Reece

If the airlines were facing mixed times then the airframers weren’t. Boeing looks set to record its greatest value of sales ever with its 737 and 747-400 selling like hotcakes. Boeing have now sold more than five dozen of the new 747-400s and at around $A160m each that’s a lot of projected cash flow.

1986 though was certainly the year of the European aircraft manufacturer. Boeing had long scoffed at rival Airbus industry’s claims for the long-term popularity of their single-aisle A320. It is now fact that the aircraft will probably have over 400 sales and options written against it even before its first flight this coming February. Boeing no longer scoffs and now races to catch up with their futuristic 7J7, which at best will be ready for 1992 service.

Fokker and British Aerospace have also bloomed this past year or so. The Dutch manufacturer again stunned the Americans in selling one hundred examples of their excellent Fokker 100 twinjet to GPA Leasing. Fokker 100s are also on order for USAir, Swissair, KLM and ILFC. Again Boeing did not see an aircraft required in this class when it finally disbanded its 737 Lite a year ago. The times have changed and the US certainly now has a real airframe rival with which at last to compete – all very good news for the airlines.

New aircraft were launched. Boeing officially launched the 747-400 and 737-400 while both Airbus and McDonnell Douglas had ‘Claytons’ launches for their respective A330/340 and MD-11 airliners. Both are said to be getting the official nod in the first quarter of this new year. Meanwhile, the commuters are surviving better than anybody would have dared to suggest two years ago. Saab severed its links with ailing Fairchild while Shorts, ATR, Embraer, Casa, BAe, Dornier and DHC are all selling in large numbers.

Locally both our domestics placed their first 737-300s into service and what fine aircraft they are. Fuel efficient, quiet and requiring less maintenance manhours than the types they replace. The Tom May enquiry got under way though the verdict is not expected to be announced officially by Aviation Minister Peter Morris till around next February. East West continues its battles in and out of the courtroom against Australian and particularly Ansett who seem to have formed a special division just to legally ride the smaller carrier. Ansett though had more than just EWA on its mind for much of ’86. The go ahead carrier received its entry into New Zealand, wrapped up a far-reaching commercial agreement with Qantas, purchased a half share in the prestigious Regent Hotel chain, acquired all of Traveland and is now a joint partner with the Bond Airship Industries group. Ansett, via its relationship with both Ansett New Zealand and Polynesian, is also set to gain access to the Pacific as never before and may well soon be flying its white 767s into Honolulu. TAA became Australian Airlines in a move designed to improve its image. Quite a few of the old guard gradually left while number one image man for East West, Dennis Howe, defected to Franklin Street in a move that left us all surprised. Australia is looking to a new future and if anything is hoping for some form of liberalization in the current two airline agreements and doesn’t see the spectre of potential private ownership as being all that bad.

Which of course all goes towards making 1987 a very interesting year!

On the military side a lot has taken place. The DibbReport was handed down, is now history and is shortly to reappear as doctrine in the form of an extensive White Paper which is expected to be issued early in 1987. The GAF came in for a long-deserved roasting by all and sundry and is now headed for a hopefully more efficient existence as a streamlined statutory authority. Indeed Defence was widely criticised by an authoritative Parliamentary Report earlier in the year which is now leading to a greater realization of commercial influences in this monolithic department.

Surprise of the year though would have to be the Army’s successful capture of the RAAF’s battlefield helicopter fleet. Another interesting aspect of latter-day defence thinking is the move towards civilian contractors for a greater range of military services. Presently under action and further consideration are the high and low elements of navy and air force tactical exercising, SAR helicopter operations, Army helo training, the VIP Flight and an expanded maintenance share from private industry. All this will lead to cost savings, enhanced efficiency and a strengthening of the private aviation and industrial sector.

On the debit side, Defence lost a lot of good people this year as the manpower drain emerges as the political defence issue of 1987. On the credit side the go-ahead was given for an operational Jindalee OTHB system, conversion of the 707s to tankers and a commitment to an eventual AEW&C capability.

On the industrial side, Offsets have been tightened with the result that the Australian industry now stands a better chance of greatly expanding its capability base than ever before. Substantial collaboration on a number of important programmes is just around the corner as is an active financial involvement by the Federal Government – all long overdue.

On the downside, perhaps the greatest disaster of the year was the Challenger tragedy. This sad day not only cost the lives of seven brave astronauts but effectively shattered the mantle of NASA hi-tech invincibility. It also ironically served to deregulate space and usher in a new era of private space launch ventures all targeted at replacing the uplift that NASA will now not be able to accommodate. Meanwhile Australia has at last realised the potential of commercial space and inaugurated its own Space Board. To follow suit this magazine commenced its first regular news column on Space in our November edition.

Overall, 1986 was a good year, business was good, wars were few and despite some of the grey clouds, 1987 should hopefully be likewise. Thanks for being with us in ’86 and we look forward to serving you through the coming year.