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Single Engine Ifr Debatehots Up:

The much delayed Aviation Regulatory Proposal (ARP) on single turbine RPT and charter operations under IFR conditions and at night looks set to finally appear late this year. Although the Industry Discussion Paper (circulated in March this year) attracted about 70% support from Industry, the ARP originally due out in May has been delayed, apparently by a combination of management changes in the CAA and changed procedures resulting from the Monarch accident at Young. Under its new procedures, the CAA has completed an operational risk analysis, to compare the actual level of safety offered to the fare paying public by the new single turbine aircraft, with that of the aging twin piston engined aircraft currently in use. The study reportedly concludes that the single turbine aircraft offer a higher degree of safety than the light twins, and that the prohibition on their use for RPT and charter operations under IFR and at night should therefore be lifted. AA understands that if the recommendation is accepted, there will be a carte blanche approval for single turbine RPT and charter operations under the IFR and at night, but that such operations would be introduced gradually in much the same ‘way that ETOPS operations were first introduced. A final decision on whether to proceed with the ARP is likely to be made by the beginning of October. In the meantime, the recent influx of Cessna Caravans into the country indicates that the industry is already voting for single turbine aircraft with its cheque books. While the continuing delay in the release of the ARP is regrettable, the CAA is to be congratulated for its willingness at last to consider proposed regulatory changes on the basis of overall safety levels, rather than past practice. Meanwhile, the US Federal Aviation Administration (FAA) and European Joint Aviation Authorities (JAA) are once again examining the possibility of allowing such aircraft to carry commercial passengers at night and in instrument meteorological conditions (IMC). As in Australia, at the moment only twin engined aircraft can perform such duties but the continued excellent performance of the current generation of reliable single engined turbine aircraft such as the Cessna Caravan, TBM 700 and Pilatus PC-12 has forced a rethink by these authorities. Although the issue has been ‘bubbling’ for some time, of the major authorities, only Transport Canada has approved the move.

Twa Losses Force Action:

Trans World Airlines (TWA) is increasing efforts to reorganise finances and introduce labour reforms following a $US58m loss in the second quarter of the year. The result brings TWA’s total loss for the first half of 1994 to $US183m, a critical situation bearing in mind it emerged from Chapter 11 bankruptcy protection only in late 1993 when employees took 45% of the stock as part of that reorganisation. The airline is now talking with its unions on matters of increasing productivity and more job losses will follow. TWA announced 4000 redundancies earlier this year (or 16% of its workforce) and another 3000 job are expected to go. Some routes have been dropped and unprofitable offices outside the USA closed. However, there is some good news for the airline. The June 1994 quarter showed a 14% increase in passenger traffic, load factors were up by a point to 64.6% and domestic yields improved slightly. An 8% decline in international RPKs offset this and increasing labour costs and the cost of interest on debt contributed to the poor result.

Polynesian Restructure:

Financially troubled operator Polynesian Airlines has been subject to a drastic restructure with owner the Samoan Government sacking six of the airline’s nine board members and replacing only four of them. Former Air New Zealand senior executive Richard Gates has been appointed general manager. The extent of Polynesian’s troubles can be gauged by the fact that between April 1993 and May 1994 the Samoan government made the airline guarantees and advances of about $27.5m — almost half the country’s total foreign exchange reserve. Polynesian’s troubles began in earnest in 1992 when it expanded to include services to the USA. More recent equipment problems have added to the woes. Another Pacific carrier undergoing changes is Solomon Airlines which recently instigated a restructure and cost cutting exercise, albeit a successful one so far. This in combination with higher yields and load factors has resulted in a more efficient operator. Plans are now in place for Solomon Airlines to increase some flight frequencies (including to Brisbane) and to introduce new aircraft to meet growing domestic demand.