New Zealand News

Ansett New Zealand’s chief executive, Mr John Buchanan, said the 146 order was not prompted by the plans for a Queenstown international airport. But, he added: “We can’t sit around waiting for things like that to happen. We were looking at Queenstown’s immediate needs. ”

The interesting question now is whether Mount Cook will be forced into matching its arch rival by buying the ultra-quiet STOL jets. Somewhat miffed, the airline’s marketing manager, Mr Peter Clark, said it would be a great pity if Ansett’s move stalled or even halted Queenstown’s hopes for an international airport. The 146 purchase amounted to a ‘short term’ solution only.

“Mount Cook Airlines instigated the idea of jets to Queenstown and we are as committed as ever to such a service which would provide needed extra capacity and decreased flying time to Queenstown”, he said.

AG Pilots Plan Recovery

New Zealand’s once booming air agricultural industry has taken a steep slide in recent years, reflecting a bad farming depression. Fewer than 40 ag aircraft are in work at present and earlier this year 16 aircraft crossed the Tasman to take advantage of a more buoyant Australian economy.

However, there are signs of improvement in the farming industry and efforts are underway to muster pilots and aircraft in readiness. A new concept surfaced late in 1988 which will take the place of many companies who have gone out of business. Super Air Ltd was formed, a company jointly owned by a farmer fertilizer co-operative called BOP Ltd and a group of six owner operators who joined together. The company purchased the assets of Robertson Air Services which was formerly one of the biggest air ag operators in the country.

Super Air is now the second largest aerial topdressing company in the country and is based at Hamilton with 12 aircraft and centered around the former Robertson workshops.

While BOP Ltd owns 70% of the company, the underlying system is for the pilot/managers of Super Air being responsible for their own field of operations and functioning without a heavy overload of managerial and office staff.

The Great Airline Debacle

Now you see it, now you don’t. The great Air New Zealand sell off-first mooted three years ago-stalled for the umpteenth time when colleagues rounded on Civil Aviation Minister Bill Jeffries because of his announcement that Qantas was the preferred bidder.

In the ensuing scuffle, Jeffries (who has not shone in the portfolio) relinquished his part in the privatisation process. A few weeks later, Prime Minister David Lange sacked the Minister of State Owned Enterprises, Richard Prebble. Prebble favoured a holding in the airline by British Airways.

Lange claimed vaguely that he sacked the fiery Prebble because he opted out of the “consultative process”. As the main consultative process underway was the airline sell off, it is certainly true to say the debacle has so far caused the downfall of two Ministers.

Meanwhile, the process continues, with discreet talks between the original bidders and Prebble’s successor, Mr Stan Rodger. Air New Zealand, publicly muzzled but privately seething, continued rooting for British Airways and hoping against hope for a resolution before the end of 1988. The airline favours a full 100% sell off eventually with a maximum of 36% going to another airline. The airline’s chairman, Mr Hugh Fletcher, said the company would welcome a requirement for a minimum 65% local shareholding by public and staff and for a ‘kiwi share’ held by the Government.

The question of a Qantas shareholding is hotly debated. No other outside airline commands the same respect and affection in New Zealand. Many argue it is Qantas ‘ginger’ that keeps the home airline on its toes. But for all the reasoning that an Australasian partnership would create a group vigorous enough to ride the South East Asian roller coaster and resist incursions by the mega carriers, there seems to be an irrefutable commercial logic in favouring the British Airways offer. It would mean an immediate plug into one of the best international reservations computer networks, a melding of route structures which seem almost designed to complement each other and what some proponents tout (perhaps unfairly) as the difference between positive growth and stagnation.

What seemed inexplicable about Jeffries’ premature announcement (which was seen by the public as a sure fire signal that Qantas would become part owner) was his apparent failure to weigh up the pros and cons of both bids and present them to his Cabinet colleagues and the arrogant fashion in which he ignored very strong signals coming from Air New Zealand.

There was (and remains) strong suspicion that the Government was prepared to sell off part of Air New Zealand to Qantas in order to assuage feelings caused by the decision to pull out of the Australian frigate plan. Party pressure on the Government is causing it to reconsider plans to buy four of 12 frigates to be manufactured largely in Australia.

Air NZ UPS Profits

Following fast on its 1987/88 annual report, listing an operating profit of $NZ68m, Air New Zealand reported an unaudited $NZ29. 7m operating profit for the six months ending September 30, 1988. The tax result of $NZ25. 5m is a 29% improvement on the previous years comparable figure.

The airline said the six months result put the company on line to make a full year operating profit of more than $NZ75m. Increased traffic on both domestic and international route and a slight yield improvement were important influences in the improvement. Some exchange rates were also better than originally forecast.

Chairman, Mr Hugh Fletcher said international demand continued to expand significantly “in most areas”. “The demand promises good load factors during the second half of the year, traditionally the period when the airline makes most of its profit. Our domestic market share has increased but there are some signs that total demand is softening throughout the country. ”

No Independent Authority

After bringing in a team of Swedish aviation experts to work with a local company on analysing the civil aviation administration, the Government has fluffed on the most important recommendation to come from the report.

The Swedavia-McGregor report, in a bold and wide sweeping list of proposed changes, said the Civil Aviation Division should become a ‘stand alone’ State institution, limited to dealing with safety related issues.

Alas, as a Ministry and industry team began to grind into gear in Wellington to consider (and hopefully implement) the new format devised by Swedavia-McGregor, word came down that the Civil Aviation Division would remain within the Ministry of Transport. It was a blow for the aviation community which had been looking forward to an independent authority freed at last from the historic, logistic and political restraints of the MOT.

