New Zealand News

Air New Zealand’s shares closed at NZ404 cents, down 3c, the day the six months results were announced. The shares had risen from 353c in six weeks and 224c in a year.

Passengers provided 73% of the airline’s revenue in the six months to December. Overseas passenger income rose 9. 2% and domestic 6%. The average passenger load factor rose 3% to 71. 7%. Domestic flight revenue totalled $NZ233. 7m Australia’s total was $NZ177. 8m, the Orient $NZ287m, North America $NZ247. 9m, Britain and Europe $NZ68. 9m and the Pacific Islands $NZ19. 6m.

Total domestic revenue yielded $NZ215. 5m, cargo and mail $NZ108. 3m, contract services $NZ109. 6m while the international total was $NZ711. 1m and other revenue was $NZ122. 9m. Increases in passenger revenue by region were: Asia 18%, North America 15%, Europe 9%, New Zealand 10% and Australia 1%.

Mr Matthew cited the withdrawal of Continental Airlines from the Pacific in October after 13 years as evidence of the competitiveness of the Pacific market. He also said what “while aircraft operating costs continue to escalate around the world, notably airport landing fees, insurance premiums and offshore crew accommodation expenses, such in- were offset in the latest half year by savings in jet fuel costs. ” Shareholders were also told that the wholly owned Mount Cook Airline and Eagle Air and the half owned Air Nelson had lifted contributions. Engineering revenue from overseas also increased.

Air Force Officers Moved After Costs Row

Two RNZAF officers have been transferred from the Ohakea air base, lower North Island, after a court of inquiry which found $NZ562,181. 63 was spent renovating the official home of the base commander when approval had been given only to spend $NZ50,000.

One of the officers, Group Captain Frank Sharp, who has been relieved of his post as Commander, RNZAF Ohakea, was found primarily responsible for crashing a RAAF Pilatus PC-9 in March, 1992, at Albany, Western Australia.

Group Captain Sharp and another New Zealand pilot were forced to eject after Sharp accidentally cut the fuel supply on the PC-9’s landing approach. He was at the RAAF base while attached to the New Zealand High Commission, Canberra, as deputy head of defence liaison staff. It was reported that he had intended to lower the flaps but instead moved the power control lever, causing total loss of engine power.

Group Captain Sharp is now at the Whenuapai air base, Auckland; the other officer involved in the Ohakea house renovations overspend, Flight Lieut. Bill Bundle, formerly Ohakea’s Works Commander, now works in Wellington.

Both officers under investigation have retained their ranks but the Defence Minister says the transfers were “Clayton’s sackings”. He welcomed investigations into the affair by the Audit Officer and a Parliamentary Select Committee.

On national TV, Mr Cooper claimed people had been “to hide” how much was spent on the Ohakea home. He described the massive over spending as a “base act. . . Defence has cut back $NZ150m to reduce costs in recent years and we still find this going on. . . ” Mr Cooper and Admiral Teagle both said they were embarrassed at the spending of so much taxpayers’ money on the Ohakea base house. The issue would not be “swept under the carpet,” said the admiral. “It’s outrageous and scandalous”.

According to figures released by the Defence Minister, the Ohakea house renovations involved $NZ2900 for garden lights, some $NZ33,000 for vanities in several bathrooms, more than $NZ80,000 in the kitchen and even $NZ371 to relocate plants. The costs involved 28 different headings. A week after the Ohakea revelations, it was reported that relocating and refurbishing an officer’s house at the Wigram RNZAF base, Christchurch, in 1986, cost almost $NZ230,000 $NZ78,000 more than originally expected.

The Ohakea house was inspected by journalists the day it was reported that police were being called in to investigate claims of fraud. The Chief of Air Staff, Air Vice Marshal John Hosie, was at the media “open day” and said the allegations involved possible fraud among one or more civilian contractors.

Air Vice Marshal Hosie who lived in the house in the late 1980s, told journalists he barely recognised it now. He saw four bedrooms, four en-suites, four toilets, and three lounges. A $NZ60,000 chandelier had been bought but for some reason it was returned to a supplier before the official RNZAF audit began.

