New Zealand News

Ansett New Zealand is kept going only by cash injections from Australia – but there could be some bluer skies ahead. Ansett Australia is about to make the most of the new OpenSkies policy allowing it to now fly the Tasman and compete against Qantas for the lucrative Asian tourist markets. Ansett has been given rights to fly from Auckland, Wellington and Christchurch to Melbourne and all Tasman routes from next year.

Gary Smith, Ansett New Zealand’s general manager, says that could still be some years away. “We are not isolated. We live in the same vacuum as the rest of the New Zealand economy. We are dependent on the New Zealand economy. We are dependent on the New Zealand economy getting a kick start. “He said inbound tourism had shown only a “very modest increase. The target of three million tourists for New Zealand by the year 2000 is very ambitious. ” (The present total is just over 1 million annually)

As reported in December AA, Ansett New Zealand’s main rival, Air New Zealand, posted a $NZ115m profit in the June year. Air New Zealand’s domestic services earned a “modest operating profit, but at a level that is unsatisfactory in relation to the resources employed,” according to Air New Zealand’s managing director, Jim McCrea.

Ansett directors said the 1991-92 result fell short of expectations although the company had continued its strong growth in both passengers carried and in turnover.

Air New Zealand management and staff got off to a good start, mentally speaking, to 1993. According to a survey by AsiaWeek magazine, the 34 largest companies in the Asia-Pacific region are Japanese but Air New Zealand beat them all when it came to profit growth during 1990.

Air New Zealand was ranked top among 1000 companies on profit growth, the magazine found. The airline’s profit soared 3100%-way, way ahead of the 881% rise in earnings achieved by Japanese steel trader Canox.

Heads were still high at Air New Zealand weeks later when the airline was listed as the airline was listed as the best airline by travel writers for two British national newspapers. Writers for the Sunday Times, read by four million people, said Air New Zealand and Qantas were their favourites – they “just get on with doing a thoroughly professional job without fawning over their charges. ” A travel writer with another British Sunday, The Observer also picked Air New Zealand.

Airways Corp Could Face Claim

A further legal challenge may be mounted against the Airways Corporation following a parliamentary inquiry into the handling of a $NZ13m contract.

A former Corporation special projects manager, Rick Whittmann, said he was looking at ways to launch a case of compensation against the state owned enterprise. Two big unsuccessful tenderers for corporation contracts earlier said the inquiry report vindicated their complaints and signalled legal moves for reimbursement

The 20 month inquiry by Parliament’s transport committee, concluded that the Corporation awarded a contract to an Australian bidder despite a New Zealand based tender being cheaper. Two senior corporation executives involved in the tender process, Frank Baldwin and Dr Rob Edwards, later joined the successful bidder, the Australian Civil Aviation Authority.

Both men have since been suspended from the Authority after an Australian inquiry accused them of “serious incompetence” in negotiating a $NZ400m contract for Australia’s airways system. (Refer story elsewhere this issue. )

Mr Whittmann joined the New Zealand Corporation after a career in the United States aviation and electronics industries. He resigned two years ago and later gave confidential testimony to the transport committee.

It is also reported that two major unsuccessful tenderers for Airways Corporation contracts are also considering action.

Directors of the former Beechcraft Sales (NZ) Ltd may sue the corporation and some of its former executives. A director, Tony Hayward, said: “We want compensation and reimbursement of costs for what they put us through. ”

AWA, which lost a $NZ26m navigational system contract to the French firm, Thomson CSF, believes a New Zealand parliamentary report could justify an inquiry into that contract as well. AWA (New Zealand) managing director, Brent Alviston, said Dr Edwards had been involved in both the contracts while working for the Corporation.

The parliamentary inquiry says the selection, of the Australian Civil Aviation Authority ahead of Beechcraft (NZ) would cost the Corporation an estimated $NZ852,000 over ten years. The inquiry report said the Authority obtained detailed information about flight inspection work that was not provided to other tenderers.

The Corporation has rejected the committee’s findings, saying it had concerns about the process of the inquiry and “the qualifications and expertise” of its members. Corporation chairman Rex Loach said: “In view of the problems, the inaccuracy of their findings was probably inevitable. ”

Airport on Warpath Over Debts

Wellington Airport considered winding up action against Air New Zealand over unpaid landing charges (refer p83 Dec 92 AA), according to the chairman of the airport board, Denis Thom.

The chairman said winding up was one of the options discussed as a way of recovering money owed but it had been dismissed as “inflammatory and unduly provocative. ” According to Mr Thom, the airport is owed more than $NZ6m in outstanding landing charges with Air New Zealand owing about $NZ5m. Ansett New Zealand had pa,td the fees it owed, which were substantial, said Mr Thom. ::

Since a Court of Appeal ruling overturning a High Court decision that the airport’s landing fees were invalid, Air New Zealand, Mount Cook, Air Nelson and Qantas had paid only three months worth of fees at the rate vindicated by the Appeal Court. They had paid landing fees every month since April, 1991, at a rate set by themselves and not the airport.

Later a joint statement from Air New Zealand and Qantas said the airlines had again filed proceedings in the High Court seeking a judicial review of landing charges. The battle of words over Wellington airport and its landing fees goes on and on. Denis Thom later accused Air New Zealand of talking “fiction” over the issue. He said the airport annual result refuted allegations by Air New Zealand of an abuse of monopoly power by the airport.

Mr Thom pointed out the airport made a $NZ3. 26m profit in the 12 months to last June, with a return on shareholder funds of 5. 6%. Auckland airport’s return to shareholders was 7. 6%, Christchurch airport 10. 4% and Air New Zealand’s own return being 13. 3%. At the end of last June, the amount in dispute was $NZ7. 4m. Early this yearit was more than $ NZ10 m, each month increasing by more than $NZ400,000.

