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Southern Cross intends financing the resurrection of Compass by the issuing of 100 million 50 cent shares with the aim of relaunching services by August this year. A further 40 million shares will be allocated specifically for creditors and former share-holders, something which would give them a return equivalent to about 9. 2 cents in the dollar.

However, at presstime some doubt had been cast on the scheme by the major creditors who claim to be owed $400m. Aircraft lessors Canadian Airlines, Monarch Airlines and Polaris Holdings have indicated a reluctance to enter into a debt-for-equity arrangement at this stage. The $400m figure is rather larger than the liability figure of about $150m which had previously been indicated.

Further complicating the situation is an undisclosed cash offer for the airline from the Republic of Nauru in association with the Australian Austin Group. Austin, headed by Duke Minks, who partnered Bryan Grey in their successful takeover of Eastwest Airlines in 1981, has said that if its bid was unsuccessful, it would look at establishing a new domestic discount carrier in the next year or so.

An Australian domestic operation would fit in well with Air Nauru’s Pacific network (refer Major Airline Directory elsewhere this issue) which includes hotels in Australia and New Zealand. The Nauru/Ausfin proposal does not require a public float although it would need approval from the Foreign Investment Review Board.

Mig’s for Australian Army Support Role?:

Reports have surfaced that the Army has requested details on the viability of using warbird category MiG fighters to fulfill their air defence training role.

At present the Army Rapier and man portable Bofors RBS-70 surface-to-air missile units largely rely upon the relatively slow RAAF MB-326H Macchi when training on the range with live aircraft. To counter the projected modern threat Army naturally considers that it needs aircraft in the A-4, F/A-18 or F-111 speed class, assets which it rarely gets and cannot afford. Civilian Learjets are also routinely used though, like the ageing Macchi, these are speed lim- ited at low altitude.

There are presently four MiG-15 jets flying in Australia (refer Warbirds elsewhere this issue) with the potential for upwards of a dozen MiG-15/17 aircraft being opera- tional within a year or two if their owners were able to constructively employ them in the Army support role as part of a civilian operated organisation similar to what was envisaged for RAN fleet support tasks sev eral years ago but dropped due to lack of funds (refer p20 Mar 87 AA).

At presstime discussions were continuing though at this stage they are primarily based around examining the feasibility of providing a civilian operated fast jet low level SAM training capability for Army that apparently the RAAF is presently unable to provide.

A Change Is as Good as a Holiday!

They say that a change is as good as a holiday and so with this issue we have decided to introduce an easier to read typeface for our main body text.

With so many dramatic changes in the world these past two years we thought it timely that we rejigged our formats slightly to hopefully bring you an even better Australian Aviation.

We hope you find our various News- desk columns now easier to read with their larger typeface and greater use of photos which complements the considerable increase in colour pages since our October issue last year.

One thing that won’t change however is the quality team of writers that you are well familiar with and their specialist reporting columns that continue to make AA the largest selling aviation magazine in the southern hemisphere.

Call for GA Unity:

It’s a well worn statement that GA is too fragmented and full of self interest groups true, so why can’t it get together? Sure, individual industry groups want their own associations and that’s understandable. It’s the very backbone of representation but it falls down when that vast pool of expertise and ideas cannot be consolidated and hence a lot of effort is “lost in the system”. It is not surprising then that the CAA, FAC and Government are often confused at the similarity of approaches coming at them from so many directions. It then makes it easy for them to pass it on to the conveyor belt method of cycling from one department to another until it too gets lost and forgotten.

To remedy this, the General Aviation Association (GAA) late last year called an exploratory meeting of industry groups representing the commercial component of GA with the objective being to have one voice with which to represent GA when negotiating with CAA, FAC and other Government departments. Resulting from this meeting, the Aviation Industry Association (AIA) was informally put in place to address issues at a national level such as the Safety Tax (refer Recce).

The AIA is not intended to replace the individual industry associations or representative groups such as GAA itself, AAAA or HAA, its objective is specifically to represent the commercial GA industry to provide one voice with a sound platform and industry strength. Industry (in some sectors) will possibly consider it is just another organisation but the GAA feels at least it will try to use the often previously wasted expertise and effort to give GA a better industry and short circuit the indecisive and often prolonged task of identifying and meeting with the right people at Government level.

