Airline Affairs

ANZ McCaughan also recommends a government/Qantas contract guaranteeing a five year fixed regulatory regime, government investment ahead of the float to reduce Qantas’ current 77:23 debt/equity ratio to around 60:40 and confirmation of Qantas’ sole flag carrier status.

In a review of the world’s major international airlines, New York’s Wall Street Journal was quite pessimistic about Qantas. It said: “Hurt by Australia’s enduring recession, a domestic pilots’ strike in 1989 and disappointing tourism growth. Qantas has huge debts and faces big fleet renewal bills (OF actually has one of the youngest fleets in the world. Ed). As a State owned entity the government wants to sell 49% of the carrier later this year, but few takers are expected. . . ”

Have a Flutter:

Now dedicated gamblers departing Sydney Airport for overseas destinations can blow their holiday money even before they leave the terminal, thanks to the opening of a ‘gaming lounge’ on the other side of the customs and immigration checkpoint.

Managed by Sheraton Pacific Hotels, the gaming lounge will have poker machines, a bar and foreign currency exchange facilities. To remind passengers that they’d better start recouping their losses quickly, a flight departure monitor will also be located in the lounge.

Kendell Airlines Honoured:

Australia’s largest regional airline, Kendell Airlines, has been named ‘regional airline of the year’ by the influential American magazine Air Transport World. The award is considered truly prestigious.

Kendell is only the second non US airline to win the award since it was instigated 18 years ago, and it is the second major award won by the airline in the past two years. The other was the inaugural CAA Award for Excellence in 1990.

The ATW award takes into account the airline’s standard of service, its innovation in developing new markets and services, its financial performance and other factors. Kendell is part of the TNT-News Corp’s group of companies and is therefore an Ansett affiliate. It operates a fleet of six Saab 340s and eight Metroliners to more than 20 regional and country destinations in Victoria, NSW, South Australia, Tasmania and the NT from its main hubs at Melbourne and Adelaide.

Ansett Lowers Debt:

A redeemable preference share issue worth $100m and a build up of cash reserves has allowed Ansett Transport Industries to repay $200m due to bankers last month.

The $100m capital injection comes from Ansett Worldwide Aviation Services, the aircraft leasing arm of TNT-News Corp’s aviation interests. The group’s level of debt has been a worry of late. At the end of the last financial year borrowings had reached $2. 5bn and the paying of the $200m rather than rolling it over is seen as a positive sign.

 Beards Issue No Longer Fuzzy:

Now we know.

In AA’s December 1991 issue (p. 5) we reported on how the Auckland Employment Court had ruled against a New Zealand Airline Pilots Association challenge to an Air New Zealand ruling that flight crews cannot have beards.

The ruling was based on safety, and we wondered what those safety grounds were. Apparently it’s because emergency oxygen masks won’t properly seal on the faces of men with beards over a certain length, thus compromising their safety and therefore that of those on board. In such circumstances, the expression “a close shave” takes on a whole new meaning!

Qantas Wins Contract to Fly for Japan Airlines:

Qantas will boost export earnings through a deal to supply Japan Airlines with three of its Boeing 747-300 aircraft, 66 pilots and 22 flight engineers for up to two years.

Qantas Chief Executive, John Ward, said both airlines would benefit from the contract, worth more than $100 million. “Japan Airlines rapidly needs more aircraft and crew for expansion, while Qantas can supply aircraft and crew because of deliveries of new Boeing 747-400s and lower growth because of the recession,” he said.

After being painted in JAL livery at the Qantas Jet Base, two aircraft will fly under contract from April 1 this year. The third will follow within a few months. The aircraft will operate a daily Tokyo/Sydney service, five Tokyo/Cairns flights a week and two Tokyo Auckland flights a week.

