New Zealand News

Norman Geary Departs Anz

Air New Zealand has begun an international search for a top-calibre executive to replace its chief executive of more than six years, Mr Norman Geary, who has resigned. Managing director Geary, formerly with British Petroleum, is credited with bringing about one of the most remarkable airline revivals. He took over Air New Zealand when it was making a $90 million a year loss and whose morale was shattered by the aftermath of the Mount Erebus crash. Last financial year he steered it to a net profit of $176 million, its fourth $100 million-plus profit in a row.

Dunedin-born Geary (49) stressed that he was not going to work for a competitor of Air New Zealand’s (“I personally don’t support this practice”). Speculation in the airline is that he will concentrate on a number of directorates (including New Zealand Steel and New Zealand Forest Products) and a continuing close association with Air New Zealand- as a member of the board and, it is strongly tipped, board chairman in the not-too-distant future.

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In his December 17 announcement, Mr Geary said he was a firm believer in the need for chief executives of large concerns to be changed every five years or so. He planned to leave a year ago but delayed his departure because of intensified domestic competition. The airline had now demonstrated how a strong competitive threat could be handled in its response to the arrival of Ansett.

Mr Geary is also the executive chairman of the Mount Cook Group. He said there were a number of tasks in the group which he wished to complete, and he would retain this involvement for the time being.

Writing in the company newspaper, Geary sounded a note of caution over 1988. The airline was in a delicate commercial position and had been so for six months, he said. “How we handle the next six months or so will prove very important indeed; our financial results may well be down on our last financial year. This may seem strange almost unbelievable in view of our high load factors-it is however true, Put simply, our fares are too low due to the excessive competition we are dealing with”.

Interpreted by a newspaper as flying into a financial storm, the airline reacted sharply. It was nothing more than a timely caution, said the new head of public affairs, Mr Ken Morton.

Mr Geary’s departure from day-to-day management of the airline will not affect his presidency of the International Air Transport Association. He was elected IATA head at the annual general meeting late last year in Caracas. Another New Zealander, Sir Geoffrey Roberts, chairman of the airline then known as TEAL (later to become Air New Zealand) was elected IATA president in 1972.

Rover/Auster Flies Into Flak!

Charlie Janes’ Auster-Rover is flying well, but six summonses from the Civil Aviation Division put a damper on his New Year. His decision to re-engine his Auster was not taken lightly. Charlie, a highly skilled mechanical engineer who now works as a conservationist, was not impressed with the reliability of many light commercial aero engines. He reckoned that a good and proven road engine, carefully reworked, might do the job at least as well-and perhaps more economically. The engine he chose was the 3. 5 litre Rover V8, the standard Land Rover and sedan engine, which has a long pedigree going back to Buick of America.

Janes prepared the engine meticulously, fitting a new camshaft, substituting a four-barrel Holley carburettor and grafting on a specially designed 1. 6 to one reduction gearbox. The radiator was positioned horizontally beneath the engine within an aerodynamically designed cowl.

Following ground tests, weight, balance and engineering checks, the Auster was flown to assist in rectifying a cooling problem. Apparently, Charlie took it up without the benefit of the necessary certificates of airworthiness. Civil Aviation landed him with six charges, to be heard in the Napier court on March 9. Charlie understands it could mean a fine of up to $6,000 or “three to six months in the chokey”.

Ironically. Civil Aviation (no doubt aware of his professionalism) has since granted him five special permits to enable 50 hours of flying evaluation.

The case has become a cause celebre in aviation circles with donations for the defence being mailed in. The re-engining looks to be a success. Fuel consumption is around 4. 5 gallons an hour (two gallons less than similar capacity aero engines). The engine starts easily and responds quickly to throttle. It develops 150hp and Janes rates it as roughly similar to the Lycoming 0320, though 30lbs heavier because of water cooling.

Among the most interested in a commercial development are those operating glider tugs, bugged by barrel cracking and other thermal-induced problems in air-cooled engines. The Rover re-engining is thought to be a world second a similar but less Sophisticated conversion was attempted some years ago in Cornwall, England.

Anz Part Privatisation Brings Forth Calls for Accountability

The sale (expected this year) of 25% of Air New Zealand’s shares has prompted a rowdy and somewhat naive argument over accountability. In order to monitor the performances of a host of government enterprises which have lately become market-oriented corporations, legislation called the State Owned Enterprises (SOE) Act was passed last year. It details a frequent reporting procedure to Cabinet with information being tabled in Parliament and under the scrutiny of an expenditure select committee.

Noting that Air New Zealand would be subject to the Act when It came into operation this year, Richard Prebble, the oddly named Minister of State Owned Enterprises, introduced a clause to remove the airline from the strictures of the Act. He argued that the partial private shareholding would exercise sufficient financial discipline on the company.

The outcry was immediate and lasting. It was objected to by the Opposition and by the Government Audit Office which said the new regime would retum the airline to the bad old days when the public lacked sufficient information on what the airline was up to. The criticism was also taken up by the country’s leading financial paper, the National Business Review, which should have known better when it said the move was explicitly designed to let the airline avoid accountability procedures.

