Airline Affairs

The New Zealand response has been predictably hostile, many regarding it as an act of betrayal and some comparing it with the infamous underarm bowling cricket incident of some years ago. Air New Zealand began running full-page advertisements in major Australian newspapers after the announcement was made. Under the heading “It’s Time to Clear The Air”, the ad urged the Australian Government to think again “in the interests of fair play”, pointed out the benefits of a single aviation market and concluded with: “Because as every Australian and Kiwi knows, without a level playing field it’s very hard to play the game”.

The ad also points out that “for years Australian airlines have been competing for international and domestic air travel business in New Zealand, and we were looking forward to gaining the same rights in Australia”. On this point it should be noted that Ansett began operating domestic services in New Zealand at the specific request of the New Zealand government. The upshot of all this is that a realignment of allegiances may result, with Air New Zealand now having the opportunity to enter into a marketing agreement with Ansett, an idea which many have been pushing for some time. Although Qantas at the moment has a 19.9% interest in Air New Zealand, the two airlines’ commercial relationship has been substantially scaled down in recent times to the point where very little of it remains.

Britain Allows Older Pilots

The United Kingdom has become the first country in the world to extend the mandatory retirement age of jet airliner pilots from 60 to 65 years. The move comes in the wake of many years of lobbying to allow fully fit pilots to continue flying after 60, an age when many face what they see as a forced premature retirement brought about by an arbitrary limit. Under previous UK law, pilots over 60 could only fly commercial aircraft with a maximum takeoff weight of less than 20 tonnes, in effect restricting them to regional turboprops. The new rules came into effect in October and apply to all holders of UK commercial licences. However, some restrictions still apply: a 60-65 years old pilot will only be allowed to fly commercial aircraft which have dual controls and two pilots on board, one of which must be under 60; and only those with Air Transport Pilots Licences can act as captains of aircraft with a maximum weight greater than 20,000kg. The USA’s rules are similar to those until now used by the UK, but no change is currently contemplated.

Third Runway Opened

Sydney Airport’s third runway was opened by the Prime Minister on Friday, November 5, the first aircraft to land on it being the Vickers Vimy replica which recently completed the epic England to Australia flight commemorating the achievement of Ross and Keith Smith 75 years ago. The controversial project – which has faced strong opposition from local councils and residents – survived a last minute court challenge designed to prevent its opening and can be regarded as something of a triumph for the management and workers who built it. Completed six months early, the runway also came in more than $50m under budget. The new runway will considerably ease congestion at Australia’s busiest international airport, estimates putting the annual cost of this congestion and the associated delays at $40m annually in terms of disruption to business and additional airline operating overheads on fuel, maintenance and flightcrew expenses. However, delays will not be totally alleviated until the new control tower becomes fully operational next April. At press time good weather peak period hourly movements were down from around 57 per hour to just 50, though this is supposed to improve by mid-December.

Cathay Pacific Has Begun Retiring Its Lockheed Tristar Fleet With The Introduction Into Service Of The Carrier’s First A340.

Cathay Pacific has begun retiring its Lockheed TriStar fleet with the introduction into service of the carrier’s first A340. The first TriStar to be retired was VR-HOF (pictured), the 27th TriStar built. VR-HOF was originally delivered to Air Canada in 1973 and joined Cathay in 1988. It operated its last revenue flight for the airline on November 5 from Bangkok to Hong Kong, and it has now been flown to Avalon where ASTAAS will reduce it to components. (Rob Finlayson)

New Terminal For Wynyard

Tasmania’s Wynyard Airport is to gain a new terminal which will more than double the floor space of the existing facility. The need for more terminal space comes with the announcement that Qantas subsidiary Southern Australia Airlines will begin 16 weekly return services to Wynyard from Melbourne in the new year. These will provide 1,100 extra seats to Wynyard each week in addition to those already provided by Ansett affiliate Kendell Airlines. The $330,000 cost of the new terminal will be carried by the airport’s owner, the Burnie Port Authority.

Coolangatta Tug-O-War

Opposing forces are in action over the future of Coolangatta Airport, one group calling for a 10pm to 7am curfew to be applied and the other wanting the airport upgraded to maintain its competitiveness in the tourist market. The Tweed Heads Residents Association has called for the curfew, saying there are more than 200 aircraft movements per month during the hours in question. The airport’s management logically says that most of these movements are by light aircraft which would not be subject to a curfew anyway. In the meantime, a Gold Coast City Council tourism strategy has called for the airport to be upgraded, citing its importance to the local tourism industry. According to Mayor Gary Baildon: “Accessibility is a key issue and the upgrading of Coolangatta Airport will be critical to maintaining a competitive edge over other tourist destinations”.