It is the first time that Japan has allowed a foreign airline to operate its passenger flights. Qantas and JAL have worked very closely in recent years with their joint flights to Cairns and other Australian ports. “The deal gives a new dimension to Australia’s trading relationship with Japan, with JAL entrusting Qantas to maintain its own high ‘standards on a prime route where we are direct competitors,” Mr Ward said. The 22 Qantas tech crews (each comprising a Captain, First and Second Officers and a Flight Engineer) will use standard Qantas operating procedures.

As part of the arrangement Qantas will also familiarise about 1,000 JAL flight attendants with its emergency procedures. Qantas will also provide ground handling in Australia and full engineering support for the aircraft, including the basing of engineers in Tokyo.

 Nice Little Earner:

The Federal Airports Corporation has recorded a profit before interest of $154. 33m for the 15 months to June 30 1991 on revenue of $413m.

After remitting interest payments to the Federal Government, this translates to an operating profit of $85. 96m, or a staggering 20% of revenue, a performance which the private sector would these days regard as an almost impossible dream. Given the fact that the Government charged the FAC replacement value for real estate which had already been long paid for by us, the voiceless taxpayers, the result is even more extraordinary. Total receipts returned to Government were thus $169. 8m representing a total return of more than 40%, not bad in a recession! Sydney Airport contributed most of the FAC’s profit in 1990/91 (about $53m) followed by Melbourne ($27m) and Brisbane ($25m). Losers included Hobart, Launceston, Darwin, Essendon, Moorabbin and Bankstown.

 Eastwest Staff Stay Put:

Staff made redundant at Eastwest’s Tamworth maintenance facility have generally decided to stay in their home town rather than accept jobs elsewhere within the Ansett group.

Of the 220 axed staff, only 87 have chosen to move on, a lower number than was expected. Eastwest will have completed the closure of its maintenance and retail facilities at Tamworth the airline’s headquarters for over 40 years by the end of February this year.

Asia-Pacific Boost Tipped:

Stock-brokers Merrill Lynch have predicted the Asia-Pacific airline market will recover from the recession and grow by 10-15% this year and beyond.

The company’s Singapore branch has produced a report which says that economic recovery in the USA, Australia and Europe will increase demand for both leisure and business travel in the region. It predicts lower fuel costs, the opening of new routes between smaller markets in Asia (which become via- ble with the forthcoming introduction of long range aircraft smaller than the Boeing 747, like the A330/340, 777 and MD-11) and the establishment of hubs in secondary cities due to congestion in larger hubs such as Hong Kong and Tokyo.

Singapore Airlines, Cathay Pacific and Malaysian Airlines are all tipped to benefit from the growth, although the report warns that Qantas’ margins might be subject to threat from the US mega carriers.

 Gold Coast Gains From Compass Collapse:

A Gold Coast travel agent has said that the collapse of Compass Airlines will help tourism in his part of the world.

According to the agent, people from Sydney and Melbourne who traditionally went to the Gold Coast for their holidays were going to Cairns instead, taking advantage of Čompass’ cheap fares.

Meanwhile, unfortunate passengers on the last flight to Cairns on the day the company folded only made it as far as Brisbane whereupon the aircraft was repossessed by the lessors. The crew and passengers were let off the A300 but in the confusion the baggage wasn’t; it was returned to its owners a full 24 hours later.

Southern Airlines Commence Operations:

Yet another contender for the forsaken Hazelton routes recently commenced services in Sydney.

Southern Airlines are operating a twice daily service to Forbes and Condoblin ex Sydney. The new carrier is currently utilising an ex-Air Ambulance Queen Air, VH-AMG. (Peter Gamble)

Additional Narita Runways Now Essential for Continued Japanese Economic Growth:

Tokyo’s Narita Airport, Japan’s major international gateway, is now at saturation point as a result of a critical lack of runway capacity.

