New Zealand News

Reaction to Australian Aviation Proposals

Air New Zealand sees Australian Government proposals to change that country’s aviation policy as a welcome sign that restraints on the airline’s ability to include Australian stopovers on routes to and from Asia may at last be coming to an end.

Air New Zealand’s chief executive, Jim McCrea, said that the February 26 announcements from Mr Keating appeared on first reading to be largely philosophical indicators of a more liberal direction for future aviation policy.

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“Clearly,”said Mr McCrea, “from what has been said so far there is still much to be agreed between Canberra and Wellington before major changes in the Australasian airline business are seen to evolve. ”

Speaking a day after the Australian Prime Minister’s aviation proposals, McCrea said it was important for the success of the government to government discussions that all the parties “have a much clearer understanding of what is contemplated and the timing of proposed changes. ”

Ansett NewZealand’s chief executive, Gary Smith, said the new Australian aviation policy opened up “exciting possibilities for much needed competition across the Tasman. While there are many details to be worked out, it is clear that this could be the breakthrough that the New Zealand Tourist Industry and consumer have been waiting for. We see the new policy as the beginning of a new era where the consumer stands to benefit from an injection of much needed competition, not only from Ansett but from other Australian operators. ”

Mr Smith also said the “exciting prospects opening for us will require bold, fresh thinking by the New Zealand industry. It will require innovation and a willingness to adapt to the new environment. Australia, with its 17 million population, is New Zealand’s closest tourist catchment, and we must do all we can to ensure itis developed. ”

A single Australasian aviation market could result in the doubling of international passengers through Wellington airport. Don Huse, the airport’s chief executive, said Wellington could cope with more international flights; there were no plans to speed up expansion at the airport. Of course the single Australasian aviation market plan has to be agreed to by this country’s government.

Wellington’s airport draft master plan, released last December, took into account increases in international traffic. Figures show international passengers climbing from 250,000 to 500,000 within 20 years. Once the draft master plan had been implemented – incorporating all domestic and international services – a single terminal could be built in about five years.

Meanwhile, senior. Ministry of Transport sources said the New Zealand government would not approve of the single aviation market unless Air New Zealand was granted “beyond rights” through Australia. Transport Minister, Rob Storey, said if the Australian announcement meant New Zealand aircraft would be able to obtain fifth freedom on-flight rights through Australia to foreign destinations under stage one, that was good. If this was left to stage three, to be implemented in 1994, then it should be brought forward, he said. “I would like to see a move to a level playingfield sooner, rather than later,” said the minister.

Air Accident Rate Down Again

New Zealand’s air accident rate last year was the lowest for more than two decades. For the first time since 1969 the number of aircraft accidents went below 100.

Air accidents last year cost at least $30m; Ministry of Transport officials cannot pinpoint just why the number fell to 93 – compared with 144 in 1990. However nine of last year’s accidents were fatal, 13 people being killed.

The acting safety director of civil aviation, Max Stevens, said the air transport division would like to think the drop in accidents was partly due to ongoing safety measures including safety audits of operators, flight safety publications and other programmes.

Stewart Milne, acting general manager of the air transport division, said that while the figures were pleasing, “we are not busy patting ourselves on our backs. ”

The air accidents cost New Zealand at least $NZ30m in fatalities. This figure does not include damage to aircraft and is based on costs of $NZ2m a death, $500,000 a serious injury and $20,000 a minor injury. An air accident is defined when an aircraft is substantially damaged, someone is killed or seriously hurt or when an aircraft does not reach its destination.

One safety programme the air transport division has introduced is called Hurda – Human Resource Development in Aviation. The project is in conjunction with Massey University (at Palmerston North, lower North Island). It concentrates on human factors and flight training syllabuses throughout the aviation industry. The director of the Civil Aviation Authority, Captain Roger Dalziell, said last year the programme could cut human error accidents – which make up about80% of all crashes – by 10% a year.

Flight Data Recorders Urged

Following New Zealand’s crash in 25 years, the Transport Accident Investigation Commission has recommended that the requirement for carrying flight data recorders, or “black boxes” be extended to all multi engined aircraftused primarily for air transport.

All ten people in the twin engined Britten Norman Islander were killed inAugust 1989, when the aircraft struck the steep snow covered slopes _ of the Blue Duck Valley, Mount Aspiring National Park, at an elevation of about 5,400ft. On board the AspiringAir Islander were five Canadians and four American members of a ski tour group.

