Airline Affairs

Ruling out further widespread job cuts, the airline plans to cut or scale back unprofitable services and put on ice any plans of further short term fleet expansion, while senior management will be tasked with further improving the airline’s performance. For this financial year Qantas will concen- trate on achieving greater efficiencies and improved productivity utilising current staff and fleet levels.

Qantas has been widely applauded for taking the difficult path of clearing its books and making all its writedowns in one hit before its public float, clearing the way hopefully for future profitability. While this strategy is dependant on growing earnings, Qantas has been trading profitably for the first quarter of the current financial year.

While the worst of the one off problems associated with the merger and restructur- ing are over, Qantas faces a number of key challenges in the short term, including selling itself to potential investors (the float is now scheduled for 1995), a very strong Ansett group which has a sizeable market lead over Qantas’ domestic operations, and to bolster staff morale, which has been adversely affected by insecurity, general confusion and job losses associated with the merger.

Us Airlines to Return to Limited Profitability:

Followingtained period of dismal losses, the US Air Transport Association says the US domestic airline industry should record a small overall profit in 1994.

The ATA has forecast a small combined profit for US carriers of $US2. 1bn in 1994, with the profit for last quarter of 1993 predicted to reach $US200m. Following the massive industry losses of past years ($US10bn over the last three years) the forecasts are good news, although the ATA cautions that the results would barely cover capital commitments, and do not represent a satisfactory return for shareholders.

The forecast profits are based on continued growth in the US economy, with a slowdown in the economic recovery having a significant impact on bottom line results.

 Iata Predicts Growth:

Finally, some good news for the world’s airlines, or at least the prediction of some.

The International Air Transport Association (IATA) has issued a forecast which says that worldwide scheduled passenger traffic will grow by an average 6. 3% over the 1993/97 period. From a base of 300 million air travellers worldwide in 1992, IATA expects the number to grow to 414 million by 1997. It also predicts the region of greatest growth will be Central and Eastern Europe (up 10% annually, albeit from a small base), followed by the Far East (8-9% per annum) Latin America (99%), North East Asia (9%) and South East Asia (89%).

By comparison, traffic within Western Europe is expected to grow at a rate of less than5% each year, and in North America at under 4%.

Of the inter-regional markets, the biggest annual growth rates are expected to be shown by routes within Asia (11%), the South West Pacific-including Australia-(9-10%) and between each half of Europe (10%).

The largest increase of all though should come from services within China. IATA expects these to grow at a rate of 16% per annum between now and 1997 though many within the industry feel this is overly conservative.

 Qantas Radio Callsign Changes up in the Air:

As from October 31, coinciding with the official adoption of a single brand entity, Qantas’ domestic operations were to adopt radio callsign methodology in line with the airline’s inter- national operations practices reports Bob Bell.

Qantas domestic flights were to adopt the QF callsign followed by the flight number (le QF400) when conversing with ATC rather than using the aircraft’s rego as a callsign. A surprise eleventh hour directive though is- sued by Qantas Flight Planning advised domestic aircrews to continue using aircraft registrations instead of flight numbers, as had been done in the past. International flights flying domestic legs would continue to use their flight numbers. As late as October 28 the airline was in conference with the CAA laying the groundwork for the proposed change. The reason for the failure to adopt the new callsign being unknown at press time. The CAA has also to adopt the flight number system, although the airline is reportedly reluctant to do so.

Domestic Tourism Major Economic Contributor:

During 1992 domestic travellers in Australia spent more than $29bn according to the Bureau of Tour- ism Research.

Although little appreciated, domestic travel currently accounts for approximately 75% of all tourism money spent in Australia. The total tourism market (both domestic & international visitors) is also the largest contributor to the country’s Gross Domestic Product (GDP) at over 6. 5%, ahead of agriculture (4. 3%) and mining (4. 6%).

The study found that Australians spent $18bn on 46m trips which involved at least one night away from home, while day trips and domestic components of international trips accounted for the balance.