The airport’s single 4,000m runway is handling an average of 327 movements per day. Emphasising the depth of the problem is that there are presently 43 international airlines wishing to fly into Narita but cannot until additional runway capacity is in place. The reason for this dilemma is that the land-owners whose property is sought by the airport authority are refusing to sell. Their lack of interest in selling their land is more a matter of an emotional attachment to their property rather than any financial consideration. At the time of AA’s visit, the airport authority was actively engaged in continuing negotiations to enable construction to go ahead. At present eight landowners remain on land required by the authority to complete the additional two runways that are planned.

Already large sections of these two run-ways and associated taxiways have been completed as land is acquired. Of the eight remaining landowners only two are prepared to negotiate with the airport authority. These two landowners occupy land required to complete the 3,200 cross runway.

The airport authority is hopeful of concluding negotiations with the two farmers as soon as possible. Of all the land comprising the airport site only 2% remains which is not owned by the authority whilst the negotiations continue, work on Narita’s second passenger terminal is on schedule and the terminal is due for completion this May.

Whilst terminal two is primarily designed to cope with the increase in existing passenger traffic, its completion will provide only ten extra gates. These extra gates though will be most beneficial during the peak periods at Narita when passenger aircraft are forced to park on the cargo apron or adjacent to the maintenance facilities. The completed ramp areas at terminal two are already used to park aircraft which have long stays at Narita such as our own QF21/22.

Aircraft entering this ramp area must of course watch out for some land still to be acquired which sits out like a sore thumb right in the approach to the ramp (refer photo). It is a most unusual sight, which sums up the problems faced by the airport authority. This area of unacquired land has grass growing on it and is tended by gardeners! Whilst most major airports in Asia have a large percentage of widebody aircraft operating into them, nowhere in Asia has a higher percentage than Narita as virtually all of its traffic is long haul.

During the peak period in the afternoon, the airport has aircraft parked everywhere, with the vast majority being 747s. A large percentage of these belong to Northwest who at one stage had 17747s on the ground during our visit. Northwest virtually use Narita as an offshore hub, and have a large presence in Japan. Little wonder Qantas were far from amused when Northwest gained access to the Australia/Japan route.

Avoid the Traffic:

One of the major problems with air travel is the hassle of getting to and from the airport.

JAL is making this a little easier by offering residents of the Sydney metropolitan area travelling on first and executive class tickets a complimentary limousine service from their homes to the airport. The service is available seven days a week to first class passengers and on weekdays for those travelling executive class.

 Airline Traffic Decline Makes History:

For the first time since it began. recording statistics in the late 1940s, the International Civil Aviation Organisation (ICAO) has recorded an overall decline in a full year of scheduled traffic carried by the world’s airlines.

Total scheduled traffic was 4% below 1990’s figures, while scheduled international traffic fell by 5%. The airlines carried about 1. 125 billion passengers on scheduled services of which about 262 million travelled on international services. As seat capacity decreased less than the passenger kilo- metres recorded, passenger load factors dropped from 68% in 1990 to 66% in 1991. Both total and international air freight decreased by about 4% in 1991, as did the overall air mail performance.

All this is bad news for the airlines, intemational carrier members of the international Air Transport Association (IATA) losing an estimated $US3. 7-4. 0bn in 1991. The year saw a more than 120% increase in fuel prices as a result of the Gulf War. These prices came down again but still settled at 20-30% higher than 1990. Other factors strangling the airlines include an 11% increase in labour costs (offset by a mere 3% improvement in productivity), a 20% increase in air navigation charges and more expensive insurance premiums.

Interest payments and crippling government charges and taxes often with no return value for the airlines – are also adding to the problems.

 Cathay Pacific Bans Smoking on All Australian Flights:

Cathay Pacific passengers flying between Australia and Hong Kong will enjoy a smoke free environment on all the airline’s 12 weekly flights from April 1.

