Airline Affairs

Mr Lane also announced that the bulk of Queensland intrastate air services were to be deregulated, which resulted in Sunstate expanding operations using two ex-Air Pacific Bandeirantes. Sunstate will now serve Emerald, Blackwater and Thangool in addition to extending its Brisbane to Bundaberg, and Gladstone services to Rockhampton, Mackay and Townsville. While Sunstate will provide a good feeder service into Australian Airlines’s southbound jet services Ansett is gearing up Norfolk Islands Airways as its own dual designator with that carrier now servicing the coalfields ports of Emerald, Thangool and Blackwater.

Further north, Air Queensland has disposed of the last of its ATR42s and taken back three ex-Ansett F27s (refer Traffic this issue) to augment its now much smaller operation. Air Queensland is virtually back to what it was a decade ago when it was perhaps better known as Bushy’s (Bush Pilots). The ATRS had performed well in service though the continued decline in the value of the Australian dollar against a basket of international currencies resulted in the aircraft requiring almost double the monthly debt financing as originally envisioned back in 1984 when the aircraft was selected for AQ services. Both ATR42s are now in service on Yugoslavian regional operations under the control of JAT. Also denied once more by Australians is the rumour that they are cancelling their order for Airbus A320s and substituting them for a mix of Boeing 737-400 and 757 twinjets.

Qantas and Canadian Airlines International Push for More Trans-Pacific Services:

A new allegiance has been formed between Qantas and the newly formed Canadian Airlines International. CAI is the result of a recent merger between Canadian Pacific Airways and Pacific Western Airlines.

All Australia/Canada flights presently operate on the weekend and therefore often tend not to attract as much business uplift as they should. Both carriers are now planning an increase of up to four services a week. At present it is envisaged that CAI will operate their DC-10s via Honolulu and Fiji while Qantas will continue with its 747 services via Honolulu and on to Vancouver. Both airlines agree that there is a considerable untapped leisure market in Canada that would benefit by better air links between the two nations.

 Fiji Strife Wrecks Air Pacific’s Profitability:

On the verge of a profitable year, Air Pacific has now little chance of avoiding a substantial loss due to the internal strife that has scuttled the small nation’s tourist industry.

This could ultimately be bad news for Qantas which has a considerable investment in a successful Air Pacific and has to some extent guaranteed its profitability to the Fijian Government. Technically though, this may not be a legally binding contract it in the long term a non-democratically elected government is placed in power. The The situation at present is a tragedy for what was undoubtedly one of the Pacific region’s most pleasant, and friendliest destinations. Fij gained most of its vital foreign exchange SA220mi in 1986) from what was a fast growing tourist industry. With the coup and the spectre of street violence, this could be reduced by more than 50% in the coming year as holiday-makers seek alternatives The Pacific is i native destination.

is in the throes of a relatively turbulent era as in recent times a number of once viable destinations become potentially troublesome. Domestic problems in the Philippines, New Guinea, Vanuatu, New Caledonia and now Fiji can only in the longer term, work in Australia’s favour as a safe, pleasant and economically viable international tourism destination.

East-West Prepare for Expansion With Fokker 100 Twinjets:

East-West Airlines has signed for three 107 seat Fokker 100 jets to augment its existing fleet of 6 F28s and 7 F27 Friendships. The new Fokker 100s will be leased through the Los Angeles-based International Lease Finance Corpora- tion.

ILFC is the world’s largest lessor of aircraft with over 210 aircraft serving with 60 operators on six continents. The first two 100s will arrive at Tamworth early next year with the third aircraft scheduled for delivery in late 1988 or early 1989. The three aircraft have been approved by the DotA on capacity approvals granted formerly to Boeing 737 aircraft. East-West abandoned plans to lease second-hand 737-200s when they could not secure any on the market at competitive prices.