Not surprisingly, the survey found that business trips were the most expensive, averaging $120 per stay, due to higher accommodation, meals and transport (usually airline travel) costs. It is extremely difficult for business to utilise the significant savings regularly available to the traveller. A market here perhaps? • QANTAS TO CODESHARE TO VAN- UATU: Qantas will begin codesharing on flights to Vanuatu almost immediately if a draft determination issued by the International Air Services Commission is con- firmed.

The code sharing arrangement with Air Vanuatu will allow Qantas to offer 150 seats perweekbetween Sydney/Brisbane and Port Vila. Australia already provides a valuable source of visitors and income to Vanuatu,

The Next Issue of Australian Aviation Will Be On Sale February 17- Don’t Miss It!

With 23,000 Australians visiting the South Pacific island in the 12 months to July 1993. Ironically, the flights to Vanuatu will be undertaken using a Qantas aircraft. Air Vanuatu hashad longstanding arrangements with Australian Airlines, and leases what is now a Qantas 737-400 as its main equipment.

American Airlines Healthy Pacific Traffic Growth:

American Airlines has recorded a 38% increase in traffic originating from the South Pacific over the last comparable figure in 1989.

American has extensive codesharing arrangements with Qantas where QF passengers can transferat Los Angeles to American fights to New York, Chicago, Washington and Boston, providing the megacarrier with much of its Australian patronage. American has twice operated direct flights to Australia, withdrawing from the market on both occasions due to unprofitability. American says the healthy growth of passengers it carries largely on its US domestic network is also a result of strong customer loyalty, support from travel agents and the success of its $43 per sector Visit America fares. Meanwhile American Airlines has announced new codesharing arrangements with British Midland and Gulf Air, which will allow it to increase its strength and market presence in Europe and the Middle East. American will codeshare Gulf Air flights from Heathrow to Abu Dhabi, Bahrain, Doha and Muscat, and with British. Midland from Heathrow to Amsterdam, Brussels and Glasgow.

China Bans Government Travel:

The Chinese government has banned all government funded overseas sightseeing travel in an attempt to curb corruption and the widespread abuse of privilege. Although probably only a temporary measure, the ban could have a marked ef fect on Australian tourism while it is applied, as many Chinese government officials and employees of state run enterprises combine their official duties with sightseeing and recreation. About 3 million such Chinese travelled overseas last year, of which nearly 20,000 came to Australia.

A circular has been issued by the Chinese Communist Party Central Committee and State Council announcing the ban on all general purpose study trips and also stating that no delegation or group visiting abroad detour for any reason or extend their visits without approval. Additionally, party and government officials are not permitted to become members of delegations sent by businesses or institutions to visit other countries.

Anz Asia-Queensland:

Air New Zealand has increased its services from Asia to Queensland with the introduction of twice weekly Boeing 767 flights between Brisbane and Seoul, adding to the Taipei/Bangkok/Brisbane services introduced last year.

The airline sees the new flights to South Korea as a step in the further development of Brisbane as a hub for flights to and from Asia and it also plans to operate flights from Brisbane to Osaka in 1994. Brisbane/China flights are on the agenda as well. Air New Zealand estimates it will bring more than 100,000 inbound tourists to Brisbane over the next two years.

 Summer Profits Help Us Airlines:

The USA’s airlines have had a financially encouraging northern , between them earning esti- mated profits of $US1-1. 5bn and setting the scene for overall profitability for 1993.

AnAir Transport Association (ATA) forecast suggests that US airlines will produce operating profits totalling $US2bn in 1993, a marked improvement over 1992’s $US2. 5bn loss. After interest payments, overall net Midway-profits are estimated at a much more mod- est $US200m, but at least the ledger should be black instead of red.

The ATA suggests that even though traffic figures will improve by only about 1% over 1992, revenues will increase by 7%, a reflection of the relative lack of silly discounting which was rampant last year. Unit costs have remained fairly static, as has the number of available seats, while operating costs have increased by only 1. 4% this year.

