Stop Press

Traffic between Japan and Australia is served by Qantas, JAL. and All Nippon. US carriers Northwest and United however have rights to fly between New York and Australia via Japan though United has not taken up its rights owing to Australia not allowing United the daily frequencies it demands. Northwest has been operating a thrice weekly service however since Octo- ber 1991 whilst United has been content to await better times.

However, the Japanese and Australian governments have only allowed Northwest to operate the New York/Osaka/Sydney route on the basis that it carries at least 50% non Japanese traffic between Japan and Australia on two of the services and none on the third. Both nations claim that this requirement has never been met and consequently the Australian and Japanese authorities moved to reduce Northwest’s capacity on the route by one service a week. Northwest appealed and the prob- lem was to be handed down to an independent committee with three non aligned members being appointed from each nation to come up with a long term solution. to the problem. This was in the process of happening as this magazine closed for press.

However, in a surprise move on May 7 the US government retaliated, threatening to withdraw Qantas’ rights for three of its ten weekly nonstop services to LA, a potentially damaging move to Qantas that could also see all of its Australia/US traffic rights removed if Northwest isn’t given what it demands. If the situation worsens it would naturally also be bad news for United and Continental.

At presstime it was unclear what the eventual outcome would be, or for that matter just why the situation had escalated so quickly in what could prove to be an acrimonious and highly damaging trade war for all involved.

Qantas and BA to Join Fre- Quent Flyer Plans:

An announce ment is imminent regarding Qantas and British Airways merging their frequent flyer plans.

It is believed that members of the Qantas plan could accumulate points using non competitive BA mileage and vice versa. This would greatly boost both carriers uplift in the respective markets where each operator is traditionally weak.

A passenger for instance flying from Australla to the UK with Qantas but needing to also visit the US on the way home would thus most probably choose BA as the carrier of choice beyond London whereas previously he or she may have travelled with a competing airline. This should serve to boost BA’s intra European and trans Atlan- tic traffic whilst BA passengers will no doubt utilise Qantas’ excellent network within Australia and Asia to good effect.

Qantas may also move its important Heathrow operations across to the ultra modern Terminal 4 that was specifically built for BA. It is also believed that a move to use common lounges at airports where both carriers operate is also under discussion whilst Qantas premium class upgrades scheduled for later this year are expected to mimic those already successfully put in place by the British airline in recent months.

Trans Tasman Free Market Edging Towards Reality:

A plethora of non aviation issues relating to the freeing up of the trans Tasman aviation market are slowly being overcome as both Ansett and Qantas edge closer to boosting the point to point market considerably via their small twinjets.

Ansett won rights to serve three ports in NZ from Melbourne commencing last November and from this November will be able to also serve those ports from Sydney. From November 1994 it (and Qantas Aus- tralian and Air New Zealand) will be able to fly wherever they wish between the two countries.

However, Ansett has wisely held off launching eastward as it’s one great tactical advantage is that it can operate from domestic terminal to domestic terminal. . This would be much faster than travelling via the international terminals whilst elec tronic inflight Customs, Immigration & Quarantine (CIQ) formalities will also enable a minimum of CIQ staff at Ansett terminals which would largely be necesary to support those not travelling on Australian or New Zealand passports.

The problems that have slowed the freeing up of the market are many and varied and have little to do with aviation. Issues of each nation’s differing visa requirements upon foreign visitors is one problem (Australia for instance requires entry visas from many nations while New Zealand doesn’t) while child custody issues and the possible entry of large numbers of Pacific islanders into Australia is another in addition to the usual concerns relating to drugs, etc.

It is hoped though that these will be fully resolved by late this year and that Ansett will then be able to enliven the market (which it wisely does not perceive as a glittering yield rich prize) with its A320s fighting Qantas’ 737s.

It is expected that by 1995 a wide range of routes originating in Auckland, Well- ington and Christchurch will be able to link direct to such centres as Hobart, Adelaide, Canberra, Coolangatta, Proserpine, Hamilton Island and Caims. The impact this will have on the trans Tasman market will be profound to say the least as Australians and New Zealanders alike begin to perceive each other’s countries as being an exten-sion of their own rather than some remote overseas destination.

 Australia Air Dispute Lasc Funding Requirement:

Aspiring international startup, Australia Air, has challenged the fairness of a minimum funding requirement placed upon the airline prior to it being able to operate services between Australia and China.

