Airline Affairs

Besides cutting staff numbers, the airline has also announced a reduction in flying hours (depending on seat demand) from 202,000 flying hours in 1990/91 to 173,000. It has also brought forward the sale of five older 7478, so that nine will now be sold during the next 18 months, effectively eliminating all of the early series P&W powered 747-2008.

Also announced in late November were Qantas’s financial results for the 1989/90 financial year. A consolidated net profit of $12. 1m was recorded, down from the previous year’s $176. 8m. The profitable result was only recorded due to 747 sale and lease back transactions which netted $107. 3m and a $30m tax benefit. Without this, normal group operations recorded a loss of $125. 2m. The airline’s results had been seriously affected by the pilots’ dispute, which significantly reduced inbound tourist numbers and slashed $165m from pre-tax operating profit. The annual report showed that the number of passengers carried during the year rose by 5. 8% to 4. 23m and revenue rose from $3. 27bn to $3. 61bn, though expenditure also jumped from $3. 09bn to $3. 72bn. No dividend payment on the final result was recommended.

The Perfect European Airspace System?:

With Europe moving towards greater economic and political cooperation, Avmark has come up with a “division of labour in the airline industry geared to take the greatest advantage of national specialties”.

At Avmark’s imaginary airline, Air Harminious, it is anticipated that “the Swiss will provide the pilots; the Germans the mechanics; the English, airport security; the French, flight attendants; the Italians, the inflight meals; the Dutch, the schedulers; the Scandinavians, the air traffic controllers; the Belgians the accountants; the Spaniards the wine stewards; and the Russians, the ground handlers. The Japanese and the Americans will be the tourists.

“In truth, what will probably happen is that the Spaniards will be the pilots, the English will prepare the inflight meals, the French will be the air traffic controllers, the Scandinavians will be the wine stewards, the Italians will be the schedulers, the Germans will provide airport security, the flight attendants will be Belgian and Swiss and the Russians will be the cabin designers. The Japanese and the Americans will still be the tourists. ” Just so long as the English don’t supply the beer and the Palestinians the inflight entertainment!

International Charters Made Easier:

The Federal Government has made it easier for charter flights into or out of Australia to be arranged.

The official guidelines now require automatic approval for affinity groups, own-use charters and one-off flights, and programs of up to 25 flights, as long as certain conditions are met; applications by scheduled carriers already operating into Australia will not be automatically approved. Amongst the conditions for qualifying for automatic approval, is that charter operators must ensure that all passengers purchase an accommodation package which covers at least half their timel in Australia.

The new guidelines are expected to make charter flight arrangements easier, though because of strong Qantas opposition it remains unlikely that the Australian charter market will be freed up. At present just 0. 5% of total capacity into and out of Australia is accounted for by charter flights.

Meanwhile, it has been reported that Euro- pean charter operators have had their Asian holiday market drastically hit by the Gulf crisis. Because operators rarely operate long range aircraft such as 747s on the flights, their aircraft are forced to make one or two refuelling stops en route to Asia, at least one usually being in the Middle East. Not unnaturally, many potential passengers have not found this a desirable option.

Tpc Safeguards Passengers’ Interests:

According to chairman Prof Bob Baxt, the Trade Practices Commission (TPC) will maintain a close scrutiny of the fate of consumers in the now deregulated airline industry.

Prof Baxt stated that the TPC would act to counter anti-competitive activities and breaches of the Trade Practices Act; the commission is seeking extra powers and a boost in penalties to enable it to deal effectively with unfair trading which compromises consumers’ interests. It is considered that the recently deregulated airline industry is an area in which stronger TPC powers could prove beneficial to ensure that the competition remains “fair but vigourous”.

Prof Baxt stated that while the TPC “does not expect deregulation to generate unfair or misleading practices, the increased complexity of the market might create some problems for consumers”. The commission wants to ensure that passengers have adequate information when choosing their flights. The need for this has already been shown with consumers not yet realising the requirements for obtaining a discounted fare, so complaining that these are either too difficult to obtain or not available.

