Airline Affairs

Australian Airlines was the largest domestic airline in 1988/89, with a market share of 44. 6%. Australian finished the financial year with a strong result for 1988/89, with a growth in passenger kilometers of 7. 6%, compared to Ansett’s 0. 8%. Some of this growth was attributable to the threat of industrial action at Ansett during the final months of last year. However, both airlines’ overall traffic levels declined in the June quarter. (refer Recce) East-West Airlines and Ansett WA were the only airlines to show positive growth in the quarter. Overall, East-West’s passenger kilometre performance increased by 5% in the quarter, but showed a decline of 3. 3% for the financial year as a whole, reflecting major changes to its route structure.

The number of passengers uplifted in the quarter declined by 6. 7% compared to the same period in 1988, while revenue passenger kilometers performed declined by 4. 5%. The poor results are due in large part to the effects of industrial action by Air Traffic Controllers, which has caused the cancellation or delay of a large number of flights and discouraged air travel. In addition, 1988 traffic levels were extremely high due to the stimulatory effects of Expo and the Bicentennial.

International Traffic Growth to Remain Strong in 1988/1992:

International passenger traffic growth will average 7% worldwide during the next 5 years, according to data recently released by the International Air Transport Association. The level is likely to be about 8% this year, easing to 7% in 1989 and 6% annually in the period 1990-1992.

The fastest growing region will be Asia and the Pacific, averaging 9%, while traffic to and from North America will average 7%. In Europe, the figure is expected to be around 6%. International air freight traffic forecasts show average 8% annual growth during the next 5 years. Again, Asia and the Pacific top the list for potential traffic growth, forecast to be nearly 10%.

 Qantas Servicing Attulla:

Qantas has announced it will establish an aircraft servicing base at Melbourne’s Tullamarine Airport. The base will cost $26m and should be operational by the end of next year. The airline has been looking around for a suitable location for a second servicing facility (after Sydney) and Brisbane was known to be lobbying hard for it to be established there.

Qantas Chairman Mr Jim Leslie said Melbourne was chosen “because of its significance as a terminating port for Qantas services. There is a Qantas aircraft in Melbourne every night of the week and other aircraft on the ground for significant periods during the day on most days of the week. ”

American Airlines Most Likely to Become Additional Us Carrier Into Australia:

At presstime it appeared almost certain that American Airlines would become the fourth US based carrier serving Australia. As such it would compete with United, Continental and Hawaiian Airlines. Flying Tigers, now owned by Federal Express, also operates 747 freighter services to Australia from the US West Coast.

Background of the additional US carrier decision dates back to August 1988 when the US and Australian Governments jointly decided to allow one additional US carrier to operate to Australia before the end of 1991. On the 30th December 1988 the US Dept of Transportation instituted a certificate proceeding to select a primary and a backup carrier. Four US carriers lodged submissions including American, Northwest, Delta and America West. Service proceedings were then conducted in Washington during April this year by an Administrative Law judge. On the 29th June the judge recommended to the US DOT that American Airlines be awarded primary route authority with backup authority awarded to Northwest. Following this, Northwest, Delta and America West petitioned for a discretionary review of the judge’s recommendation to the DOT. Afinal outcome from this appeal should be known by late October.

American Airlines is presently the US’s (and thus the free world’s) largest air transport carrier having overhauled a disaster prone United Airlines in recent times. American is a logical choice due to their enormous domestic route structure, their very close working relationship with Qantas, a minor shareholding in Air New Zealand and the emergence of a large CRS system based on their successful Sabre system and taking into account their present Qantas and Japan Air Lines relationship in this area.

The only area that the airline presently misses out on is in 747 aircraft with which to directly compete with Qantas, United and Continental. American’s present fleet includes 2 747SPs (considered as orphans within the inventory), 11 DC-10-30s (transpacific capable), 52 DC-10-10s (domestic capable only). 45 7678-200/300s, 25 A300-600Rs, 160 MD-80s plus 70 more on order, 26 7378, 164 7278, and 6 inherited BAe 146s. American also has 50 7578 on order plus 8 firm and 42 optioned MD-11s, the aircraft type with which it would ultimately fly US/Australia services. These aircraft though won’t wear American livery till at least 1992. American also recently signed for up to 150 Saab and 100 British Aerospace commuterliners for exclusive use by its third level feeders within the USA.