NZ Bound Catalina Sinks, Seven Rescued

to New Zealand on January 16 is a great loss to NZ’s The sinking of a 50 year old, $NZ800,000 Catalina coming warbird movement.

The Catalina, insured for about $NZ500,000, was to have made one of its first appearances at the Wanaka Air Show.

The seven people aboard the aircraft spent about 12 hours in a liferaft – loaned by Air New Zealand – before they were rescued by a container ship which took them to Oakland, California.

Four New Zealanders were among the rescued. They included a 72 year old pilot, Tom Neave, from Southland, and another noted pilot, Dr Ross Ewing. Tom Neave was off duty at the time one of the Catalina’s engines failed some 290km north of Kiritimati Island (formerly Christmas Island) south of Hawaii.

Engine trouble 90 minutes out of Los Angeles had previously forced the Catalina to return to the American mainland before Christmas. The first attempt ended on December 7 last year, 52 years to the day Tom Neave went solo and the day the Japanese attacked Pearl Harbour.

The Catalina was reported to be only one of two operating commercially in the world and the New Zealand company which owned the aircraft is now looking at buying another Catalina in South Africa.

Pilot Tim Neave who last flew a Catalina half a century ago in Scotland and Africa, has told relatives that when the Catalina ditched at night after losing power (it was carrying extra fuel), it sprang several leaks.

“We blocked several holes with screws but one was so big we had to put a finger in the hole, like the boy in the dyke. We used bilge pumps until they were blocked with debris and then we bailed out for more than two hours. ” Four hours after ditching, the New Zealanders and three Americans, including another pilot, left the aircraft for the 42 person liferaft. Half a day later they were enjoying the comforts of the container vessel, heading back the way they had come.

It is likely a public appeal will be launched to help meet the replacement cost of the Catalina. Catalina enthusiasts in New Zealand believe there are about 30 other Catalinas flying in the world.

Air New Zealand reports that the Catalina which sank on the way to Auckland was retracing part of the Coral Route survey flights. Catalinas surveyed the Coral Route to “ensure safe landing conditions for TEAL’s larger Solent passenger flying boats.

“TEAL operations were for 14 years conducted entirely with flying boats. During World War 2, TEAL (the forerunner of Air New Zealand) provided the only regular service between New Zealand and Australia, using two Short Empire Class flying boats. ” The Royal New Zealand Air Force received its first Catalina 51 years ago,

Airliner’s Costly Overhaul

A luxury Boeing 727 equipped with settee beds and gold taps has undergone a $NZ3m refurbishment at Air New Zealand’s Christchurch engineering base.

A dedicated team of engineers took eight weeks to complete the demanding work. As well as complete engine overhauls, the cabin was stripped and the 727 was also repainted in Far East Aviation’s colours.

The aircraft, which used to be owned by Easter Airlines and then Quebec Air, will be back in Christchurch for work in a contract worth $NZ3m in foreign exchange earnings to Air New Zealand. The Christchurch engineers have produced two VIP cabins for the Royal New Zealand Air Force.

Briefs

• Air New Zealand’s director of public affairs for the last five years, Richard Gates, is taking early retirement, after 29 years with the airline. He will be succeeded in a few weeks by David Beatson, 49, the deputy chief executive and public affairs manager for the Tourism Board.

• Australian glider pilot Bruce Taylor was the first of 14 overseas pilots in an event at the pre-world international gliding championships at Omarama, central Otago. The world champs will be held at Omarama next January. Canterbury’s Terry Delore won six of the ten races at the preworld event.

• The Board of Air New Zealand has authorised fresh offers of shares to be made to the Group’s 8300 permanent staff, including employees of Mount Cook Airlines, Eagle Airways, Air Nelson and other subsidiaries. Each members was entitled to apply for up to 2000 shares at an issue price of $NZ2. 80 – 90% of the market price at the time the offers were finalised.