$us2bn Airlines Loss Predicted:

The International Air Transport Association (IATA) has predicted that its member airlines will make a combined 1990 financial loss of up to $US2bn.

The prediction was made by IATA director general, Gunter Eser, during the annual general meeting at Geneva in late October. The $US2bn loss figure contrasts with the 1989 $US1. 2bn net profit (adjusted to include 16 new members’ financial results for that year). It was noted that although poor yield was experienced during the first half of 1990, it had been predicted to improve but unfortunately the Gulf crisis intervened. The resulting trebling of fuel costs has hit airlines hard, and although at presstime fuel prices have since fallen, the 5-8% fare increases did not in themselves cover cost increases for the period.

Further, it is also predicted that traffic growth rates will reduce in coming months and yields will drop, while the very profitable business traffic sector is expected to suffer markedly. Airlines will now be under added pressure to cut operating costs and improve efficiency, many already off-loading older and less efficient aircraft, ceasing to recruit new staff or as a worst case laying off staff.

 Airport Security “Inadequate”:

A Federal parliamentary committee has concluded that airport security in Australia is inadequate and thorough checks on all airline and airport personnel should be conducted.

One of the committee’s main concerns was that unchecked employees of Australian airlines and airports could pose a serious terrorist or drug smuggling threat. The committee noted that a large number of cleaners, builders and contract staff often have ready access to classified security areas such as baggage handling facilities and the tarmac, yet they are not usually subjected to background security checks. Add to this the fact that there remain five authorities responsible for issuing security passes (there were 350) and the committee believes it has cause for serious concern. It has been recommended that there be just one authority responsible for issuing security passes, and that employees be subjected to more rigourous security checks.

Meanwhile, the FAC has been criticised for not informing the committee of a privately commissioned report that warns that Australia could be the target of terrorist attack. The FAC has been called to give evidence for the second report due next year.

Iata Calls for Lower Fuel Prices:

International Air Transport Association (IATA) member airlines have deplored the recent dramatic jet fuel price increases and have called for the fuel price to be lowered.

At the IATA Fuel Trade Forum on the 16-18 October, airlines expressed their concern that despite the fact that there is no shortfall in the supply of crude oil, speculation surrounding the Gulf crisis has doubled oil prices since July and tripled the price of jet fuel. In the US, jet fuel has risen by more than 70% against increases of only 50% for heating oil and 40% for car fuel. This has had a major impact on the cost of air transport and the level of passenger fares and cargo rates which have had to be charged to the travelling public.

IATA states that there “is no underlying justification for the excessive increase in jet fuel prices which appear to have been the object of an excessive degree of speculation without due consideration for the economic impact on the airline industry. The IATA airlines urge the oil industry to seriously consider their responsibilities to the airline industry and the public by ceasing to take excessive profits on jet fuel. . . ”

Qantas to Increase Fares:

Qantas has announced plans to increase passenger fares by about 8% to meet fuel cost increases triggered by the Gulf crisis.

The Qantas move is in line with the world’s major airlines, who met in Geneva during early November to discuss the effects of the Gulf crisis on the airline industry; it was agreed to raise fares by 4-8% and cargo charges by 3-7%. The International Air Transport Association stated that the industry-wide fare increases, subject to approval from governments, would be in force by mid December. According to a Qantas spokesman, fares to and from Australia would increase by about 8% systemwide, effective December 10.

Both Ansett and Australian raised their baseline fares by 7. 5% on November 1 to cope with rising fuel costs.

Gulf Air Connects Sydney/ Bahrain:

Gulf Air has commenced twice weekly Sydney/Singapore/Bahrain services, connecting the Australasian and Middle East markets.

