Commercial Aviation Update

The Federal Airports Corporation is still an unknown force after its first 90 days in power. Will it put some companies out of existence with its new charges, whatever they may be? Will it stop some sectors of the industry from using large airports altogether? No one knows.

The Civil Aviation Authority is being rushed through at a rate of knots (the Government’s timetable, not the Department’s). Sure, the industry is being consulted, but at best only to fine tune what has already been decided by Government. Like the FAC, the CAA will operate at arm’s length from Parliament so if you don’t like its decisions your appeal will be limited to its own Board. However, the Board is expected to have pretty firm guidelines under which to run, to say nothing of membership from its own executives. Will you have to ask your mother-in-law about the problem with your wife? No one knows.

Fragmentation is not limited to Government. The industry is represented by seven associations already and there are rumblings that at least one more is in the offing; and those associations having overlapping interests. They are lucky to penetrate much more than half the eligible membership because too much of the industry lets the willing horses fix things for them.

Of course, those groups don’t count the five airline licence holders Ansett, Australian, East-West, IPEC and Qantas. Remarkably, of all the significant countries and regions in the world, Australia is the only one we know of which boasts no formal organisation of all its airlines.

Arguably, these organisations need to become more efficient and effective as an industry to cope with deregulation, rapidly changing regulations and a more demanding public. But how will they talk to each other? No one knows.

Once we had a group called the Australian Aviation Industry Advisory Council (AVIAC). It was born out of obligatory cost recovery discussions nearly two decades ago. Its purpose was to advise the Minister about the industry but it also offered a forum for matters of concern to everyone.

In one way or another, AVIAC succeeded in bringing about a rational attitude to paying the industry’s way. So successful, in fact, that last financial year the industry returned the Government a profit of 6% on turnover! That was not its intention but it happened anyway. But AVIAC has not met for a year now. Will it ever do so again?

No one knows. But its time; for the Minister and the industry.

Industry Superannuation

One of the few industry-wide superannuation schemes in Australia will get under way on May 1st when general aviation companies start paying into The Aviation Industry Superannuation Trust (TAIST). This is the only fund dedicated to aviation employees outside of the major airlines.

TAIST was formed after long negotiations between GAA and unions representing pilots and engineers. Other employer respondents will be IPEC, MTIA and AM&M. It follows the Occupational Superannuation guidelines recently passed by the Commonwealth Government. Employers will pay 3% of earnings directly into the fund and employees will be able to carry full benefits with them if they change companies.

Supplementary Growth

The influence of Supplementary Airlines in Australia is spreading still further under new licensing policies in NSW. This follows the inauguration of SAL services from Moorabbin and Jandakot GA airports in the last six months.

Both Hazleton and Eastern airlines have taken up several NSW intrastate rights previously exercised by East-West and Ansett NSW. More route awards are expected as direct competition is introduced on longstanding monopoly routes in the State.

In Queensland, Sunbird Airlines has already taken over many former Air Queensland routes while Sunstate and Lloyd continue to develop.

The Northern Territory is the only State holding up SAL development, preferring instead to maintain monopoly rights for the Ansett group on most large Territory routes.

Fun at the Fairs

Labour Day weekend, October 2 and 3, will see the running of the Bankstown Historic Airfair. 50,000 people attended an earlier Airfair in 1986. Bankstown will be a major curtain raiser to the Bicentennial airshow at Richmond Air Base later in the same month.

Bankstown’s show will coincide with the visit of the Duke and Duchess of York and with the Navy’s Fleet Review. The Royal Navy’s Harriers stole the show in 1986 and are expected to do so again.

Bankstown Airfair, in aid of the Royal Flying Doctor Service, will see flying displays by the Warbirds, including at least two World War II aircraft. It is being organised by the Bankstown Airport Chamber of Commerce, Airport Avenue, Bankstown Airport, NSW 2200.