In Australian Service-Boeing 737 Pt II

TAA’s decision was the culmination of four years of deliberations and represented a major step forward from the Douglas DC-9s which the Boeing 737-300s would replace. Interestingly enough, when TA A first considered the 737-300 they thought it was too big at 120 passengers in a three class configuration. They approached Boeing to develop another model, which was referred to within TA A as the 737-250. It would have had a fuselage about two rows shorter than the 737-300 taking it back to about 114 seats. However Boeing resisted TAA’s request for a 737-250 and the airline then settled for the 737-300, but with some changes.

The TA A engineering section worked closely with Boeing on improvements which were first incorporated in the TA A aircraft. When TA A first approached Boeing about the 737-300, Boeing wanted to retain the conventional flight deck instrumentation as they felt it would blend in better for operators with existing 737-200s for standardisation purposes. However TA A wanted Boeing to go the other way and incorporate CRT equipment. TA A personnel visited Boeing during February 1985 to discuss improvements to the instrument display and navigation facilities which were a condition of a TA A purchase. When the changes were agreed to, TA A became the launch customer for the improved 737-300 version with Rockwell Collins supplied CRTs. In addition, their aircraft would also include a windshear guidance and alerting system and dual alternative navigational systems.

On a seat/kilometre basis, the Boeing 737 is 35% more fuel efficient than their existing DC-9s and Boeing 727-200s and it has the ability to fly Sydney/Perth direct in all headwind components. The 737-300s would be delivered in a cabin design based on the 757 and have a 112 passenger three class layout. The dedicated first class section would typically comprise 16 seats in four rows, and while business and economy classes have similar seats, they differ cosmetically and have 35″ and 33″ pitches respectively.

The 14 month time interval that elapsed from the placement of TAA’s 737-300 order and the delivery of the first aircraft placed big demands on the airline. A major effort was mounted which included the visits of over 100 TA A engineering staff to Seattle for periods ranging from one to six weeks. In addition, flight crew were also trained in the US A pending the delivery of TAA’s new flight simulator in October 1986. Amongst the spares backing to support the 737-300s were five complete engines plus another three retained in modular form.

Ansett was no doubt considering the purchase of the 737-300, but the combination of TAA’s order and imminent loss of investment allowance provisions put them in the position of placing an order for the 737-300 fleet somewhat earlier than would normally be expected. Their 112 passenger 737-300s differed from TAA’s in that they were to be delivered in a two class configuration.

The first Boeing 737-376 for Australian Airlines was VH-TAF which had its first flight at Renton on 16 April 1986 still finished in primer. After testing it was painted and handed over at Seattle on 8 June 1986. This was the first public appearance of the new colour scheme and livery devised to spearhead the change in corporate identity from Trans Australia Airlines to Australian Airlines. After the handing over ceremony, VH-TAF was then handed back to Boeing and used to test new EFIS and windshear systems as N3281U. The first Australian Airlines Boeing 737-376 to reach Australia was VH-TAG which arrived at Sydney en route to Melbourne, on 4 August 1986 after a flight from Seattle via Oakland/Hilz/Pago Pago and Noumea. This aircraft inaugurated Boeing 737-300 services in Australia on 20 August when it flew from Melbourne to Sydney. The first Ansett 737-377 to arrive in Australia was VH-CZA which landed at Melbourne on 25 August. It entered service on 25 September.

As the Ansett 737-377s arrived the 737-277s were withdrawn from use. The first of these was VH-CZX which operated its last Ansett flight on 15 September and when it departed for the US A four days later, had accumulated a total of 10,000 hours. Deliveries of the Ansett 737-377s was rapid and bythe end of January 1987 all 12 aircraft had arrived. This led to the equally speedy disposal of the 737-277s and the final Ansett service of the type was operated by VH-CZR on 1 February 1987. The highest time on any of the Ansett 737-277s was 12,700 hours on VH-CZN. Deliveries of the Australian 737-376s were slightly more spread out and the final aircraft to arrive were VH-TAYand VH-TAZ which both reached Melbourne on 26 June 1987. They took a different route from the others by flying to Melbourne from Seattle via Honolulu, Majuro and Townsville.