Qantas To South Pole

In what would be a wonderful way to welcome the new year, Qantas is to fly six sightseeing charters to the South Pole, the first of which will take place on New Year’s Eve this year. The first charter will leave Sydney on the afternoon of December 31 and fly via Melbourne to the South Pole. The Boeing 747-300 will spend about an hour sightseeing along the frozen continent’s shores before heading inland to the South Pole. It will be over that point at midnight, allowing passengers to participate in a very different celebration of the new year. At that time of the year the whole flight can be conducted in daylight. Part of the revenue from the charters will be donated to the Royal Flying Doctor Service NSW, and if tickets sell well, that donation should reach $40,000. The other Antarctic charters will be conducted on January 7, 21 and 26 and February 11 and 18. For details contact Croydon Travel on 1 800 63 3449. Prices range from $1,199 for economy class through to $1,699 for business and $2,099 for first.

Korean Air Increases Brisbane Services

Korean Air has introduced a third weekly service between Seoul and Brisbane, taking its total of flights between South Korea and Australia to seven per week. The new flight is a dedicated Brisbane service and is operated by an MD-11 trijet configured to carry 49 premium class and 213 economy class passengers. The extra flight coincides with strong growth in the number of Koreans visiting Australia. The 1993 figure was more than 62,000 and that had already been well exceeded by the end of October this year. It is expected that the Australian Tourist Commission’s target of 102,400 Korean tourists in 1994 will be easily met.

Tourism Not A Cash Cow

The Australian Tourism Industry Association (ATIA) has warned that the government must begin to recognise tourism as the nation’s largest export earner instead of treating it merely as a ‘cash cow’ and subjecting it to unfair and onerous taxes. In a submission to the Federal Parliamentary Tourism and Taxation Inquiry, the ATIA criticised the increasing number of charges being imposed on the industry, quoting the example of the $27 passenger processing fee to replace the departure tax and plans to impose a $10 per passenger noise levy at Sydney Airport. The ATIA says this is just another example of the government trying to milk tourism for what it’s worth and it would be vigorously opposed. The ATIA highlighted other tax system inequities as they apply to tourism, the imposition of a 21% sales tax on safety and rescue equipment and the non-deductibility of entertainment expenses among them.

Air Nuigini Has Leased One Of Aircruising Australia’s Two Fokker F27 Friendships For Flights From Port Moresby Into Volcano Ravaged Rabaul.

Air Nuigini has leased one of Aircruising Australia’s two Fokker F27 Friendships for flights from Port Moresby into volcano ravaged Rabaul. The F27 has been in PNG since late October and is leased on a month-by-month basis, using Aircruising pilots and Air Nuigini cabin crew. Rabaul was previously served by F28s but the permanent airport is closed. The F27 flights operate into a gravel strip approximately 25km from town. Air Nuigini’s Dash 7s could operate to the strip, but they are already heavily utilised for flights to centres in PNG’s highlands. (Keith Anderson)

Qantas To Vietnam

Qantas has started a regular scheduled service to Vietnam, replacing the previous charter flights organised through Sydney based travel company Direct Flights in 1990. The service will operate nonstop from Sydney to Ho Chi Minh City (Saigon) every Wednesday using a Boeing 767-300. Qantas hopes the flights will stimulate business travel as well as cater for the growing number of Australian tourists visiting Vietnam. Seats can be booked through either Qantas or Direct Flights.

No Uk Atc Privatisation

British government plans to privatise UK air traffic control (ATC) services have been dropped following extensive opposition from the air transport industry. The government expected support from the industry on the issue, arguing that the very large investment needed to improve ATC could be threatened without privatisation. Although airlines and other operators agreed with the concept in principle, they have been very critical of the detailed plans and have expressed concerns about rises in charges. Air traffic controllers threatened to strike over the issue, while general aviation operators fear they would be charged for services which are currently free.

Australian Aircraft Sales Has Recently Acquired 78 Garuda Dc-9-30s For Resale.

Australian Aircraft Sales has recently acquired 78 Garuda DC-9-30s for resale. The aircraft are among the youngest of their types available on the second hand market, having been built between 1971 and 1980. They are currently configured in a brand new widebody style two-class 97 seat interior. The recent purchase of the Garuda DC-9s takes to 53 the number of Douglas twinjets handled in the last six years.

