Stop Press

The popular press has drawn a parallel between this accident and the one which destroyed an Air France A320 at a flying display in France in 1988. In both cases slow throttle response has been offered as a possible explanation although in the case of the Air France crash this was positively refuted. That aircraft was fitted with CFM56 engines while Air India’s A320s have IAE V2500s. In the meantime Indian Airlines A320 pilots accepted their union’s directive not to fly the A320 until an interim report on the accident was published.

Avanti Certified:

Piaggio’s P. 180 Avanti ten-seat pusher and canard equipped twin turboprop corporate aircraft has been awarded certification by the Ital- ian authorities equivalent to the USA’s FAR Part 23.

The certification clears the aircraft for single pilot operation, although for the moment it applies only to the prototype which is not fitted with autopilot and deicing systems. Certification of the production aircraft-with those systems installed plus a redesigned windscreen – should follow in the third quarter of this year. The order book currently comprises three firm orders (from US businessman Bob Pond, North American distributor AMR Services and an unnamed Canadian customer) plus two options and 15 ‘letters of intent’.

 Fuel Prices Increasing?:

One of the contributory factors to the rapid growth of air transport in recent years has been the relatively stable price of fuel, something which has allowed the airlines to accurately forecast the cost of this essential commodity in their financial Planning.

However, some recent events have caused concern in this area. At the end of 1988 US operators were paying an average of $US0. 53 per US gallon for aviation jet fuel but by the end of 1989 that had jumped by just under 25% to $US0. 66. The situation grew even worse in the first weeks of 1990 when the average price jumped to $US0. 78, an increase of 18% in the space of a month and a whopping 47% more than just over a year before.

Obviously fuel costs are a substantial part of any airline’s operating budget. An increase in the price of fuel of just one cent per gallon costs the US airline industry as a whole some $US150m per annum and working on the averages that means a total additional cost burden of nearly $US900m in 1989, most of which has not been recouped in higher fares.

Sabreliner Lives On:

One of the original ‘bizjets’ (first flight 1958), the North American Sabreliner, is about to enterser- vice with the US military again, some 30 years after it first joined the USAF as the T-39.

Current owners of the line, Sabreliner Corporation, have been awarded a $US242. 6m contract to provide undergraduate Naval Flight Officer training using modified Sabreliner aircraft. As the type is no longer in production, Sabreliner Corp is trying to buy 18-20 aircraft from commecial operators to refurbish and modify before delivery to the USN.

They will receive a structural upgrade (allowing a 30,000hr service life) and be fitted with Westinghouse APG-66NT radar, a unit capable of air-to-air, air-to-ground and track while scan operations.

Lufthansa Order Boosts V2500:

The IAE V2500 turbofan engine has received a major boost following its selection by Lufthansa to power the Airbus A321s the German carrier has ordered for delivery from 1994.

Lufthansa has contracted for 20 A321s and has options on a further 20. Selection of the V2500 is worth more than $US500m to IAE, a multinational consortium consisting of Pratt & Whitney, Rolls-Royce, Japanese Aero Engines Corporation, MTU and Fiat. The V2500 order book now stands at 1,300 engines worth over SUS6. 5bn. They will (at presstime) power 86 Airbus A321s, 229 A320s and 240 McDonnell Douglas MD90s.

Austrian Detente:

Following a period of less than cordial relations between Austria’s two major airlines, Lauda Air and Austrian Airlines, the respective chiefs of the two operators, Niki Lauda and Dr Anton Heshgi, have held a meeting in Vienna and sorted out their differences. Two significant areas of difficulty were resolved: coordination of schedules to benefit passengers and agreement to cooperate as much as possible on charter operations. Both will promote Vienna as the European hub and unnecessary overlapping in flight services will be avoided to improve things generally for the airlines’ passengers.

 Last Hornet Handover:

By the time this issue is just a few weeks old, Aerospace Technologies of Australia will have delivered the final locally assembled McDonnell Douglas F-18 Hornet to the RAAF.

The final aircraft is scheduled to be handed over to the RAAF on 16 May at Fairbairn Air Base in Canberra. A total of 73 Homets have emerged from ASTA’s factories over the past four years in addition to the two aircraft delivered to the RAAF direct from the USA. Of the RAAF’s 75 Hornets, 57 are single seaters and the remainder two seaters.

The program has been completed on schedule and has involved many Australian companies, including Hawker de Havilland which was responsible for assembly and testing of the Hornet’s General Electric F404 engines. Australian industry will meanwhile continue manufacturing Hornet parts for the world market.

