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Meanwhile, a dispute between air traffic controllers, who belong to the Civil Air Operations Officers Association (CAOOA), and flight service officers, members of the Professional Radio and Electronics Institute (PREI), threatens the success of the pro- posal. With the proposed system necessitating more use of radar, the two unions are disputing who should have control of the new equipment. The CAOOA, whose members already man radar for use in controlled air-space, claim that they should be given sole responsibility for its use. Flight service officers, on the other hand, insist they should be responsible for the new radar, rather than just using radio contact as at present. Meetings are scheduled to discuss the matter, the CAA being quietly confident that a compromise can reached.

Friends of Rac Nsw Reunion:

The Friends of the Royal Aero Club of NSW are holding a reunion dinner on 21st September 1990.

The reunion, which celebrates 70 years of continuous operation by the RAC NSW, Will be attended by many former club members, ex RAAF personnel and enthusiasts with a long time interest in aviation. Guest speakers will include Brian (‘Blackjack”) Walker and Nancy Bird-Walton. For further information contact Bob White on (02) 451 5380.

 Ansett Offers More Canberra/ Adelaide Services:

Ansett has introduced non stop Canberra/Adelaide services, aimed primarily at offering greater flexibility to business travellers.

Three non stop flights will operate each week on Wednesday, Thursday and Friday with each service providing connections with Perth flights. As of September 1 a direct Adelaide/Canberra service will be offered every day except Saturdays, with connections being available to Perth, Alice Springs and Darwin.

Business passengers are, as a result, being offered greater flexibility in travelling between Adelaide and the national capital, while leisure travellers may be attracted by the ability to now book flexi-fares on the route with a saving of up to 45%. The new services reflect the run up to deregulation with the two major established airlines offering more services and cheaper conditional fares to consolidate their market position against the spectre of increased competition.

 Higher Ksa Fee to Hit Country Flights:

The Federal Government has opted to introduce a new aircraft landing fee at KSA (expected to be about $200) to discourage regional airlines from using Sydney Airport during peak periods.

At present, only small private commuter aircraft pay extra for landing at KSA during peak hours (7. 30-10. 00am and 4. 00-6. 30pm) but this is to be extended to include all aircraft. The introduction early last year of fees for smaller aircraft effectively halved their share of airport traffic to just 5%, and the Federal Government expects the extension of the fee system will have a similar effect on the smaller regional airlines which utilise the airport, most notably Eastern and Hazelton.

The imposition of the fee is expected to raise the cost of tickets to regional centres by as much as 30%, making country trav ellers the real losers of the new measure. The bigger airlines will not really be affected by the new fee simply because of the scale of their operations.

 Us Defence Budget Battle Begins:

The US Senate Armed Services Committee’s budget plan has been released, effectively terminating some US defence projects and threatening others.

The $US289bn defence budget terminates 15 defence programs in addition to most of those previously axed by Defence Secretary, Dick Cheney. Terminated projects include the Milstar satellite (saving $US1. 06bn); Pen- tagon involvement in the National Aerospace Plane ($US158m); the USAF over-the-horizon/backscatter radar; the USAF’s Bigeye chemical bomb; and the Army’s ADATS air defence system. The USN’s A-12 attack aircraft and the MX missile have received no extra funding, while other development programs have had funding restricted.

$US2bn has been allocated to the purchase of two B-2 bombers for further testing, though additional funds have also been allocated to the test program itself; the V-22 Osprey, despite Dick Cheney’s intention to terminate the project altogether, has received $US238m for research and development, and industry sources expect production funding to be granted; the Army has been allocated $US261m for the Light Helicopter (LH) program, but must have a first flight before additional development funds are approved; the USAF has been granted SUS870m for testing of the two ATF pro- to type contenders; while procurement of the MOC C-17 has been deferred because of the development delays. The cutbacks were initiated just prior to the invasion of Kuwait.

Additional funds have been allocated to weapons upgrade programs, several of which may eventually curtail the development and acquisition of new types. $US100m has been allocated to protect the option of the F-15XX instead of the ATF; $US60m has been allocated to study AH-64 and OH-58 upgrades as an alternative to the LH; $US85m has been allocated to accelerate A-6 improvements; while $US10m goes towards developing a possible upgrade of existing C-130s to two crew C-130J standard. Additionally, funding has been approved for the acquisition of more F-18 and F-16C/D fighters, and the continuing Remanufacture of the F-14.

