New Zealand News

Dennis Thompson, the Association’s president, says the industry accepts user pays but it does not accept responsibility for the Authority’s deficit of $NZ5. 6m. He rejects a claim by the Minister of Transport, Rob Storey, that the industry is paying only 26% of the safety costs of aviation.

Mr Thompson declared: “This is absolute nonsense and misleading. Aviation is paying about 98% of the costs and the minister is attempting to mislead all parties over this. ” He has called on the Government to accept responsibility for the shortfall in the Authority’s funding.

The normal Wellington/Auckland one way fare of $NZ242 is usually reduced, on discount, to $NZ169. Of this, passengers pay about $NZ21 in GST. The passenger, on average, pays $NZ18 in additional taxes for landing fees; Airways Corporation for air traffic control, Meteorological Service for weather forecasts and the CAA Authority for safety audit and licence fees.

The aviation industry is concerned that some people could be turned off flying as a result of the rise in taxes and levies. Following the first reports of the Government plan for the $NZ1. 50 airline passenger tax, Dennis Thompson said the Aviation Industry Association paid about $NZ3m to the Civil Aviation Authority’s annual budget of $NZ11. 8m. It also paid more than $NZ80m to the Airways Corporation, responsible for air traffic control.

Transport minister Storey says a passenger tax and/or a fuel tax were the only options in the short term because the industry had said it did not want a proposed safety subscription.

Under the safety subscription, airlines and other aviation companies would have paid a levy to the CAA according to the number of workers employed. The plan was rejected because the CAA would have had difficulty getting information on which to base the levy and collect the money. Mr Storey wants the funding issues resolved soon.

Somalia Pullout by Rnzaf

The New Zealand military detachment in Somalia has been scaled down.

The 60 strong RNZAF Andover detachment has heen withdrawn from Mogadishu but an Army logistics platoon of 27 personnel is still in Somalia, not far from the equator in the Horn of Africa. The departure of the 42 Squadron detachment coincided with the withdrawal of the Australian Army infantry battalion from Baidoa. The Australians were the “main customers” for the RNZAF Andover detachment since the United multi-national task force began withdrawing from Somalia in April.

Living alongside the main runway of Mogadishu airfield since January 5, the RNZAF detachment carried more than 6600 passengers and 144,000kg of freight in more than 200 sorties. In January the New Zealand Government sent three RNZAF Andover transports to Somalia to help get relief supplies to starving people. The Air Force and Army personnel were assisting in the UN-sponsored Operation Samaritan.

The cost of this New Zealand involvement in Somalia was estimated at about $NZ5m. To fund NZ’s role in Operation Samaritan, the Defence Force cancelled its major annual exercise, Golden Fleece, estimated to cost $NZ3m. The armed services have cut back further to find the balance of the $NZ5m.

The RNZAF has 10 Andovers. Their last international service was between 1988 and 1991 when one was stationed in Tehran with 18 personnel, ferrying UN staff and supplies while a truce between Iran and Iraq settled into longer term peace. The Andover’s cruising speed is just 170kts and flight crews faced some 45 hours in the air from Mogadishu to Auckland’s Whenuapai air base.

New Smell for Ansett Nz’s

GARY SMITH Ansett New Zealand’s chief executive Gary Smith has given up the smell of aviation fuel for a sweeter aroma. At 36, he’s become managing director of the Swan Brewery in Perth, after more than three years as the chief executive.

The Melbourne born and raised Smith has been replaced by Ansett’s national sales general manager Craig Wallace.

Interviewed by Shayne Currie of the Evening Post, Wellington, Gary Smith rejected implications that his departure had anything todo with Ansett’s losses in this country-Ansett New Zealand has reportedly lost $NZ160m since it took off six years ago- and indicated that Lion Nathan’s offer was too good to reject.

Under Smith’s leadership, wrote Currie, Ansett New Zealand introduced some aviation initiatives inflight alcohol, aerobridges, new terminals, mystery weekend flights and award winning television commercials. Smith told Currie that “In all our six years. . . we have never had a period when we haven’t been subjected to some rumour suggesting our ultimate demise. ” Currie wrote: “It seems Ansett and Air New Zealand executives can’t stand the sight of each other. Smith has never had a meeting with his Air New Zealand counterparts and only the briefest of words might be spoken at social functions. Smith finds this sad and says it took too long for Air New Zealand to accept that Ansett was in New Zealand to stay.

“He says former Air New Zealand boss Jim Scott outlawed the word ‘Ansett’. He always told his management and staff that when referring to Ansett you refer to them as ‘the competitor’.

“Smith”, wrote Currie, “should enjoy a reversal of the David and Goliath situation – Swan is much bigger than its main competitor, Carlton United. ” Smith says it is inevitable that Ansett New Zealand will make a profit one day. The profit depends on three factors-international tourism growth, trans-Tasman flights and, of course, domestic market growth.

More Auckland Airport Growth

A further major expansion of the Auckland airport international terminal is expected to commence this Christmas.

At the official opening of the $NZ25m terminal pier expansion, guests were told that the front would be changed and expanded.

John Goulter, the airport’s chief executive, said the main part of the building would be expanded by about 25-30%. The expansion would relieve overcrowding in the arrival court and provide a bigger customs area and space for further development.