The ludicrous concept of an airline, competing in the present international environment and against independent companies at home and reporting frequently on its earnings and plans to prefects in parliament, seems to have escaped the critics. In fact that sort of monitoring was never required.

As for the audit office, the airline well remembers the last time bookkeeping sticky-beaks from the public service tried to force issues because they would have cost the airline its life had they succeeded. Fortunately it was able to resist Treasury’s demand in 1981 that it cancel plans to re-equip with 747 jumbos.

Phase Two Orion Update Begins

The second phase of an upgrading of the RNZAF’s P-3K Orion aircraft began in December when Defence Minister Bob Tizard announced that tenders were about to be called.

The first phase, Rigel 1, the upgrading of navigation, surface surveillance and data handling systems, was completed in 1986, most of the work being done in New Zealand. The second phase is to provide an enhancement of the acoustic and electronic surveillance equipment, including an upgrade of the Orion’s ability to detect, pinpoint and classify radio transmissions.

Mr Tizard said there was scope for considerable New Zealand industry participation in this upgrading. Tenders are expected to range between $50 million and $75 million. The successful tenderer was expected to be announced by late 1988, and a completion date of late 1991 would be set.

Tasman Near Misses Causing Concern

A disturbing picture of near misses and potentially hazardous flight routings is contained in 43 serious incidents investigated by the Ministry of Transport over a 13-month period.

The details were obtained by an Auckland newspaper, The Sun, using the Official Information Act. While a handful of these incidents were publicised by Air Accident Investigation Office inquiries, most would have remained concealed from public viewing but for the Act.

They include three domestic near mid-air collisions which were only avoided by pilots taking emergency action, as well as two serious mid-Tasman incidents.

In the first of the Tasman incidents, a Continental Airlines DC-10 en route from Sydney to Auckland passed close to a Qantas Boeing 747 flying in the opposite direction. Both aircraft were at the same height and on the same flight path. The incident happened on October, 19, 1986, at 5. 43pm.

Inquiries showed the DC-10 left Sydney with approval to fly at 35,000ft, and some time later the 747 left Auckland, also with approval to fly at 35,000ft. The DC-10 flight was initially flight planned to fly at 33,000ft but was given permission to relocate at 35,000ft and was later to be passed up to 37,000ft. The 747 flight was initially approved to fly at 31,000ft but was also given approval to relocate at 35,000ft.

When the DC-10 was passed from Australian to New Zealand control, it was reported to be at 37,000ft by Australian control. The last message from the aircraft’s captain placed the flight at 35,000ft. This discrepancy was not noted by the New Zealand air traffic controller.

At a waypoint 345 nautical miles west of Auckland the two aircraft passed close to each other.

The second incident, on December 21, 1986, involved two Air New Zealand trans Tasman flights, a Boeing 747 and a 767, which flew for 21 minutes at the same height on a converging course to a waypoint midway across the sea. The two captains, unaware that they were on a possible collision course, passed the same spot four minutes apart.

The flights originated from different cities, the 767 flying from Brisbane to Wellington and the 747 en route from Melbourne to Auckland. Both were cleared during the early stages of the flights to fly at 37,000ft, with approval coming from Sydney Oceanic Control. Control was later passed to Auckland Oceanic Control with Sydney correctly reporting both aircraft at 37,000ft.

At Auckland Oceanic Control a mistake was made and the Brisbane flight was noted as being at 35,000ft. A short time later there was a change of controller at Auckland and the incorrect flight level was passed on to him. It was only after the flights had passed the waypoint GORGI that the possible near-miss was realised.

In the third mid-Tasman incident an Air New Zealand Boeing 767 was recorded flying at 35,000ft when it was at 37,000ft. This resulted from the failure of an Auckland controller to note a change in altitude approved and called by Sydney Oceanic Control. Ironically, the Auckland controller had just returned from holiday and had yet to read a notice calling for special care in recording oceanic flight levels – posted up as a result of the December 21 incident.

GA Mogas Trials Continue

In a trial report to the Civil Aviation Division, an aerial work operator reports few problems and operating differences in the use of ordinary road petrol as opposed to Avgas. The operator ran two aircraft, a PA28-140 and a PA38-112 on Mogas over a four year period and consuming 707,400 litres of Mogas.

No significant difference was noted in starting, in smooth running on the ground and in the air and in carburettor icing, though Mogas odour was more apparent.

The operator noted that static RPM was more easily obtained with Mogas (especially on the PA38), and there was a reduction in lead fouling of sparkplugs and subsequent high magneto drop and no contamination was found.

An early problem with vapour locking, causing difficulty in starting and power loss on takeoff, was cured with a fuel system modification and special ground handling procedures; these included keeping ground running to a minimum and opening engine cowls on shut down.