Since the Gulf crisis began, Middle East services have suffered drastic cuts, Qantas pulling out of its Middle East routes within days of the invasion of Kuwait and several other airlines soon following suit. Gulf Air has therefore been able to move in where other airlines left off, with Bahrain bound 767-300ER flights departing Sydney every Tuesday and Saturday evening. The airline reportedly offers excellent inflight services, and with the withdrawal of most competition on its route should prove quite popular with Middle East bound travellers.

BA Offers New Economy Class Service:

Having already successfully concentrated on improving its first and business travellers’ inflight services, British Airways is now gearing up for its new economy class service.

Called World Traveller on long haul routes and Euro Traveller on shorthaul, intra-European routes, the new class will be introduced from mid January 1991. Modelled on BA’s highly successful business class Club World concept, the new service offers more comfortable seating, improved catering, a new range of inflight entertainment and ‘friend lier’ service. It is a timely move given the IATA prediction that economy travel will again grow in importance to airlines with a predicted drop in business travel. Economy passengers presently form 74% of BA’s passengers and generate 55% of its revenue.

 Lismore Strengthened:

Amidst a hail of opposition from some quarters of the local community. Lismore Council in northern New South Wales has gone ahead strengthening the runway at its airport.

RWY 15-33, some 1,257 metres long, has been strengthened to take Eastern Airlines Dash-8-1028 proposed to run on a direct Sydney schedule three times a day. The runway, while not being extended, is being strengthened to take the larger Dash-8-300 Series weighing in at just under 20,000kg.

Lismore Council says it will extend the strip for the 300 Series when it’s warranted, and the idea in strengthening the existing runway is so it won’t have to be done again i larger aircraft use the facility. The runway has been ripped up and 4 percent concrete has been added to form the base. On top of this goes concrete and this will be covered in asphalt.

One item that was expected to be rectified with the upgrade was the burying of high voltage lines to the north of the field.

Although not in the approach angle, their presence has been a mindful addendum to enroute supplements. Lismore Council. however agrees that if the strip in the future is lengthened the powerlines will have to go underground. Work on the airport was expected to be finished by early December, costing just under $1 million. (Halden Boyd)

Compass Offers Free Child Flights:

Compass Airlines is now offering free flights for children travelling in family groups.

The latest Compass offer applies to children and teenagers – up to the age of 19!- travelling with both parents on its Sydney. Melbourne and Brisbane legs. It applies to just one child, though additional children in the family group will be entitled to fly at half price. The offer is the latest in a series of announced discounts and incentives aimed at enabling Compass to cut into the Ansett. and Australian markets. With a 9% commission for travel agents, and discounted travel for passengers on all its routes without the restrictions imposed on ‘specials” by the two major domestics, Compass will no doubt prove a very attractive option to travellers.

Singapore Voted World’s Best:

For the third year running. Singapore Airlines has been voted the best airline in the world in the annual Conde Nast Magazine Readers’ Choice Poll.

The poll surveyed 150,000 readers and

rated carriers on a number of criteria which included scheduling, punctuality, service, food and baggage handling. The top ten airlines (in order) were Singapore, Swissair, Qantas, Lufthansa, Thai, Cathay Pacific, JAL, Air New Zealand, KLM and SAS.

Afap Seeking Fly-By-Night Loading:

The Australian Federation of Air Pilots (AFAP) is back doing what it does best (or worst!)-calling for more pay.

The union is seeking a 33% loading for flying at night. It contends, quite rightly, that deregulation will lead to more night flights and so has lodged a claim for a 33% loading for operating flights between 6pm and 6am. This call for a night pay loading is certainly not unique, most unions having some loading for members working night shifts. However, given the disaster of the pilots’ dispute and the still strained relations between the AFAP on one hand and the airlines’ management and the government on the other, the success or lack thereof of this latest call will be interesting to see. Besides that, the airlines no longer employ any AFAP pilots anyway!

Australian Flies to Yulara:

Australian Airlines will introduce scheduled flights to Yulara, near Ayers Rock, from March 1991.

