for more than a year to import its first 737-200 in addition to a fifth F28-4000 but has been consistently blocked from Canberra with statements from the Minister’s office that the airline already had sufficient capacity to cope with demand. The new routes, which are planned to commence operation this winter, may well be the trigger that EWA needs in its quest for additional jet equipment.

East West meanwhile has been busy elsewhere on its network buoying up traditionally low summer loads with a number of innovative fares. During January the airline ran a $49 single sector fare over any sector and through February and March was operating special midweek fares that offered up to 45% off the standard EWA fares. Needless to say Ansett copied the idea post haste on competitive routes!

The Domestics Have a Happy Christmas:

Both TAA and Ansett enjoyed substantial traffic increases over the 1985 Christmas period. TAA recorded a passenger growth of 7. 5% while Ansett saw 11. 9% recorded for the period December 21 through January 1, 1986. East West also enjoyed growth and reported that almost all of its flights for the period were booked out weeks in advance.

For East West this represented a source of frustration in that the airline felt that it should have had its additional Boeing and Fokker jets in service well prior to the Christmas rush in order to supply the required service. Two recent events that affected people close to the magazine brought home the message that East West is continually playing in order to get more tourist-orientated fares into the domestic airline scene.

In early November one of our staffers tried to book an Apex fare from Canberra to Perth and return. Departure was mid-December with return post-Christmas. Result, no go, all availability on both carriers was booked solid. In the end our lady did get a Flexi Fare ticket though this was made available on a 50% chance probability which made it difficult for her to really believe her holiday was even going to happen. Maybe she will now try roulette! The other instance is even more damning. An aged widow who has only recently lost her husband after a long illness and who herself is in poor health decided to fly with her daughter to Adelaide on Boxing Day to spend time with relatives. They tried to book an Apex-type fare as early as September and could not get a seat! Finally they had to make the 3000km journey (36 hours) by bus. September, a full three months prior to travel and they could not get a seat. Come on Ansett and TAA, if that is your idea of what an airline service is then it certainly isn’t ours.

Us Government Report Shows Gains in Service, Choice and Reduced Air Fares Since Introduction of Deregulation:

A report by the US Government General Accounting Office has revealed that the overall level of choice to the consumer has been greatly enhanced since the introduction of airline deregulation in 1978. The GAO report also indicated that fares had become cheaper by 6% in real terms while service had improved in availability and frequency.

The Report analysed the effects of a number of events in recent years that slowed the flow of benefits of deregulating the once heavily controlled US domestic airline system. Amongst these was the 81/82 recession, the second oil cost surge (OPEC II) of 1979 and the firing of 12,000 striking air traffic controllers in 1980 which hampered air traffic development for more than a year. Nowadays growth is largely constrained by the nation’s twenty major airports being operated to capacity. This problem is being exacerbated to some extent by the emergence in recent years of the hub and spoke system where great numbers of flights transit one airport and in turn are nowadays led by a smaller number of commuters specialising in dual designator status on-carriage for the major carrier.

The report found that 26 new airlines had commenced operations (excluding com- muters) and that 19 had filed for bankruptcy or had been merged with larger carriers. Markets served by competing airlines increased while cilies served by two or more carriers actually increased from 23% to 34%. In summary the report found that “Competition increased, fares generally fell, service improved in availability terms and profits varied among airlines”. The report recognised that different carriers were better able to cope with the basic concept of deregulation than others and nowadays it was they who were enjoying viable yields and above-average load factors.

 Qantas Wins Award for Defence Support:

Soldering gold wires which are less than one-fifth the diameter of a human hair and painting entire squadrons of aircraft are among the skills that won Qantas the 1985 Australian Defence Industry Quality and Achievement Award.

Qantas maintains (and paints during major overhaul visits every few years) the RAAF’s Boeing 707 and Lockheed C-130 aircraft. The airline also overhauls the engines from these and other aircraft as well as other avionics and components. It also maintains the RAAF’s Boeing 707 flight simulator.

Among the avionics overhauled are the F-111 inertial navigation systems, which allow these bomber aircraft to navigate precisely without any external aids. A gyroscope at the heart of each system is linked by gold filaments so fine that they have to be soldered under microscopes. The wires are 18 microns in diameter, compared with 100 microns for the thickness of the average human hair.

Qantas uses its skilled workforce and sophisticated plant to generate almost $200 million revenue each year from contract work. RAAF maintenance support accounts for about $16 million of this totall, with most of the balance coming from ground handling and maintenance for other airlines.

 Junior Galactic Happenings:

As previously reported Ansett launched their Ansett Starship Crew to cater for the many. Youngsters flying these days plus the junior armchair flying enthusiasts amongst us. That they have struck the right chord is evidenced by the fact that there are currently approximately 8,500 members Australia wide with about 200 new members joining each week. “It has taken off like a proverbial rocket,” stated Margaret McRobbie, national coordinator of the programme.

Prior to Christmas, functions were organised Australia-wide for members of the Starship Crew with competitions being run in conjunct- tion with them. Further functions are planned through next year and with the joining fee only $20, plus $10 to rejoin each year it is fantastic value for the junior flier in your family. Further details can be had from Ansett Starship Crew, PO Box 2836EE, Melbourne 3001.

Viscounts Live on in UK Service:

One of the niceties of visiting the UK is actually seeing aircraft like the Vickers Viscount out there still earning a living. Today they are coming back into some measure of popularity largely thanks to their low operating costs. Relatively high cruise speed and overall reliability. British Air Ferries is the leader in the field when it comes to getting value from Viscounts. The UK company is prospering with its fleet of 19 aircraft, some of which are leased to other operators such as British Midland, Manx, Janus Airlines, Guernsey Airlines and Virgin. The Viscounts of BAF themselves are configured for 76 passengers and are renowned for their quiet cabin.

I remember on a flight in Israel on a Viscount back in 1978 how much more pleasant the passenger environment was than in, for instance, a Friendship with its perennial whine and substantially slower cruise speed. Australia of course grounded the Viscount back in 1968 following the loss of one at Port Hedland, a tragic event that prematurely ended the career of an excellent airliner that still today more than pays its way.

 Inwards Duty-Free Shopping at Last:

Inwards duty-free shopping at Australia’s overseas airports is expected to be introduced in April, 1986. Following approval of the scheme by Parliament, discussions are currently taking place between DotA and Customs on the licensing and implementation of the scheme.

The advantages of inward duty-free shopping are seen as enhanced safety, reduced fuel costs for the airline (as an example, airlines fly over 200 tonnes of duty-free liquor each day across the north Atlantic alone), passenger comfort and an opportunity to have consumer buy his goods in Australia. Realistic- ally though the scheme will be tested in practical terms as most passengers, on arriving at peak times, will want to ‘rush’ to the immigration/customs area to avoid the often horrendous queues that form particularly at Sydney airport between 6. 30am and later in the morning as a large number of internationals arrive within a short period of time.