New Zealand News
Airports Sell-off Fears
Jim Scott, the chief executive of Air New Zealand, has sounded a warning over moves to privatise the country’s international airports. There were fears, he said, that New Zealand’s international airports – Auckland, Wellington and Christchurch would be sold as going concerns.
‘The sale of trading enterprises to a particular purchaser, generally, has largely been determined by the size of the new owner’s wallet than any particular consideration of the strategic value of the asset to the nation,” said Mr Scott. He made his comments at the first Pacific Basin region conference of the Airports Association Council International in Auckland.
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If privatisation went ahead, commercial functions such as running terminal buildings and car parks should be separated from the public utility side of the operation and sold off.
Mr Scott also described airport companies as being like some birds which “like to collect shiny objects. ” Citing as an example Auckland Airport’s purchase of an AM radio frequency, Mr Scott said it might make a trip to the airport more pleasant for passengers but it did not materially assist the airlines. The Auckland airport’s chief executive, Mr John Goulter, later said the music station – due to go on air about now-would provide information on flight times, delays, foreign exchange rates and weather.
Raaf-Rnzaf Joint Training?
Australia and New Zealand are looking once more at joint training of air force pilots using surplus capacity provided by the Royal New Zealand Air Force’s 18 Italian jet trainers.
Australia’s Minister for Defence, Senator Robert Ray, raised the prospect of shared training following talks with Mr Cooper, New Zealand’s defence minister.
Senator Ray says there was no reason why RAAF pilots cannot be trained in New Zealand. In the late 1980s joint training was under discussion and the Wigram RNZAF base near Christchurch airport was assessed for the training of RAAF pilots.
Meanwhile, assembly work continues on the Italian made Aermacchi MB339 jet trainers at the Ohakea RNZAF base following the news that the manufacturer is buying seven air force Strikemasters, being replaced by the Macchi subsonic aircraft. Aermacchi will pay $US100,000 for each Strikemaster, to be delivered in 1993.
Aermacchi has also agreed to award 150,000 hours of subcontracts for aerospace work to New Zealand companies over the next three years provided the work was competitive and could meet quality assurance requirements. This work could be worth about $NZ10m. Using the Official Information Act, the media has seen reports which show the former Labour Government decided to buy the Italian trainers in the face of consistent Treasury advice that the $NZ266m cost would strain the Defence budget for ten years.
Treasury told Labour cabinet ministers that buying the jets would delay a host of other projects. These included replacing the Andover transport aircraft, upgrading the half dozen Orion maritime surveillance aircraft and providing helicopters for the two Anzac frigates already ordered from Australia. The future of another air force jet, the Skyhawk fighter, is believed to be questioned by a major defence review about to go to the Government. It is thought the review questions the need for the Skyhawk and suggests that there is no need for a replacement when the jet fighters come to the end of their economic life early next century.
The RNZAF has 21 Skyhawks. Ten were acquired in 1984 from Australia when its fleet air arm disbanded. The entire fleet has undergone a $NZ140m upgrade. Six Skyhawks are now at Nowra, NSW, on a five year loan. (refer seperate article elsewhere this issue)
Link airlines Increase Market
Air New Zealand’s ‘link’ airlines have “pushed Ansett New Zealand down into third place” in terms of domestic market share. Air New Zealand shareholders have been told. The airline has told shareholders that comprehensive figures indicate that Air New Zealand now commands 50% of the overall domestic travel market.
The company’s link carriers-Air Nelson, the Mount Cook Airline and Eagle Air-carry another 25%. “That figure exceeds the levels currently being sustained by Ansett. ” Shareholders have been told that since Air New Zealand took 50% shareholdings in Air Nelson and Eagle Air in 1988, both ‘link’ airlines have “enjoyed a remarkable period of expansion. ” Three years ago Air Nelson had six Piper Chieftains. Two Fairchild Metroliners were added in mid 1988. The current fleet comprises four Chieftains, 10 Metroliners and four Saab 340As. Staff numbers have risen tenfold from 25 to 250. Air Nelson’s managing director, Robert Inglis, said the airline now serves 19 destinations making 140 flights daily, more than the main truck airlines.