If you checked our editorials in the September and October issues about the need for Qantas to attack new markets then the above charts will no doubt be of interest. Produced by the DoTC’s Avstats unit, the two charts show firstly, traffic from Australia to the UK and secondly to mainstream Europe itself. You don’t have to be a Rhodes scholar to see that the two are nearly equal.

So what does this tell us? It tells us that Qantas is deliberately ignoring roughly half of the traffic base to Europe as apart from London it only serves Manchester, Rome, Parks and Frankfurt several times a week, mostly via time consuming multi stop services. In other words, one out of every two departing passengers from Australia are literally forced to fly with Singapore, Cathay, Thai or Malaysian if they want a swift and competitive trip to a mainstream European destination. This of course is a windfall for the Asian carriers which also boast good frequencies into London. The amount of high yield full fare traffic that these carriers would take from Qantas each year must be considerable.

And why does Qantas deliberately ignore more than half of the traffic base travelling to that part of the world? Well, in a recent discussion with two senior QF execs we were told that there simply was “no market in Europe. Far out! Like there was no market in Japan a decade ago, none in Taiwan three years back (refer p30 Nov 93 AA) or none in China today. Somewhere, someone has neglected to appreciate that you can’t have a market till there is a viable air service to that market.

Apart from fervently believing that all this traffic departing Australia doesn’t want to fly to mainstream Europe, Qantas also has a technical problem with operating 767s out of Bangkok on non stop lights into Europe as Lauda, SAS and others do. Apparently the onboard passenger emergency oxygen system in the QF 767s are a minipac unit (instead of the more capable longer endurance version available) that is good for only around 12 minutes. As the track from Bangkok across Russia and into Europe overflies the mountainous regions of Pakistan and Afghanistan, it becomes operationally too difficult to fly this route with aircraft limited to a 12 minute time window in event of an inflight depressurisation occurring whilst over these very hhigh mountains Qantas stresses that diversion routes are available enroute but to constantly monitor them and adjust their flightplan to keep them within range would be too high a workload on the crew.

The constant belief that there exists no viable market in Europe other than London, when one out of every two departing passengers flying to Europe don’t even go to the UK, and the purchase of Extended Range twinjets with a 12 minute emergency oxygen system seems strange indeed.

Australia – United Kingdom Air Traffic Australian Rev 1000 -Total Traffic 1214 G 75 90 91 92 Year ended 31 December 1200 Australia – Europe (excl. UK) Air Traffic Australian Brident 1000 Total affi 700 82 83 84 85 86 87 88 89 90 91 92 Year ended 31 December MANDA A Mandala Lockheed Electra recently underwent maintenance with Hawker Pacific in Perth. Pictured here undergoing engine tests, this latest aircraft is one in a recent spurt of Electra’s to pass through the Perth maintenance facility, a notable client being failed Indian Ocean Airlines, whose planned operation failed to get off the ground. (Dave Fraser) A general tightening up of fare discounting has resulted in increased yields; substantially increased in some cases. An example is the month of July when yields were 20% higher this year than they were in 1992 despite lower traffic levels.

Control over increasing capacity is also helping. Carriers are retiring older aircraft but taking delivery of new ones at a reduced rate and it is estimated that by the end of 1993 there will be 3394 jet airliners in US service, one fewer than 12 months earlier. However, continued improved performances by the airlines depends on the US economy growing at an annual rate of 3% or more and capacity being kept in check. .

Polynesian Making Moves:

Taking advantage of Continental’s cessation of services on the trans Pacific route, Western Samoan flag carrier Polynesian has inaugurated a one stop Sydney/Los Angeles service via Apia.

The new flight uses the carrier’s Boeing 767-300ER, and operates once a week each Sunday. Dependant on traffic demand, the airline may increase the frequency of the one stop service in the future.

