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Indeed, if any firm evidence was required to substantiate this trend then you would not have to go any further than the official Bank Settlement Plan (BSP) data released by the travel industry. BSP figures for the first six months of this calendar year indicate a considerable change in revenue from international to domestic travel. From January to June the value of international sales dropped by 28% (rounded) whilst domestic activity increased by nearly 20%. International sales stood at $872m compared with $561m for domestic tickets, a rise of 17. 7% on the same period last year whilst international sales saw a decline of 25%.

Meanwhile, DoTC data for the week ending 19 July saw an all time Australian traffic record. Revenue Passenger Kilometers (RPK) for the week topped 400m, which if averaged over a year would give us a total of 20bn RPKs against a 1990/91 figure of just 14. 5bn. Whilst the former figure is purely hypothetical it does show the massive increase now

occurring throughout Australia as affordable air fares become available to the general public.

For week ending 19 July there were a record 3,940 trips performed at an overall load factor of a stunning 83. 4%. Traffic for that week in RPKs was up a massive 45% on the average weekly level for July last year whilst traffic for the first six months of this year is almost 16% up on the previous records of 1988 and over 28% up on 1990. A remarkable achievement considering the depressed economic times and a massive endorsement of the consumer benefits of deregulation.

Following an initial frenzy of providing massive over capacity, the airlines also now appear to be honing their services to increase load factor and consequent yield. An analysis of DoTC data for the top 20 routes published in each issue of AA suggests a considerable change is occurring that can only be for the better for the economic viability of our airlines.

Comparing July with June (refer Airline Affairs this and last issue) we see a reduction for the top 20 routes from 11,929 flights to 11,491 with the top 10 routes (where about two thirds of all of Australia’s RPT traffic occurs) recording a drop from 9,099 to just 8,763. Load factors as a consequence increased from 66. 1% to 70. 1 for the top five, 65. 1% to 69. 1% for the top 10 and from 64. 0% to 68. 1% for Australia wide services.

An increase in load factor equates to more

yield which in turn equates to more profitability and in a deregulated market the potential for an airline to broaden its low fare structure accordingly.

Such is the growth in aviation that coach and rail services are now being dramatically affected. Transcontinental coach services are becoming more and more unpopular as is intercity coach travel everywhere. The famous Indian Pacific train (refer Newsdesk item) is being cut back as its load factor plummets while the Sydney/Melbourne daylight Intercapital Express has been abandoned and fares cut to just $49 one way to attract patronage. In the past year load factor has dropped from 60% to barely 40%.

Separation Standards Reviewed:

Asia-Pacific region aviation authorities have agreed to trials of a new separation standard for airline aircraft flying on similar headings and the same altitude.

A meeting of International Civil Aviation Organisation (ICAO) members from Australia, New Zealand, Fiji, the USA, Singapore and Papua New Guinea have agreed to the trials which will begin next month on certain Pacific routes. Separation will be reduced by 50%, from 20 minutes (about 150nm) to 10 minutes (about 75nm). The change, if permanently implemented, will result in fuel savings, scope for expansion on air routes and easing of congestion. Modem navigation equipment allowing reduced separation without compromising safety.

The previous standards were developed during the era of piston engined transports travelling with rudimentary celestial and beacon type navigation systems in a low frequency traffic environment. Modern INS. Omega and GPS nav systems coupled with SSR radar coverage in more heavily trafficked areas enables these fifties era separation standards to be tightened up considerably without compromising safety standards.

 Atc Furore Continues:

The controversy over the alleged exclusion of Australian companies from entering into the tendering process for the CAA’s Two Centre Air Traffic Control System (refer p. 5 July 91 AA) is continuing.

Invitations to register interest in the $300-400m contract were extended to six overseas companies of which four (Hughes, IBM, Siemens-Plessey and Thomson) had responded by the 22 July deadline. Now government ministers have entered the fray condemning the apparent exclusion.

CAA chairman, Dick Smith, has stated that Australian companies were given the opportunity to put forward ideas, but none did. Mr Smith also noted that no Australian company presented any evidence that it was capable of being the prime contractor on the project. Nevertheless, it is expected that Australian industry will play a major role, in partnership with or ultimately as a major subcontractor to the successful overseas bidder.

Melbourne Airport’s Fast Train:

Melbourne Airport will have a fast train connection between itself and the city, providing a 15 minute trip.

Costing $500m, the ‘Rapid Transport Link’ will be a privately funded high tech train capable of speeds of up to 130kmh. A survey of Melbourne Airport users has shown that 51% would definitely or most probably use the train. An interesting outcome of the survey is that most expressed a preference for a train manned by a driver and conductor rather than a fully automated one.