Mr Thom said if Air New Zealand succeeded in getting lower landing fees, the ultimate owners of the airport, the public, would be subsidising Air New Zealand’s business.

Flight Under Auckland Harbour Bridge

Motorists driving over Auckland Harbour Bridge were startled to see an amphibious aircraft fly under the bridge. But after an investigation into the case, pilot Grant Harnish, 22 will not be prosecuted.

The pilot, who holds a commercial pilot’s licence, was flying a 1946 Grumman Super Widgeon, formerly operated on the harbour bySea-Bee Air. He said he had taken off, flying under the bridge, after the water became rough.

Civil Aviation twin engined aircraft was taking off. A charge of low flying against the pilot could not be substantiated given that aircraft taking off and landing were exempt from minimum height requirements.

Another pilot flew under the same bridge the day it opened -June l, 1959-and he was fined£50 and£15 incourt costs. That pilot, Eric Barfoot, now 80, had a good laugh about Grant Hamish’s brush with the authorities. Mr Barfoot piloted a Piper C ub under the centre span. He said after the Harnish incident that he decided to fly under the bridge the day construction started. He was nearing the end of his flying career and did not fly under the bridge for publicity- ” it was for me”.

He was banned from flying for 12 months by aviation authorities as well as being barred for life by the Auckland Aero Club.

Rnzaf’s Wide Area of Help

With 11 aircraft and more than 100 personnel scattered from Somalia to cyclone-hit Fiji and down as far as Antarctica, the Royal New Zealand Air Force has had an extra busy time recently.

Three RNZAF Andovers are now working on relief missions in Somalia where 66 members of the RNZAF are based for at least four months. Three Hercules and a Boeing 727 from the RNZAF took personnel and equipment to Mogadishu airport early in January.

Soon after an RNZAF Orion made a reconnaissance of the Fijian islands following a cyclone. A RNZAF Hercules flew a No 3 Squadron Iroquois helicopter and a detachment of 15 personnel to Fiji, where Cyclone Kina killed 21 people.

Damage by cyclones to the Solomon Islands saw the RNZAF send an Andover north to Honiara, accompanied by a RNZAF Hercules which took 600kg of disaster relief aid, including 46 tents donated by the British High Commission. Cyclone Nina killed five people in the Solomons where 80 islanders were made homeless.

It has certainly been a hectic time for Defence spokesperson Flt Lieut. Diana Hales who kept the media well informed with RNZAF activities. Things were just getting slightly more peaceful when an RNZAF Orion made a mid-Tasman mercy mission – flying six units of blood to the P&O cruise liner Pacific Princess to treat an elderly American passenger.

After a practice run 450 nautical miles (830km) from Auckland, the Orion crew parachuted the blood in a container, collected by the crew from one of the ship’s all weather lifeboats.

Air Pacific’s New Christchurch/Nadi Link

From April, a weekly Boeing 737-500 will provide Air Pacific with a direct Christchurch/Nadi service, aimed largely at holidaymakers.

Air Pacific considered a Wellington/Nadi service but selected the South Island’s largest city because of its tourist potential, mainly outbound New Zealanders seeking the sun in winter and Japanese tourists keen to see the scenic South Island after a Fiji holiday.

Air Pacific’s New Zealand regional manager, Jesoni Vitusagavulu, said the company also wanted to tap into overseas visitors who arrived in Christchurch. Air Pacific already operates through Auckland and has rights to serve another New Zealand city.

The 737-500 will carry up to 108 passengers and Andrew Drysdale, Air Pacific’s chief executive, said about three tonnes of cargo capacity would be available in both directions of the new service. MrDrysdale added: “We have spoken to a number of Japanese tour wholesalers who are very keen to package a tropical holiday in Fiji with a South Island destination. ”

Several years agoSouth Islanders had a Christchurch/Nadi/ Honolulu/Los Angeles weekly service, the “Southern Connection” operated by Air New Zealand 747s but the service was later withdrawn.

Quicker by Air

If you are a New Zealand reader you will no doubt appreciate that by previous standards this issue is ‘hot off the press’. From nowon all copies of AA will be air freighted across the Tasman instead of being sent by laboriously slow sea freight. This should have the magazine going on salejust days after it does in Australia’s east coast capitals, or about a month earlier than it previously was available. All NZ mail subscriptions are also sent economy air instead of surface mail.

Seat Belts Could Have Helped Cessna Pax

At least one of the three people killed in a plane crash near Napier (east coast, North Island) could have been saved if she had worn a seat belt.

An air accident report says a navigation error by the pilot of the Cessna caused the crash in July 1990. Three of the aircraft’s four occupants – the two crew and one of the two rear seat passengers-were killed when the machine crashed into trees.

The Transport Accident Investigation Commission said it was probable both rear seat passengers were not wearing seatbelts. The two passengers were flung through the windscreen. The passengers had collided with the crew. “Had the rear seat occupants had upper restraint harnesses available, and worn them, it is likely that both would have survived,” the report said.

Briefs

• Safe Air Ltd of Blenheim has won a maintenance contract with the Royal Australian Air Force worth more than $NZ7m over the next five years. Safe Air staff at the Woodbourne workshops will work on propellers frolll 24 Hercules and 19 Orlons. Safe Air is a subsidiary of Air New Zealand.

• Noted New Zealand Spitfire pilot Tim Wallis made the Times of London as Sir Timothy Wallis of Wanaka (where he has a fine collection of vintage aircraft). But TimWallis is still plain Mr Wallis – there was an error in the list released in London. Contacted at California, where he was on business, TimWallis had little to say except that no announcement had been made in this country. Some sources here say Mr Wallis was offered a knighthood but turned it down.