To capitalise on the United, Northwest and Continental withdrawal from services to Hawaii, Polynesian may also add connecting services to Honolulu from Apia, providing Sydney and Melbourne with a third carrier for this prime holiday destination.

In another development, Polynesian’s Boeing 737-300QC, 5W-FAX, will be leased to Ansett Air Freight for general cargo duties to Auckland. The twelve month contract will see the 737 utilised by Ansett from Monday to Thursday, and returned to Polynesian for passenger duties ex Apia from Friday to Sunday. The agreement. sees Ansett extend its international freight services, and competes head to head with the DHL 727-100 services operated by National Airlines.

Fac Infrastructure Program- Mes to Meet Growth Demands:

Ever increasing growth in airline traffic throughout the Asia Pacific has resulted in the Federal Airports Corporation implementing wide reaching infrastructure programmes at a number of its key airports to keep abreast of demand.

International Air Transport Association (IATA) figures have shown that between 1985 and 1990, traffic in the region grew by 12% per annum, and it predicts an annual growth rate of 8. 6% through till 1995. In meeting demand forimproved and expanded facilities to handle this growth in Australia, the FAC has committed more than $1. 6bn since 1988 on capital works projects at its major airports.

Thus far some $900m has already been spent on airport terminals, runways, aprons and taxiways. Major projects include the parallel runway and international terminal extension at Sydney, a new international terminal at Brisbane, new terminals at Alice Springs and Darwin, expansion of Melbourne’s international terminal, and domestic terminal expansion around the country.

Possible future programmes include a new terminal and runway extension at Adelaide, runway extensions at Brisbane, an international freight apron at Melbourne, and terminal upgrading and expansion at Brisbane, Melbourne and Perth. ”

Fac Hitsout at Government Inquiries:

In an address to the Royal Institute of Public Administration Australia, the FAC’s Managing Director, Bill Swingler, has criticised the large number of government inquiries that have been conducted into it.

In his address Mr Swingler noted that despite evidence to the contrary, the FAC had attracted an enigma for inefficiency, unfair charging regimes, cross subsidisation, unprofitability, misuse of power, poor performance by international standards and a failure to meet its objectives asset down by the government.

Noting that in the first five years of the Corporation’s operations, it has been the subject of no fewer than eight government reviews, Mr Swingler expressed concerns that the reviews may have had a detrimental affect on the FAC. Even Ansett, in giving evidence to the Prices Surveillance Authority investigation into the FAC, has suggested that “It is arguable that excessive inquiries create the very problems those same seek to overcome. ” In defending the FAC, Mr Swingler noted that Australia’s landing charges at interna- tional airports are fourth lowest in an inter- national representative listing of 40 world airports, the basic landing fee of $5. 72 per tonne has remained unchanged since 1987; increases in landing fees have on average been held below the inflation rate; staff numbers are far lower than when the country’s major airports were operated by the Dept of Transport & Communications; profitability has been very close to the 7. 5% set for it by the Government; and that the in real terms minimal cross subsidisation allows the FAC to smooth out the effects of lumpy investment across its airports.

Southwest Launch 737X:

Boeing and Southwest Airlines have announced that the 737X family of jetliners, the next generation of the Boeing 737, will proceed on the strength of Southwest Airlines order for 63 of the new twinjets for delivery from 1997 through 2001.

The new 737 family is a derivative of the current 737. It features a modified wing with a larger span, and quieter, more powerful engines but will maintain crew commonality with the current models. (Refer p23 Sept 93 AA) The new aircraft will have a range of 2950nm (5460km) – an increase of up to 850nm (1575km) over current production 737s. For example, that will allow routes such as Sydney/Perth, London/Bahrain and US transcontinental flights.