The airline will initially operate four flights per week from Sydney to Yulara, via Alice Springs where they will connect with Adelaide and Cairns flights. Daily services will be introduced for the peak season in July. The flights will be operated by 114 seat Boeing 737-300s, the largest type to operate into Yulara. According to Australian’s General Manager for Marketing and Public Affairs, Mr Geoff Dixon, Yulara represents a significant addition to the airline’s network. Ayers Rock and the Olgas are very important tourist attractions and the flights will enable the airline to at last offer competitive package deals to Yulara and better market the region to overseas markets.

AA comment: AA had the good fortune to be able to visit Yulara during late October. It is indeed difficult to think up enough superlatives to properly describe the incredible natural beauty and charm of this region. If you are fed up with surviving those concrete jungles we nowadays inhabit then head for the outback, its well worth it. It is indeed good to see Yulara now getting the level of jet services that it deserves. Australian’s 7378 will no doubt be inevitably followed by those of Ansett Australia in addition to existing services of Ansett WA & NT while Eastwest began 146 operations into the port on November 1.

Previously the strip was limited to F288 due to the non presence of a control tower. CAA and its predecessors had decreed that anything bigger than a Fellowship required a fully manned control tower. On becoming chairman, Dick Smith logically asked the powers-that-be “why is this so”, considering that the aircraft doesn’t know how big it is. The regulations were thus changed to conform with accepted overseas practice to allow jet RPT aircraft limited only by normal operational constraints of Yulara’s 2,000m strip. From the people of Yulara and the Australian tourism industry, thanks Dick.

More Pan American Assets Sold:

Pan American is continuing its carve-up of prime assets, the latest plan involving the sale of its transatlantic London Heathrow routes to United Airlines for SUS-400m.

The sale of PanAm’s London Heathrow routes will coincide with the sale of at least two 747-200s and its San Francisco International Airport base for an additional $110m (also to United). Sales of its Washington Dulles Airport base and its Dulles/Paris routes are also distinct possibilities. This is just the latest round in a long series of major asset sales by the debt-ridden PanAm. Since the early 1980s the airline has also disposed of the lease on its headquarters building, the Intercontinental hotel group, its Pacific network (also to United) and, most recently, its internal German services (to Lufthansa). Sale of the transatlantic London routes still needs the approval of the US Dept of Transportation and the Dept of Justice, as well as the relevant UK authorities.

The transatlantic sale would, if approved, give United rights to fly between London Heathrow and New York, San Francisco, Washington, Los Angeles and Seattle. PanAm will continue to fly between London and Detroit and Miami, Miami now being the major PanAm hub for its South American services.

Anz Expands Network Alliances:

Air New Zealand (ANZ) has effectively increased its marketing power with its latest move into south east Asia and its third airline alliance signed in recent weeks. ANZ has commenced twice weekly services to Bangkok, a vital centre in the increasingly important Asian market. ANZ’s Pass- enger Sales and Marketing Manager, Mr Tony Marks, said that the new service recognises the increased interest in Thailand as an exotic destination for both outbound New Zealanders and inbound North American and European passengers. There is reportedly also a growing market of Thais wishing to travel to New Zealand and the south Pacific. The airline hopes also to make use of Thailand’s significant air links with Europe, which makes it strategically important in attracting travellers from the northern hemisphere to the south Pacific. Bangkok is the third south east Asian destination added to ANZ’s network this year, the others being Kuala Lumpur and Bali.

Meanwhile, ANZ has joined forces with Scandinavian Airlines System (SAS) in a new marketing alliance aimed at boosting inbound NZ tourism. The ANZ/SAS alliance commits the two carriers to feeding traffic to each other at the shared gateways of Bangkok, Singapore, Tokyo and Los Angeles, effectively channelling passengers into the region from the lucrative Scandinavian market. This is the third such marketing agreement ANZ has signed with northern hemisphere airlines this year. Similar arrangements with British Airways and Canadian Airlines access the important European and Canadian markets.