Domestic Statistics Return

After a lengthy period of silence during which no statistical data concerning domestic airline activity has been published due to the airlines not being able to define what constitutes a domestic passenger, this important information is to become available again. Qantas and Ansett have finally reached agreement on statistical reporting definitions, data classification categories and publication frequencies. Data will continue to be published using the ‘Australian Flight Stage’ as its basis; a flight stage being defined as the operation of an aircraft from takeoff to landing between points within Australia and its territories. Agreement has also been reached on the point that passengers travelling over Australian flight stages on major Australian registered airlines will be reported and published according to five sub-categories including pure domestic, codeshare and passengers connecting with international services. Australian Aviation hopes to be able to again feature this important data from our next issue. The way these figures are compiled and presented is important to both Qantas and Ansett as advertising and press release material is based on them, usually saying the particular airline has a greater share of the market. In the past it has been common for both to claim market leadership from the same statistics!

Young Asians Don’t Want To Fly

In contrast to the western world where aspiring young airline pilots queue up for scarce cadetships, the situation in Asian nations is very different with operators facing difficulties in finding local youngsters who really do want to make a career out of flying. Cathay Pacific’s aircrew recruitment manager, Stephanie Heron-Weber, has told delegates at the Asian Civil Aviation Training Conference that “it is very difficult to find candidates with a long term desire to become an aviator and we are trying to find out why this is”. Cathay has found its recruitment of cadets is further complicated by the fact that more than half the applicants don’t meet the airline’s Hong Kong residency qualification and many more suffer from inadequate eyesight. Of those accepted as cadets, only one in four moves on to the second stage of training.

Anz-Sas Frequent Flyer Link

Air New Zealand and Scandinavian Airlines have formed a frequent flyer partnership with effect from February 1995. The deal is part of a three-year commercial agreement between the two airlines which also covers the development of schedule connections at common gateways, special fare arrangements and joint promotions. Air New Zealand and SAS meet at many common gateways – particularly via Asia – which means members of Air New Zealand’s ‘Air Points’ frequent flyer scheme will be able to fly to European destinations with SAS and gain extra points in the process.

Qantas To China At Last

The International Air Services Commission (IASC) has issued preliminary approval for Qantas to operate a direct service between Australia and China. Under the terms of the approval, Qantas will operate one Boeing 767-300 service per week, marking the return of Australia’s flag carrier to the route after an absence of six years. Visitors to Australia from China have been steadily growing over the last three years from 16,000 to 29,000 per annum. The Australian Tourist Commission has set a target of more than 300,000 Chinese visitors to Australia by 2004.

Terminal Leases Hurdles To Privatisation

Aviation law specialist Hugh King from the firm Phillips Fox has warned that the long term leases Qantas and Ansett hold on domestic terminals may restrict the prospects for development at major airports, Sydney in particular, in terms of the proposed sale of airports now controlled by the Federal Airports Corporation. The situation may require the Federal Government to buy back the 30-year leases (which were negotiated in 1987) which would involve several hundred million dollars compensation. This would cut deeply into the $2bn the government hopes to raise from the airports sale, although this figure is already in severe doubt following the decision to grant only 50-year leases to interested parties rather than selling the airports outright. Mr King has described the terminal leases as “troublesome to say the least. They certainly impose true difficulties that aren’t measured in dollars alone. They hamper and restrict the prospects for development at Sydney Airport in particular in ways which mean that the two principal customers to whom you are heavily beholden for your principal revenues have a further constricting, throttling effect on you”. Ansett has already indicated it would be most unlikely to agree to any buy-back plan as the 30-year leases have provided the opportunity to invest very large amounts of money in improvements to its domestic terminals.

Air Pacific/Royal Tongan Joint 737 Lease

Air Pacific and Royal Tongan Airlines will jointly lease a new Boeing 737-300 aircraft with delivery scheduled for early 1995. The aircraft will carry the colours of both operators. Royal Tongan Airlines will use the Boeing for its international services, replacing another 737, while both operators see the move as a practical way to make best use of aircraft in the region. Air Pacific will continue to provide operational expertise and maintenance support to Royal Tongan.