Political Pressure Hits Western Queensland Operator, Again:

Forgive us if you find this story a little familiar. Talair owned Flight West Airlines, the first operator to actually break even flying the arid air routes of central and western Queensland, is being forced by local political pressure to upgrade its fleet from the cost effective Beech King Air to new and expensive turboprops in the 30/36 seat class. These aircraft will ultimately cost up to three times as much to operate per seat kilometre as the depreciated second-hand King Airs (which are pressurised and cruise at a respectable pace) and in time run the risk of forcing to the wall the only airline that has ever been able to economically offer a continuity of service to this remote part of Queensland.

A legion of operators went broke on this route in years gone by simply because vested political interests demanded that aircraft equipment be used that was economically non viable on such sparsely populated routes. Australian Airlines lost a fortune as recently as 1986/87 using their BAe Jetstreams while previously their F278 (which oddly were still not considered good enough by the locals) lost even more. Flight West is consequently examining the Saab 340, Embraer Brasilia and Dash 8-100 for an introduction to service by mid 1990. Excellent aircraft that they are, they still, in the cold light of day, require viable load factors at economic fares in order to not send their opera- tor’s bankrupt. What odds a King Air operating the route come 1991?

Aas Now a Major Exporter, Acquires Final Batch of Aust- Ralian Airlines’ Dc-9s:

Sydney based Australian Aircraft Sales has confirmed that it has acquired the final five ex-Australian Airlines DC-9 twinjets. The latest batch of DC-9 aircraft take AAS’s DC-9 acquisition to 12 and includes VH-TJQ, TJR, TJS, TJT and TJU. The first DC-9 became operational in Australia in 1967 with the type finally being withdrawn from service during the course of this issue.

AAS is also becoming somewhat of an export income earner for the nation with a high rating in Australian Business magazine’s recent annual exporter listing. For 1988/89 AAS. which was founded in 1946, logged export sales of $83m, a 69% increase on the previous year’s performance. This was up from $49. 0m in 87/88 and only $12. 8m the year before. Air- craft traded included 7078, 7278, 7378, DC-88 and DC-9s to the USA, Asia, Europe, Middle East and South America with most of the funds filtering back to Australia.

Demand for Flights in Europe Could Treble by the Year 2000:

Indications, based on interviews with a wide range of airline and airport operators, are that demand for air travel in Europe – in terms of flights operated-could treble by the year 2000.

Reporting initial progress of the SRI International consultant’s study of European air traffic commissioned by IATA, the Association’s Director General Dr Gunter Eser said: “It is already apparent that air traffic demand could have been significantly underestimated. Until now, we had been assuming that it would double by the turn of the century, but early indications of the forecasting work suggests that this is too conservative. ” Dr Eser stressed the importance of a credible pan-European forecast in planning the necessary airport and airspace requirements in Europe. “We are already critically short of facilities in Europe, so there is some catching up to be done before we start to handle this massive growth,” he said. “The answer lies with the European governments, both individually and-collectively. ” He went on to stress that “air traffic in Europe is interdependent. For example, hold ups in Italy affect Britain and Fr- ance and vice versa and problems in Europe have an impact on intercontinental flights. ”

Cathay Pacific, Air Niugini to Launch Joint HK/PT Moresby Service:

Cathay Pacific and Air Niugini will launch a weekly non-stop joint service between Hong Kong and Port Moresby effective the 3rd November, reinstating scheduled flights between the two cities after a gap of five years. The service will be operated by an Air Niugini Airbus A310-300 aircraft, with a total capacity of 209 passengers: 30 in business class and 179 in economy class.

Third Runway Eis Awarded:

For the record, the contract for Sydney Airport’s third runway Environmental Impact Study has been awarded to Kinhill Ltd, Australia’s largest planning and engineering group. The contract is worth $2. 25m. The Kinhill director responsible for the contract is Dr Bryan Jenkins who was also a project director for the EIS and master planning of RAAF base Tindal in the Northern Territory.