CAA have already recognised AIA as an industry organisation but there is now a long overdue need for the industry to lift its level of thinking – AIA will get action quicker if it talks to CAA, FAC as a strong and united organisation where they will be forced to take more notice of an industry with greater credibility.

However, the AIA needs support and industry organisations involved in commercial operations should consider the benefits of being able to contribute on those issues of national importance. The AIA can be contacted through the GAA Sydney office on (02) 976 2315.

AA Comment: Representative industry organisations should not be forgotten either. In the difficult times we are experiencing, many members are not renewing, consequently Associations are barely able to survive in a period when their greatest activity should be occurring.

It is a well known fact that the minority of the industry (those who actively support their individual associations) provide the benefits ultimately for the majority who don’t support or pay fees to any organisa- tion-if only 10% of this non supporting non paying element did join an Association then many of the financial problems would be minimised and an immediate uplift in activity would be experienced throughout the industry. After all, it is your industry and future.

NTSB Changes Finding:

The American National Transportation Safety Board (NTSB) has changed its findings as to the cause of an incident involving a United Airlines Boeing 747 over the Pacific in February 1989.

The 747’s forward cargo door blew open whilst the aircraft was flying at 23,000ft en route to Sydney, causing an explosive decompression which resulted in nine deaths. The NTSB originally found that a mechanical malfunction caused the locking mechanism of the outward opening door to fail, but this has been revised to blame an electrical malfunction.

After further investigation (to a large extent prompted by the parents of one of the dead) it has been discovered that a faulty switch or wiring in the door control system produced an electrical signal which opened the otherwise sound mechanical door latches.

Airways Charges Cut:

The Civil Aviation Authority is proposing to reduce airways charges by about $96m in the 1992-93 financial year.

The CAA’s chairman, Mr Ted Butcher, said that the CAA has managed to achieve extraordinary improvements in efficiency through major restructuring and a changed equipment investment policy which has disposed of the high risk approach of developing systems unique to Australia and purchasing existing equipment instead. The benefits of these reductions will, according to the CAA, flow on to all aspects of aviation in Australia (refer Recce).

A319 Launch Delayed:

Airbus Industrie has further delayed the launch of its new 130 seat twinjet airliner, the A319, because of continuing political and inter-partner differences.

The major problem is the ongoing discussion over where the A319s final assembly line will be located. Aerospatiale naturally wants it at Toulouse where the A320 is built, while Deutsche Aerospace would like to see it built in Hamburg, along with the A321. The latter is the first Airbus product which will not have its final assembly line at Toulouse and the first example of the stretched A320 is due to fly early next year.

Commercial considerations have also entered the equation, namely the large number of jets emerging in the A319s seating category. Despite this, the aircraft will still probably be launched this year with service entry planned for 1995.

Us General Aviation Fights Back:

After more than a decade in the doldrums, the United States general aviation industry is showing signs of fighting back, particulary in the areas of product liability, reduced costs and taxation reform.

US general aviation manufacturers delivered only 1,021 aircraft in 1991, the lowest total since World War II, and a far cry from the peaks reached in the late 1970s. In 1978, for example, some 14,000 aircraft were delivered.

Product liability payments increased from $US24m in 1977 to $US210m in 1986, and this is the area which is considered to be the most important to a revival of the GA industry. Legislation is now being considered which will limit the award of punitive damages in product liability cases but despite being supported by the highest levels of government, it still has to overcome considerable opposition from groups with a vested interest in the current situation continuing, especially the powerful and influential Trial Lawyers Association.

Tax reform is also needed, notably the introduction of an investment tax credit scheme and the withdrawal of the disastrous luxury tax which Beechcraft claims has so far cost it the sale of 80 aircraft worth $US130m. The tax has netted the US government only a fraction of its expected revenue estimates (SUS65,000 in 1991 against a budgeted $US6m!) and like our.

own ill conceived luxury car tax’ has helped put many people out of work.

Other areas being looked at by the Gen- eral Aviation Manufacturers’ Association and the Federal Aviation Administration include alternative fuels (“100LL will become so expensive it will be cheaper to fill your tanks with Scotch whisky” accord- ing to the FAA administrator), continued efforts to establish an affordable primary aircraft category and the joint use of mili- tary airfields to help relieve congestion.