 Japanese on 777:

Japanese industry is gearing up to join Boeing in the development and production of its next airliner, the 777. Formerly known as the 767-X, the up to 400 passenger 777 (refer Newsdesk 3/90) is broadly comparable to the Airbus A330 big twin. Mitsubishi, Kawasaki and Fuji have accepted Boe- ing’s invitation to participate in the 777 program and are prepared to invest $US822m to do so. The total development cost of the aircraft is expected to exceed $US3bn and Boeing is now seeking launch orders with an official project launch expected to be announced at this year’s Farnborough Air Show.

Talair to Close:

The future of Papua New Guinea’s largest privately owned airline, Talair, is under a cloud following its owner’s decision to close it down due to the collapse of law and order and the fact that expatriates are being dis- criminated against by the public service. According to reports, there has been a strong racist (anti-white) element in the PNG government since independence, with work permits and visas being regularly withheld from expatriates needed by the company. One recent example was the airline’s chief pilot who has worked in the country since 1956 but had trouble getting a new visa when he applied to return after a short break. The lack of law and order also recently directly affected the airline, which had its payroll stolen by armed bandits.

The owner of Talair, Australian and pioneer aviator in PNG, Mr Dennis Buchanan, has been operating in the country for more than 40 years. Talair operates a fleet of 50 aircraft serving 136 destinations in PNG and employs around 1,000 people, three quarters of whom are nationals. The family company controlling Talair also owns the English language newspaper, Niugini News, which also closed down on April 1 for the same reasons.

According to Mr Buchanan, the decision to close the airline was “effective immediately” following an announcement on March 30. It is probable Talair’s mixed fleet – consisting of numerous types ranging from Cessna singles to DHC Dash 8s-will be brought to Australia for sale.

Tourism Task Force:

Singapore Airlines is bringing key travel company executives and journalists to Australia in an attempt to counteract damage to the local tourism industry caused by the domestic pilots’ dispute.

Executives and journalists from Japan, Hong Kong, Taiwan, Malaysia and Singapore will look at Australia’s main tourist centres and hopefully take back home with them the idea that Australia has as much to offer as ever and to negate some of the unfortunate perceptions formed due to the pilots’ actions.

Beechjet Order Flurry:

Since winning the USAF’s Tanker Transport Training System (TTTS) competition with its Beechjet light corporate jet (refer Newsdesk this issue). Beechcraft has recorded a flurry of orders from civil operators for the type.

In the two weeks following the TTTS announcement the company received orders for no fewer than 32 Beechjets including 15 from overseas. Most of these have come from the company’s dealers who are obviously anticipating something of a boom period for the Beechjet, developed from the Mitsubishi Diamond. Beechjet production has thus far been at a modest rate; only ten were delivered in 1989.

Twin Otter Update:

Norwegian operator Wideroe will be the first to take advantage of a DHC Twin Otter update program offered by Canadian firm Field. Aviation.

At least nine of Wideroe’s Twin Otters will be upgraded. Modifications include the fitting of quieter and more efficient four bladed propellers plus the installation of a completely new and modernised interior, fabricated from the latest state-of-the-art composite materials which comply with all current burn requirements for transport aircraft. New and lighter seats providing extra leg room will also be fitted.

Field Aviation identifies 50 Twin Otters currently used as commuter transports as possible subjects for conversion in the short term and as many as 300 in the longer term. Twin Otter production ended in late 1988 with the 844th aircraft.

Piper Sorts It Out:

Piper’s cash-flow and credit problems (refer Newsdesk this issue) which caused employee layoffs and the closure of several production lines appears to have sorted itself out. The company has announced new arrangements with its primary lender which have allowed it to pay its vendors and therefore re-establish the flow of raw materials needed to build aeroplanes. Earlier, more than half of the company’s 875 strong workforce had been temporarily laid off. They are now back at work and Piper is concentrating on fulfilling firm orders and servicing its $US175m order backlog.

 France Offers Rafale:

Dassault has offered India its Rafale fighter in place of the indigenous Light Combat Aircraft (LCA) which is being developed by Hin- dustan Aeronautics Ltd with some help from the French manufacturer for both land and carrier based service.

The LCA project is under budgetary pressure, but sources in India have suggested that the Rafale is too big and expensive anyway.

Portugal Buys F-16s:

In a major upgrading of its air defence capability, the Portuguese Air Force has ordered 20 new production General Dynamics F-16 Fighting Falcons at a cost of more than $US450m of which some $US400m will be financed by US Foreign Military Sales credits.

