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The CAA believes that the new system will create no new problems and will be cost effective, though it will mean the loss of over 1,000 jobs over the next five years. The underlying motive for the new system remains cost effectiveness. By the time it is fully operational in late 1995, the CAA predicts that it would save at least $60m (1991 dollars) per year in operating costs. Besides that, the CAA will be able to scrap the radar replacement projects planned for Brisbane, Sydney and Canberra, projects agreed to by the CAA after the protracted controllers’ dispute in 1989.

 Asta as Finds Buyer, Lands High Value Deal:

ASTA Aircraft Services has sold a 29. 1% shareholding in the company to Hong Kong Aircraft Engineering Co (HAECO) and has also captured a lucrative five year maintenance contract with British Airways. ASTAAS has been seeking an active investor in the company for several months, with up to 49% being available for sale. HAECO, which itself operates substantial maintenance facilities in Hong Kong, seized the opportunity to acquire the ASTAAS stake to aid its own long term maintenance and expansion plans, which are presently restricted mainly by critical space limitations in Hong Kong. HAECO was known to be previously considering purchasing maintenance facilities at Gatwick, UK, though this deal did not proceed.

With just a 29. 1% shareholding sold to HAECO, ASTAAS remains open to offers to purchase the remaining 19. 9% stake it hoped to sell to aid its own expansion plans. At this stage however, there is no clear investor for this remaining shareholding on offer, though previously several other international organisations had been rumoured to be considering purchasing a share in the Avalon based maintenance company.

Meanwhile, in a separate deal, ASTAAS has also been awarded a five year British Airways contract to undertake substantial work on the airline’s 747s, the aircraft type on which ASTAAS specialises (refer p. 53 March 91 AA). The contract includes BA 747 fleet refurbishment work, Section 41 work and other modification programs. It remains unclear just how many BA aircraft will pass through the ASTAAS facilities during the next five years, though it is expected to be a fair number. Having now firmed the BA contract, plans have moved fast to increase capacity at ASTAAS’s Avalon site. The ASTAAS workforce will be increased by 680 over the next five years, with at least 400 of the new jobs being created by June 1992. A second hangar will be operational by May this year, with the aid of a Victorian Government grant, mainly to house the BA aircraft but also for maintenance on other aircraft if a slot is available.

Airlines Flock Back to Gulf:

Within days of the end of Gulf War hostilities airlines were rushing to resume services to the Gulf.

Most had either suspended Middle East flights or in the very least maintained only limited services. Qantas, which was in fact the first carrier to cease all Gulf services soon after Kuwait was invaded and also the first to move all its services further north over Russia away from the Iran/Turkey route, resumed normal operations on 11 March. All 32 Australia/Europe services now fly on their pre invasion routings, several therefore having been moved back to the Iran/Turkey route. Rerouting flights away from this route cost Qantas an additional $80,000 per week in fuel costs, though passenger safety was considerably enhanced with just 25 minutes” extra flight time. Services to the Gulf will not be resumed, as Qantas had in any case intended to cease flying into Bahrain, so the Iraqi invasion merely sped up an inevitable process of withdrawal.

British Airways was one of the first major carriers to actually announce a full return to the Gulf. Prior to Iraq’s invasion of Kuwait, BA operated 39 services a week to the Gulf from various points, however this was drastically cut back with just limited services to Jeddah, Muscat, Dubai and Cairo being maintained on a day to day basis. The airline recommenced services to Bahrain on 8 March, Tel Aviv the day after, Riyadh on 13 March and Dhahran days later; most Australasia/Europe services have resumed to normal, with the exception of Kuwait stopovers.

Most other international carriers serving the Gulf will also soon be back to ops normal. Gulf Air, which commenced twice weekly Sydney/Bahrain services in December but was forced to suspend operations just six weeks later, will reintroduce these services on 4 April, European services have also recommenced. Singapore Airlines began freight services to the Gulf on 7 March and passenger services to Dubai on 12 March. Most US international carriers, as well as European airlines Lufthansa, Air France. Olympic, Alitalia. SAS and Swissair, amongst others, also now offer Gulf flights. At the time of writing, however, Cathay Pacific were not planning to have any Australia/Europe services overfly the Middle East. Prior to the commencement of Desert

Storm, the airline was negotiating with the USSR to start flying its “Great Northern Route” up over China, Mongolia and Russia. When war broke out in January the Soviets granted temporary rights to the new route, which saves one hour’s flight time from Hong Kong to London; further negotiations are aimed at having these rights made permanent. Cathay’s only services to the Gulf would then be direct Asia/Middle East services. KLM, which rerouted its Australia/ Netherlands services from a Dubai stopover to Karachi, will also not recommence services via the Middle East, because from 1 April it offers one stop flights to Europe via Bangkok: Europe/Middle East services are mostly back to normal.