 Air Pacific Growing in Strength:

Air Pacific is now the major capacity carrier between Fiji and other destinations around the Pacific, which include Fiji’s important Australian, New Zealand and Japanese markets.

The airline’s Boeing 747 is utilised on Syd- ney/Nadi and Tokyo/Nadi services, while the smaller 767 twinjet is used to connect Nadi with Melbourne, Brisbane and Auckland. An additional 767 is scheduled for delivery in 1994, while a recently signed 767-300ER contract will see a third 767 delivered in 1996. Air Pacific also operates a small fleet of ATR428 to a number of regional South Pacific tourist destinations.

The airline this year announced a record 1989/90 pre-tax profit of $F17. 5m ($14. 9m) with a very high return on revenue of 12%.

 Tackling Congestion at Ksa:

Travellers transiting Sydney Airport have the opportunity to see how the Civil Aviation Authority (CAA) is cutting airline delays.

In a timely public relations exercise, the CAA has opened three special displays at vantage points in the departures level of the international terminal and on the ground floors of the two domestic terminals. CAA CEO, Mr Collin Freeland, said that the displays would show how the Authority was tackling the problem of Sydney Airport’s capacity limitations. The display comes at a time when CAA/FAC/industry incentives are at last beginning to noticeably increase efficiency at the airport. For instance, capacity is up from 47 to 51 movements per hour while average arrival delays have been cut from 5. 6 minutes to just 2 minutes.

Initiatives to be explained in the display include simultaneous operations on the two runways, in which (in favourable conditions) the main and cross runways can be used at the one time, without any reduction in safety. Another important new initiative is flow management, whereby airlines are rescheduling flights so that they arrive more evenly (instead of in bunches) or delaying Sydney bound flights (if given sufficient warning) when strong southerly winds and/or low cloud around KSA are such that the aircraft could be expected to be placed in long, congestion induced holding patterns.

Major Air Freight Centre Plan for Canberra:

The Federal Airports Corporation hopes to make Canberra a major national and international air freight centre for the Pacific region.

According to Canberra Airport general manager, Mr John Milton, the FAC will soon be seeking expressions of interest from the airline and freight industries for the establishment of a large freight centre. About 40ha of FAC owned land has been set aside for the proposed freight facilities, while adjacent private rural land is also available for companies to develop. Initial infrastructure work would cost about $30m and would take two years to complete, the main airport runway would need to be extended by 1,000m and taxiways would also need extending.

Canberra reportedly has several attractions for a major air freight hub. It is near the geographical centre of 80% of Australia’s population, it is a curfew free airport, and it is close to major highways ensuring fast over-night road transport to Sydney, Melbourne, Brisbane and Adelaide. International freight could be landed at Canberra and road freighted to final destinations, usually one of the major capital cities. This is a cheaper option for freight companies than having an inbound 747 freighter land at Sydney and then Adelaide, each time incurring an FAC landing fee of about $25,000. The proposed freight base at Canberra could also accommodate up to eight 747Fs whilst only two can be serviced simultaneously at Sydney, where heavy jet parking spaces are already at a premium. Eventual operation of the VFT through Canberra would also allow the opportunity of a high speed rail link for priority cargo to Sydney and Melbourne.

Birdstrike With a Difference:

While bird strikes are a constant worry to the industry, our northern New South Wales correspondent, Halden Boyd, found there’s occasionally a lighter side to the problem.

Just over the threshold at Ballina on RW24. an Ansett NSW F28 collected a small sea- hawk. The bird hit the port jet pod, much to the surprise of one of the two CAA officers aboard the flight, who actually witnessed the collision from a window.