Three alternate routes between the airport and Spencer Street Station are being investigated, although the most likely is one which basically follows the Tullamarine Freeway. The others – via Footscray and Sunshine or Brunswick and Essendon – have problems, including the need to acquire land. Construction is planned to begin in 1994 and be completed in 1997.

Caa Consolidates:

In a move which will help improve its cost efficiency, the Civil Aviation Authority has moved its major airworthiness operation in NSW away from the Sydney CBD to Bankstown Airport.

The move will save large amounts of rental expenditure, savings which will hopefully be passed on to industry in conjunction with other cost cutting initiatives currently being implemented. The Sydney Airport airworthiness office remains intact, while a new office was recently established at Tamworth.

 Airnorth Expands:

Airnorth International, the Northern Territory’s regional airline and major air charter organisation, has opened a new operation in Western Australia.

The company will base a 10 passenger Cessna Conquest II turboprop at Perth Airport for both executive and high density operations, and is considering basing its DC-3, VH-MMA, there during the summer months for tourist and freight operations.

Airnorth began expanding its interests in 1988 with the purchase of Adelaide’s Rossair and Tillair, which operates from Katherine in the Northern Territory.

 GA Still Gloomy:

Deliveries by US general aviation manufacturers in the first six months of 1991 have slipped compared to the same period of 1990.

The total number of GA aircraft shipped was 512, compared to 563 in the first half of 1990. The value of the aircraft also dropped, from SUS961m to $US919m. Deliveries of piston singles declined by less than the overall average from 308 to 299, while piston twins suffered badly, dropping from 45 in the first half of 1990 to just 26 in 1991. Turboprops dropped from 130 to 113 but business jets provided the only area of growth, increasing from 80 to 85.

A major contributor to the overall drop has been Piper’s bankruptcy. In the first six months of the year the company delivered just 29 aircraft, of which only seven were shipped after the end of March.

 Atc Woes:

Two Melbourne air traffic controllers were suspended pending ant investigation (which is standard practice) in late July following an incident between an Australian Airlines Boeing 727 and an Ansett Airbus A320.

The aircraft breached separation standards over Eildon in the late afternoon. Meanwhile in Sydney, an incident involving an Eastwest BAe 146 and a Compass Airbus A300 is also being investigated. Both aircraft took off from the same runway, a few minutes apart and the 146 first. It seems the following A300 was allowed to overtake the 146 during the climb and the aircraft came uncomfortably close to each other.

Meanwhile on 12 August an Ansett A320 performed a routine go-around when a Thai International DC-10 landed late on RW34 at Sydney during symops operations. Normally the DC-10 would have stopped well clear of the runway intersection.

 Qantas Worries Kiwis:

New Zealand’s Commerce Commission has begun a court action designed to prevent Qantas increasing its current 19. 9% interest in Air New Zealand by purchasing the 7. 5% stake currently owned by American Airlines.

Worried about Qantas achieving a dominance in the New Zealand aviation market, the action is based on Section 47 of the Commerce Act, which deals with the acquisition or strengthening of a position of dominance within a specific market. The Commission is also seeking to prevent Qantas from increasing its interest in ANZ through its $140m 1 for 2 share rights issue.

Qantas, too, has received an expression of interest into the purchase of part of its shares by Singapore Airlines when privatisation goes ahead. It is expected that the bid will be for a small section of Qantas as part of an overall aliance with the carrier, rather than a substantial investment. Singapore has similar arrangements with other airlines including Swissair (2. 8%) and Delta (4. 7%). Northwest is the only other carrier that at presstime had publicly revealed an interest in a Qantas shareholding.

Ansett Express Expands:

Ansett Express has embarked on a series of route expansions aimed at the non trunk route business traveller, an area which until now has been underserviced by the airlines.

It has recently launched a direct service between Canberra and Brisbane (in competition with Flight West) as well as Sydney and Gladstone and will increase services between Brisbane and Rockhampton, Mackay and Mount Isa. In addition, the airline will start flights linking Launceston, Brisbane and Adelaide using Fokker F28s which will be fit- ted with business class seats.

The F28 will become the airline’s standard aircraft on most routes and the turboprop F50 will be less frequently seen. Nine F288 will be in service by November, although two of these will later be sold.

 Qantas 747 Testbed:

A Qantas Boe- ing 747-400 will be used as a flying testbed d for certification of the latest higher thrust and more fuel efficient version of the Rolls-Royce RB211 engine, the -524G/H.