The smoking ban will be introduced on a three month trial basis following successful tests on Cathay Pacific services within Asia. “Extensive research has been done on passenger preferences,” Mr Bill Rothery, Cathay Pacific’s General Manager for Australia and New Zealand, said recently. “The overwhelming majority of our passengers flying from Sydney, Melbourne, Brisbane and Perth are requesting non smoking seats. “Increasing feedback from our passengers indicates a desire for a healthier, smoke free environment and even smokers are requesting non smoking seats on the eight hour sector to Hong Kong. ” “It also appears that many passengers travelling in smoking seats are only there because the non smoking area is already full,” Mr Rothery said. “Smoking is the greatest single source of passenger complaints and comments. ” Cathay Pacific will also ban smoking on its 13 hour Hong Kong/Vancouver flights from April 1. The airline currently operates non smoking flights from Hong Kong to Singapore, Bangkok, Kuala Lumpar, Jakarta, Taipei, Manila, Penang and Kaohsiung Cathay Pacific’s first non smoking flights were started from Hong Kong to Taipei in January 1989, and following positive passenger reaction, were extended to all South East Asian routes, except joint services, by June 1990. Additionally. Cathay Pacific is alsorunning non smoking tests on Japanand Korea routes from Hong Kong.

New Name for Sunstate:

Coinciding with an upgrade of its fleet (refer p. 16 Dec 91 AA), Australian Airlines subsidiary Sunstate Airlines (Mildura) has undergone a name change.

In keeping with its parent company’s corporate image, the regional operator is now called Southern Australia Airlines. It has taken delivery of two new DHC Dash 8 turboprops (refer Traffic), one to replace a Shorts 360 on the Mildura/Melbourne route and the other to operate services from Melbourne to Launceston and Devonport. • SYDNEY AIRPORT CAPACITY DOWN DURING PEAK PERIODS: In a surprise announcement at a recent CAA/industry meeting, Mr Buck Brooksbank, CAA General Manager Air Traffic Services, revealed that Air Traffic Control acceptance rates of air traffic during the peak periods at Sydney Airport were often lower than at other times during the day.

ATC acceptance rates, which are an indication of the hourly capacity, were 23 arrivals per hour during the peak periods, compared to 26 arrivals per hour for the major part of the day. Mr Brooksbank explained that Sydney Airport’s capacity was reduced during peak periods because there were no small aircraft to fully take advantage of simultaneous runway operations. In effect, the imposition of peak period surcharges has actually reduced the peak hour capacity, which includes both arrivals and departures, by at least six movements.

Mr Dick Thompson, Executive Director of the Regional Airlines Association of Australia, said that we have reached a ridiculous situation where the surcharges have caused regional airlines to reschedule their services forming new peaks which are now larger than the original peaks.

Furthermore, the old peak periods are operating well below capacity firstly because of the lower acceptance rates and secondly because of the reduced demand by regional airlines. It means that around ten movements are being denied each morning peak period to regional airlines, at a time when country people need to travel to Sydney for a full day’s business.

Shuttle on Hold:

Shuttle Airlines, one of the proposed new starters in Australia’s deregulated airline environment, has postponed plans to operate two BAe 748 turboprops between Melbourne’s Moorabbin airport and Canberra, Sydney, Launceston and Adelaide.

The company has blamed the recession and the heavy discounting offered by the other airlines for its decision. Shuttle currently operates a single Bandierante on charter services.

 Oxley Airlines Expands With a Bandeirante:

Oxley Airlines continues to expand despite the recession.

The Port Macquarie based operator has now added a Bandeirante to the fleet, VH-FCE, which formerly saw service with Shuttle Airlines of Victoria. A spokesman for Oxley said that the Bandit would mainly be used for the coastal route between Newcastle and Brisbane, however a recent proving flight was conducted to Lord Howe, from Port Macquarie, taking a load of 14 passengers. (Peter Gamble)

 Cairns’ Continued Growth:

Cairns Airport has exceeded all projections as to its traffic in recent times and plans are in place for further expansion.