BA and Klm Into Sabena:

Both British Airways and KLM Royal Dutch Airlines have had discussions with the Belgian carrier Sabena World Airlines with view to each taking a 20% share of the airline’s stock. Sabena SV, the airline’s holding company, would hold the remaining 60% of stock. Agreement should have been reached by the time these words are read and will take effect from January 1, 1990. The agreement ensures that the joint participation in the share capital of Sabena will not affect the autonomy of either it, KLM or BA, and each airline will remain independent of and competitive with the others. At presstime KLM, with extensive backing from Australia’s Elders Finance, was also actively bidding for up to 25% of Northwest Airlines in conjunction with US raider Alfred Cheechi.

East-West Signal Possible Change of Tack With New Jet Order:

The signing for up to a dozen BAe 146-300 jetliners has signalled a possible change of tack come deregulation for the Ansett owned leisure based carrier.

The specific order is for 8-300s with options on 4 more with the first of type in country by next July with deliveries at the rate of roughly one a month thereafter. East-West has the option of operating the ultra quiet aircraft in a very spacious five abreast 96 seat configuration with a 33″ seat pitch or a six abreast 110 pax high density configuration. It operated five abreast this will be the same standard as Ansett WA operate their aircraft and it essentially offers the most comfortable economy class cabin of any doméstic airliner in Australia. If East-West accept this option while still targeting the leisure market, it is now obvious that they will be looking to upgrading their service standards and competing directly in terms of quality against their primary rivals.

East-West is expected to have fully phased out its remaining F27s by the end of 1991 and by that date will operate a fleet of 8 to 12 146-300s and 7 Fokker F28 Fellowships. This will give the airline a fleet mix of jet aircraft in the 65, 75 and 96/110 seat class with the latter being able to supplement many Ansett long! thin routes that would be unsuited to that carrier’s three class system 737s and A320s. This would be particularly so if the 96 seat five abreast luxury configuration is chosen.

The order represents another triumph for British Aerospace as East-West, as was Ansett New Zealand, were initially firm to receive Boeing 737-500s. Ansett NZ was first to switch to the 146 (refer NZ News) and the latest EWA order makes the Ansett/TNT Group the largest single buyer of 146 jets in the world with total commitments against some 75 of the type.

East-West nowadays is a profitable carrier. In 1988/89 it carried for the first time ever just over a million passengers for a load factor of a very healthy 71. 8%, up to 10% higher than it was two to three years ago. Up to 80% of the airline’s present operations are with jet equipment and as at June 30 EWA had an asset base of some $200m with revenue of $121m from total sales of $142m for the 88/89 period. Staff numbers through that year rose from 651 to 850 and while the carrier had a total market share of only 7%, its share of the leisure market stood at 14% with services to 18 primary holiday destinations. It is expected that this leisure market share will reach up to 25% by 1992 as deregulation allows the airline to fulfil the market objectives it set out to achieve almost a decade ago.

 Qantas Announces $23 Million Cadet Pilot Scheme:

Qantas has announced a $23m cadet training scheme to provide 64 pilots a year to the airline from mid 1991.

The scheme will operate from Hawker De Havilland’s Australian Aviation College at Parafield, about 40km north-east of Adelaide, (refer p62 July AA) and the first cadets will start training there next January. The scheme would help provide the 955 pilots Qantas would need in the next six years to keep pace with the air- line’s expansion.

The programme will train people aged from 19 to 23 with no flying experience to the level where they will be accepted as Qantas Second Officers. Qualified pilots would also continue to join Qantas from traditional sources such as General Aviation.

The first group of 8 cadets would start the 16 month live-in course in January 1990 and would be followed every 8 weeks by another 8 trainees. The cadetship would provide each cadet with training and accommodation at Parafield for the course. Cadets would ultimately have to contribute $10,000 over a specified period towards the cost of their train. ing. Interviews and preliminary testing will be held soon in all capital cities. Advertisements will be placed in the national and aviation press. Candidates will need a NSW Higher School Certificate or its equivalent with good passes in English, Maths and Science. They must meet Qantas selection criteria, pass pilot aptitude tests and be medically fit to Qantas standards. They must be Australian residents and hold a passport that enables them to fly on all routes operated by Qantas.

Qantas is also planning a kit for school careers advisors. The airline, will also continue to operate its existing pilot scholarship scheme, which takes pilots with a basic commercial licence and trains them to Qantas Second Officer standard. A cadet pilot scheme was operated by Qantas in the 1960s.