Which leaves just the flag carriers of Iraq and Kuwait themselves. No announcement has yet been made about when, where, how and if Iraqi Airways will recommence scheduled international services. Kuwait Airways, on the other hand, which has been operating throughout the crisis despite having half its fleet stolen as war booty by Iraq, has expressed unequalled enthusiasm and optimism, announcing in its US advertising campaign that it was offering flights from “New York to London, Cairo, the Gulf and Bombay. . . And to Kuwait any day now!”

Anz Places Boeing Order:

Air New Zealand has placed a $US450m order with Boeing for four 767-300ERs and an additional 747-400.

The order is part of ANZ’s fleet expansion plans with which it hopes to catch a greater share of the Asia/Pacific travel market. The airline has already increased its fleet capacity by nearly 15% during the last 12 months and expects to grow at an average annual rate of 6-10% until the year 2000. The four 767-300ERS ordered are scheduled for delivery in August 1993, July 1994, October 1995 and November 1996. The 747-400 is slated for delivery in December 1995. . Options are also held for an additional five. 767-300s with 1994-96 delivery slots and two 747-400s with late 1997 and 1999 slots. Air New Zealand currently operates a fleet of eight 767-200ERs (three owned by ANZ. five leased), five 747-200s and two 747-400s for international services. Besides these and the aircraft of its latest order, ANZ plans to take delivery of its third 747-400 in late 1992 and also two leased 767-300s, the first in June this year and the second in May 1992.

Iata Airlines Record Massive January Losses:

According to the International Air Transport Association (IATA), its member airlines recorded a staggering $US1bn loss during January.

In comparison, the same member airlines recorded a loss of just $US2bn on international scheduled services during the whole. of 1990. IATA Director-General, Mr Gunter Eser, noted that a 12% drop in traffic was recorded during January, meaning that some 10 million would-be airline passengers had opted not to fly during the period of high international tension and the accompanying terrorist threat, coupled with faltering economies in several major Western travel markets. As a result of the losses incurred, IATA have called for “a massive and coordinated increase in travel and tourism promotion [worldwide) on the part of airlines, tourism offices and governments. ” Meanwhile, Qantas has reported that while it too suffered considerably during the month of January along with most other international carriers, ticket sales picked up markedly within days of the end of the Guif War, this being in line with a clear international trend. A Qantas spokesman noted that though it was too early to tell just how much higher sales in fact were, things were looking up. But then one must admit that the gap between December/January sales and that of a boom period is indeed huge, to say the least.

Air Europe Suspends Operations:

Air Europe, Britain’s second largest carrier after British Airways and its largest charter operator, has suspended operations and gone into administrative receivership.

Air Europe is a direct victim of the Gulf War, its parent company the International Leisure. Group (also in administrative receivership). having lost £50m in the three months to the end of January as a result of the massive. drop in British holiday bookings coupled with mounting operating costs. European charter operators were already suffering reduced yields due to slackening economies when Iraq invaded Kuwait, the subsequent fuel price increases hit such carriers very hard by sending operating costs over the slender profit margin. The threat of terrorism in the wake of the war compounded Air Europe’s problems, with the result that by the time the airline went into receivership there had been a 70% drop in scheduled flights and a 65% drop in package tour flights. Prior to the Gulf War, Air Europe had been operating some 700 flights a week from British airports, and even during February it was still managing about 250 flights per week. The carrier employed 2,000 people and was due to operate 29 aircraft this coming northern summer.

Boeing 7j7 Still Being Studied:

Boeing and three Japanese partners are continuing studies into the previously cancelled 7J7, the aim being to revive the project as a 737 replacement.

The 7J7 was originally to be a 150 seat class, twin aisle airliner powered by unducted fans positioned on the rear fuselage – though studies now foresee a family of 100-170 seat aircraft- and the airframe was to incorporate advanced technologies such as composite materials construction and other weight and fuel saving initiatives. However Boeing cancelled the program in 1988 after concluding that fuel prices did not then justify developing the propfan airliner. It has been revealed however that the three Japanese companies Mitsubishi, Kawasaki and Fuji-which together held and indeed still hold a 25% risk sharing stake in the 7J7 program, have been continuing “low key” technology development studies. It would appear that Japanese interest in the 7J7 remains very strong, while Boeing is now monitoring the market to determine its viability, being particularly interested because many believe the 737 is approaching the end of its marketable life.