United Wants Qantas/Ba Deal Blocked

United Airlines has asked the Trade Practices Commission (TPC) to block the Qantas/British Airways Joint Service Agreement (JSA), under which the two airlines plan to pool more than $1bn in revenues and share profits on the England/Australia ‘Kangaroo Route’. The JSA is integral to the carriers’ plans to operate a ‘seamless’ service between London and Los Angeles (using British Airways aircraft) and then across the Pacific to Australia using Qantas aircraft. Qantas and British Airways want to extend the JSA to all the points at which their networks meet including Los Angeles. United’s submission to the TPC results from fears that the alliance could threaten its Europe/US routes due to Qantas and British Airways being able to offer flights to Britain via the USA. United has told the TPC that such a plan would require anti-trust immunity in the USA in the same way it requires TPC approval in Australia as it allegedly breaches the fixed pricing provisions of the Trade Practices Act. United claims that anti-trust immunity would not likely be granted under the existing circumstances. Some observers have suggested that United’s move results indirectly from the Australia/US bilateral agreements dogfight of last year, which resulted in United in effect being unable to compete on the Japan/Australia route.

Ansett 747 Preliminary Report Released

The Bureau of Air Safety Investigation (BASI) has released its preliminary report into the nosewheel-up landing of an Ansett Boeing 747-300 at Sydney Airport on October 19 this year. The aircraft departed Sydney for Osaka but returned following an oil pressure fluctuation indication on one engine. The return flight was uneventful until the gear was selected down during final approach, when an unsafe gear indication was detected by the crew. Actions were taken to rectify the fault, these satisfying the captain that the landing gear was locked down and the approach and landing could be continued. After the mainwheels had settled on the runway the co-pilot moved the power levers to the reverse thrust position. As per the normal sequence, this automatically deployed the ground spoilers and configured the engines for reverse thrust application. At this point the control tower alerted the 747’s crew that the nosewheel was not extended and although reverse thrust had not yet been applied, the engines were configured for it and the spoilers were deployed. With the aircraft in this condition the pilot had no option but to continue the landing, with obvious results. As an emergency evacuation was not required, the passengers were disembarked through a forward door using mobile stairs and there were no injuries. Subsequent investigations have revealed the nose wheel had remained locked up when the main gear was extended and no faults in the landing gear indication and warning systems were found. The aircraft has been assessed as suffering substantial damage and will be out of service for some time. With half its fleet of two 747s out of service coming into the peak Christmas period, Ansett has leased a 747-300 Combi from Malaysia Airlines. This aircraft will have to be returned in mid-December as it is needed for Malaysia Airlines’ own services. The Malaysia 747 is configured for passengers and freight on the main deck and has only 294 seats compared with 418 on Ansett’s aircraft. This has left Ansett with a capacity shortage and on some Osaka/Brisbane services available capacity is less than forward bookings. With the peak season approaching, Ansett will be forced to look elsewhere for aircraft to fill this need. The full and final BASI report is not expected until late in 1995.

Asian Airlines Growth Slows

The Orient Airlines Association (OAA) has released details of its members’ operating and financial performances for the 1993-94 financial year, the figures showing an overall increase in net profit but a slowing down of growth when compared with the previous year. Despite some of the airlines losing money, OAA members recorded a 24.7% increase in net profit after tax to $US702m, and an increase in operating profit to $US1.5bn. The operating profit margin was 3.7%, marginally down on the previous year. In terms of revenue passenger kilometres (RPKs), the airlines recorded a lower rate of growth in 1993-94 than the previous year, a figure of 5.9% being attained. As available capacity increased by 7.4%, passenger load factors were down to 66.8%. As for the 1994 calendar year, the picture looks brighter in terms of traffic growth. Between January and August, RPKs grew by 11% and freight was up by 16.5%. Capacity expansion has been less than traffic growth, leading to an improved load factor figure of 70.2%. The best month was August, when load factors reached 76.3%. OAA member airlines between them operate 1,001 aircraft including 346 Boeing 747s of which 32 are freighters. This represents some one-third of the world’s 747 population. About 68% of the fleet (680 aircraft) are widebodied airliners.

Mixed Us Airlines Results

Third quarter 1994 figures for the nine major US airlines show encouraging returns to profitability for most, although some weak performances were recorded and two airlines lost money in what should be the best period of the year. Overall profit was $US544m, double that of the same three months of 1993. Airline by airline, profits for the quarter in US dollars were: American $205m, United $82m, Delta $186m, Northwest $170m, Continental $31m and Southwest $59m. The losers were USAir which lost $US180m in the quarter and TWA which lost $US8m. USAir has serious ongoing problems including the failure so far to secure $US500m in wage concessions from its main unions. TWA’s emergence from Chapter 11 bankruptcy protection could be short lived unless a majority of creditors agree to a ‘debt for equity’ refinancing plan.

