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Defending Australian Blue Force assets include RAAF F/A-18s from 75 and 77 Squadrons and the Army’s 16th Air Defence Regiment with RBS70 and Rapier SAM systems. Blue Force radar intelligence will be provided by two of the RAAF’s mobile air defence radars, the Jindalee Over the Horizon Radar (OTHR) and Tindal’s Selenia ATC radar. Other involved assets will Include RSAF E-2C Hawkeyes, RAAF 707 tankers and USAF KC-135 Stratotankers.

Malaysia Joins Ansett:

Malaysia Airlines has become the latest international airline to join Ansett’s ever growing frequent flyer plan.

The third Asian carrier to join the comprehensive programme, Ansett’s other international partners in the scheme are United, Singapore, Cathay, Swissair and Austrian Airlines. Malaysia was due to join the programme on August 1.

The Pathfinders Annual Ball:

Qantas’ charity group will be holding its annual ball at the Park Lane Hotel in Sydney on Saturday August 28.

The Pathfinders Annual Ball, to which all within the travel and hospitality industries are welcome to attend, raises money for the Royal New South Wales Institute for Deaf and Blind Children (Pathfinders raised $500,000 in the last two years). The Ball will feature a three course dinner, and the ‘sophisticated and versatile sounds of Stolen Moments’. Bookings and enquiries can be directed to Kaye Bailey on (02) 871 1233, tickets are just $80.

Qantas Route Expansions:

Dependant on IASC permission, Qantas is planning to expand services to a number of key destinations over the coming months. The airline commenced a third weekly 767-300 service to Seoul on July 15, with the Sydney/Seoul/Brisbane/Sydney flight expected to boost tourism traffic to southern Queensland. Korea has recently replaced the USA as Australia’s second largest trading partner after Japan. Continuing growth in traffic between Australia and South Africa meanwhile has resulted in a second weekly service to Johannesburg. Qantas planned to reroute its Harare (Zimbabwe) service via Johannesburg from July 22, dependant on renegotiated capacity. Qantas also has plans to operate a third weekly flight to Sapporo, on the northern Japanese island of Hokkaido, from October. The direct flight to Cairns is geared to boosting inbound tourism, with connections available to other Australian cities. The airline meanwhile will add capacity between Brisbane and Singapore from October, with the substitution of its currently underutilised Boeing 747SPs over the daily 767 service, providing a 30% increase in capacity.

With its merger with Australian Airlines, 737s are being utilised for a growing number of international flights, Noumea will be serviced with two weekend flights in place of its current Saturday 767 flight, both improving frequency and fleet utilisation. Lastly the airline plans to introduce twice weekly Adelaide, Darwin and Bali 737 services from September.

Coincidentally, September also happens to be the month when Ansett Australia begins its first overseas service, also to Ball.

Northwest Rides on Its Pilots’ Backs:

Financially embattled US major, Northwest has reached a major pay cut agreement with its pilots in its latest debt restructuring attempts.

Northwest, which has been running the gauntlet of Chapter 11 bankruptcy for some time now, has negotiated a pay cut for equity deal and its pilots, faced with little real alternative, have agreed to forgo $US304m ($A450m) in wages over the next three years (a pay cut of 15%). A further $US61m ($A90m) saving will come from work rule changes. In return, this and other deals completed or on the table at presstime with other unions, will see the airline’s staff gain up to a 37. 5% share in the company’s common stock. The agreement also allows for three new board positions for staff members, expanding the current board to 15 positions. The total savings from its workforce deals will total more than $US886m (8A1. 3bn).

Other recent cost saving and debt rescheduling moves include a four year debt restructuring with the airline’s bank group; preferred stock holders agreeing to annual reductions in dividends of $US36m ($A52m) generating further savings of $US325m ($A477m); renegotiated pay- ments on more than $US800m ($A1. 2bn) in debt with United Technologies, GE and Airbus, and deferment of deliveries of new Boeings and Airbuses (on top of recent cancellations); and the elimination of all common stock dividends, fees and com- pensation for the next three years for com- mon stock holders (in addition to the substantial stock dilution to provide the additional employee equity).

A major analysis of Northwest will appear in our next issue.

Parliamentary Inquiry Into Commercialisation:

A Joint Committee of Public Accounts inquiry into the commercialisation will focus on the FAC and CAA.

The inquiry (which will also look at the Dept of Arts and Administrative Services) will look at the efficiency, effectiveness and appropriateness of government corporations, the accountability of commercialised agencies and the mechanisms needed to ensure accountability.

Submissions to the enquiry from interested persons and organisations should be forwarded by August 13 to: The Secretary, Joint Committee of Public Accounts, Parliament House, Canberra ACT 2600. Phone (06) 277 2354 or fax (06) 277 2220.

Cathay to Cairns as North Continues to Boom:

Although not officially endorsed at the time writing, Cathay Pacific is expected to begin twice weekly 747 services to Cairns by year’s end.

The direct flights are just the latest in the very healthy traffic growth experienced and predicted for northern Australia. Indeed, through to 2012, Cairns airport is expected (according to FAC data) to record annual international traffic growth of 11%, with Darwin (8. 2%) and Brisbane (6. 2%) expected to be not far behind. By 2006 Brisbane is expected to match Melbourne as our second busiest international airport, overtaking the southern capital by 2011. While Sydney will continue to be the country’s most popular point of entry for international tourists and by far our busiest airport.

By 2011 the number of international visitors to Australia is expected to grow to 30 million, most of them tourists, which is reflected in the shift to the northern ports.

Cairns with its six fold increase in traffic to 2011 has short term plans to spend $7. 5m in expansion to keep abreast of demand (by the turn of the century one in ten international passengers will arrive via Caims). According to the Cairns Port Authority (who operate the airport) annual growth for the past four years has been in the order of 20% Last year more than 1. 2 million international passengers arrived in Cairns, with 172 weekly international movements.

Fac Responds to Industry Concerns Through Additional Consultation:

Stung by criticisms from the Prices Surveillance Authority, the FAC fought back at an industry seminar on July 13 where it was announced that regular six monthly meetings with its clientele would be held to overcome some of industry’s primary concerns.

Lack of consultation was probably the single greatest substantiated claim by the PSA against the FAC in its report on the performance of the Authority. Consequently the FAC will now hold one day forums with its major clients each May and November. An agenda will be circulated three months prior to each meeting asking for industry comment. This agenda will then be clarified one month prior to each meeting.

The initial seminar, held on July 13 to primarily present the FAC’s response to the PSA report (more next issue) was considered highly successful by all who attended and hopefully signals a move to a more publicly responsive Authority.