London City Jet Services Begin:

Swiss airline Crossair began the first jet services into London City Airport in late March, using British Aerospace 146 aircraft.

The breakthrough service comes after several years of negotiation during which environmental matters were overcome. The 146 is the only jet able to operate from the airport due to its low noise signature and semi STOL capability.

A few days earlier, BAe flew the first prototype of its ‘new generation’ family of 1468 when a Series 200 aircraft took to the air from Hatfield. Featuring upgraded LF507 engines with FADEC (full authority digital engine controls), digital avionics, a traffic alert and collision avoidance system. (TCAS), a Category III flight guidance system and increased weights, the new 1468 will offer improved payload/range and hot/ high performance.

Crossair will take delivery of the first production new generation 146 in March next year.

 Intrastate Deregulation Call:

A newly released Industry Commission draft report has said that State regulation of intrastate air services is denying air travellers in NSW, WA and Tasmania cheaper air fares, wider choice and improved service.

The report says that economic regulation of aviation in those states should be dismantled to increase competition and “create the incentive for operators to match the initiatives introduced elsewhere in Australia, to the benefit of airline passengers, many rural businesses, tourist operators and other users of intrastate air services”.

Victoria, South Australia and the Northern Territory already have deregulated intrastate air services systems while Queensland is only partly regulated.

Interestingly, one voice which is opposing further deregulation of intrastate services is Max Hazelton, managing director of New South Wales’ Hazelton Airlines. Mr Hazelton doesn’t believe total deregulation is the answer and describes such a move as “suicide” for many operators and “madness”. He supports partial deregulation but says that full deregulation could result in several operators competing on routes which can support only one. The result could be the eventual withdrawal of all services on such a route, leaving many country towns stranded.

Saab 2000 Flies:

The Saab 2000 high speed 50 passenger regional turboprop made its first flight on March 26.

This begins a three aircraft, 1,200 hour flight test programme which will see certification achieved in April 1993 and entry to service (with Crossair) in the third quarter of 1993.

Australia’s Kendell and Hazelton airlines each have options on two Saab 2000s.

Foreign Flight Crews for Ana:

Japan’s All Nippon Airways has entered into an agreement with Ansett Worldwide Aviation Services (AWAS) for the provision of foreign flight crews.

ANA requires 90 Boeing 747 and 66 Boeing 767 pilots from overseas sources by 1995 so as to facilitate planned expansion. and counter increasing competition. The pilots will come from several countries though they will be primarily from Australia, New Zealand and Canada.

Once the crews have been issued their Japanese Air Transport Licences they will be based in Sydney (747s) and Tokyo (7678). AWAS has previously supplied flight crews for ANA’s charter arm, World Air Network.

F-22 Proposed for Usn:

A derivative of the new Lockheed/GD/Boeing F-22 Lightning fighter is being proposed to meet The US Navy A-X future attack aircraft requirement.

Lockheed is the prime contractor on the F-22 project and is working to convince the Navy that a carrier version of the F-22 is the most technically and economically viable candidate for the A-X, a replacement for the Grumman A-6 Intruder. The A-X is expected to enter service around 2007 and could also be utilised by the USAF as an eventual F-111 replacement.

146 Power Loss Investigated:

The substantial loss of power on all four engines of an Ansett WA BAe 146-200 on a flight between Karratha and Perth in late March is being investigated by the Bureau of Air Safety Investigation.

Flying at 31,000 feet in icing conditions, the aircraft gradually lost power and was unable to maintain altitude. Numbers 1 and 3 engines were shut down and the remaining two were delivering minimal power, causing depressurisation. Full power was restored on all four engines at a lower altitude and the aircraft safely diverted to Meekatharra without further incident or any injury to the 56 passengers and crew. Preliminary investigations have sug gested that an ice build up on the aircraft’s engine intakes or fan blades may have caused the problem, the result of ‘freak’ atmospheric conditions. As a precaution, Ansett imposed a general altitude limit of 28,000 feet on its 146s, or 25,000 feet in icing conditions. However, no formal reasons for the incident had been released at the time of writing. The BAe 146’s deicing system works off engine bleed air.