The School will now proceed to acquire a mixed fleet of Socata aircraft including Socata Tobagos, Trinidads and Mudry Cap dual seat aerobatic aircraft. The Australian Aviation College is a subsidiary of Australia’s largest aerospace manufacturer, Hawker De Havil- land, and was acquired in 1988 to develop an airline pilot training academy of international standard.

In July, the AAC graduated 18 cadets for Malaysian Airlines, these cadets will now convert across to new MAS Fokker 50 propjets. Hawker De Havilland’s Managing Director, Mr Bruce Hattersley, said: “We are delighted to have been chosen by Qantas. The project brings together two of Australia’s major aviation companies. ”

Government Refines Its Aviation Policy:

In a move to further maximise the benefits to Australia of international aviation, Minister for Transport and Communications, Mr Ralph Willis announced in Parliament in June that the Government would in future consider the wider needs of the Australian economy before those of Qantas in allowing additional foreign carrier services into Australia.

The move to some extent discards the fairly protected position that Qantas has enjoyed in negotiating bilaterals through the Government with foreign carriers and their respective host governments over the past few decades. Not much is expected to change in real terms though due to the large mixed capacity fleet that Qantas nowadays flies and the overall desirability to allow a greater number of inbound flights from ‘special’ destinations that are recording strong growth rates. A greater emphasis on inbound charters, such as those operated by Britannia, is initially expected. Britannia is expanding its operations into Australia (and NZ) though tickets are sold only in the UK and on a return basis. In other words all their passengers are bona fide tourists with thus the highest monetary retum available to Australia other than the air fare itself.

The new Government policy also endorsed the establishment of a second dedicated freight carrier to challenge and compete directly, with Qantas air freight capacity. Obviously this is good news for the massive TNT group which can now only use its vast Australian based ground and air freight network to feed any international arm it may wish to establish. TNT already operates a 707 freighter and may acquire more, or even ultimately acquire refurbished early series 747 or DC-10 freighters if it does venture into this area of the market.

At the same time as Minister Willis made his statement to Parliament, the Industries Assistance Commission published its long awaited draft report on the travel and tourism industries in Australia. The IAC report slammed international airfares as being too high into Australia (by 20%) and called for the approval of international carriers, including Qantas, to be able to operate domestically within Australia. In exchange, domestic carriers would be allowed to fly internationally. The IAC report also endorsed. a greater degree of foreign ownership for Australian airlines and the privatisation of both Qantas and Australian as it felt (as does virtually everyone in industry. including the airline’s themselves) that the Government will never give these great assets the fiscal base they require to weather the next recession.

Supporting a massive debt to equity ratio is a passable exercise when growth rates are as they have been in Australia these past three to four years. However, with a recession on the horizon, any company, no matter what its product is, will find it difficult to support such a debt burden when growth becomes negative and month to month cashflow begins to erode. That is a simple matter of grassroots economics that is just as applicable to the corner store as it is to a major industrial concern such as an airline.

Meanwhile, amidst a rapid decline in inbound arrivals, largely expected by the more professional elements within the industry due to the cessation of 1988’s Expo and the Bicentenary, tourism still held its shine as a major eamer of much needed foreign exchange in the first quarter of this calendar year. Australian Bureau of Statistics figures indicated that the three top income producers during the period were wool $1,566m, tourism $1,462m and coal $1,006m.

Review of Nsw Air Routes:

The NSW Minister for Transport, Mr Bruce Baird, has instructed the Air Transport Council to complete its review of NSW regional air services by the end of the year, at which point three year non-exclusive licences will be issued for the major routes of Sydney to Albury. Ballina, Bathurst, Broken Hill, Casino, Coffs Harbour, Lismore, Lord Howe Island and Wagga Wagga.

According to the Minister, all these communities have called for improvements in air services and the process of open competition for the licences should ensure the needs of local consumers are met. The destinations are the latest in NSW to have their services reviewed and in some cases given to different airlines. Recent changes have resulted in improved services to the Hunter Valley. Riverina and the south coast.