The F28 was thoroughly checked on the ground, with the CAA and aircrew taking a stroll along the runway to determine what species of bird was involved (a procedure which could lead to bird control if a colony is a problem). There at the end of the runway was the bird, alive though minus one wing. The unfortunate bird was parcelled up, put on board the F28 and given first class travel to Sydney where the Ansett NSW staff handed the bird over to a specialist veterinary surgeon. At last report the bird is doing just fine, and it’s been suggested that it might find a new life as a pet mascot when it’s fully recovered. Word around the traps is that the bird has been called ‘Sir Peter’, so named because the pilots want it known that they’re still a compassionate bunch.

 Runway Protests Drowned Out:

Despite there being some losers in the development of a third runway at KSA, construction will benefit many more Sydney residents and the economy.

For many years a small but very vocal minority successfully opposed and held up development of the much needed KSA third runway. Now that these people have apparently been defeated and development of what is Australia’s most important airport is getting back on track, it is interesting to reflect on the number of people who will benefit from construction of the new runway. Though there will be several thousand people (13,000 households) in the so-called ‘Bollinger Belt’ between Hunters Hill and East Ryde who will encounter increased aircraft noise as a direct result of the new runway, there are thousands more (45,000 households) in the less affluent inner west who will enjoy significantly reduced levels of aircraft noise.

In addition, the area surrounding the airport will receive a significant economic boost once development has commenced. Already there are about 400 organisations directly involved with the airport in the area, and these employ some 22,000 staff and have an annual expenditure of about $1. 8bn. With the new developments to take place. and the growth in passenger traffic through KSA from 13. 8m passengers at present to 29m by 2010, the potential exists for an additional 36,000 airport related jobs to be created and a further $1bn in revenue to be

generated. Compared with these figures the small, vocal minority opposition pale into insignificance.

Lower Compass Perth Commission:

Compass has released its fares and commissions chart to travel agents, with some interesting revelations.

Compass of course is offering IATA registered travel agents a 9% commission on all tickets sold, compared to 5% for Australian and Ansett. For most flights this offers additional earnings for the agent as well as discounted fares for the traveller. On frequently flown routes agents stand to substantially increase their ticket commissions. For instance, on a Melboume/Sydney round trip (using Compass figures) the traveller will pay just $330 for a ticket, a saving of about $108, while with the 9% commission the agent actually makes $7. 80 extra over current Ansett and Australian commissions. Similar savings and commission increases are offered for most east coast services, the best being Melbourne/Brisbane return which offers $11. 40 extra in commission and a saving of $172 for the client.

On the Perth/east coast flights, however, the agent actually stands to lose commission because the Compass fare is just so much cheaper. On a $500 Compass Sydney/ Perth return flight, for instance, the agent will actually lose $11. 70 if the standard Ansett or Australian fares are taken into account. However, with Compass aiming at the budget conscious traveller this loss should not hamper sales, for no serious ticket buyer is going to pay double for the benefit of the agent. And in a classic Catch-22 situation, even when two major domestics do offer similar savings for night time travel over the east-west route, the higher Compass commission rate will place them at a decided disadvantage.

 Qantas Seeks Domestic Share:

The Federal Government has decided that Qantas will be allowed to bid for a strategic shareholding in Australian Airlines.

Qantas is known to be seriously consider- ing the idea of purchasing a share in either Australian, which will definitely be put up for 100% sale during 1991, or Ansett Australia. According to chief executive Mr John Ward, Qantas could even make a bid for a controlling share in Australian, though the Federal Government is unlikely to approve of this in the short term. However, once Australian shares are listed, it would be open to a take-over bid like any other company, Qantas not being affected by the Government’s 25% for eign ownership restriction. (40% of Australians will still be able to be held by two foreign airlines or companies with a maximum individual company holding of 25%, international investment in Qantas will be limited to 35%. )

Though a Qantas majority holding would not, according to Qantas officials, amount to a merger of the domestic and international carriers, it would undoubtedly attract much Ansett criticism, probably to the point of Ansett calling for the right to fly international services, which it has in fact been after for some time.