Only the Managing Director of EWA, Mr Jon Hartley, stated that the Fokker 100 decision not continued a long tradition of partnership between his airline and Fokker, but also began what he predicted would be a l a long relationship with ILFC. In 1959, East-West became only the fourth airline in the world to operate the now Fokker F27 and through regular f has flown 23 of the type. East-West will be only the second airline in the world to place into service the hot-selling 100, which is due to gain FAA certification this November and enter service with Swissair prior to Christmas.

leger fleet The new jets boost overall EWA capacity by more than a third and position the airline well for any route liberalisation that may come as the existing Two Airline Policy enters its inevitable sunset phase. East-West was also buoyed by a recent Federal Court decision that found in its favour against allegations by both Ansett and Australian that the Secretary of the DotA, Mr Rae Taylor, had approved additional capacity to EWA when it was n it was not justified under the Airlines Agreement Act of 1981. The two domestics are meanwhile continuing their challenge against EWA’s Sydney/Yulara/Perth operations while the latter is also continuing with its High Court challenge to the Two Airline Policy.

 Australian Government to Sell International Terminal Leases:

As a part of its cost-cutting measures announced in the May 13 mini-budget, the Australian Government has decided to sell long-term 30 to 50 year leases for its international terminals. The move comes on the eve of the formal establishment of the new profit-motivated Federal Airports Corporation and tends to conflict to some extent with the aims and objectives of that body. Australia has 11 overseas gateways though only 8 operate dedicated international terminals with the most viable being located at Sydney, Brisbane, Perth and Melbourne.

The move is expected to raise around $A300m with tenders due by June 1988. However, Opposition spokesman on Aviation, Mr John Moore, has stated that investors may not be that excited by the move as the combined operating profit of the terminals last year was a mere $A13m.

Mr Bill Swingler, Chief Executive of the FAC, also told the National Aviation Press Club in Sydney during late May that the government would be better off selling 49% of the FAC shareholding rather than selectively marketing leases on international terminals. Mr Swingler said that only a few of the terminals were economically viable in their own right and with Qantas being the primary lessor it was merely a case of Peter paying Paul with light real monetary gain for the government. Many industry observers feel a better system would be for airlines to finance their own terminal development, something that they are actively lobbying for, with the FAC managing these terminals to maintain continuity.

With the calling of an early election it is now uncertain as to what will ultimately happen as a re-elected ALP could alter its policies drastically following a return to government while a newly elected Coalition would move to most probably privatise the FAC and endorse Individual airline moves to develop their own terminals to avoid the government having to finance such facilities.

Tourism Boom Leading to Record Domestic Airline Growth:

Figures released in Canberra during late May indicate a further strengthening of inbound tourism into Australia. Data covering the first two months of 1987 showed a growth of 33% over the same period last year. This is an increase even better than anticipated and indicates that long-term marketing and promotional campaigns to attract US, Japanese and Europeans to Australia during the Northern winter have been successful The rapid growth in tourism has also proven a boon to all Australian domestic airlines. Regardless of whether they are flying 7675 or Chieftains, all airlines have reported consider able gains in uplift through the carriage of spe cial interest tourist group. This has also breathed new life into many smaller third-level RPT and charter operators who are actively promoting, in concert with a major airline or State tourist bureau, special interest one or two day tours to rural Australia.

The domestics have successfully linked with major overseas carriers in the past year. Ansett has reportedly seen an increase in the region at 30% in overseas tourist carried since its commercial linking with Qantas. Australian is also gaining similar increases through its association with Air New Zealand and British Airways. So strong is the growth that Ansett is considering replacing all its 727 fleet with a mix of 767 and A320 aircraft from the middle of next year. The 767 seats around 60 more passengers than the 727, uses almost the same amount of fuel per sector and yet has considerable scope for freight uplift in addition to being able to fly any sector in the network non stop at max payload.

Scheduled Domestic Airline Activity Continues to Grow:

Provisional statistics for scheduled domestic airline activity show continued steady growth in the March quarter. Total activity (tonne-kilometres) increased by 7. 1% in the March quarter relative to March quarter 1986 and by 5. 2% in the year ending March quarter 1987.

