Ansett and the 737-400?

The balance of correct capacity is vital if the aircraft at the end of the day is to be deemed a profit earner. Ansett, for instance, are operating BAe 146-200s in Western Australia in a business class style 75-seat configuration. The 146-200 is capable of uplifting 106 passengers and most operators settle for something around the 90 mark in a comfortable economy class five abreast arrangement. Not only are Ansett WA operating at a financial disadvantage in this respect but they are also forced to employ three flight attendants when the demarcation line for the third attendant is 72 passengers. In other words there is no way the third flight attendant can be amortised over the three additional seats (even assuming a 100% load factor!) and so it is just another cost surcharge that must ultimately be passed on to the traveller. It is worth noting that Ansett applied to the IAFC shortly after introducing the 146s for a fare increase to cover the additional operating costs incurred with the 146 as against their smaller Fellowships.

In the case of the 737-300s it is obvious that if the two domestics are ever to offer cheaper fares (or even have more budget fares available) the Boeings will have to be configured with a more commercially meaningful seating arrangement than the 112 or so seats that they will initially be configured at. As most -3b0s elsewhere are operated quite comfortably in a two class arrangement with 128 passengers we would judge this to be the capacity that both carriers would ultimately settle near.

Enter the new, stretched 737-400. This aircraft (refer to Newsdesk for full technical description) has been offered by Boeing solely to stymie as many future A320 sales as is possible in addition to offering an alternative for Boeing customers till the 7J7 Propfan is ready around 1992. In a typical two class arrangement, this aircraft will accommodate 146 passengers, or around 18 more than the similarly configured -300.

Enter the Airbus A320. Ansett has 8 of these aircraft on firm order and 9 more on option. The first 8, with deliveries commencing mid 1988, have always been destined for Ansett domestic operations though there are many withih the industry who smile when you say this arid firmly believe that we will never see these aircraft wearing Ansett livery. The fact is that these aircraft, in Ansett service, will be flown by a three man crew. Ansett seem happy with that arrangement and we are not about to argue with them on. it as it is their decision. However, the cost must be paid by someone and as the airline will be carrying a near half million dollar additional cost burden per aircraft per annum (factored on the number of FE’s required to keep one aircraft operating and taking into account the cost of training, superannuation, leave, etc) that extra cost will ultimately have to be paid for in higher air fares.

Of greater importance though is that Ansett (and Australia) will then be operating aircraft of almost, identical payload/range performance and separated in capacity by as little as a dozen seats as their A320s will be configured as 134/140 seaters. As the cornerstone of a successful airline lies in its ability to be able to deploy the right capacity over varying routes at different times; then having the bulk of your fleet operating in the same size regime leaves little or no opportunity to cater for the wide variations in route demand that exist in any domestic operation. Additionally, Ansett, with its A320s will be operating a different type technically which again brings with it an additional cost burden that has to be met in engineering and spares support terms.

In considering the above then is it entirely beyond reason to consider Jhat Ansett may well turn its A320s over to its leasing division (where a ready market exists for this popular aircraft) and order a batch of 737>400s to complement its existing dozen -300s? With the -300s operating in a 128 seat configuration, the -400s in a 146 seat arrangement (similar to the present 727s) and the wide bodied 767s with their 200 passengers then Ansett would have a far better balanced and more flexible fleet than is presently envisaged. One additional benefit of a -400 purchase is that it is a two crew aeroplane and always will be as it is endorsed by all concerned (like the MD-80) as a derivative of an existing type rather than a new technology type as is the A320. Secondly, and most importantly, the -400 is of course common to the -300 in engineering and support terms.

As we have stated many times in this magazine over the past year or so, the future post-TAP Australian airline environment will have to be much more cost efficient than it presently is. Nobody will be able to afford to continue to operate aircraft configured with the world’s least number of paying seats, particularly with the fate of our dismal dollar and the very high cost of servicing loans marked against these new fleets. The successful Australian domestic in the 1990s will have to be a lot more cost-efficient than is presently the case with Ansett and Australian. It is for these reasons that it might come as no surprise to learn, at some time in the future, that Ansett has ordered a batch of the new 737-400s.