Airline Affairs

The result for the full 1994/95 year will certainly show an improvement over the previous year’s performance of $156m, though it expects a weaker second half this year if previous trends continue. The full year profit is expected to be in the vicinity of $200m. As Qantas shapes up for the public float of the remaining 75%, the Government admits that the money raised may fall far short of the $2.5bn it originally foresaw in the release. Realistically, it now sees a figure of below $2.5bn in the stock market’s current weak state, possibly as low as $1.8bn.

The airline has also been rocked by an enquiry into previous aircraft financing arrangements. Mr Pemberton would not be drawn on the value of this dispute, however, any substantial monetary claim by the Australian Taxation Office could deal a serious blow to the Government’s hope of raising the $2bn it needs to reduce its current account deficit. An in-depth report on the full implications of the Qantas float will appear in our June edition.

Perth Airport Land Claim

Australia’s controversial Mabo native title law has now affected the aviation industry, with the land occupied by Perth Airport being claimed by the Ballaruk tribe. The entire 220 ha site is subject to a claim with the National Native Title Tribunal. The claim says the land was allocated to the Ballaruk people by tribal law hundreds of years ago, contains traditional hunting and camping grounds and is still subject to traditional use. What effect this has on privatisation plans for Perth Airport remains to be seen, although the cynical might suggest the two events are not entirely unrelated. Certainly this sort of thing only creates additional uncertainties in the privatisation process.

More Qantas Apprentices

Qantas has long been a leading apprentice trainer and has continued this tradition by taking on 183 new apprentices this year, a 12% increase over 1994. The airline now has 725 apprentices in training: 650 in Engineering and Maintenance and 75 in its subsidiary Qantas Flight Catering Ltd. Qantas has trained tens of thousands of apprentices for itself and other airlines since 1927 and has recently invested heavily in courses, facilities and – in 1990 – a new Apprentice Training Facility at Alexandria in Sydney for first year apprentices. Interesting items of equipment available to apprentices include a complete Boeing 747 nose section, a DC-2 (VH-CDZ) and an ex-RAN S-2G Grumman Tracker.

Pax Growth Accelerating

A US Federal Aviation Administration (FAA) study has shown that the number of passengers carried by US commercial operators grew by a greater amount in 1994 than any year since 1987. US commercial operators carried 518 million passengers in 1994 (up 8.2% on the previous year) while revenue passenger kilometres (RPKs) grew by 5.5% to 821 billion, the strongest growth since 1986. To put this into perspective against the Australian domestic market, in 1994/95 we should log something in the region of 28 bn RPKs!

The fastest growing sector was regional airlines with a 14% growth in traffic. The study predicts the regional airline fleet will increase from 2180 aircraft at the end of 1994 to 3300 by 2006. Other predictions made by the Federal Aviation Administration include an increase in the US airline fleet from 4430 to 6300 aircraft by 2006 and a decline in the general aviation fleet from 176,000 to 174,600 aircraft in the same period, although the number of turbine powered aircraft will increase.

Inry Into Sydney Noise

The Senate has voted to establish a Senate Select Committee on aircraft noise at Sydney Airport following the combination of Coalition and Democrat numbers to force the issue. Several days’ negotiation resulted in the inquiry’s terms of reference being established and these will cover all aspects of noise levels around the airport plus the government’s plans for a second airport at Badgery’s Creek. The committee will consist of three Government, three Coalition and one Democrat member with Liberal Senator Warwick Parer — the driving force behind the committee — as chairman.

The committee’s enquiries could open a can of worms as CAA and FAC employees appearing before it will be freed from the gag previously imposed on them by the government. The committee has the power to subpoena public servants and anyone else except parliamentarians. Senator Parer says he will ask Prime Minister Keating and Transport Minister Brereton to appear but does not expect them to accept the invitation! The committee’s terms of reference include examining the scope of the noise associated with the opening of the third runway; the reasons for the difference between the predicted and actual noise levels; and the likely effectiveness of the noise control measures which have been implemented, and if there are any others which would help improve the situation.

