Commercial Aviation Update
Watch Economic Trends, Warns Gaa Chairman
In his annual report to members, GAA National Chairman, Mr Noel Bellamy, warned that Governments and unions should carefully study economic trends and their impact on the General Aviation industry.
Major airlines are readily able to find new equipment, with huge jumps in efficiency to go with them, and to benefit immediately from the staggering increases in tourism, Mr Bellamy noted. But he said that the same factors offer much tinier gains for smaller operators.
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“In fact, in most cases the light aircraft market has gone equally as fast in the other direction as manufacturers closed down their production lines, devaluation arrived, maintenance requirements increased and aircraft became scarcer and costlier,” Mr Bellamy said.
He forecast that the next two years would see major adjustments in the structure of regulations and the people who implement them. Charter aircraft, for example, are being targeted for a higher standard of operation and maintenance while crew licensing systems are being completely overhauled.
“Much of this change is desirable,” Mr Bellamy said, “but we are worried that the Government’s efforts to achieve perfection in such fields as airworthiness will have grave impacts on operator viability. You have to be realistic, not idealistic. ”
Query on Tpc Decision
Despite the recommendations of the Trade Practices Commission in the TNT/News Ltd takeover of East-West, the NSW Government and its Air Transport Council is expected to give equal consideration to Supplementary Airlines when it awards new route licenses. The TPC said it “hoped” that Australian Airlines would be able to assume responsibility for the routes to be vacated by the ‘new’ East-West in NSW and Western Australia.
TNT-News, Ansett’s owners, must divest all East-West’s routes in NSW except those to Albury and Tamworth. For the most part, East-West has had difficulty achieving profits on the small routes, where its operating costs are higher than usual because its F27 aircraft operate in a triangular fashion with extra landings.
Emerging commuter airlines have already indicated interest in supplying more frequent services with smaller aircraft to the six destinations involved.
Government Rejects Private Enterprise
Also in NSW, the GAA has learned that the NSW Government intends to retain the right to operate commercial flights using the Government-owned aircraft fleet. The Review of NSW Air Services had recommended that the State withdraw from this activity because of its unfair advantages over commercial operators. Two years ago the Premier’s Department ruled that the non-profit and subsidised Surf Life Saving helicopters should not engage in commercial flights.
And, despite the Premier’s stated policy of encouraging private investment, the NSW Education Department is now planning to set up its own flying school based in Dubbo. Some half dozen commercial schools and aero clubs now service the Orana region, centred on Dubbo, and would be affected by the move.
NSW is already losing nearly $1 million daily on its transport services and must also be losing credibility with NSW voters when it allows empire-building of this sort to occur.
The State’s policy of taking over from private companies stands in stark contrast to the Commonwealth’s aggressive deregulation stance and the State’s own decision to introduce more competition on NSW air routes.
GAA is strongly protesting these decisions.
Mascot’s real problem ignored
Problems at Sydney’s KSA attracted more publicity when the Premier drew attention to ‘overloading’ at the International Terminal at a recent ALP conference. While it is embarrassing to the State and the country that our major gateway facilities are so poor, it is also much easier to address new building needs than develop new runways. It’s quicker, too.
Even a short reliever runway will take twice as long to plan and construct as a terminal.
Already, industry forums are hearing about possible bans on smaller aircraft to ease delays in the airspace and runway systems. The FAC’s General Manager, Mr. Bill Swingler, has made it clear that he will get a lot more money when a jumbo lands than he will from a Cessna commuter flight or a business jet. Yet these commercial operations are a fundamental part of our National and State aviation system and no reasonable alternative is available for them in the Sydney area.
Bankstown movements have grown at over 17% in the 10 months to October 1987 and is virtually unexpandable while Camden and Hoxton Park are estimated to now each handle over 100,000 movements a year. Alarmingly, rumours abound of a possible sale of the under-utilised Schofields Airport to property developers to satisfy the Commonwealth’s cash shortage.
Schofields is readily capable of development and is the only civil airport on Sydney’s northside. Should Government wipe it off the map then only two serious options are left: either the industry stops growing or Richmond RAAF base has to be opened up to commercial operations.
1988 Conference
Queensland’s Airlie Beach will be the site of GAA’s 1988 National Conference. Legal, business and technical implications of a deregulated industry are expected to claim much of the time of delegates and guest speakers.
To be held over five days at the Terrace Gardens Resort from July 18 to 22, the conference will be split into workshops on the first two days and plenary sessions on the last two days. Wednesday 20th will be set aside as a rest day. Inquiries to Lorraine Tighe of Hawker Pacific, phone (07) 268 6466-
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