Gps Autoland Trial

A Boeing 737-300 has successfully completed 110 autolandings using Global Positioning Equipment (GPS) for guidance. The United Airlines 737 was leased by the US FAA for the three-day trial which was conducted at a NASA airfield in California. The aircraft was equipped with a Trimble GPS receiver which received differential signals via VHF from a Trimble differential ground unit. As the aircraft flew its approach, it also received signals from two integrity beacons 2.5nm (4.6km) from the runway threshold. The equipment was able to allow the 737 to maintain 1cm accuracy until touchdown. The implications of this are obvious and the landings appear to have met Category 3 accuracy criteria although data is still being analysed.

The Big Lift

BHP might have established an Australian record in August this year when it transported a 135-tonne electrical transformer by air from Italy. The need to fly the transformer to Australia arose when the Sydney Steel Mill transformer failed and suffered severe damage, shutting down the factory. Faced with a lengthy and very costly shutdown while the existing transformer was repaired, BHP looked at its options. Importing a new machine was the obvious choice, but bringing it in by sea would take about seven weeks. Bringing the transformer to Australia by air was the most time-effective method, but only one aircraft was capable of carrying the load, the Russian Antonov An-124 Ruslan. The charter of one of these was arranged but numerous administrative and technical problems followed. Thirty-two days after the original transformer failure, the new unit was in place at the Sydney Steel Mill; 12 days after that it was on line and steel production was once more underway.

International Traffic Up

International airline traffic is continuing to grow according to figures released by the International Air Transport Association (IATA). IATA’s 224 member airlines saw passenger traffic grow by 8% in the January-September 1994 period compared with the first nine months of 1993. Freight increased by 13% while total traffic grew by 9.5%. Average load factors for September were 73%. Closer to home, both Ansett and Qantas have reported continuing growth in the Australian domestic market for the September quarter with a record Christmas-New Year period expected. Ansett says it achieved an average load factor of 75% for the quarter.

Union Launches Safety Campaign

The Community and Public Sector Union (CPSU), the major union representing employees of the Civil Aviation Authority, has launched a public campaign to ensure the Federal Government “fully faces up to current problems and deals with them quickly and effectively”. The union’s “demands” of the government are: that the proposed Aviation Safety Agency (ASA) be fully funded by the government; the ASA must be fully accountable to the Australian public and be directly answerable to the government; a legislative charter for aviation safety be developed and form the basis of a code of ethics for aviation employees; there should be an ‘aviation ombudsman’ able to investigate alleged breaches of the charter and code of ethics; and there must be a refocus of the objectives of CAA functions away from a profit-driven agenda back to a ‘public safety first’ philosophy. The CPSU strongly opposes privatisation of sectors of the CAA.

Israel Aircraft Industries Has Launched Development Of An Improved Version Of The Astra Business Jet, The Astra Spx.

Israel Aircraft Industries has launched development of an improved version of the Astra business jet, the Astra SPX. Features of the SPX include greater cruising speed, longer range, improved fuel economy, an enhanced interior and a new Collins Pro Line 4 avionics package. The SPX flightdeck will feature dual primary flight and multifunction displays, while centralised avionics maintenance functions, autopilot and flight director are proved by the system’s unique Integrated Avionics Processing System. (Rockwell Collins)

Us Regionals Report Strong Growth

US regional airlines recorded strong growth in the second quarter of 1994 as an improving economy and rising demand begin to be felt. The April-June quarter saw the regionals fly 5bn revenue passenger kilometres (RPKs), 16% better than the same period of 1993, carrying 14.7 million passengers. American Eagle carriers Flagship and Simmons Airlines between them carried over 2.4 million passengers. The average load factor increased to 51%, although it’s interesting to note that this figure is lower than that achieved by Australian regional carriers.

Southern Preservation Australian Bound

At the time of writing the Historical Aircraft Restoration Society (HARS) Lockheed Super Constellation was undergoing final preflight checks before departing Tucson, Arizona on its flight to Australia. The Super Constellation “Southern Preservation” was rolled out resplendent in the colours carried by Qantas in the mid-1950s. The aircraft was officially registered VH-EAG on September 23, though was test flown as N4115Q. First stop was Burbank, California where 39 years earlier the aircraft had made its first flight before delivery to the United States Air Force. From Burbank the aircraft is flight planned via Oakland, Honolulu, Pago Pago and Nadi to Sydney where it was planned to arrive on November 30.