New Industrial Agreement for Ksa Controllers:

The CAA and air traffic controllers have negotiated a new industrial agreement to allow simultaneous operations at Sydney airport.

Under the new agreement, controllers at Sydney will be paid a special allowance for utilising new air traffic control procedures allowing more extensive simultaneous operations on the airport’s two runways. The new procedures, for a cost of $700,000 in extra wages, are expected to substantially increase KSA’s capacity and save the aviation industry up to $10m per year. Simultaneous bad weather operations on the two intersecting runways are now possible, with a 50% overall reduction in delays being expected.

The new simultaneous landing allowance applies only to Sydney controllers, and is just one of a number of schemes being implemented at Sydney to encourage senior controllers to remain at Sydney, and to act as an incentive for other air traffic controllers to seek transfer to the higher paying Sydney positions.

Lloyd Aviation Wins Bhp-Petroleum Contract:

Lloyd Aviation has been awarded a five year contract to fly BHP. Petroleum personnel from Darwin to Troughton Island and return.

Lloyd Aviation will utilise a Dash 8 series 100 on the daily service to Troughton Island, in the Timor Sea. It is expected that the 36 seat aircraft will carry in excess of 16,000 people and 100 tonnes of freight over the route each year. The awarding of this latest contract to Lloyd Aviation already the largest charter operator in the Northern Territory with over 30 staff-will be followed by a major upgrade of the company’s facilities, including a new passenger terminal and hangar at Darwin International Airport.

June Quarter Figures Reflect Softening Domestic Airline Market:

Figures released showing the June. quarter performance of Australian domestic airlines show a decline in demand for airline seating.

During the quarter, some 3,047,900 passengers were carried by the airlines, this figure being 96% of the figure for the June quarter last year and represents a 7. 9% increase over the March quarter when the airlines were still recovering from the pilots’ dispute. The airlines flew a total of 3,014m revenue kilometres, this being 96. 7% of the level for the same period last year and an increase of 6. 4% over the March quarter. Load factor was 69. 5%, this being slightly less than June 1989 which was 71. 1%.

Though the figures represent only a slight drop from the June quarter 1989, this cannot be attributed to the pilots’ dispute, but rather a “softening” in demand. as a result of the apparent slow down of the Australian economy. This conclusion is based on the fact that passenger demand during the March quarter was greater than in the previous year, but has since declined. Full data charts will appear in our next issue.

Australian Feels Effects of Softening Market:

Australian Airlines is offering two new 737-400s and possibly an A300B4 for dry lease, the result of the softening domestic airline market.

At presstime no firm deals had been struck, though it is not expected that the airline will have much difficulty finding a customer. The intention to lease out the aircraft comes as the result of an apparent drop in demand for domestic flights, Australian having experienced a 1. 8% passenger decline of late (as against an industry total of 4%), with first and business classes being most noticeably affected.

Australian already has one 737-300 dry leased to InterEuropean. It is at this stage retaining the less fuel efficient 727s, though may need to consider further leases or sales with seven more 737-400s to be delivered by December 1991.

UK Defence Cuts:

The defence cuts to hit the UK armed forces have now been made more specific, with reductions in aircraft and the phasing out of some types.

With two of the four RAF Germany bases being closed, six of the 15 squadrons based in West Germany will be withdrawn and possibly disbanded. In line with this, RAF personnel numbers will be slimmed down during the mid-1990s from about 89,000 to 75,000. The RAF’s force of Buccaneers (two squadrons of maritime strike/attack aircraft plus an Operational Conversion Unit) will be withdrawn from service and replaced by Tornados made redundant by the German reductions; RAF Phantoms (two UK based squadrons, two West German based squadrons plus a Falklands based flight) will be withdrawn from service; the Nimrod anti- submarine fleet will be reduced slightly.

No timetable has been set for the force reductions or the savings intended to be made, though a 25% across the services saving in line with the US Department of Defence is expected. The withdrawal of the aging Phantom force is not considered too drastic; the aircraft was subjected to g-limitations recently to extend airframe life and in any case is due for replacement by the European Fighter Aircraft (EFA) from 1996, providing that long stalled project ever reaches a go-ahead. The UK Defence secretary, Mr Tom King, has however expressed support for the continued development and entry into service of the four nation EFA. The defence cuts were announced just prior to the Iraqi invasion of Kuwait.

Qantas Avoids Middle East Routes:

Qantas has opted to re-route five of its Australia/Europe services because of the Middle East crisis.