In 1981, when the Cairns Port Authority took the airport over, it was predicted that by 1990, 780,000 passengers would pass through its gate annually. The actual figure in the 1990/91 financial year was more than 1. 13 million, or 45% greater than predicted. Similarly, it was predicted that the airport’s first international terminal would probably need replacing in 1994, but to cope with the growth a new one was built in 1990.

International and domestic aircraft movements at Cairns have doubled since 1990 and will continue to rise. A new runway will need to be built this decade. Cairns tourism authorities though are concerned that the existing airlines will again increase their fares to the northern city now that Compass has gone. By early February it was estimated that up to 10,000 visitors had been lost through not having Compass operational. The general feeling was that holidaymakers would revert to the southern destinations to maintain the value in their package holiday dollar, a boon for the Gold and Sunshine Coasts which had seen a fall off in traffic since Cairns became economically viable to visit via ‘real’ airline competition.

Qantas meanwhile is looking to expanding its services from Cairns and using it as its hub for services from Japan. The airline recently increased its flights from Japan to Cairns from 11 to 14 weekly, at the same time reducing services to Brisbane from 12 and 10. The move has angered sections of the Queensland Government and Travel and Tourist Corporation, which sees it as a snub to Brisbane and the Gold Coast. Qantas says it was merely responding to market demand.

 Ipec to Operate in Ksa’s Curfew:

Ipec have been given the go ahead to operate up to 12 freight movements per week during the Kingsford Smith Airport curfew, 2300-0600 EST. Ipec has been interested in acquiring such a concession for many years.

Senator Bob Collins, Minister for Shipping and Aviation Support announced on February 14 that the way would be made clear to allow lpec to increase its flexibility. “I propose to amend the Air Navigation (Aerodrome Curfew) Regulations to provide for ipec Aviation to carry out 12 freight movements per week in hush kitted DC-9s during the curfew. At the same time Australian Airline’s allocation of A300 curfew flights will be reduced by five, to nine per week’ Australian had an allocation of 14 per week.

‘This redistribution has been based on the CAA’s analysis which has shown that, on a noise energy basis, five A300 movements are approximately equivalent to 12 hush kit- ted DC-9 movements. (Peter Gamble)

 Australian Leads Business Market:

A Morgan Gallup poll has shown that Australian Airlines has maintained its lead in the important business travel market. Of those surveyed, 42% said they travelled with Australian on their most recent flight, 34. 6% flew Ansett and 7. 5% Compass. Of the total business trips taken in the December quarter, 43. 4% were with Australian, 35. 4% with Ansett and 5. 6% with Compass.

Not unnaturally, Ansett cast doubts on the validity of the survey, although it also subscribes to it and has used the results in media releases when they have been more favourable. This time, Ansett put out at release saying research had shown that business travellers prefer its inflight service, ground service and food. Despite all that, Australian seems to be romping it in in terms of the number of business travellers actually flying. • PAN AM GONE: Pan American World Airways operated its final services on 4 December 1991, ending 64 years of “the airline which taught the world to fly”.

The deal with Delta airlines to inject a large amount of cash into a smaller ‘PanAm II’ fell through at the eleventh hour, largely because the amounts involved would have threatened Delta’s own financial security as well as probably only temporarily saving PanAm. Delta had already acquired a substantial proportion of PanÁm’s assets.

The remaining assets were auctioned a week after the final service was flown, United gaining the Latin American network for $US135m and Delta the New York/Mexico route for $US25m. Just prior to the auction, TWA acquired PanAm’s feeder subsidiary, PanAm Express. A major feature detailing PanAm’s decline appears elsewhere in this issue.

 Runway Legal Challenge:

In a last ditch effort to stop Sydney Airport’s third

runway, the ten councils which surround the airport have applied to the Federal Court to declare invalid the latest environmental impact study on the third runway.

Federal Government approval has already been given to begin construction of the third runway, and the Federal Court hearing – which should see the end of the matter – will be held this month. Pro runway advocates are surprised that these Labour dominated councils would be happy about the loss of the jobs the third runway will create in this time of very high unemployment!