Southwest’s entire existing fleet of 157 aircraft consists of Boeing 737s. The airline’s chairman, president and CEO, Herb Kelleher, said “We are delighted to once again be the launch customer for a Boeing aircraft. The current 737 models serve our high frequency, short haul operation very well. However, Boeing’s business offer. combined with the additional attributes and operational flexibility of the 737X, made the economics of this agreement superior. ” The new order includes four 737-300Xs for delivery in late ’97, 16 in each of 1998 and 1999, 15 in 2000, and 12 in 2001. Of the 63 new orders, 32 result from the conversion of existing options. Southwest’s existing orders for 50 Boeing 737-300s for delivery in 1994-1997 are unaffected by this order.

Like today’s 737-300/400/500 family, the next generation 737 is currently offered in three sizes. The -300X is the middle size member of the new family, equivalent in capacity to the 737-300, which seats 128 passengers in mixed class and 137 in Southwest’s single class arrangement. The seating totals of the three models will cover a range from 108 to 160 passengers in mixed class configuration.

The total wing area of the 737X will be approximately 125m2 (1340sq ft), 25% greater than that of present day 737s, providing 35% more fuel capacity for a total of 27,250 litres. Modifications to the airfoil shape of the wing will provide economical cruise speeds of . 78 to . 80 Mach (460kts), compared to. 745 Mach for today’s 737, with sprint capability of 82 Mach.

The new engines to be produced by CFM, a joint venture between GE of the United States and Snecma of France will provide 10% more thrust than today’s CFM56-3 engines while meeting noise standards con- siderably below current Stage 3 standards. The new engines also offer lower fuel burn, reduced emission levels and lower maintenance costs.

Qantas Chairman to Head Olympic Committee:

Qantas chairman Gary Pemberton has been appointed president of the Sydney Organising Committee for the Olympic Games (SOGOC). The part time position carries an annual fee of $100,000 and could give Qantas a higher public profile in the lead up to the Olympics.

Industry observers however have warned that Mr Pemberton might well be getting overtaxed with high level work commitments at a time when the revival of the ‘new’ Qantasis paramount and requiring its chairman’s full time attention in the year ahead. In addition to his Qantas and Olympic responsibilities Mr Pemberton is also cur- rently the chairman of Brambles Industries.

 Hazelton Goes Public:

Leading regional operator Hazelton Airlines has embarked on a $10m public share issue intended to pay out the airline’s $11. 4m aircraft leasing and hire purchase commitments and improve its debt-to-equity ratio to around parity.

The float is fully underwritten by Brisbane broker Morgan Corporate and closes on December 10. What will be Australia’s only listed airline – until the Qantas float takes place-will be listed on the Australian Stock exchange from December 20. Ten million $1 shares will be offered with a further one million available if the issue is over subscribed. The only other listed aviation company operating aircraft is Charter Cruise Air, the parent of Aircruising Aus- tralia.

The float will leave the Hazelton family with about a third of the company and the prospectus forecasts a 1992/93 after tax profit of $2. 3m on revenue of $45m. An in depth profile of Hazelton Airlines appeared in last month’s Australian Aviation.

 Twa Out of Chapter 11:

Trans World Airlines has emerged from Chapter 11 bankruptcy protection thanks mainly to being bailed out by its creditors and employees.

TWA went into Chapter 11 protection in January 1992 and a debt-for-equity dealsees the creditors with 55% ownership of the airline after forgoing some $US1bn in debt. Employees-who have shown great loyalty to the airline-hold the remaining 45% ofthe stock. Employee concessions haveresulted in labour cost savings of $US600m over three years.

 Compass Memorabilia Saved:

A comprehensive collection of Compass Airlines (both Mks 1 and 2) memorabilia has been acquired by the Museum of Victoria for the enjoyment of future generations.

The collection includes a complete wardrobe of flight attendant and ground staff uniforms, a video reference library plus advertising and a wide range of printed materials. Sydney’s Powerhouse Museum, the Queensland Museum and the Queensland Air Museum are also endeavouring to establish Compass collections.