Mr Ward has confirmed that Qantas has held discussions with both the major domestic carriers with a view to cementing a long term commercial agreement with one of the airlines even more significant than the affiliation it presently enjoys with Ansett. If Qantas cannot use the opportunity to take a major slice of Australian, it could conceivably later make an offer for a share of Ansett, though Ansett officials have not publicly expressed themselves open to such an offer there is always the often mooted scenario that has Rupert Murdoch looking for a buyer of either a part or all of his half share in ATI. An Ansett spokesman has, however, reported that Ansett is at least interested in the possibility of buying a share in the flag carrier.

 Continental Selects Houston for New Maintenance Facility:

Continental Airlines has selected Houston, Texas, for its new $US190m aircraft maintenance centre after a long battle by several US cities to host the base.

The new maintenance base will be constructed over the next three years and will create up to 4,000 new jobs in the area, provide an annual payroll for the local economy of $US150m and will have a positive impact on Houston in excess of $US600m. It is little wonder, therefore, that several cities hotly contested the chance to have the new facilities built at their airport.

According to a Continental Airlines spokesman, Houston (where the airline’s present headquarters is located) was chosen because it “went the extra step and offered the airline a unique package allowing t to consolidate its Houston offices and establish a world headquarters at the airport. The scope of Houston’s proposal was a key factor in what was a very competitive selection process. ” The new maintenance base will initially contain ten narrow body and two wide body bay positions to accommodate aircraft ranging from the DC-9 through to the 747-400. The 60ha site is also expandable to house a total of 20 narrow body and six wide body bay positions, as well as providing aircraft parking spaces. All Continental offices currently spread around Houston will be consolidated on the site and more than 4,000 employees will ultimately work at the base.

Airport Corp to Be at Alop:

A New South Wales north coast local government collective representing 13 shires and municipalities is looking at setting up a corporation 10 look after the interests of the region’s airports.

The Northern Rivers Region Organisation of Councils (NOROC) is looking at ways of supporting airports in the wake of the Federal Goverment opting out of funding through the Airport Local Ownership Plan (ALOP) which is being phased out.

Most airports in the region will be eligible for a Social Benefit Subsidy (SBS) from the Federal Government, as the ALOP is being phased out. The SBS is being given so that interest raised from it being invested by the airport owner concerned can be used for the. facility’s upkeep. However, some airports like Evans Head) will receive no subsidy, and it’s hoped the ‘pooling arrangement will help with upkeep.

But what appears to be the main push behind forming a corporation to look after the region’s aerodromes is the perceived threat that the area could lose its regional air- Port status.

While Casino, Lismore and Ballina continue to bicker about who should have direct Sydney RPT services, the government will not identity which facility will gain the title as the North Coast Regional Airport. The fear is that Coolangatta could become the regional airport for the north coast region of New South Wales. (Halden Boyd)

American Giant Buys Qantas Software:

American Airlines, the biggest airline in the Western world, has bought the Qantas-developed QIK-RES ‘smart’ reservations Software.

The US carrier, which traditionally produced its own computer software, made a detailed evaluation of OIK-RES (Qantas Intel- ligent Keypad Reservations System). Qantas is already using the PC based OIK-RES in its major telephone sales offices in Sydney, Melbourne, Perth and San Francisco. Its other big reservations centres are expected to adopt the system before the year’s end. OIK-RES intelligent’ workstations replace the ‘dumb’ terminals used by airline reservations agents for 20 years or more. The old terminals required strings of rigidly structured and user hostile ‘computer language’ commands. An agent using OIK-RES only has to fill in a number of blanks on the colour PC screen using plain English, giving easier access to travel information and speeding the reservations process, Travel details and inquiries can be entered. in any order depending on the sequence of the customer’s inquiry. Many airlines have attempted to simplify their reservations systems but QIK-RES is claimed to be the first in successful service. “The American Airlines sale paves the way for QIK-RES sales to other international and domestic airlines,” said Mr lan Stanton, Qantas Distribution Systems Director.