The certification program – which will be flown at Boeing’s Seattle facility by Boeing pilots will delay delivery of the aircraft by about six months until August 1992. The improved engine will be fitted to subsequent Qantas 747-400s (the test aircraft is the air- line’s 15th) and discussions are being held to retrofit the package of improvements offered by the RB211-524G to Qantas’ earlier aircraft. in addition to those operated by Cathay Pacific and Air New Zealand.

Deceptive:

The practice of codesharing where different airlines use the same designator code on certain flights has been criticised by the International Chamber of Commerce as having the “capacity to deceive” following numerous complaints by business travellers that they have purchased tickets with the expectation of flying on a particular airline and ended up on another with perceived lower standards of service.

The system means that, for example, travellers may fly the first leg of a journey with their chosen carrier but end up with another for the remainder without prior knowledge. The ICC says that passengers should be made fully aware of which airline would actually be carrying them and the standard of service they can expect. Often, a traveller will pay a first or business class airfare and expect the known standard of the chosen carrier, only to change carriers mid-journey and be presented with a lower standard. The ICC has recommended joint codes, with both airlines codes separated by a slash.

Locally this is occurring on trans-Tasman services where regular Qantas business travellers are frequently ending up on an Air New Zealand fight, and vice versa. Whilst mostly this is acceptable due to the high service standards set by both carriers it doesn’t necessarily please every flyer with the result that both carriers are now receiving regular complaints concerning their code sharing arrangements.

 Qantas Targets Japan:

Qantas will double its available capacity to Japan over the next four years, enabling it to carry more than half of the 900,000 Japanese tourists which are expected to come to Australia during that period.

Boeing 747s will replace smaller 7678, some 7478 will be reconfigured to seat 424 passengers instead of the current 386 and the cities of Osaka, Sendai and Sapporo will be added to the existing ports of Tokyo, Nagoya and Fukuoka. Some of the current joint Qantas/JAL services will be dropped.

 Fighting on the Beaches:

A row has developed between the Whitsunday Tourism Association, tourist interests on the mainland and Hamilton Island proprietor Keith Williams over the location of a new international airport to service the area. Williams wants Hamilton Island’s airport to be extended first while the WTA and other operators are backing the development of Prosepine. It has been reported that Club Med has already negotiated to use Hamilton Island for its customers arriving from overseas but is also supporting the upgrading of Prosepine. The latter is subject to an upgrading in 1993, meaning that Hamilton Island could be internationally operational first.

At the moment, Hamilton Island is the exclusive preserve of Ansett, although this would change if its airport were upgraded to accept international flights.

Some Are Happy:

Just over half of Australia’s domestic airline passengers have been able to negotiate the discounted fare deal they want, according to a survey conducted by the Domestic Aviation Deregulation Advisory Committee.

The survey showed that 52% of passengers took the flights they wanted, travel agents could book clients on special deals 47% of the time and that of 312 off-peak flights surveyed, there were about 50 seats available on each flight. Of 104 Ansett and Australian “normal” flights surveyed, it was discovered that agents had a 52% success rate in finding a flight to suit the customer’s needs with Ansett and 42% with Australian. Of interest is the fact that in the four months between 1 February and 31 May this year, the four domestic airlines between them made 101 major announcements concerning fare initiatives or discounts.

Another survey has revealed that the travel agencies controlled by airlines between them wrote more than 60% of the estimated $5bn total travel sales in Australia. The major outlets were Jetset (Air New Zealand) which accounted for 35% of business; Ansett (in association with Coles-Myer and the ANZ Bank) at 15%; Qantas (including Thomas Cook) at 10% and Australian Airlines (including Westpac) at 7%.

The 600 or so independent agents accounted for less than 10% of the market, while of the franchise groups, Harvey World Travel and National Australia Travel each earned around 6% of the market.

Corsairs for Thailand:

wanting to form a combat air wing, the Royal Thai Navy has revealed plans to acquire 30 Vought A-7E Corsairs from the US Navy, with deliveries beginning in 1993 if plans proceed without complication.

The deal – which will cost the Thais just over $US1m per airframe – is yet to be formally ratified and will involve 24 single seat and six two seat aircraft. The Corsairs would be put to work in several roles including close air support, deep strike, combat air patrol, sea control and maritime surveillance. Two squadrons are expected to be formed, one an operational unit and the other a transitional training unit, and the aircraft will probably be based at Utapao airfield, a former USN facility.

The Thai Navy’s current fleet consists of maritime surveillance and SAR fixed wing types plus helicopters.