Kendell Airlines is vigorously contesting the Sydney/Wagga route as obviously with Wagga as its home town it does not want another operator serving that port even though the airline has little enthusiasm in being faced with the prospect of having to fly into Sydney, a port that Kendells rightly feel represents more problems than it is worth. Though not contesting any of the other routes at this stage, Kendels entry into Sydney (if it is approved) will no doubt ultimately lead it in time to looking to serve other routes on which Air NSW operates. Obviously, the Ansett regional would prefer ‘friendly’ Kendells as a competitor rather than a commuter in the Australian Airlines camp wherever possible.

 Government Negotiates More Flights to Europe:

A substantial increase in flights between Australia and West Germany over the next two years has been negotiated between the Australian and West German governments.

From 1 April 1990, Qantas and Lufthansa would be able to increase their frequencies from four to six Boeing 747 services per week. Each airline will also be able to operate a daily service from 1 April 1991.

Domestics Rev up for Deregulation:

In a move that is expected to typify the response to a deregulated environment by both Ansett and Australian, both carriers have introduced discounts of 50% on selected flights between Sydney and Melbourne.

Effective August 7, the 50% discount off the standard economy return fare of $388 is available on flights departing between 10am and 3pm on every weekday except Friday. Tickets must also be booked and paid for at least 7 days in advance. The $194 fare will undoubtedly be just the thing for the largely untapped leisure market that presently either drives, takes a coach or the train due to the perceived high cost of flying within Australia.

The new fare initiative is current for 8 weeks and if successful will be undoubtedly extended to other trunk line routes in non peak periods as a lead up to taking the discount fare wind out of any competitors’ sails come November 1 1990. The new fare also highlights the strides taken in recent years in utilising the benefits of the very powerful software nowadays available to both carriers in their yield management computers. The ability to specifically designate and target excess seating capacity on any aircraft on any sector up to a few hours prior to departure nowadays is looked upon broadly as being just as crucial to the fiscal well being of an airline as the equipment it flies.

Air cruising International Market:

Aircruising Australia is set to launch into the international deluxe aircruising market with an inaugural around the world flight scheduled for liftoff next June.

Aircruising Australia, who presently operate two F27 Friendships on their heavily patronised around Australia flights, will be chartering a fully refurbished 70 passenger first class configured Boeing 727-100. Equipped with long-range tanks, the trijet features a cocktail lounge and individual videos for each of its 70 first class seats. Passengers can thus not only relax with a personal choice of movies but briefing tapes can be also shown fully detailing the next exotic port of call for the group.

The around the world flight will be able to take in many destinations and travel opportunities not available to regular scheduled airlines and will highlight such diversions as overflying Mt Everest, the pyramids of Egypt, tropical islands and numerous other specific points of interest.

On the ground the passengers will stay in first class accommodation including a castle in England and a Chateau in France. Of 21 days duration, this latest initiative from the entre- preneurial Aircruising Australia will hopefully usher in a new era of deluxe international air cruising that has been long overdue in coming.

Compass Plans Maturing:

Grey’s Compass Airlines appears to have settled on the Airbus Industrie A300-600 as the type with which it will take head on the likes of Ansett and Australian in a deregulated environ- ment.

Compass had previously expressed a preference for the smaller A310-200 but, due to the massive order backlog for this type, had to take the larger Altwinjet in order to be able to meet a start up date of November 1 next year. While specific service standards are still undecided, it is believed that Compass will operate its Airbuses in an all economy configuration offer ing a deep discount, no frills service but with a generous 33″ seat pitch. In an A300-600 this would equate to around 300 seats, a size that would, even with only a five unit fleet, make significant inroads into the established traffic base.

The aircraft will actually be acquired from Airbus Industrie by an established leasing company and then be subleased back to Compass itself, thereby keeping Compass” monthly outgoings to a manageable proportion of its anticipated earnings.

Hawker Pacific meanwhile is to invest heavily in a new heavy jet maintenance facility at Brisbane airport, something that Brisbane City Council and local FAC management has been lobbying for over a considerable time. Once established, the new Hawker Pacific facility will also be able to tap into the rapidly growing market for heavy jet maintenance from not only the immediate region but also against the major northern hemisphere engineering facilities which nowadays have more work than they can generally cope with.