The aircraft accident report said the 21 year old pilot, Paul Campbell, while qualified, was inexperienced in multi engine operations. He had logged 12 hours on Islanders, all in the previous 21 days. The accident flight was his first on the Wanaka/Milford Sound route in the Islander.

In its 32 page report, the commission said investigation of the crash in the south west corner of the South Island had failed to find the cause of the accident. The report said lack of direct evidence, remoteness of the crash site and the fact that there were no survivors meant a probable cause could not be found.

The aircraft, which was destroyed, was not fitted with a flight data recorder or a cockpit voice recorder nor were these required to be fitted. “Had either of these aids to any investigation been fitted”, said the report, “it was likely that they would have provided useful information and materially assisted in the resolution of the circumstances surrounding the accident. ”

Air Traffic Radio Link Failure

A telecommunications failure left air traffic controllers without radio links with aircraft over half of the country for an hour recently.

Radio signals for aircraft over the South Island and southern North Island are relayed through aerials on two mountains one being Mt Egmont near New Plymouth in the southern North Island and along a Telecom link to the ATC premises in Christchurch. The Telecom link and its emergency backup failed. Initially radio links were lost with aircraft but a makeshift system was established quickly. Christchurch controllers were able to communicate with Auckland controllers who gave procedural control down to Wellington, said Andrew Makin, chief executive of the Airways Corporation. “There was no risk,” said Mr Makin, “just inconvenience for everyone. ”

Hush Kits for 737s

Air New Zealand is to install hush kits on seven Boeing 737 aircraft, which is great news for people living near Wellington airport.

The US developed hush kits, worth about $NZ5. 5m for each aircraft, will reduce the noise footprint of the 737-200s endured by homes near the capital’s airport by about 70%. The kits will allow the old generation aircraft to comply with a Wellington city council airport noise bylaw that comes into effect in December 199 4. Air New Zealand National’s general manager, Norm Thompson, said the first 737s with hush kits would be flying into Wellington this September.

Profit Lift Off for Air NZ

Air New Zealand enjoyed a strong lift in profit for the six months ended December 31.

The airline enjoyed a 435% rise in after tax profit, standing at $NZ58. 3m compared with just under for the six months ended September 1990.

Revenue was up nearly 16% to $NZllbn. Earnings per share for the latest half year were NZ. 30c, compared with 8. lc in the 1990 half year and 15. 4c for the 15 months ended June 30.

The chairman ofAir New Zealand, Bob Matthew,said the airline has sold 10 of its Friendship airliners which it withdrew from provincial service in late 1990. Eight were going to an Indonesian carrier (Merpati) and New Zealand Post had two. Mr Matthew also said a combination of excessive total aircraft seat capacity and some contraction in total passenger and freight . . . in the highly competitive New Zealand domestic market continues to result in inadequate loadings and profitability. But following substantial cost reductions and improvements in operational efficiencies, the company’s domestic airline operations were “now making a modest contribution to overall profitability.

“Regrettably, while the principal competitor continues to accept substantial operating losses from its deployment of seat capacity far beyond what the domestic market requires and can afford, returns on this company’s capital employed in its domestic operationsare likely to remain inadequate. ” Mr Matthews said the airline was determined to maintain the leadership in its home territory.

Meanwhile, Brierley Investments has paid $NZ37m for American Airlines’ 5% stake in Air New Zealand. Brierley’s share in Air New Zealand is now 42. 5%. Later Brierley Investments saidit was taking legal advice to stop what it regards as unwarranted harassment by the Commerce Commission. The commission said it was concerned that American Airlines’ 5% in Air NZ, bought by Brierley Investments, might be being “warehoused” for eventual sale to Qantas.

Sour Note for Qantas

The Disputes Tribunal here has ordered Qantas to pay $NZ3,000 to two Wellington people who attended a Luciano Pavarotti concert in Sydney last year but could not see the tenor.

Six similar claims from other parts of New Zealand have been filed against Qantas with other tribunals. Qantas Showbiz, a subsidiary of Qantas, sold the couple “best in the house” $NZ253 seats in the Sydney Entertainment Centre, from which neither caught more than a glimpse of the top of Pavarotti’s head.

Qantas has since ordered Australian concert booking agents not to supply seating “on the flat” for its customers. The product development manager for Qantas, Kevin Blackford, said here the airline would not appeal against the tribunal’s decision in the first case. Later he said the eight other complainants had each been paid $NZ1,500.

 

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