Air Nelson executives recently met the man closely connected with the Metroliner-Carl Albert, the chairman, chief executive and president of Fairchild Aircraft. Fairchild manufacturers the Metroliner, the 19 seat passenger aircraft which was first produced nearly 20 years ago. Since then more than 950 Metroliners have been built-850 of them are still flying.
Mr Albert, making a week long visit to New Zealand, said he thought the Metroliner would still be airborne in 2001. “In the USA the authorities have just certified the next generation type, the Metro 23. ” Forecasting that in the next decade there would be a substantial rise in 19 seat aircraft in this country, Mr Albert said of the Los Angeles/San Diego route, “Ten years ago the market was served almost entirely by big jets. Now 71% of that market is held by 19 seaters. ”
He sees the expansion of Air Nelson, its links to Air NZ and the taking over of the parent airline’s Friendship routes as a mirror to the experience in America. “The US pattern was that a high frequency of service led to a proliferation of 19 seat aircraft. Convenience of scheduling was the single most important factor in the success of regional airlines in America,” said Mr Albert.
Air Nelson’s seating capacity has grown from 54 to 340 since the airline’s expansion program took off. Eagle Air’s fleet size has gone from three to six Embraer Bandeirantes. Seat capacity moves from 48 in 1988 to 134 later this year when two Metroliners are added. Staff has almost doubled to 136.
Meanwhile, Air New Zealand’s other ‘link’ partner, Mount Cook, has ceased services to Nelson at the top of the South Island. But the 30 year old airline has introduced daily services between Wellington and Hamilton and also increased its Hawker Siddeley 748 flights from the Capital to the popular North Island tourist destination of Rotorua.
The Mount Cook Group’s marketing manager;. Mr Peter Clark, says the airline is the longest serving existing operator to Rotorua. Travellers can now take the 748 Rotorua Wellington service at 7. 30am and depart from the Capital for home at 5. 30pm. Connections between Wellington and Christchurch and Rotorua and Christchurch will also ensure convenient services for Mount Cook Airline passengers.
Rnzaf ‘Angels of Mercy’
Royal New Zealand Air Force Andovers and a Hercules transport were used to move 819 people and 338 cars across Cook Strait before a strike by seafarers ended after ten days.
The RNZAF was ordered into the dispute by the Government after a week of strike action. The military aircraft flew from Wellington airport to Woodbourne RNZAF base near Blenheim at the top of the South Island making a total of 160 flights. About 7,000 travellers booked on ferries serving the South and North Island were affected by the strike. Many thousands of tonnes of freight was also held up before the strike was ended following a 2% wage rise for seafarers.
Airways High Tech Previewed
New Zealand’s $NZ90m air traffic control system has been previewed by the French Prime Minister, Mr Rocard, a few weeks before the system begins operation. A French firm, ThompsonCSF, supplied the state-of-the-art equipment.
The chief executive of the Airways Corporation, Mr Andrew Makin, says the modernisation program will put air traffic control four generations ahead of the present system. The Airways Corporation Auckland centre is due to go live on August 16 after a transitional period, some months ahead of Christchurch airport and the RNZAF’s Ohakea base in the North Island. All commercial aircraft are now fitted with transponders needed to transmit flight data to controllers’ display screens.
The Airways Corporation is offering private operators a ten year lease-to-buy deal at $NZ100 yearly. Without the transponders pilots will not be allowed to fly in controlled airspace, says the Airways Corporation.
1995 World Gliding Contest for NZ
The International Gliding Commission has chosen Omarama in the central South Island as the venue for the 1995 world titles. The thermals above Omarama have already helped break 12 world records And still in the region, Ansett New Zealand claims any idea of building an international airport in the resort town of Queenstown, (noted for its two nearby ski fields) is just “pipe dreaming. ” Gary Smith, Ansett’s chief executive, says the company was opposed to any new airport. Following detailed research for the Queenstown Airport Corporation, a firm of consultants also gave the international airport the ‘thumbs down. ‘
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