New Zealand News

A couple of years ago when Air New Zealand was cosily protected by the umbrella of Government ownership, such decisions would have been unheard of. All that changed, of course, last year when the airline was sold off to private enterprise, which is now understandably more interested in producing profits than maintaining a public service.

The airline has claimed that it can no longer afford to use its declining revenue from main trunk operations to subsidise the loss making provincial routes. Furthermore, it makes no secret of the fact that revenue is declining because of Ansett’s success in winning a much greater share of the domestic market.

Ansett has been making inroads into Air New Zealand’s traditional market since the introduction of its eight new BAe 146s last year. That swing in public support is worrying Air New Zealand which now seems to be finally accepting that Ansett is in this country to stay.

In a not too subtle move, the national carrier has draped much of the blame for the withdrawal of the Friendship fleet on to the shoulders of a Government destined to face voters in a few months. Old hands in the airline have, after all, never forgiven the Government for allowing Ansett into New Zealand’s skies.

About 100 pilots will lose their jobs and this, together with the airline’s bid to woo pilots to sign controversial contracts to fly the new 747-400s, has led to mounting tension which in several instances has boiled over to punch-ups and abuse. Geoff Ogilvie, of the Air Line Pilots’ Association, confirmed that the split had developed because the airline was laying off some pilots who had refused to sign the contract. In some instances junior pilots who have signed had been retained ahead of senior captains who had refused, he said.

The bitterness between the pilots was tense and frightening, he said, and added that slanging matches had boiled over into physical fights in a crew room and a public carpark. Both the company andALPA have issued directives that the issues should not be discussed during duty hours, but Mr Ogilvie said some pilots were refusing to speak to each other- an attitude which, he said, could jeopardise their ability to operate safely.

The airline’s first Boeing 747-400 flights are scheduled to commence in November after a delay of almost nine months caused by the failure to reach an agreement with the pilots. This forced the company to lease out its first 7 47-400 to Cathay Pacific.

Meanwhile, the airline’s shares have failed to perform as well as many people had hoped. Although they initially rose 25 cents above their issue price of 230 cents, they have in recent months slipped badly and at the time of writing – in mid August during the Iraq crisis – were down as low as 168 cents.

The company is now pinning a recovery on extended services, new destinations, and increased frequencies in its summer schedule (refer p. 53 Sept 90 AA).

TE To Switch to NZ

In another surprise move, the airline announced it would change its designator from ‘TE’ to ‘NZ’ for all flights from October 28. ‘NZ’ was the original designator of NAC (National Airways Corporation) and was retained for all domestic services after it merged with Air New Zealand in 1978.

‘TE’ goesback to the days when the national carrier was known as TEAL (Tasman Empire Airways Ltd). After the merger, the airline retained that designator for its international flights. Now it believes the change to ‘NZ’ will more readily identify its services in key overseas computer reservation systems.

Protests Over Fees

Twenty pilots and their aircraft from all over New Zealand descended upon Wellington in mid August as part of a mass protest over the Government’s new scale of airways charges. Bad weather prevented a larger turnout, but those who made it were briefed by officials of the Ministry of Transport and the Regulation Review select committee. The organiser of the protest, Greg Rabe, of Floatplane Air Services Ltd, of Rotorua, said the protesters would continue their peaceful opposition tactics.

The Government has also run foul of the major airlines who threatened to refuse to pay vastly increased fees for safety audits, surveillance, and air services certificates. The move has placed a huge loading on Air New Zealand, increasing its 1 98 9 costs for those fees from$500,000 to an estimated $7. 7 m this year. The cost of an airworthiness certificate for a 767 last year was$517. Now the Government wants an annual fee of$11,440.

A spokesman for the Ministry of Transport said the airliners would have to pay because “it is the law”. He said the Government had removed the aviation fuel tax last year, saving the industry$ 18 million. “We are recovering$14. 25 million,” he said. “Most operators will be better off. ”

By the end of the month most of the airlines had agreed to pay up, albeit grudgingly.