Taking a cautious approach to the situation, Qantas elected to avoid Saudi and Iraqi airspace and re-route the affected flights over Russia and, for the first time in a decade, northern Iran. Services to Bahrain have been halted, though this only affected a couple of Qantas flights and the airline was due to drop the port later this year anyway.

The re-routing of flights has necessitated the moving of staff from Singapore to Bangkok, where more flights must now land so as to be able to have the range to fly over the longer non stop northern routes to Europe.

The Middle East crisis has affected not only the Qantas route structure. Mr John Ward, Qantas Chief Executive, has estimated that the Qantas fuel bill for this financial year will now be $100m more than expected, this primarily being the result of the crisis induced fuel cost hike. Additional costs will be incurred by the re-routing of aircraft, such as that of moving staff to Bangkok and the cost of longer flights. The costs are expected to flow on to passengers with an expected 5% increase in ticket prices across the board.

Airport Ownership Plan Under Cloud:

The future of the Airport Local Ownership Plan (ALOP) appears to be under review by the Federal government and could fold on some lesser used country airports due to financial belt tightening.

Informed sources in the Federal Labor camp have confirmed the ALOP is being looked at closely by the Department of Transport, which it’s believed is drawing up a hit list. In short the ALOP was introduced in the 1950s when the Commonwealth started opting out of completely funding aero-dromes. If put forward that it would half-fund local shires and municipalities on an airport’s upkeep, with the Commonwealth supplying it’s share from a tax on aircraft fuel.

What’s immediately of apparent concern is that fuel tax taken from Avgas will be siphoned off into consolidated revenue, similar to the road fuel tax where the Federal government is collecting almost 30c a litre and putting back only 5c of that into roads.

The jigsaw becomes more apparent when the agenda of the 9th annual general meeting of the Australian Airport Owners Association is studied. First Assistant Secretary of the Domestic Aviation Division with Transport and Communications, David Buckingham, will be addressing the Port Augusta meeting. on September 6.

The title of his address to what will be a majority of local government airport owners, is titled “Challenges for the 1990s. The Future of the ALOP” Immediately following the AAOA conference is being addressed by Mr Ken Barnes from Avdata services in Canberra.

Avdata has just written to many councils throughout the country suggesting a way of collecting landing fees. Avdata collects information from lodged flight plans, sends the name of the owner of the aircraft to the applicable council telling it the plane was logged to land at its airport. The council then bills the owner.

Simple enough. However, it is hoped that this is not a way for the Commonwealth to simply opt out of its contractual agreement with councils on the ALOP. Councils hard up for money have been known to have been dazzled by the promise of dollars before their eyes.

It’s hoped they’re not blinded by the light. (Halden Boyd)

 Adf Helicopter Update:

Reassuring statements were made by the Minister for Defence, Senator Robert Ray, during early August that the Government was keen to keep between four and six Chinook heavy lift helicopters.

At presstime the matter was to be debated within the Defence Procurement Management Committee (DPMC) by late August, though this was expected to be slowed by constant delays within the Acquisition and Logistics branch of Defence which are tasked with defining a value and selling the 11 Chinooks. DPMC cannot make a firm decision on the helos fate till the full value of the aircraft is properly estimated by A&L, something that defence observers claim could take months.

Meanwhile, the RAN has given up its hope of acquiring a number of ex-RAAF UH-1H Iroquois as there is apparently insufficient funding to obtain and operate the type, which was slated to replace some of the lost ship to ship lift capability formerly provided by the Westland Wessex. Of the remaining 29 Iroquois, four have gone to Nuigini (with another four likely) while the Army will receive the remainder as utility/recce helos with four configured for gunship duties.

Second Raaf Hornet Lost:

August 2 saw the loss of Australia’s second F-18 Hornet fighter (A21-42) when two of the Tin- dal based 75 Squadron aircraft collided during air combat manoeuvring exercises about 30 kilometres west of the base.

One aircraft recovered safely to Tindal with part of its outer wing missing, while the other aircraft crashed. It is believed the pilot, Wng Cmdr Ross Fox, CO of 75 Sqn, was killed on impact in the initial collision.

Wing Cmdr Fox was one of the most popular and proficient airmen in the RAAF and was a credit to the services and Australia in general. It is perhaps ironic, though a fitting. tribute, that it is he who is flying the Hornet in our May issue colour spread with the Sukhoi Su-27. To his family and friends we offer our sincerest condolences.