The renewed Boeing interest in the 7J7 follows closely on from the decision by McDon- nell Douglas to develop its MD-XX, perceived as a twin aisle widebody family powered by advanced ducted props. Meanwhile, there has been no official response from General Electric, whose GE36 commercial propfan would have been by now had the 7J7 and MD-811 projects originally been proceeded with.

Cathay Planning $US2. 3BN Order:

Cathay Pacific are expected to announce orders for a substantial fleet update by the end of May.

The airline is currently looking at aircraft to replace its 15 Boeing 747-200 and -300s in the 1996-2002 period. It is seeking a “twin the size of a 747” to replace the older model. 747s on its Asia/Pacific routes. The Boeing 777 and Airbus A330 are considered the main contenders for Cathay’s fleet update project, though the passenger capacity of the MD-12X trijet means that it cannot be ruled out of contention, while airline officials. have noted that even more 747-400s could be ordered instead of a new twinjet.

Cathay Pacific are continuing with their fleet update plans despite the current slump. in traffic and the 1997 handover of Hong Kong to China. It is not believed that the airline travel slump will be long term, though business travel may suffer as it is realised that business can still be carried out without long and often expensive travel. In the meantime, Cathay are deliberately refocusing its marketing efforts on the increasingly important Asia/Pacific region, for which it is well placed to take advantage of the growing market. Large twinjets would appear most suited for new regional routes.

Terrorist Threat Boosts Bizjet Use:

The threat of terrorism in the wake of the Gulf War has increased the use of corporate jets and charter aircraft by large, mostly US companies with business contacts in Europe and the Middle East.

Many US companies have banned or severely restricted employee travel, particularly to Europe which is considered by many as high risk. But because business travel cannot be completely halted for a variety of business reasons, senior executives are being flown by company or chartered bizjet to high level priority meetings. Gaining. most benefit from the situation are operators of transcontinental range bizjets such as the Gulfstream IV, Canadair CL-601 Challenger and the Dassault Falcon 50 and Falcon 900. Companies are expected to continue. above average usage of private business jets because the threat of terrorism will remain for several months yet. Which also means of course that other businesses such as those which offer secure aircraft hangarage, such as that offered by the Melbourne Jet Base, should also benefit from the current travel climate.

Narrow bodies Face Sales Difficulties:

Reflecting the marked drop in sales values and marketability of narrowbody jetliners, bankrupt Eastern Airlines” narrowbody fleet of 120 aircraft has been very slow to sell.

While the massive Eastern liquidation sale found ready buyers for hub bases, slots, buildings and associated equipment, few of the narrowbody airliners have found new owners. While Delta purchased ten of East- ern’s 12 Lockheed L-1011 TriStars, with engines and spares, and Continental purchased six of the airline’s Airbus A30084s, most of the narrowbody fleet remains unsold in open storage. The TriStar and A300 widebodies, though ageing, are seen as good. investments, particularly because of their relatively high passenger capacities. Most of the narrowbodies however are relatively noisy and old Stage 2 airliners such as DC-98, 727s and older model 737s. However also unsold are newer 737s and even 7575, demand for which has also slumped, partly because the secondhand narrowbody market is considered near saturation, with a number of ex Braniff A320s also remaining unsold at present.

Rivalry Even in the Face of War:

With the air war raging in the Gulf up until the end of February, it was perhaps heartening to note that even in war “friendly” USAF/ USN rivalry never disappeared.

While the US Navy claimed to have been flying one third of the Desert Storm sorties, US Air Force officers were quick to strike back by announcing that the Navy typically only flew 10-12% of daily strike and support missions, though they did apparently reach 16% on one day! And of course the Navy retaliated by saying the USAF was failing to count as offensive sorties air patrols over the carrier battle groups or airborne surface combat patrols, which afterall were responsible for the sinking of several Iraqi naval vessels. And so the inter-service rivalry goes on and on and on. . . on the ground and in the air, through peace and war and now peace again.

But who, one must ask, will they get to write the official history? Perhaps an army grunt with his own service pride who can somehow find a way to write that nobody flew anywhere, except of course Army chop- pers and support aircraft backing up those on the ground. Or perhaps an unbiased Iraqi conscript, who with his head buried in the sand and praying very hard for self preservation during the Mother of all Battles, really couldn’t give a Scud who the hell was dropping the bombs!