Short Finals

Firstly, if Australia purchased EWA outright it would gain immediate access to Western Australian intrastate routes through the acquisition of Skywest. It would also pick up the Yulara traffic which is just begging for more and better equipment. Additionally, it would eliminate a major competitor in Queensland while at the same time augmenting a better fleet equipment mix between what would be EWA, Air Queensland and Skywest. The Jetstreams, ATR42s and Fellowships could thus be better utilised and deployed to meet the operational changes that will take place in these markets over the next few years.

It is in NSW though where Australia would win most. Let’s face it, EWA on-carriage to Australian at Sydney is very important to the airline. When, as most observers feel, the Two Airline Policy is liberalised come 1990, then EWA will not only be able to operate directly on the trunk routes out of Sydney (and Perth) but will carry that valuable on-carriage, previously destined for Australian, with it. This will cost Australian dearly and will allow Ansell to overwhelm them in two important States.

Australian also wants access to NSW intrastate routes. Even if this is granted by the NSW Government, it will prove a costly and probably unprofitable foray for Australians. By buying EWA they get the already largest operator in the State!

There is more though. For EWA the benefits are jvst as obvious. Firstly, they would not need to operate their own expensive computer reservation system. They would also return to a situation of low (or nil) rental on their airport terminal and ramp facilities at the major airports while substantial savings would also be realised by amalgamating the engineering, catering, training and personnel resources with those of Australia. It is the fact that EWA has been forced by the then TAA into building up its own independent facilities that has effectively destroyed EWA’s profits these past two years.

The best part though is that Australian could immediately transfer ownership oi its fully depreciated DC-9s to EWA thereby removing the need for them to lease relatively expensive 737 aircraft from abroad. The use of the DC-9s and the savings in engineering, terminal rental and reservations alone would take EWA into the profit league overnight.

What we are left with is a situation where EWA is much more financially viable than it presently is and this then offers Australian the opportunity to be able to flexibly broaden its discount and leisure travel market via East West while the marketing objective of Australian remains with the pursuit of the high yield business traveller topped up with appropriate nonbusiness uplift. Australian could totally eliminate a great and potential rival in a liberalised environment, effectively stymie a fourth party from entering the major trunk route scene and be on a better standing than ever to compete nose to nose with Ansett and its many subsidiaries.

This is our scenario and we’re sticking with it. Naturally, EWA may well not be for sale or on the other hand Ansell itself or even the Budget Group or, dare I say it, Air New Zealand might be possible suitors. Either way you look at it though, IF Australian doesn’t buy EWA in the coming year or so then for all the previously listed reasons, it may well prove to be the single greatest mistake the airline has ever made.

And from your right, the Green Arrows . . .

Everybody no doubt has heard of the RAF’s Red Arrows but how many have heard of the Green Arrows? If you haven’t then don’t feel down as few others have either. The Green Arrows though take the cake in ingenuity as they comprise a ·number of RAF pilots who have worked up a precision lawn mower demonstration team!

The group originally performed at a church fete in Surrey, south of London, in July and became a raging success. So popular indeed that they now perform regularly at charity functions to large and enthusiastic audiences – perhaps we can retaliate with a Green Roulettes!

Next Issue

We are almost too embarrassed to tell you of our features for the January issue, considering that three of the items we mentioned last issue were unable to make it into this edition for technical reasons. Often one misses but very rarely three . . ,. our apologies.

The Air Queensland ATR story along with the Meteor Profile will definitely get a run in January as will a feature depicting the operations of Thai International, certainly one of Asia’s most successful carriers. Our Day In The Life series takes you aboard the world’s most superlative airliner -the beautiful Concorde to get a taste of aircrew life well and truly in the fast lane. Technology Explained returns and we also finalise our three-part Australian Airlines feature.

Then there are all our regular features, Newsdesk, Yesteryear, Airline Affairs, Defence Update, New Zealand News, Rotor Torque, Space, Warbirds, Traffic and Aeromart.

The January edition will be on sale early January so order a copy from your newsagent or subscribe direct and save up to $32 over the course of a three-year subscription. Full details are presented on the centerspread insert in this edition.

(Please note that due to technical reasons, there may occasionally have to be a variation from the above-mentioned content)