“Selling airline software to American is the high tech equivalent of selling the proverbial refrigerators to the Eskimos. OIK-RES reduces keystrokes needed to complete some transactions by as much as 90%, dramatically improving staff productivity, but more importantly, raising the standard of service to customers. ” American Airlines Distribution Technologies has also secured exclusive rights to market QIK-RES in the USA and France while Qantas will sell the system in the rest of the world. QIK-RES development started four years ago in association with a San Diego information technology company, Tetra Tech, which won an international tender for the work. The new software benefits airline customers by reducing the time needed to make travel bookings and benefits the airline by allowing agents to take more calls.

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MGM Seeking London Rights:

MGM Grand Air, which services New York/ Los Angeles with perhaps the ultimate in first class configured airliners – a fleet of 34 seat ‘grand class’ 727s is now seeking New York/London rights.

Utilising a similarly luxurious configuration in the form of ex Alitalia DC-8s with 31 first class and 40 business class seats, the airline argues that its services would enhance the growth of transatlantic first and business class traffic, as its operations in North America have reportedly done.

The airline seeks to operate outside the recent UK/US bilateral agreement, saying that the precedence for low frequency, high fare niche services has already been set by the Concorde. If granted rights, MGM Grand Air will offer the first nonstop transatlantic scheduled service out of Stansted. If rights are not forthcoming, flights to Paris, Frankfurt or Amsterdam are being considered, as are transpacific flights to Singapore, Hong Kong and/or Japan.

MGM’s ‘grand class’ configured DC-88 and 7278 typically feature two four place staterooms, an extensive communications suite with telephone and fax facilities, a stand-up bar area and even the choice of six inflight movies. The DC-8s are the first to be modified with hush kits to meet FAA Chapter 3 noise standards.

London Seeks Extra Runway:

The UK Transport Secretary has established a working party to decide the location of an additional runway for south east England.

The extra runway capacity will be desperately needed within the next ten to fifteen years. At least eight runway options have already been suggested by the UK CAA. These include the building of a second runway at either Stansted or Gatwick to raise movements to 72 an hour, or a third runway at Heathrow to take hourly movements from the present 72 to about 112. Another consideration is to develop Luton’s single runway to bring movements up to 40 per hour and those of Bournemouth, Bristol, Lydd and Manston to raise capacity at these airports to 20 per hour.

BA Working on New Soviet Airline:

British Airways and the USSR Ministry of Civil Aviation are continuing discussions aimed at forming a new Soviet airline.

Studies are presently underway into the possibility of creating a new Soviet international airline to be based at Moscow’s Domo-dedovo Airport. The airline, provisionally called ‘Air Russia’, would be formed as a joint BA/Aeroflot venture, with Aeroflot being the major participant. The suggested BA investment is about £20m ($A55m).

Though still only in the formative stage, the project is already attracting considerable interest. The new airline would operate to full western international standards with a fleet of new aircraft. Its route network would cover Europe, North America and Asia. If agreement is reached in the near future, operations could commence as early as 1992. Further proposals for the airline include the construction of a new terminal for the airline at Domodedovo Airport.

Meanwhile, discussions are also centring on the formation of a new aircraft leasing company jointly owned by BA, Aeroflot and at consortium of financial institutions. Though the nature of the proposed leasing company has not been stated, it would presumably be able to market Soviet airliners, which with the introduction of western engines and associated technology will become ever more attractive options for Western airlines.

Balkan Bulgarian Receives 737-500s:

Eastern European airlines continue to take advantage of the new European political climate, Balkan Bulgarian having received the first of its three 737-500s.

All three 737-500s are part of a leasing agreement with Ansett Worldwide Aviation Services (AWAS), and represent just a small portion of the potential market for new airliners in eastern Europe. Seating between. 108 and 132 passengers and powered by CFM56-3C1 engines, the aircraft offer considerably improved and more efficient performance over older Soviet built types.