The International Air Services Commis- sion believes that the airline requires proof of funding to the level of $55m before pro- ceeding to grant formal air route approval, Australia Air believe that they can operate on a start up budget of just $22m and that the interest bill on the extra, and they con- sider unnecessary, capital would endanger their long term chances of survival.

The airline has also now decided upon leasing two 747-200s instead of the DC-10s that it originally was planning to use. Capacity between Australia and China is also expected to be greatly freed up over the coming two years and consequently Australia Air is planning a daily service linking Sydney with Beijing.

Long term goals are that within two years of startup the airline will be operating twice weekly services to Cyprus, Athens and Amsterdam. To date the airline hast received operational support from KLM and Singapore Airlines and if the present dispute with the IASC can be sorted out quickly it is hoped that initial services to Beijing will commence by year end.

March Quarter Traffic Booms:

DOTC traffic figures for the March quarter suggest that the ‘traffic recession’ of the previous two quarters has eased and that growth has returned to the domestic airline marketplace.

March quarter traffic (refer charts) was up a very healthy 89% in pax uplift and 5. 2% in Revenue Passenger Kilometres (RPK) on the same quarter last year. This was aided to some extent by the emergence of Qantas as a domestic player and the presence (for a time) of Compass. Load factor for the period stood at 70% against 79. 8% last year, more a reflection of capacity increases rather than dilution of uplift.

Year on year performance though indicates that the year ended March 31 was actually . 0% lower in RPKs highlighting the considerable traffic decline that took place during the final half of calendar ’92.

Warbird Joyrides Banned:

Following the crash of Gordon Glynn’s MiG-15 at Canberra in March with the loss of two lives (refer p43 May 93 AA) the Civil Aviation Authority has banned joyflights being carried out in some warbirds.

With nearly 100 warbirds currently flying or under restoration in Australia, ranging from trainers to supersonic fighters, the CAA believes the measure is a necessary safety precaution and says this is being planned in conjunction with the Australian Warbirds Association.

However, the Association denies there was any consultation, and describes the action as a “knee jerk reaction” which will close off one of the few sources of revenue available to aircraft owners. The CAA has called an industry conference for next month to discuss the overall question of warbird operations.

The changes to the ‘General Permission for Ex-Military Aircraft’ revolve around. passengers no longer being allowed to fly in any former military jets or helicopters, or in propeller aircraft not originally designed to carry passengers, unless those passengers are specifically associated with the aircraft as co-owners or support personnel. This apparently leaves the door open for suita- ble aircraft (Harvard, Nanchang, CT-4, Winjeel etc) to carry passengers on a ‘cost sharing basis as the restriction is primarily aimed at jet operators.

The Association points out that the MiG accident was the first resulting in fatalities. in Australia, that there were already a number of restrictions on joy flights and that the pilot must have a commercial licence.

Compass Collapse Prompts Terminals Rethink:

The collapse of Compass Airlines has caused the Federal Government to reconsider its plans to build common user airline terminals at some airports.

The $113m cost of the project was to be provided to the Federal Airports Corpora- tion (FAC) but it has now been reported that the money had never actually been handed over and the whole programme is being reassessed. At this stage it appears that plans for a four gate pier at Sydney’s international terminal and an international satellite terminal at Melbourne may go ahead but a common user terminal at Coolangatta and an extra pier at Melbourne will not.

If these plans are dropped, it is uncertain as to what purpose the unspent money will be put. Options include additional rapid. exit taxiways at Sydney and common user gates at the new Brisbane international ter minal, due to open in 1996.

IN THE KNOW: The British Airways/ Virgin Atlantic ‘dirty tricks’ affair keeps going.

BA public relations consultant Bian Basham, sacked for his role in the affair, has said that the airline’s chairman, Sir Colin Marshall, and its managing director, Robert Ayling, both knew about the cam paign against Richard Branson’s airline and that Sir Colin (then chief executive) had “wanted to see Branson stopped”. He also said that Mr Ayling (then BA’s legal direc- tor) knew that BA staff were improperly gaining access to Virgin’s computer passenger records and also those of Air Europe, which collapsed in 1991 along with its parent company, the International Leisure Group.

Further, Basham claims Sir Colin authorised payment of about $98,000 for a report into Branson’s airline and business interests and his lifestyle.

Even though Virgin won a large settlement from BA over the matter, it is still not over as Virgin is threatening further action in the US courts.

Qantas to Expand Tullamar Ine Engineering Base:

Qantas is to boost the capability of the Australian engineering and maintenance centre at Tullamarine.