Anz Wins Contracts Major Offshore Maintenance

A distinct chilliness caused by this country’s anti-nuclear stance failed to prevent Air New Zealand from winning a major servicing contract for ski-equipped C-130 Hercules servicing the American McMurdo Base in the Antarctic.

The contract is for major overhaul work on aircraft owned by the US National Science Foundation, and on propeller and componentry work. The initial 12 month contract involving 30,000 manhours is worth $5 million, but is expected soon to extend to a $15 million contract over three years.

Angling for the work began four years ago, two years before a civilian contract in Alabama was due to expire. Visiting Air New Zealand teams won over the NSF, the Department of Defence and the US Navy Air Logistics Command (US Navy pilots fly the machines). But opposition was experienced from other areas of the US military machine – and from the White House.

However, according to the chief engineer at the airline’s Christchurch engineering base, Barry Geddes, the airline overcame a succession of challenges. “The NSF made it clear that the reason for their support was firstly our quality, price and our closeness to Antarctica. They were not interested if the aircraft were going to be serviced outside Christchurch. ” Geddes claims that Ansett New Zealand made a late bid to get the contract but was told it should contact Air New Zealand for overflow work. Just before the signing, the airline also won a $6 million contract with the Australian Defence Department for work on Rolls-Royce Dart engines. Over the past year the Christchurch Base has earned $27 million from contract work.

Across the Tasman by Tiger Moth!

Boyd Munro, winner of the Singapore to Christchurch Air Race last March was all set in mid-January to fly his prize home, Tiger Moth ZK-PDL. With help from three Aussie air veterans, Munro was about to retrace the epic flight of Francis Chichester in 1931 -flying the Moth across the Tasman via Norfolk and Lord Howe Islands.

Munro’s helpers were to be Mr Laurance Grusman QC (65). who successfully defended Munro against a legal challenge to his air race prize, Mr George Lansell (72) and Mr Emie Miller (71). The three were to fly a Cessna 310, on a zigzag course at 100 knots in order to keep in step with the 70-knot Tiger.

The Cessna was equipped with an inflatable life raft to be jettisoned by ‘dropmaster Miller if Munro came down in the sea. Also expected to accompany Munro was the Navajo in which he won the race, crewed by former German Luftwaffe pilot, Charles Broeker, also from Sydney. The Navajo would carry back-up rescue equipment.

Munro was to be clad in a navy survival suit and would wear a 1 parachute. “Should the engine fail and prove impossible to restart, I will parachute into the sea. The reason for this is that if the Tiger lands on water it is bound to cartwheel over with the associated risk of stunning the pilot and trapping him under-water. I’m very keen to talk to anybody who has landed a Tiger Mothin the sea,” Munro said.

Primary navigation was to be provided by the Grusman Cessna. Á second line of defence was to be Munro’s sextant and, before takeoff, Munro was to pre-compute a sight for every half hour of the flight and draw in the associated position line on the map. All that would need to be done in the cockpit was to shoot the sun and thus calculate the offset of the observed position line from the precomputed position line.

The only radio equipment carried by the Tiger was to be two hand-held VHF transceivers. Both the biplane and the Navajo were to be fitted with smoke-generating equipment to assist in re-establishing contact.

Ansett File for Fiji Service

Ansett New Zealand says there’s more than cheek involved in its application to fly services between Auckland and Nadi, Fiji. The application was filed with New Zealand authorities in December, two weeks before Air New Zealand resumed services into Nadi on December 20, following a five month break caused by a post-coup hijacking attempt. Ansett New Zealand claims the plan has had a very keen’ reaction from the Fiji Tourism Minister, David Pickering.

In mid-January the application was still being considered in Wellington and the airline’s manager, Mr Rex Loach, reiterated that the company was deadly serious. The airline says Air New Zealand’s four flights a week are inadequate, especially for tourists from Europe and North America who wish to visit Fiji before going on to Auckland and Christchurch. Initially Ansett NZ is asking for two flights a week.

The New Zealand Minister of Transport, Mr Jeffries, was expected to decide on the Ansett application by the second week in February.

Briefs

• The Airways Corporation, the commercial functions side of the old Civil Aviation Division, made an after-tax profit of $2. 3 million during the first six months of its operation in 1987. The half yearly report, tabled in early January, said the Corporation would pay the Government a dividend of $1. 052, and carry forward $1. 271 million. The Minister of State Owned Enterprises, Richard Prebble, said the profit proved the worth of the corporatisation policy.

• Seven Ag pilots have elected trial by jury, pleading not guilty to Ministry of Transport charges that they breached regulations by flying below 1000ft over Wellington last April. The pilots were flying in support of a farmers’ protest march. The Crown has brought forward witnesses who allege aircraft heights of between 500 and 750ft.

• A Swedish company, Swedavia, has been commissioned to examine the role and functions of the New Zealand Civil Aviation Division. The study, announced by the Minister of Transport, Mr Bill Jeffries, will be carried out jointly with a local company, McGregor. The consultants will advise on the way the division should regulate the aviation industry in the operational safety area.

 

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