Airlines of SA Cease Operations

Mr Connelly also cited a lack of growth in the total air passenger market in South Australia with no prospects for developing new routes and the Air Transport Policy in SA that permitted many third-level operators to fly smaller, lower-cost aircraft over routes in competition with ASA’s much larger turboprop F27s which operated to full Regular Public Transport (RPT) licence standards.

Mr Connelly added that, given the thin spread of country’s population across its network and the relatively short distances by surface transport from Adelaide, regional servicing has always been only marginally profitable.

For many years, ASA has subsidised its country network with revenues from its earlier charter contracts to Woomera through the 1960’s and early 1970’s and to M6omba in more recent years.

Loss of its contract to the Moomba oil fields last July to Lloyd Aviation had forced the airline to reappraise its position.

However, things have not been good for many of the smaller operators either as many have come and gone in recent years.

Williams Aviation had been declared bankrupt, Murray Valley Airlines had appointed a receiver/manager and PAGAS had been restructured into TransRegional Airlines, which in turn was restricted as Leecon Aviation and was eventually absorbed by Commodore Airlines.

In the same period Radford Aviation and Emu Air Charter had withdrawn from operating third level airline services and O’Connor Airlines had withdrawn from most of its network and sold aircraft.

These circumstances had not provided the financially stable environment necessary for the sustained RPT operations and the capital investment inherent in upgrading the Airlines of South Australia fleet.

The airline’s fleet of three Fokker Friendships would be redeployed outside the State while the 100 staff members will be relocated elsewhere in the Ansell network.

Meanwhile, Kendell Airlines, who took over the Mount Gambier/Adelaide route from ASA last November, would introduce sufficient capacity with modern pressurised aircraft to cover the withdrawal of Friendship services.

Kendell will use their Metroliners and Saab SF340s to service the ASA network.

Kendell Airlines is also linked with Ansett’s national computer and reservations systems and Ansell Airlines is their principal booking agent.

Transfer of services to Kendell Airlines commenced with ASA’s withdrawal from Streaky Bay and Ceduna on Friday 7th March and from Broken Hill on Sunday 9th March.

Commencing Monday 10th March, Kendell introduced Metroliner services to Ceduna daily Monday to Friday with calls at Streaky Bay on Tuesday, Wednesday and Friday.

Also, from this date Broken Hill will be serviced with 17 Metroliner flights weekly.

Fokker Friendships will be retained on the Port Lincoln and Whyalla.

routes to the present timetable until early July when Kendell will introduce the 35 seat Saab SF340 to both destinations with a substantially increased flight frequency.

It is hoped that the increase in frequency will stimulate additional traffic on the entire route network.

The Kendell fleet consists of 5 turboprop Metroliners.

These are pressurised and carry up to 16 passengers while cruising at 250 knots.

In addition, Kendell Airlines took delivery of its first Saab SF340 in February, 1985.

Others will be delivered in April and September this year at a cost of $6.5 million each.

These high-technology regional airliners carry 35 passengers and cruise at 270 knots.

The turboprop airliners are fully pressurised and have full headroom and toilet facilities.

Mr Connelly who has been General Manager of Airlines of South Australia for the past quarter century said the closure of ASA marked the end of an era in Australian aviation.

The airline’s history dates back to 1927 when it operated as Guinea Airways.

It had brought a significant upgrading to the State’s air services when it introduced pressurised turboprop Fokker Friendships to its routes in 1967 though in recent years it was clearly obvious these aircraft, saddled as they were with all the overheads of the Two Airline Policy type operator, were far too expensive to run on the limited ASA network.