AA Comment: An excellent idea and one that might also be applicable for Qantas in terms of it moving now (before it is too late) to preserve the important heritage of TAA and Australian. Before all the old signs, posters, cutlery and photos are junked it would be nice if a ‘friends of Australian’ group could horde some of the booty away for future generations to enjoy via some form of meaningful display.

Lufthansa stays in Australia:

After a period of some uncertainty as to its intentions, Lufthansa has announced it will continue operating to Australia and will introduce a new schedule.

From April 1994, Lufthansa will fly three weekly services from Frankfurt to Sydney via Bangkok using Boeing 767-300ERS. The aircraft will be configured in two classes (business and economy) and will depart Sydney every Wednesday, Friday and Sun- day.

He Should Have Stuck to Vodka:

An extremely drunk Russian former wrestling champion punched and kicked Qantas crew members as they tried to restrain him on a recent flight from Singapore to Melbourne.

Igor Elizarov a bottle of duty free Scotch whisky (obviously ablend rather than a single malt) and five other alcoholic drinks during the flight and then behaved accordingly. He was arrested at Melbourne Airport and charged with three counts of assault. The magistrate put him on a seven day $1400 good behaviour bond, ordered him to pay $400 costs and best of all- ordered him to donate $500 to the Royal Children’s Hospital.

Good one, Your Worship!

He Should Have Stuck to Vodka:

A steady decline in yields on Australia/Hawaii services has already caused American, Northwest, United and Continental Airlines to withdraw from the route and now Qantas is suggesting fares may increase by up to a quarter unless profitability is quickly restored.

Qantas is reviewing its strategy in the Pacific as part of a route by route assess- ment to determine the viability of all its services. With Continental’s withdrawal in late October, Qantas is the only airline flying directly between Australia and Hawaii, Ansett Express impressed back into service one of three Fokker 50s its has placed with new Indian camer Raj Air, to cover maintenance of one of its other aircraft. The aircraft is due to be ferried to india once Raj Air has trained sufficient crews for the type. While back in Ansett Express service, the Raj Air titles and Indian flag (which in fact were decals) were removed. (David Daw) although Air New Zealand operates services via Auckland and Polynesian via Apia.

Qantas’ 17 weekly flights to Honolulu have not for some time realised an adequate return in the heavily discounted market which existed when there was vigorous competition on the route, so the obvious response to the competition disappearing is to increase the yield per ticket sold.

Tamworth Looking Up:

After a period during which regional operators have been losing money on the Tamworth/Sydney route, business has picked up since local operator Tamair entered the fray last April.

Since then, 1000 more passengers per month have been flying to Sydney and over-all, Tamworth airport has been recording about 25% more business. Both Tamair and Eastern have said the stability of the timetable and the quality of service have lured passengers back into the air.

Tamair’s first month of Tamworth/Sydney services attracted 615 passengers and its second month 1652 passengers. By Octo- ber this year the number had grown to 2800 again proving the theory that quality ofservice, competitive pricing and frequency will always grow a market.

Awas for Sale?:

A US merchant bank has other institutions offering for sale Ansett Worldwide Aviation Services (AWAS), the aircraft leasing and trading arm of TNT and News Corp.

Suggestions that AWAS might be for sale for the right price have previously been made by TNT and News, and that price is considered by some observers to be around $US500m. A $US10m loan repayment to AWAS by America West Airlines (which is in Chapter 11 bankruptcy protection) has strengthened the leasing company’s posttion, as have recent sales and lease deals.

 Changes but No Sweeping Cuts at Qantas:

New Qantas managing director James Strong has said that although the airline would undergo “a series of adjustments over a period”, he has also ruled out sweeping cuts.

Changes will mainly be directed at the strategy – driven by network growth and market share-that resulted in a $377m net loss last year. Signs of recovery are considered essential to avoid another postponement of Qantas’ public float, now most likely to take place in the first half of 1995.

Play Santa Claus This Christmas.