Compass, of course, will be aiming their marketing at the large and so far untapped travelling market that has traditionally considered travel by air as too expensive. Research indicates that that market covers around 80% of the Australian community as the vast majority of domestic travel is presently for business or by people flying on specific holiday packages. Compass will during the course of this issue be establishing its core force management team and is expected shortly to begin publicly advertising for the army of support staff that any new entrant will require.

Compass is presently in the process of raising the $85m capital required to be able to float the airline, 7. 5% of which will initially be owned by Grey himself with this increasing up to 25% as options are progressively exercised. At presstime though delays had been experienced in raising the initial float due to a number of factors including the fact that the Compass brokers, ANZ McCaughan, had launched their prospectus during June, a period when any potential investor or financier is well and truly preoccupied with getting their end of year books in order. Also affecting the float was the general turndown in the economy and the growing reticence of financiers to invest in new ventures.

 Qantek Plans Major Computer Upgrade:

Qantek, the information techno-subsidiary of Qantas has announced the spending of more than $27m on a major upgrade to approximately 60% of the airline’s mainframe computer hardware.

The upgrade will help satisfy enormous Qantas demands for computer capacity-currently rising more than 60% a year- and help the airline keep pace with business growth. The new computers will give Qantas one of the most advanced technology platforms available.

Amdahl, a long established Qantas supplier, will provide most of the hardware. Qantas was Amdahl’s first Australian customer. The upgrade will result in Qantek using the largest single computer in Australia.

 Qantas Do Well From Beijing Uprising:

A Qantas engineering recruitment team was quickly on the spot in Hong Kong following the recent Beijing massacre.

Target of the Qantas team, which arrived complete with an Australian Government immigration official, were the highly experienced technical core force of specialists from HK companies such as Haeco, the maintenance arm of Cathay Pacific. The irony of the situation was that for years both Cathay and Haaco had been luring north expatriate Australians (principally from the RAAF) and now the situation was being reversed where highly skilled Hong Kong Chinese engineers were being eagerly wooed for possible Qantas service.

AA believes that the Qantas team was inundated with requests to join the flying kangaroo, which also ensured long-term employment and the prospect of an Australian passport after five years’ service. It is believed that up to 200 specialist technicians and engineers will eventually emigrate, a situation that would greatly assist Qantas out of its present skilled manpower problems. Developing heavy jet maintenance infrastructure at both ASTA and Hawker Pacific may also look northwards to securing a number of ex-HK engineers in the coming year if internal strife in China continues, thereby destabilising the long-term security of Hong Kong itself prior to the PRC takeover in 1997.

Meanwhile Haeco itself was celebrating a major coup amidst the doom and gloom when it announced the recent signing of an agreement with British Airways to perform heavy maintenance and structural updating of 16 of the airline’s 747-100 aircraft. The contract also covers an option on 14 additional 747-200 aircraft. BA is essentially bringing its early model 747 fleet right up to scratch prior to replacing most of them with -400 aircraft through the first half of the next decade.

Thai Engine Order a Major Win for Pratts:

Thai International, a long time General Electric customer, has selected Pratt & Whitney PW4000 powerplants for their recently ordered A300-600 twinjets.

Thai presently operates GE CF6 engines aboard its fleet of 747, DC-10 and A300 aircraft, consequently the PW4000 choice came as a major surprise to all within the industry. Thai is the 37th customer for the big fan PW4000. So far Pratts has logged orders and options for more than 1,200 PW4000s from customers worldwide.

 Qantas Names New Boeing Jets “Longreach”:

Qantas has decided to call its new Boeing 747-400 aircraft the Longreach series.

Qantas states that the name conveyed both the exceptional range of the aircraft, the latest variant of the 747, as well as the Queensland town of Longreach which, with Winton, was the birthplace of Qantas in 1920. Qantas has 10 of the $200 million aircraft on firm order. The first was officially delivered to the airline on August 3, with another four scheduled to join the fleet by the end of this year.

Meanwhile, to visibly demonstrate the exceptionally long legs of the aircraft, Qantas planned to fly the first of type, VH-OJA City of Canberra, non stop from London to Sydney on August 16. Qantas estimated that the 9,640nm (17,850km) flight would take 20hrs 30mins. The 747 would depart Heathrow with max fuel and several dozen VIP passengers and crew tracking across Europe to overfly Muscat before heading onto Sri Lanka, down to the Cocos Islands and onto Sydney via a landfall at Carnarvon. Apart from representing a superb public relations coup, the flight will also enable OF technical people the opportunity to examine a wide range of specific performance data obtainable only on a flight as long as this.