It was doubly galling too, because the new philosophy of the report hardly sits easily with the bureaucratic business of catching speedsters and enforcing road and marine regulations. Since the hiving off of airline regulatory and navigation business into a separate Airways Corporation, the CAD, concerned largely with technical and safety standards, has remained within the Ministry. Following the Swedavia-McGregor report however, its name has been changed to the Civil Aviation Authority (CAA).

The team considering the report will decide whether to go along with the philosophy that the authority should no longer be a ‘provider’ of advice and services, but should concentrate on being purely a regulatory authority almost solely concerned with safety. As such, it should provide an ‘overview’ rather than emphasising the nuts and bolts of enforcement. Responsibility for safety would be laid more firmly on operators. Corrective action should be ‘prompt and adequate’ with an emphasis on improving performance rather than taking immediate punitive action.

This philosophy, in line as it is with deregulation and freeing up of commercial activities, has been approved by the Government’s Cabinet.

In advocating a ‘hands off’ approach, the report notes the huge amount of effort expended under the old system by operators trying to ‘beat the system’. It is critical of a lack of management skills in head office and the failure of authorities to become commercially attuned.

Recommendations also include abolishing regional office at Auckland, Wellington and Christchurch and the sale of the authority’s Flying Unit aircraft with the exception of one calibration F27.

It recommends licensing for life for flight crew and claims the six monthly medical checks for over-40 pilots are not warranted (“a case needs to be made for compelling professional pilots to have routine medical checks more frequently than yearly. “). The one note of praise the report does have is for the Aviation Security Service, but it recommends it be handed over as an airport responsibility a move the service vigorously opposes.

The report commissioned by the Government at a cost of $650,000 will need legislation to be implemented. Civil Aviation Minister, Mr Bill Jeffries was rash enough to predict this would come before the end of the year – fortunately, he did not say which year.

Inquiry Calls for More Policing

If there was an overwhelming smell of cost cutting about the Swedavia-McGregor report, another report in November called for a halt to civil aviation staff reductions “in the interests of public safety”.

It stems from a court of inquiry called by the Attorney General to look into the loss of a Cessna Caravan owned by a small airline called Skyferry. The Caravan disappeared while flying off the coast of Kaikoura on November 27, 1987. Aboard were the pilot, Brent Odering and a young woman employee of the airline, Kathryn Sproull. The three person court of inquiry began sitting last September, following fact finding by the Office of Air Accident Investigation.

It found the crash was caused by a rapid build-up of ice causing loss of control. Contributing factors were considered to be the pilot’s tiredness coupled with his inadequate meals and inadequate clothing which led to his inability to judge deteriorating flight conditions and act accordingly. The court also found that had Mr Odering’s flying history been recorded in one place it would have alerted inspectors to “serious limitation in his overall competence”. It pointed to two serious incidents with Mount Cook Airlines which led to his losing his job, an incident when he got lost in cloud while flying with another company and a number of examination failures.

The court found that Skyferry had inadequate pilot rostering and ‘shoddy’ aircraft maintenance controls at the time of the crash and urged Civil Aviation to set up a computerised recording system to ensure the information about airline operators and pilots was readily available in one place. It said the Government must retain the capability to regulate and supervise civil aviation during the period of restructuring and it was essential “there be no further diminution of staff”.

The final sting came for the Airways Corporation whose heavy charges encouraged small air transport operations to fly visually rather than under instrument flight rules.

More 747-400s for Anz

Air New Zealand has firmed options for two more Boeing 747-400 aircraft, which will bring its jumbo fleet to eight by 1992. The confirmation of the orders is part of a $600m deal which includes a previously announced order for one 747-400 due next July. The second and third of the long-range jumbos will be delivered in July 1990 and September 1992.

The airline is planing to use the 6,000km range aircraft on its lengthier hops such as Auckland/Dallas and the proposed Sydney/Los Angeles run. Air New Zealand’s chief executive, Mr Jim Scott, said it was essential for the company to acquire these aircraft if it was to continue to grow and prosper. They would allow the airline to respond to the ‘blossoming’ Asian travel markets by redeploying 747-200s currently used on North American and European runs.

The airline made no announcement about the engine choice for the two new orders and declined comment. However, Australian Aviation understands that no changes are envisaged – as with the first 400 Series aircraft, they will be powered by Rolls-Royce RB211-524Gs, delivering 58,000 static thrust.

Briefs

• New Zealand’s first operational peacetime Spitfire was due to be landed at Lyttleton on December 7. The Spit, a Mk XVI acquired by Wanaka pilot Tim Wallis left England in a P&O container in October. Meanwhile, a reunion of wartime Spitfire pilots, New Zealanders and members of the RAAF’s No. 453 Squadron was being planned for February at RNZAF Base, Wigram.

• The British Aerospace 125-800 operated by Ardmore based Corporate Services successfully completed a 24 hour ambulance flight to Japan to uplift a seriously ill New Zealand woman. The jet, captained by Paul Harris carried an intensive care specialist, Dr Stephen Streat and a load of specialised equipment. Corporate Services managing director, Mr Dennis Thompson said he expected a growing demand for international aeromedical flights by the BAe 125.

• Nelson based Helicopters (NZ) was to send eight helicopters and 27 personnel to support summer season Antarctic expeditions. Expertise developed over previous seasons led to the contracts, the first to an Italian expedition which was to get three Squirrels and a Bell 212, each with two pilots; and the other to a German group which was getting four Squirrels.

• An RNZAF detachment of 17,flying an Andover (a photo of which appears in Traffic this issue) has begun operating in support of the United Nations Iran-Iraq Military Observer Group (Unimog). The group from No. 42 Squadron and commanded by Squadron Leader Lance Bell is flying out of a Tehran base to Baghdad. It consists of two flight crews and nine support staff.