Christmas is on the horizon and you don’t know what to getthat special aviation minded person in your life? Well, how about a gift that keeps on giving throughout the year-that’s right, a magazine subscription to AA. This way. every time an issue is received that special person in your life will think of you. Not such a bad idea and one that saves money also as it is substantially cheaper to get AA by subscription than by buying it over the counter.

The one year rate is $49. 00 (you save $10. 00). Use the coupon from p19 of this issue or send your remittance to Australian Aviation, PO Box 3105, Weston Creek, ACT 2611. You can also fax in your order using either Bankcard, Mastercard, Amex or Visa on (06) 288 2021.

 More Jets for Ansett:

Ansett Australia has announced that it will be taking delivery of an additional three leased 737-300s.

The new jets will bolster Ansett’s traffic capacity at a time when it is experiencing continuing extra demand from both leisure and business traffic. Graeme McMahon, Ansett’s Managing Director, noted that Ansett is “carrying almost 11 million passengers per year on our domestic network compared to about seven million three years ago* before deregulation.

All three jets are being leased from sister company Ansett Worldwide Aviation Services, and were formerly in service with Midland. Supplementing Ansett’s current fleet of 16 737-300s, the first aircraft will enter service in mid December, the other two joining the fleet early in the new year. The registrations VH-CZV, -CZW and -CZX have been set aside.

Currently Ansett is undertaking a major fleet planning review which is assessing the airline’s aircraft needs for future domestic and international requirements with an announcement expected during the course of this issue.

MP Travel Benefits to Be Cut:

The Federal Government has announced plans to curb first class travel entitlements for retired MPs and their spouses.

The current controversial Gold Pass scheme, which is issued to long serving MPs in recognition oflong and distinguished service, has previously allowed unlimited free air and train travel. The scheme though has come under much criticism as it is open to abuse, with some former logging up to $40,000 worth of travel each year at tax payers expense.

The Government has recommended that the scheme be curtailed in a submission to the Remuneration Tribunal.

China Looks for Partners:

The enormous growth of China’s airline industry has caused it to seek foreign partners to help finance and develop the infrastructure needed to support it.

The area of new airports is subject to particular attention and the Civil Aviation Authority of China (CAAC) estimates it will need $US7. 5bn by the end of the decade for new airports. To help achieve this, foreign partners will be able to invest in, build and operate some of these new airports.

China currently has 109 operational many of these are for joint military and civil use and others are too close to large population centres to be developed further. Category I ILS equipment is installed in fewer than half of these airports and only Beijing has Category II ILS. ‘New airports are desperately needed to cope with the growth and existing ones urgently need upgrading.

More Anz Flights to Hawaii, La:

Air New Zealand has announced a further increase in trans Pacific services to Honolulu and Los Angeles.

An extra 830 seats are to be provided between Auckland, Honolulu and Los Angeles from December 1 through to February 2 to meet seasonal demand, in addition to the 1200 seats introduced on these services from November 1.

Confused?:

AA readers who have noted our comments on how Qantas doesn’t seem to think much of the future China market could well be confused, if somewhat surprised, if they too are members of the airline’s Flight Deck Club.

November’s edition of the glossy Flight Deck magazine is dedicated to the pursuit of the plethora of business opportunities in Asia, including of course China itself. It just seems odd that an airline that patently resists believing that there is a market in a nation of 1. 2bn people (which already has a million millionaires – refer our special feature on p30 Nov AA) should on the other hand dedicate an entire edition of its magazine to telling us the opposite.

Confused? So are we.

Mas Joins Ansett:

Malaysia Airlines (MAS) is the latest in a long line of overseas airlines to enter into a non equity commercial agreement with Ansett. – The arrangement is basically a code- sharing one which in effect allows MAS to sell its own seats on Australian domestic routes. Some of these Ansett flights will be code shared with MAS, thus becoming joint flights.

Ansett’s plans to begin services to Malaysia in February 1994 are now reportedly in doubt as the airline re-examines the potential profitability of the route.