The aircraft, which represents the latest in passenger comfort and technology, has distinctive two-metre high winglets to improve aerodynamics. It has a range of 6,800nm (12,700km) with a full payload, 1,300nm (2,400km) further than the current 747-300 series aircraft. It can fly non-stop with a full commercial load between Sydney and Los Angeles and between Singapore and London. The Longreach aircraft will enter service for Qantas on the UK and US routes in late October.

 $10 Million Upgrade on Qantas Engine Test Cell:

Qantas is spending more than $10 million to double the capacity of its jet engine testing facility at Mascot.

The Qantas Engineering and Maintenance Division is developing the cell to cope with today’s more powerful engines and in preparation for the potential doubling of the airline’s fleet over the coming decade. Qantas has 80 Pratt & Whitney. 63 Rolls-Royce and 11 General Electric jet engines (including reserves) to power its fleet of Boeing 747s and 7678.

The test cell opened in 1972 now handles about three engines each week but the development programme will more than double its capacity. After modifications, the test cell will have an airflow capacity of two tonnes of air per second.

The Project Officer, Les Rogers, said the expansion work would allow testing of new generation engines like the General Electric CF6-80C2 engines that power the Qantas Boe- ing 767-300ER aircraft. “Modifications to the test cell will let us test engines up to 75,000lb of thrust. The GE engines produces 61,500lb,” Les said. The modifications include computerising the testing system, aero-dynamic work on the airflow through the cell, buying test equipment for the new generation engines and upgrading the engine preparation room.

 Rule Britannia:

British charter opera- for Britannia Airways is following up the success of last summer’s flights to Perth and Cairns by expanding its Australian programme this summer.

Between November this year and March 1990, the airline will be conducting 767-200ER charter flights from Britain to Perth, Cairns, Darwin, Adelaide, Coolangatta and Canberra as well as adding New Zealand (Auckland and Christchurch) to the list. Tickets are sold only in the UK so Britannia’s uplift is of no direct commercial consequence to established operators on the route such as BA and Qantas.

Britannia claims to be the world’s largest charter airline since it took over Orion Airways earlier this year. Its fleet consists of 34 Boeing 737s and eight 767s with another 16 of the later on order.

 Remember When:

Looking at old newspaper clippings can be an interesting exercise.

A glance at the 1979 file recently showed Ansett advertising a 40% discount Super Apex return fare between Sydney and Melbourne of $70 against the normal fare of $117. Ten years on that same sector now costs $388 – a more than threefold increase! Petrol, beer, food in general and the cost of mailing a letter has soared in the past decade by similar amounts but not your humble Australian Aviation magazine subscription. In 1979 AA cost $2. 50 for a 104 page issue, it now retails at $4. 90 for an average of around 124 pages while subscribers pay as little as $3. 66 with most having paid only $3. 16 on our now withdrawn three year rate. The reason we have been forced to sadly withdraw this heavily discounted three year rate is because Australia Post has served notice that it is ultimately going to phase out the Category B postage rate which applies to magazines and periodicals such as AA. With this in view then we unfortunately and regretfully have had no option but to restrict our future subscription liability to one and two year terms. Government 1, free enterprise nil!

Australian Strengthens Its Base in South Australia:

SA regional, Sky Link, has joined with the Australian Airlines group as a dedicated feeder to Australian’s Adelaide services.

Sky Link operates from Adelaide International to Port Lincoln 36 times a week, to Whyalla 8 times a week and to Kingscote 12 times weekly, using a fleet of one Piper Chieftain, a Cessna 402 and an MU-2. Sky Link was formerly known as State Air and is now fully represented in Australia’s CRS system in conjunction with other SA operators, O’Connors, Sunstate and Lloyd Aviation.

 Caa Goes Commercial:

The Australian CAA has joined with high technology Australian company the Preston Group Pty Ltd of Melbourne in a venture aimed at developing and marketing a computer simula- tion modeller with applications for airspace and airports.

This is the first commercial joint venture for the CAA and provides the opportunity to generate revenue through sales of the both within Australia and overseas. The CAA will have a modeller for its own use.