Northwest launches world-Link:

Northwest Airlines has launched what it calls the most advanced inflight audio and video entertainment system ever designed for airliners.

Developed by Hughes-Aviacom and called WorldLink, the system offers passengers multichannel video and audio entertainment plus video games, onboard shopping, travel information and business services. It will allow passengers a wide selection of movies and television programmes and information services. It will be fitted to all seats on North-west’s Boeing 747s during the course of 1992 and its other aircraft after that. North- west is spending a lot of money-$US450m- on passenger services ranging from new crew uniforms and aircraft interiors and items such as WorldLink.

 Qantas Has Cheaper Insurance:

Qantas now enjoys the cheapest fleet insurance rates in the world, despite premiums having increased by 150% from last month. The cheap rates result from Qantas joining forces with Air New Zealand, Air Pacific and insurance brokers QHF Insurance in negotia- tions with underwriters. The trio’s very young combined fleets (average age just 4. 4 years) contributed to the favourable rate being negotiated as did its excellent loss. record, technical and maintenance excellence, operation in mainly uncongested skies and, in the case of Qantas, some of the longest sectors in the world with relatively few takeoffs and landings. Despite this, Qantas’ hull insurance bill this financial year will still be about $A12m.

South Pacific Airline Pool:

Air Pacific boss Andrew Drysdale has raised preliminary proposals to pool the resources of regional airlines in the South Pacific area. The proposal initially includes operators in Samoa, Tonga, Vanuatu, the Solomons and Fiji and could ultimately involve Air Vanuatu, Solomons Airways, Air Caledonie, Air Niugini, Air Marshall Islands and Air Pacific. Under the proposal, island nations would share route capacity and provide their own cabin crews on relevant sectors. Spares pooling and coordination of timetables and routes would help create greater efficiency. Previous attempts at such cooperation have failed because of various nationalistic and sovereignty problems.

 Williamtown Upgrade:

A Federal government study has recommended that Williamtown Airport, near Newcastle, be expanded with a major terminal capable of handling airliners of Boeing 737 size.

The $2. 5m plan includes upgrading terminal facilities as well as providing ‘aviation support areas’ which could include a hotel/ motel, flight kitchens, service station, car rental, waste disposal building, avionics repair shop and a depot for airport staff. Williamtown has good potential marketed as ‘The gateway to the Hunter Valley’

National Jet Auckland Service:

Astute aviation observers in the Sydney environs may have noticed a 727 disappearing into the night across the Tasman several times a week, for the last few months.

The aircraft is VH-TBJ, a 727-100 that has seen service with Air Nauru, and came to Australia originally to ply the Perth/Melbourne sector with Australian Airlines. The aircraft operates to New Zealand on behalf of DHL On other week nights a Westwind is utilised. (Peter Gamble)

 Air Russia Getting Closer:

A new airline jointly owned by Aeroflot and British Airways, Air Russia, could be ready for operation in 1994 if current plans fall into place.

Intended to serve Europe, North America and the Far East from a Moscow hub, the airline has been subject to a definitive agreement between the partners, but still faces several obstacles including the need to obtain $US750m in financing, route licences, landing slots and other approvals. In addition, a terminal at Moscow’s Domodedovo Airport needs to be built. A fleet of seven Boeing 767-300s is on order via BA for Air Russia, with delivery scheduled for next year.

Badgery’s Creek or Bankstown?:

Rumours continue to abound about Bankstown Airport and the viability of Badgery’s Creek.

In brief, they run as follows: “They’re going to extend Bankstown to 1,800m, allowing BAe 146s to access and thus utilise Banks-town as a hub airport for freight operations with comparatively extended hours. ”

“The FAC are making serious noises about fast tracking Badgery’s Creek to be completed by 1994, with an 1,800m runway (ditto) with 24 hour operations. ”

If the latter rumour is correct, it is known that it certainly would be endorsed by the overnight airfreight industry. However, Bank-stown’s main stumbling block in the next few years will continue to be the lack of an appropriate transport link and residential disquiet. (Peter Gamble)

Korea Spends Big on New Airport:

South Korea is aiming to become the premier aviation hub in north east Asia by building a $US12. 7bn airport on three small islands just off the mainland near the port city of Inchon.