The order comprises 17 single seat F-16As and three two seat F-16Bs. To all intents and purposes Portugal effectively lost its modest air defence capability in 1980 with the retirement of the last of its F-86F Sabres. Since then the role has

been performed by less than 40 Fiat G. 91R lightweight fighter bombers modified to carry Sidewinder missiles, but these aircraft offered only very limited effectiveness. The only front line combat type in Portuguese service at the moment is the Vought A-7 Corsair II, 37 of which serve in the attack role.

Recruiting Drive Pays:

The RAAF’s recent recruiting drive overseas is beginning to bear fruit.

As reported in March’s Newsdesk, 50 aircrew applications were received from Britain while the total number of applications received from all sources is now over 230. The number covers aircrew and ground technical staff and includes personnel from the RAF, RN, RNZAF and US Marine Corps.

Telling Statistics:

The effect of the Australian domestic pilots’ dispute on air travel and the industries which depend on it is well known, but one group of statistics really hammers the message home. They are the log of passenger movements at various Australian airports in the final quarter of 1989 and show some staggering reductions in performance.

The worst hit was Tamworth in NSW

which recorded 19,415 passenger move-ments in the final quarter of 1988 but in the same period of 1989 just 370 passengers went through the rural city’s airport, a drop of 98. 1%. The tale of woe continues, particularly where tourist oriented destinations are concerned: Ayres Rock down 96. 0%, Ballina down 93. 8%, Maroochy- dore down 87. 2%, Coolangatta down 71. 8% and Hamilton Island down 63. 9%,

The list goes on and makes frightening reading (we wonder if the AFAP thought of this and the lives it affected when it embarked on its course of action?) – Adelaide -43. 1%, Alice Springs -71. 7%, Cairns -52. 6%, Canberra -68. 8% and Norfolk Island-67. 9%. The state capitals also suffered large downturns, all of them dropping by more than a third with Perth suffering the worst with a figure 47. 6% down on the previous year.

Overall domestic passenger activity levels in the final quarter of 1989 were down 56. 1% on the same period in 1988. Comprehensive statistical tables can be found in our Airline Affairs section commencing on p. 18 of this issue.

 Computer Finds Lancs:

It may be too good to be true, but advanced technology in the form of computer pic- tures generated from radar ‘soundings’ has reportedly shown the precise location and condition of six Avro Lancasters buried intact at Elsham Wood in South Hum- berside after World War II.

According to the Bomber Airfields Association spokesman who made the announcement, the bombers escaped the usual scrapping or burning and were buried side by side with their wings strapped along their fuselages and the whole lot wrapped in hessian shrouds. Stay tuned!

East-West Flies 737:

It seems that East-West Airlines’ long: held desire to eventually operate a Boeing 737 has finally been realised, though-in-a round about manner.

Effective from April 1, for one month, the Ansett sibling has leased AWAS owned 737-300 G-PATE. The aircraft has been in Australia for some time operating with Ansett and on behalf of the Queensland government. It is being flown in a 140 seat configuration by EWA on its primary Hobart/Sydney/Coolangatta/Brisbane/ Cairns network due to heavy advance loadings during the school holiday and Easter periods.

East-West is on schedule to receive the first of its new BAe 146-300s this August with the type entering line service one month later, though the airline will probably again use leased 737s at some point in the future if demand requires following deregulation later this year.

ADF Helicopter Update:

A final decision has still to be announced as to the eventual fate of the Chinook heavy lift helos presently in storage at RAAF Amberley. A number of scenarios are being canvassed at the highest levels of Defence Central, though a definitive Chinook decision by Army is not expected to be announced before the end of May.

One option is for the RAAF to acquire additional used (probably US Army) Chinooks, retain our 11 and upgrade them all to CH-47D specifications. These would totally replace the Caribou force. This option also sees the existing 12 C-130E Hercules being winged and possibly the purchase of some additional C-130H aircraft. Funding for the E model rewinding is already approved whilst a major Chinook upgrade in-country would have considerable All implications. Funds realised by the sale of the Caribous, whilst not considerable, would be used to finance the helo upgrade.

Meanwhile, Navy is still hoping to acquire five UH-1H Iroquois utility helos to replace their now lost Wessex capability. with Army taking 24 for utility functions and six as dedicated gunships. It is likely that if this occurs all the aircraft will be upgraded to take them into the next century. Navy is still lobbying for a dedicated helicopter carrier that could take Iroquois and Black Hawk helos and cites recent events in Bougainville, Vanuatu and Fiji as classic reasons why Australia requires a deployable air capable seaborne platform.