The passenger component increased by 8. 5% for the quarter and 6. 5% for the year, while the cargo component recorded declines of 2. 7% and 3. 3% respectively. In the year to the March quarter, the two major airlines’ share of the passenger task stood at 87. 3%. Follow- ing declines in activity in the last three quarters, their share of the annual cargo task was 83. 8%.

Hours flown increased by 9% for the quarter and 5. 3% for the year, returning the annual level to around that achieved in the early 80’s. Domestic airline aircraft movements at the eight capital city primary airports increased by 4. 1% for the quarter and 3. 3% for the year. There were increases at all ports except Adelaide which recorded decreases of 20. 4% and 21% respectively due to the cessation of Airlines of South Australia in June 1986.

Australian Airlines Gains Entree to Nsw Routes:

Australian Airlines has won a major tactical battle in that it is to be allowed to bid for a number of intrastate routes within NSW. The decision was announced during April by the NSW Transport Minister, Mr Ron Mulock when announcing the establishment of a dedicated Air Transport Council to advise the State Government.

The Air Transport Council will comprise from aviation, the NSW Dept of Transport, consumer groups and the Dept of Tourism. Its aim will be to formulate what routes will be dedicated as as being primarily deregulated in addition to licensing and managing the entire NSW air routes air route system. Mr Mulock stated that under the new arrange ments there would be provision to allocate licences to more than one operator to provide services particular routes. These routes would feature comparatively heavy traffic levels and have prospects for future growth, particularly in the areas of tourism.

The move is good news for Australian Airlines which stood to ultimately lose its important East-West Airlines on carriage out of Sydney once that carrier is inevitably allowed access to major trunk routes. This would have eroded Australian’s overall long- and consequently caused it considerable l term financial languish Australian has suggested that it would look to using jet equipment an the NSW routes (Albury, Wagga, Tamworth, Coffs Harbour, Dubbo, Casino & Broken Hill are presently catered for by F28 jets) though the only aircraft TN has remotely suitable in terms of size for these operations is the 90 passenger DC-9-30. These aircraft though will not be in the Australian inventory for much longer and would also suffer from payload restrictions during summer at some of the ports suggested.

as 90 passenger jets on the routes is generally considered financially, cavalier as insufficient unit exists to support such large aircraft, particularly in competition with another carrier. Australia might look at smaller jets such as the F28-1000 or even opt for high cruise speed turboprops such as the ATP or DHC Dash 8-300 or alternatively allow other operators to fly the services under its designation. This then could have either Lloyd’s or Sunstate flying the routes with appropriate equipment which might also be useful on their existing operations. Lloyd’s is already an F28 operator while Sunstate is primarily a Shorts 330/360 operator. The full results of the report by the Air Transport Council were expected as we closed for press.

Hawaiian Airlines Hoping to Commence Australian Services:

Hawaiian Airlines has applied to operate a weekly service linking Hawaii with Sydney via Pago Pago in American Samoa. The service would utilise hush-kited DC-8-63s in a first/ economy configuration of 208 Hawaiian is Hawaii’s oldest local operator and has in recent years come cars commenced a number presently link the of long-range services inland chain with Anchorage (with charters to Europe), San Francisco, LA, Seattle, Las Vegas and Guam Hawaiian p n plan to use Pago Pago as a mini-hub with services then onto Tonga, Raratonga and Apia in Eastern Samoa. Hawaiian presently operates DC-85, L1011 Tristars and Dash 7 aircraft.

British Airways Announces Strong Profit:

British Airways yesterday announced its first annual results since becoming a public company in February this year. The airline posted a pre-tax profit of £162 million ($A388m) for the period 1 April 1986 to March 1987. This was £17 million ($A41m) higher than forecast in the c e company’s Offer for Sale which appeared in January this year, but £33 million (SA80m) down on last financial year.