Initial plans call for two of the proposed four runways to be finished by 1997 and the whole project to be completed some time. after 2015. The 1997 date appears to be an unrealistic one given political problems and the physical extent of the project which includes substantial land reclamation (effec- tively joining the three islands together), the building of a 3. 75km bridge linking the airport with the mainland, and the construction of a ten lane highway and double track high speed rail link to Seoul, 50km away.

The airport itself will feature an X-shaped terminal like the one at Atlanta plus conference centres, free trade zones, hotels, a duty free shopping complex and housing for 100,000 people. The airport will be promoted as a regional hub as well as a centre for international flights.

Aeroflot Safety Poor:

Aeroflot, the world’s largest airline, had its worst ever safety record in 1991, with 252 people killed and 185 injured in 36 fatal crashes.

The number of fatal accidents compares with 27 in 1990 (194 dead) and 23 (98 fatalities) in 1989. The total number of accidents (including non fatal) recorded by Aeroflot in 1991 was 167, a slight improvement on the previous two years. The collapse of the Soviet Union has also forced fuel shortages on Aeroflot, employees are unhappy about conditions and pay, and passengers have forcibly shown their dissatisfaction with the standard of service being given. A lack of hard currency has meant compromises in the maintenance of the increasingly elderly fleet, while the head of the Soviet/CIS Air Traffic Control Organisation has said that profits were being sought at the expense of safety. He also said that the incidence of pilot error has increased in recent times.

The airline has also had the delivery of its five Airbus A310s delayed by the manufacturer. The first A310 was scheduled to be

delivered late last year (following Soviet Type Certification in November, the first western airliner to do so) but Airbus Industrie is awaiting clarification of Aeroflot’s situation following the collapse of the Soviet Union.

 Qantas 26th Biggest:

Qantas is ranked the world’s 26th biggest airline, based on 1990 financial year gross revenues, with Ansett Transport Industries 35th and Australian Airlines 53rd.

Leading the pack is American Airlines with revenue of $US11. 7bn, closely followed by United ($US11. 0bn) and Air France ($US10. 4bn). American was second only to Aeroflot on the Revenue Passenger Kilometre scale (RPK) with 124bn with United recording 122bn RPKs though United will definitely pass American this year. Aeroflot recorded 240bn RPKs but ranked only 28th on the gross revenue scale. Lufthansa, British Airways and Delta filled fourth, fifth and sixth places with JAL, Northwest, FedEx and USAir rounding out the top ten.

 Anz Expands in Pacific:

Air New Zealand is expanding its influence in the Pacific by introducing a service between Tonga and Apia, Western Samoa and Honolulu for northbound passengers.

It is part of the airline’s plans to build up an extensive network of services in the south west Pacific area. The move is another hurdle for Western Samoan flag carrier Polynesian Airlines to overcome following the recent notice of withdrawal by Ansett from the 10 year management contract it signed with Polynesian in 1987. (refer p. 5 Dec 91 AA). ANZ has held rights to operate the Apia/Hawaii route since 1978 but has not exercised them until now.

 Qantas Back to South Africa:

After a decade long break, Qantas resumed services to South Africa in January when the first of the new weekly services left Sydney for Johannesburg via Perth.

Qantas is offering a “special introductory return fare” for economy class passengers of $2,399 from Sydney and $2,099 from Perth, while first and business class passengers will pay an extraordinary premium- $8,502 and $6,522, respectively, return from Sydney. The new flight replaces one of the two weekly flights from Australia to Zimbabwe and uses a Boeing 747-400. With fares at that level you can see why the airlines used to call it the Champagne Route!