Issue 59: August 1990

ASTA Acquires Avalon Airfield:

Aerospace Technologies of Australia (ASTA) has acquired a 99 year lease on Avalon airfield for $70m.

Avalon airfield, located about 50km south west of Melbourne, is currently used by ASTA Military Aircraft Services, ASTA Aircraft Services and ASTA General Aviation, as well as Qantas and domestic airlines who utilise the airfield for training purposes.

With commercial control of the airfield, ASTA plans to further develop Avalon by not only maintaining the current manufacturing and maintenance facilities, but also developing an education, training and research centre, airfreight and eventually passenger terminals, new aircraft repair and maintenance facilities, and industrial and technology parks.

The ultimate aim is to have Avalon developed into the aerospace centre of the Australasian region. Besides centring manufacturing and maintenance facilities at the airfield, the well located airfield will ultimately be developed into Melbourne’s second major national airport.

While there are no immediate plans to operate RPT jets out of Avalon, it is interesting to note that several years ago East-West Airlines was hoping to develop the Lovely Banks aerodrome near Geelong to serve just that purpose. EWA is now concentrating on its major leisure market destinations, though it would not be surprising to see Ansett NSW operating F288 out of Avalon within the next two years in support of direct jet services to Sydney, Hobart, Brisbane, Coolangatta and Adelaide. The population basin within the Geelong region is not only very large in itself but a jet RPT operation from Avalon could also attract much of the interstate market

from western Victoria who presently have to drive to Tullamarine.

Also announced during the reporting period was the not unexpected news that 49% of ASTA’s successful airliner servicing division, ASTAAS, is up for sale. At presstime there were believed to be two local and four international companies evaluating the proposal. Sale of a large, though minority. Shareholding in ASTAAS would provide a cashflow boost for ASTA at a time when its expected long-term workload is beginning to run down owing to the cessation of the F-18 Homet programme along with the soon to end Seahawk assembly project.

Staggered Departures From Ksa Likely:

The CAA and airline representatives have met to form a committee in order that a staggered departures system can be implemented at KSA.

Following the successful staggered departures experiment at KSA on Easter Thursday this year (refer p. 6 June 90 AA). during which time 160 extra takeoffs and landings were performed but with an average delay for incoming flights of just five minutes (on the preceding two days it had been 16 minutes and 13 minutes respectively), it has been decided to implement a permanent staggered departures system at Sydney.

Such a system is long overdue, having already successfully been implemented in Europe, in North America and at locations throughout Asia. The reluctance of the big- ger domestic airlines to change their time-tables, which more often than not clash, so that several flights are scheduled to depart at the same time causing delays, has long stopped the system from being implemented in Australia. However, with the worsening delay problems at KSA which ripple through an airline’s entire route network and the

costs these now incur, co-operation is expected.

According to the CAA, if the Easter experi- ment is any real indication, staggered departure times could reduce the average flight delay by up to 70%. Despite past claims by airlines that staggered departures would not work because passengers like to leave on the hour or half hour, such a huge cut in delay times would no doubt be welcomed by passengers and crews alike.

 Watchdog Committee to Keep Eye on Deregulated Airlines:

A watchdog committee has been set up to protect airline travellers and tourist businesses from any decline in airline services as a result of deregulation.

The committee, set up by the Australian Tourism Industry Association (ATIA), has already obtained an agreement for cooperation from the major domestic airlines; a separate agreement will be made with regional carriers for the provision of information. The airlines will provide flight and passenger information such as frequency of flights, passenger loads, fares and ticketing information so that the ATIA can monitor the progress of deregulation in Australia. The watchdog committee will meet in Canberra every three months to consider whether deregulation is working and whether it really is in the best interests of both consumers and operators. It will consult also with passengers, airlines and government to find solutions to problems that may occur as a result the deregulated market.

One area of concern to be tackled by the committee is whether increased competition on prime routes (such as Melbourne/ Sydney and Sydney/Brisbane) will be to the detriment of services to country areas. For example, the possibility that fare cuts and discounts on the prime routes will affect the ability of airlines to viably continue services on more marginal regional routes.

 Brisbane Airport Is Australia’s Fastest Growing Airport:

According to a report prepared by the Federal Airports Corporation (FAC), Brisbane Airport has the fastest growth rate for passenger numbers in Australia.

The report, the ‘Forecast of International and Domestic Airline Traffic’, prepared jointly by British Airports Services and Australian Economic Advisers, predicts that by 2010 the airport will surpass Melboume to become Australia’s second busiest airport, after KSA of course. It predicts that the number of international passengers transiting Brisbane will increase by almost 8% per year over the next 20 years, compared with 5% for Melbourne or Sydney.

It is predicted that Brisbane will still be the third busiest international airport in the year 2000 (3. 6m international passengers compared with Melbourne’s 5. 2m and Sydney’s 11m) but should move into second place (where it will remain) during the following decade.

 Ansett Not Part of Polynesian Trans Tasman Deal:

The New Zealand Government has dismissed claims that Ansett is gaining back door entry to the trans-Tasman route via Polynesian Airlines.

The Ansett managed Polynesian Airlines recently gained Australian and New Zealand approval to operate one Boeing 727 return flight per week between Auckland and Syd- ney. This was part of a New Zealand backed deal allowing both Polynesian Airlines and Air New Zealand to expand their number of Apia/Auckland flights, and allows Polynesian to fly Apia/Auckland/Sydney, a more direct route than the previous Apia/Noumea/ Sydney.

Suggestions that Ansett is using Polynesian Airlines as a means of gaining access to trans Tasman flights have been refuted by the NZ Minister for Transport, Mr Bill Jeffries, who pointed out that the airline’s once weekly trans Tasman flight “hardly gives Ansett back door access to a route already serviced by 20 other flights a week from airlines including Qantas, Continental and United. ”

US Majors Suffer Massive Losses:

For the third quarter in a row, the US airline industry has suffered staggering financial losses after interest charges are taken into account, according to Avmark.

The 1990 First Quarter showed a combined loss for the 11 US majors of $US1,018. 4m, with all but Delta reporting negative results at operating level after interest. The combined loss compares with the $US235m loss experienced last year. Higher fuel costs have received the major proportion of blame for the current huge losses, though a noticeable drop in efficiency and weaker yields also played some part. The huge loss is in direct contrast to what is proving to be a boom time for most international carriers.