Commenting on the results, Mr Nick Tat. General Manager for Australia/New Zealand said, “Given the incidents of Chornobyl and Libya which impacted adversely on our first quarter performance, the results are very pleasing. The airline normally ears the greater part of its revenue during the European summer and in 1986 tourist numbers were substantially reduced, particularly from the United States, a significant market for the air- “In the wake of this poor first quarter, British Airways took a number of vigorous marketing Initiatives which substantially restored tourist traffic. This, combined with lower fuel prices during the last quarter of the year, has produced results slightly better than anticipated. ” The company transferred £122 million ($A293m) to reserves, allowing a reduction in the debt-equity ratio to 33:57 from 44:56.

Qantas Wins Cargo Recognition:

Qantas has now become one of the top 10 international air freight carriers in the world according to the latest IATA figures. Qantas ranked 9th in the International Air Transport Association figures behind airines including freight specialists Flying Tigers, freight, KIM and Bros.

Japan it is the first time an Australian airline has made the top ten cargo carriers. It has also been announced in London, that for the second year, Qantas was voted Cargo Airline of the Year to Australasia, by by Air Cargo News International and British Shipper and Forwarder readers. The cargo section was expected to contribute $350 million to Qantas revenue in 1987/88. This represented valuable invisible, less than 5% of cargo to and for Australia. In sea transport, from Australia is carried by Australian ships, the vast majority of earnings going to foreign shipping lines. In the air the story is very different, with Cantas dominating air cargo into and out of Australia, retaining valuable currency in Australia with the vast.

The IATA announcement showed Qantas recorded 729 million freight-tonne kilometres during the year which ended December 1986. This was a 7. 8% increase on the previous year and very close to the world average increase. The trend continued in January 1987 when Qantas recorded 55 million freight-tonne kilometres, which was a 18. 3% increase on January 1986 IATA reported that scheduled international freight traffic in freight-tonne kilometres showed increasing growth throughout most of 1986 ending with an average of about 8%.

 Ladies First:

British Airways is taking on its first female technical flight crew. Lynn Barton, Wendy Barnes and Jill Develin join BA’s 2000 male tech crew this month as second officers aboard 747 aircraft.

The women, who already hold CPL’s, are hong 100 qualified pilots being taken on by BA this year in the first stage of a recruitment campaign to to secure its next generation of aircrew. The second stage is to recruit cadets who will train under the airline’s sponsorship at the recently established British Aerospace fight training college.

Us Air Transport System Running at Capacity:

The US air transport system is in danger of collapse this Northern summer as a record number of daily movements overload what is already a heavily overloaded ATC and airways system.

airports is [as] at up to an hour hoking above and at Peaks begin to merge from city to city. What also confuses the situation is that a peak in, say, Boston is not at the same time as Denver or Miami. This then creates a situation where even tights deliberately scheduled out of peak times from one centre run into the peak at another and visa versa. So serious is the situation that the US Transportation Dept has begun to allow rival carriers to officially consult with one another o gain some level of had attempt to to ing to spread the individual airport peak loads. Primary system becomes in the hub and spoke totally overloaded at the dozen or so primary US hubs. This then creates a delay pattem throughout the entire muti-airline system. Through the delays, miss connecting often miss at massive airports where the connection. This in flight may be a kilometre or two away then creates a situation where passengers tend to carry their baggage with them to ensure they see it again (in case it doesn’t make a tight connection, a highly likely prospect) thus creating additional havoc and inconvenience in an already crowded cabin.

. The solution lies in a massive ATC employment programme and a rapid increase in airport expansion. More concrete is simply needed for more aircraft movements. Unfortunately it is beginning to become more difficult to existing airports due to the very powerful environment lobby while construction of new airports are either so far out of town that they are almost irrelevant or cannot get started due to local lobby groups protesting their existence in what was previously a tranquil rural setting. The ATC system urgently requires more controllers and a new multi-billion dollar system-wide upgrade of the radar and surveillance systems. Near misses are dramatic. Ally increasing as witnessed by 1986 recording 42% more such incidents than in 1985 while runway incursions while in the hands of controllers increased by 50% during the same period.