BH Pacific have in the meantime increased their activity in promoting their own in-house upgrade which includes the upgrading of the Hueys existing Lycoming turboshaft (with about a 30% increase in power), addition of a Bell 212 main rotor blade and assembly, uprated gearbox, Cobra tail rotor and boom, plus numerous systems upgrades to ease pilot workload and increase mission effectiveness. Cost of the upgrade, which can be performed entirely in Australia and whilst the individual aircraft is being cycled through heavy maintenance, is reported as $1. 1m a unit.a

AFAP Appeals Damages Decision:

The AFAP is to appeal against its recent $6. 48m damages claim made against it by the airlines through the Supreme Court of Victoria. Regardless of who wins the appeal, another appeal is expected which would see the case proceed to the High Court with an ultimate decision possibly not known for many years.

The appeal is likely to be heard around the final quarter of this year by the Full Court of Victoria though this may be expedited if priority is requested by either the Federation or the airlines. Meanwhile, a decision as to the Federation’s claim against the legal validity of entry visas and work permits for foreign pilots employed by the airlines in recent months was also expected to be known by mid April. This case was being heard in the Federal Court in Melbourne.

Inbound Tourism Hopes High Despite Problems of Recent Months:

Australia as a whole was still able to surpass the psychological barrier of 2m visitors in 1989, despite the effects of the pilots dispute in the final two quarters of the year.

This compares to 2. 2m visitors in the boom year of 1988 and an expected target of 2. 2m for this year.

During 1989, New Zealand visitors dropped heavily from 320,000 to 260,000 whilst visitors from Japan dropped from 352,000 to 349,000 with most of this decrease occurring in the final quarter after entire tour groups abandoned their Down Under holidays due to the effects of the pilots’ dispute. This market is now picking up again and for 1990 an overall 6% increase is expected over last year’s figures.

Meanwhile, NZ is still our biggest market and is expected to return to strength for 1991 though the Australian Tourism Commission still expects some 450,000 Kiwis to visit Australia during 1990. The primary reason for the decrease in NZ inbounds during 1989 was that most New Zealanders who were planning an Australian holiday took the opportunity to visit Bris- bane’s Expo and other Bicentennial events through 1988 and consequently visited other destinations the following year.

Other markets showing great promise are the combined UK/Ireland catchment which saw 285,000 visitors in 1989 whilst the rest of Europe logged 245,000 as against a predicted 288,000 this year. The US in 1989 saw a decrease of 19% in traffic for 260,000 visitors as against an expected 270,000 this year. Meanwhile, southern Asia is being heavily targeted with priority markets being Hong Kong. Malaysia, Thailand, Taiwan and Singapore.

Korea is also expected to come alive next year with Korean Air already serving the market and Qantas gearing up to fly into Seoul commencing this November.

Meanwhile, diplomatic approval for direct services to Taiwan from Australia are still bogged down within the corridors of power in Canberra’s Foreign Affairs, Trade and Transport branches, as a means of getting Australia Asia Airlines airborne without publicly offending the PRC is found.

The ATC’s long term year 2000 projections meanwhile are very encouraging and show a then year market of some 1. 5m visitors from Japan, 1. 4m from Asia, 1. 6m from all of Europe including the UK and 800,000 from North America for an overall inbound total of 6. 5m visitors a year.

The foreign exchange, job opportunity and associated service/building industry flow-on from this level of activity are substantial to say the least and could see up to one million additional Australians employed as a result of this level of inbound tourism.

 Shape up or Ship Out Dept:

If anybody had questioned the depth of change presently occurring within the Civil Aviation Authority, then they would have been left in no doubt if they had attended recent briefings by the new CAA chairman, Mr Dick Smith, to CAA employees.

In a tough talking session with Safety Regulation and Standards Development staff in Canberra, Dick said effectively that staff who could not support the CAA’s policies should find alternative employment.

“It is a time of major change within the Authority and the aviation industry,” he said. “As chairman I will be supporting and indeed placing pressure on management so the necessary changes are made as soon as, and as quickly as possible.

“My aim will be to improve the level of travelling safety by getting as many people in the air as possible. If you agree. . . I ask for your committed and loyal support. If you don’t, I request that you go and work somewhere else, because you won’t get any satisfaction here, and you will only undermine the rest of us. “