Follow up orders for additional 737-300s were placed by both Ansett and Australian Airlines. When Australian Airlines announced the deferment of their Airbus A320 order in September 1987, they stated that they had ordered a further four 737-376s which were destined to replace their five remaining DC-9s. Ansett also were to receive a further four 737-377s and these were par t of an order for 16 737-300s placed by Ansett Worldwide Aviation services. All these aircraft were delivered between October 1988 and August 1989.

The most recent order for Boeing 737s was announced by Australian Airlines on 28 July 1988. The airline’s Chairman Mr A E Harris said that an order had been placed for nine 737-400s, for delivery during 1990 and 1991 to cover growth and replace their Boeing 727-200s. Mr Harris also said that Australian held options for a further five 737-400s for 1992 delivery. Repeating a familiar theme, the airline also referred to the high degree of commonality between the 737-376 and 737-476.

The direction Australian Airlines is taking with the Boeing 737 seems to confirm their current thinking that the smaller jet airliners are best for the Australian environment. By the end of next year they will have a total of 25 Boeing 737s in service and this will ultimately increase to 30 if the 737-400 options are exercised. The only other jet airliner which Australian will operate by the end of 1992 are their four Airbus A300s. The other type which is a possibility to enter the fleet at some time in the future is the Airbus A321. The A320 order for nine aircraft was deferred in October 1987 and is due to be reviewed in mid 1992 while the previous orders will be converted to the A321 or larger Airbus types depending on market perceptions at the time.

It must be said, however, that when Australian Airlines made their confident predictions about the 25 or 30 Boeing 737s in their fleet, they could not have imagined in their wildest dreams the rapid deterioration in their fortunes which would occur . in the final half of 1989. How long it will take for domestic services to recover and resume some evidence of growth is difficult to predict. For these reasons it would not be surprising to see some of their existing equipment, or possibly even some of the new 737-400s, chartered to other airlines until all their aircraft can be fully utilised.

The two airlines have been recently joined by Elders IXL as Australian operators of the Boeing 737. This corporate Boeing 737-33A, which carries US registration N7311XL, arrived in Melbourne on 23 December 1989 after a flight from Singapore.

The 1990s will be a much more volatile time for both airlines than any other period in which they have operated. Apart from the ramifications of deregulation, the fallout from the pilots’ dispute may be long lasting. Already we have seen some of the potential effects of this crippling dispute as they impinge on future fleet planning. During October 1989, three Ansett Boeing 737-377s, VH-CZM, VH-CZO and VH-CZP departed for the US A to join the America West fleet to compensate for three of that airlines’ 737s which were sent to Australia for varying periods. Because of the drastic decline in airline traffic, the return of these aircraft may be delayed significantly if the hoped for recovery is a long way off. When you couple the potential aftermath of deregulation with the pilots’ dispute and the talk of a recession, you don’t have a positive formula for airline growth in the early 1990s. This rather bleak outlook would seem potentially more difficult than the early 1980s, which in themselves were very testing.

This may all sound unduly pessimistic, but what should be remembered is that ebbs and flows in the fortunes of the airlines have surfaced many times in the past and undoubtedly will dO so· in the future. Fortunately, in Ansett Airlines and Australian Airlines, wehave two ofthe most skilled and highly regarded operators in the world.

You can be sure that they will both be more mindful of overheads than ever before and that operating costs will be stringently monitored. This is where the Boeing 737 fleet of both Ansett and Australian will play a decisive role over the next few years. The Boeing 737-300 with its superior operating cost characteristics has long been acknowledged as an industry standard, even by other manufacturers; the 737-400 will add further to this reputation. All in all, the whole 737 fleet will play a decisive role for the Australian airline industry in the years ahead.