marine bodied witnessed by The solutions, apart from bigger and better airports and more ATC personnel are a dramatic rethinking of the end use of domestic A move over towards larger wide is already occurring as by American Airline’s recent order for 25 Airbus A300s and 15 Boeing 767s. Many observers feel the avalanche proportion orders for smaller twinjets in the MD-80, 737 and even A320 class are about to wane as a look to to wane as airlines larger aircraft to avoid an already critical airport congestion environment.

the dan Another trend will be for a greater number of non-stop port-to-port schedules which overfly the congested tested hubs. Aircraft in the Fokker 100 and BAe 146 class are being being marketed for this role which not only passengers much time but also allows better profitability for the airlines as they reduce holding time, fuel burn and win market share through providing what any consumer would agreeably call ‘better service.

Lauda Air to Australia?:

Lauda Air, the Austrian charter operator owned by retired Formula One Grand Prix World Champion, Nicki Lauda, has its eyes on operating scheduled services to Australia.

To support the move Lauda Air has ordered a single Boeing 767-300ER and is moving to form close ties with Qantas. Qantas has not served Austria direct for many years owing to insufficient traffic to support QF’s 747s. However, a link up between Lauda and Qantas on a seat sharing basis using the smaller 767 could again provide speedier services between the two countries. Lauda Air is scheduled to take delivery of the 767 next March and will be aiming to operate nonstop services linking Austria with Beijing and Bangkok.

Qantas Upgrades Cabin Environment:

Qantas has recently made a number of changes to its cabin environment to improve its overall service to its passengers.

A new video feature entitled Airshow will be available on all of aircraft within a year. Airshow is displayed on the movie screen and allows passengers to follow the progress of their fight by watching a screen showing an electronic map display that tracks the aircraft to its destination. The screen, also gives the aircraft’s altitude, speed, outside air temperature (something that is always of fascination to passengers) and the distance flown since departure.

Qantas is also producing its own in-house 20-minute videos which will detail certain aspects of Australian life in addition to providing inform ation on different ports on the airline’s network Perhaps one of the most appreciated changes though will be vastly improved audio systems in economy including new electronic Walkman style headphones in place of the difficult-to-hear and largely uncomfortable stethoscope pneumatic units traditionally used in economy. Qantas is also upgrading its inflight magazine which will now feature twice as much editorial content as before.

 Australian Airlines to Develop Its Barrier Reef Resorts:

Australian is to invest over $100m in upgrading its popular Great Keppel resort.

Great Keppel has consistently been one of the most popular of the Queensland offshore and has spent much of its time capacity-limited. One reason for its success is les below the rain belt that ally plagues great Barrier Reef resorts to the north. Australian will build two similar resorts to that already existing on the island though all three will be totally isolated from one another, thus maintaining the overall tranquillity privacy of each complex. The airline also plans jes which will link direct with of taking 737) an airstrip capable and with the southern ports. Further north, Australia is also investigating the upgrading of Dunk Island and is planning a condominium-style facility to augment the existing resort. Both projects are scheduled to be completed by 1989.

Rolls Royce-Qantas Award. To Mark Australia’s Bicentenary:

Rolls Royce and Qantas are to celebrate Australia’s bicentenary in 1988 by inaugurating with the University of Sydney an award for engineering excellence. The award will be presented annually to the individual who is jud. ged to have done the most in the previous year to exemplify engineering excellence in Australia. The ing inaugural award of the Rolls Royce. Qantas medial and prize of $20,000, will be presented a at a bicentenary dinner in the great hall of the University of Sydney.

award for The Rolls Royce-Qantas engineering excellence will be administered by the Warren Centre for Advanced Engineering. a centre of excellence based within the University of Sydney. Establishment of criteria for nominations for the award and judging of entries will be carried out by the Warren Centre, in association with Rolls Royce and Qantas, under the guidance of Professor John Glastonbury, Dean of Engineering, University of Sydney. .