Being transferred from the airline’s crowded Mascot Jet Base, is all APU support with some additional component work also coming south. Mascot will look after the 747/767 fleet whilst Tullamarine will continue as the 737 support facility. This year Qantas Australian will earn over $11m. in foreign exchange through supporting the Boeing 737s of no less than six regional airlines via its Tullamarine facility.

With some 330 737s in operation throughout SE Asia and the Pacific Rim and a further 66 on order a major initiative is being made to secure additional offshore work to further boost the Melbourne base.

Airbus Plans for Accelerated A330 Etops:

Airbus Industrie is pushing for airworthiness authority approval of early extended range operations (ETOPS) for its new A330 twin.

Traditionally twins have required up to 250,000 hours of regular airline flying before receiving type approval of ETOPS operations. Airbus is pushing for immediate clearance of ETOPS operations out to 90 minutes in place of the conventional 60 minute level. This would be followed by approval for 120 minutes after 25,000 engine hours, and 180 minutes after 50,000 hours, which will, depending on individual operator approval, allow ETOPS operations of P&W powered A330s from February 1995 Airbus has based its claims on the derivative nature of the powerplants involved, even though the Rolls-Royce Trent has a greater than the accepted 20% increase in thrust rating over the RB211, and from operational experience gained from the A340 which shares common systems. Boeing is also hoping for similar ETOPS clearances from the FAA for its 777 widebody twinjet.

GA Deliveries Worst Since War:

US manufacturers of general aviation aircraft had their worst year since World War II in 1992, for the first time delivering fewer than 1000 aircraft.

The 1992 total was 899, a 12% drop from 1991, itself the worst year to that point. The breakup of 1992 deliveries (with 1991 in parentheses) was 171 jets (186), 177 turboprops (222) and 551 piston engined light aircraft (613). Overseas manufacturers also suffered an overall decline compared with 1991, a 23% reduction in deliveries being recorded. Some managed to increased their deliveries, however, Britten-Norman, Piaggio, Canadair and TBM among them, albeit from very low bases.

The need for product liability reform continues to be the bugbear for manufacturers of piston engined aircraft. Further reform packages are set to be introduced to both the US House and Senate, although key committee chairmen continue to oppose them, backed by the powerful Trial Lawyers Association which of course has a vested interest in maintaining things as they are.

The General Aviation Manufacturers’ Association is planning several programmes to help stimulate GA aircraft sales. These include a business aircraft advocacy programme (with the National Business Aircraft Association) and financing programmes for piston engined aircraft. One thing which must help in this area is the fact that the piston fleet is ageing rapidly and replacements are needed. The youngest piston Cessnas, for example, are now seven years old, and the majority are considerably older.

Chinese Traffic Up:

Chinese airline operations showed substantial growth in 1902, both movements and passengers carried increasing considerably.

The country’s 98 jet capable airports handled 553,000 movements during the year, an increase of 13% over 1991. Beijing was the busiest with 77,000 movements. The total number of passengers carried increased by an amazing 34% to 53 million, one third of which was in the central-south region of China centring around Guangzhou. This region saw a 30% increase in passenger traffic compared with 1991.

Guangzhou handled 9m passengers during the year (up 21%) and 66,000 movements, Beijing 8. 7m (up 38%) and Shanghai 6. 1m passengers along with 51,000 movements. By comparison, Sydney Airport han- dled 15. 1m passengers in 1991/92, and Melbourne’s Tullamarine 10. 4m, while Australia’s overall passenger numbers in 1992 reached 18m.

Avalon Goes International:

Victoria’s Avalon Airport has been upgraded to international airport status and is now able to handle the import and export of international cargo.

Aerospace Technologies of Australia (ASTA) Avalon’s owner and the Australian Customs Service have come to an agreement whereby ASTA will utilise the latest electronic cargo reporting systems. provided by Customs.

The upgrading of Avalon as an international freight centre also has the approval of the Australian Quarantine Inspection Service, the Department of Immigration and other appropriate government bodies. The move is seen as something of a boon for Geelong, the airport’s nearest city, as it has the potential to provide considerable economic benefits to the area. Avalon is situated 23km from Geelong and 54km from Melbourne.

New Saratoga:

Piper’s current financial troubles haven’t prevented it from introducing a new version of its popular Saratoga six seater piston single.

The PA-32R-301 Saratoga 2 HP is now in production with several modifications over the previous model including new cabin windows, restyled interior, flap gap seals and two circular engine cooling inlets developed for Piper by Mississippi State University. The first 24 production Sara- toga HPs will sell for a base price of $US309,800.