Newsdesk- Commercial Aviation

It will be interesting to see what follow on effects the cutback’s have on Boeing’s suppliers.

Saab 340’s Quieter Cabin:

Saab will shortly introduce some innovative new technology to its 340 regional turboprop in the form of Active Noise Control, a system which results in a drop in the cabin noise level from 86 to 80dBA. As each 10 decibels represents a halving (or doubling) of noise levels, Saab 340s delivered from 1994 will therefore feature interiors which are more than 25% quieter than before. Earlier aircraft will be able to be modified to the new standard.

The Active Noise Control system comprises 48 microphones placed around the cabin which measure cabin noise and are connected via a computer to 24 loudspeakers concealed in the cabin panelling. The system calculates an ‘anti noise’ which is broadcast from the speakers, thereby eliminating low frequency propeller tones.

Where does all the money go?:

The recent release of financial results for both the FAC and CA prompt further analysis of what the real return to Government is from these and other Government Business Enterprises (GBEs).

The Federal Airports Corporation in the last financial year operated on revenues of $394m, from which it made an operating profit of $89m, after paying interest of $88. 9m, most of this on its ‘invisible’ loan back to the Government. From this $89m profit the FAC paid $54m in company tax. The effective tax rate was thus 71% instead of the usual 39% because of the FAC’s “inability to obtain a tax deduction for depreciation on some of its assets. ” The dividend from profits returned to the owner, (the Commonwealth)was a further $5. lm. There­ fore, not including standard taxes such as sales tax and payroll tax (around 7% of wage costs) the FAC’s total return to the Government for the last financial year was $148m on a turnover of just $394m – quite a nice little earner during a severe recession!

Turning to the Civil Aviation Authority, after paying interest of $25m on its government loan, the CAA earned an operating profit of $20. 7m from revenue of $735m, with an operating profit including abnormals beforetaxof $24. 7m. Interestingly, the CAA’s profit would have been substantially higher had it not paid out $76m in staff redundancy costs. As with the FAC, the CAA paid an abnormally high income tax rate on profits paying $21. 3m, leaving a net profit for the financial year of just $3. 4m, while the dividend to the government for the year’s profit stood at $2m. Thus the total return to the government from the CAA for the last financial year was $48. 3m.

And just to wrap that lot up, don’t forget that government departments are exempt from a wide range of taxes and imposts placed upon private industry. Consequently when the government converts a departmental function into a GBE (Government Business Enterprise) as it did with the FAC and CAA following the demise of the Dept of Aviation those new GBEs have to pay a whole range of sales taxes, payroll taxes and other government fees that are hidden golden payouts that industry ultimately has to bankroll that few people are even aware of.

 Us Improves Safety Record:

US airlines last year experienced their lowest accident rate in a decade.

The National Transportation Safety Board (NTSB) reports that despite one of their worst financial years on record, operators of scheduled FAR Part 121 aircraft (more than 30 seats) experienced only four fatal accidents in 1992. The largest crash of the year was that of a USAir F28 at New York, resulting in 27fatalities, while theonly other fatal aircraft accident was that of a DC-8 freighter. The result of only 0. 238 accidents per 100,000 departures (0. 05 fatal accidents per 100,000 departures) compares with the 1982 figure of 0. 355.

In comparison, the accident rate for scheduled operators of aircraft with less than 30 seats was higher than the average rate for the last decade despite declining slightly compared to the figure for 1991.

Airbus Eyes Asia Pacific:

Like the other airliner manufacturers,Airbus has identifiedtheAsiaPacifi. cregionasthemajor growth area for the remainder of the decade, forecasting average traffic growth of 8. 5% per annum compared with just 4. 5 to 5. 5% for Europe and North America.

Airbus’ vice president of marketing,David Jennings, has said: “The demand for air travel is directly linked to economic activity. Economic growth has been and will continue to be stronger in Asia Pacific region than the other major economic blocs”.

New aircraft deliveries to the region reached a record in 1991 and 3000 new jet aircraft, most of them widebodies, are estimated to be required in the area over the next 20 years.

N-250 Overweight:

Indonesia’s IPl’N N-250 50 passenger regional turboprop (due to fly in 1995) is to undergo a weight reduction programme following estimates that the airframe will be one tonne heavier than anticipated. Which specific areas of the airframe are overweight have not been revealed. Thereis speculation that the N-250 will now appear in prototype form only and that all production will be of the proposed stretched 70 passenger N-270 variant