Airline Profile- Aeropelican

Over a period of almost five years, load factors on the route proved substantial enough to warrant the introduction of a larger aircraft, and in April 1976 the first DHC-6 Twin Otter was delivered. The extra 18 seats would provide the added capacity required to augment the 77% load factors being experienced on the 402. After the death of Mr Hilder in June 1976, his family managed the operations until 1980 when the airline was sold to the Cootamundra based Masling Airlines. By this time the fleet comprised two DHC-6s and the 402. Increasing demand for services saw the introduction of three new Twin Otters in 1981. These series 320 aircraft remain in the fleet today as VH-KZO, KZP and KZQ.

After a short period of ownership, Aeropelican was sold to the TNT-News owned Bodas Pty Ltd in August 1981. They are the current owners and operators of the airline. Since then Aeropelican has had a strong association with Ansett, utilising its passenger facilities at Sydney airport, as well as the Ansamatic reservations system which provides it with a total on-carriage of nearly 50%.

A total of 81 return flights are operated each week between Belmont and Sydney. Despite the high frequency of services average loads of 57% are achieved. Three quarters ofthe uplift is business travel, with the remainder being made up of tourists throughout varying seasonal demand.

Besides the scheduled operations, charter work provides an important source of revenue for Aeropelican. A major source of such work has come from the parachuting fraternity, which contributes up to 25 hours of utilisation each week during national events. The Twin Otter is ideally suited for parachuting activities due to its two door rear entry/exit. Other charters are frequently taken to locations such as Dubbo, the Hunter Valley and Coffs Harbour. To cater for charter work and to supplement scheduled services when required, one aircraft is kept on standby. The remaining three units are used to maintain the high frequency services which has enabled Aeropelican to retain its number seven position amongst the ten largest commuter and regional airlines in Australia on a pax uplifted basis.

Thirty two of the total 43 airline staff are flight crew. Pilot utilisation is maintained at about 650 hours per year. With the Ansett association, Aeropelican is also a member of the pilot integration scheme. This allows Ansett to draw from the resources of its fellow members, and Aeropelican provides up to four pilots a year to the scheme. Generally pilots will stay for two to three years before moving on to Ansett, during which time they will have advanced from F/O first employment to command. There is no shortage of applicants to fill the vacancies, with around ten resumes received weekly from appropriately qualified flight crew.

Aircraft utilisation is l,200hrs per year for RPT work plus charters. The 1981 delivered aircraft have used approximately 14,000hrs ofan airframe life of 33,000hrs. The STOL performance of the aircraft is ideally suited to the airfield limitations at Belmont given that there is no undershoot or overshoot. Any larger aircraft such as theDash 8 could manage the strip, but would give a hair raising approach and departure for the passengers!

Such an intense and comparatively small operation such as Aeropelican’s, is more susceptible to market changes and external factors. Two major influences have recently had some effect on the airline. The first was the upgrading of the northern freeway and the improved rail link to Newcastle which meant the loss of around 200 passengers per week or the equivalent of around 11 full Twin Otters. Prior to the upgrading, the service was enjoying over 2,000 pax/week.

The second external influence was the introduction of peak period surcharges at Sydney Airport. The 14 or so peak movements which the airline provides into Sydney effectively added $4,000 each week to the cost of operations which, as with many other commuter and feeder airlines, meant an inevitable increase in fares.

Constant congestion at Sydney Airport has also necessitated a review of departure practices from Belmont. Prior to the aircraft’s departure, despatch officers ring in to Sydney to confirm a slot time. If delays are anticipated the aircraft will remain on the ground for the time equivalent to the delay. Previously, aircraft frequently had to circle Sydney airport for up to 40 minutes. The practice of calling Sydney ATC has significantly increased fuel savings.

Aeropelican can only continue to prosper in its niche market.

Fares between the two ports are realistically set to provide an efficient and reliable service to the Newcastle area regardless of the quality of road and rail systems. Motoring between the destinations costs about a third of the cost of a one way fare, yet it takes up to five times longer to drive.

For as long as this equation remains, flying there makes sense.