Viva Vietnam

Qantas subsidiary Viva Holidays has begun offering a seven night package to Vietnam for $1199 ex Melbourne, Sydney, Brisbane and Adelaide. The package is available until the end of August and includes return economy class travel to Ho Chi Minh City (formerly Saigon), seven nights’ accommodation and airport transfers. Qantas began operating a weekly charter service to Vietnam last November and scheduled services between the two countries are expected to begin later this year following successful talks with the Vietnamese government.

Queue Jumping At Heathrow

London Heathrow Airport has long presented a problem for non-British and non-European Union nationals, who have had to stand in long queues upon arrival while watching others breeze through. All that is set to change at Heathrow’s Terminal 4 with the introduction of British Airways’ Arrivals Fast Track system which is designed to speed up the arrivals procedures. Unfortunately for the vast majority of travellers, the new system presently applies only to BA’s first and business class passengers, so the rest of us will have to continue coping with the familiar ‘long wait’.

Airport Privatisation Conference

Leading Australian government, private sector and international experts will address a major international conference focussing on Australian airports in late May. According to the organisers, the Australian Airport Privatisation Conference, to be held at the Sydney Hilton on May 22 and 23, is the only conference on Australian airport privatisation to be endorsed by the Federal Government. Specific topics to be covered include an overview of airport privatisation, the role of the Dept of Finance’s Task Force on Asset Sales, the commercial opportunities after privatisation, the future role of the CAA, the role of the FAC in a privatised environment, the implications for regional airports, and views from potential airport owners BAA Australasia and Lockheed Air Terminals. Key speakers will include Bill Swingler, Buck Brooksbank, the DoTs’ Michael Waller, Chris Hoare of BAA, Tom Farrell of Lockheed, plus various economists and industry analysts.

Anz Direct To Queenstown

Air New Zealand has launched special Snow Express flights between Brisbane and Sydney direct to Queenstown over this year’s snow season. The flights will be the first direct links between Australia and the popular South Island resort centre of Queenstown, and will be operated by Air New Zealand Boeing 737-200s from July 1. Flights from Sydney will depart every Saturday from 9:45 am, flights from Brisbane will depart every Sunday from 10:35 am. The special Snow Express brand flights will include a unique ski/party atmosphere with special inflight service touches to put skiers in the party mood for their trip, with ski magazines and snow reports provided en route, lucky passenger seat prizes and ‘Mogul Blaster’ cocktails. ANZ operated similar flights from Brisbane to Christchurch last winter with most services being sold out well before departure. According to ANZ’s Regional General Manager Australia, Garry Court, “20,000 Australians ski in Queenstown each year, creating strong demand for direct air services to the South Island”.

Escape Faster With Qantas

Passengers transferring from Qantas domestic to Qantas international flights at Sydney Airport can now complete immigration clearance more quickly with the introduction of the airline’s Advance Passenger Clearance System. The new automated system is available for all Qantas passengers and was developed by the airline, the Department of Immigration and Ethnic Affairs (DIEA) and Customs. On check-in for the domestic flight to Sydney, passengers are offered Advanced Passenger Clearance as well as being allocated a seat and issued a boarding pass for the international flight. The Qantas Customer Service Agent enters the passport or visa number in the Qantas computer and sends the information, with flight details, for instant verification by the DIEA’s computer.

Passengers are then issued with an outgoing passenger card, preprinted, with most of the information which previously had to be hand written. All passengers have to do is answer three questions and sign the card. The card is then presented at Outwards Immigration Control in Sydney where it is swiped through a reader, and off the passenger goes. The system will soon be available at Melbourne Airport.

New Upper Air Routes Save Fuel

New upper air routes which come into effect this September will save more than 25,000 tonnes of fuel worth about $20m annually, according to a study conducted by Qantas. The new routes apply to heights above 20,000 feet and include laterally separated one way routes in the busiest sectors, including across the Tasman which will become a total Area Navigation (RNAV) route structure, and more flexible routes in and out of Australia for international operators. The new structure will eliminate some of the ‘choke’ points such as around Mount Isa, introduce features such as more efficient traffic flows and new ICAO based route designators and introduce charts featuring both RNAV and ATS (air traffic services) routes. The estimated fuel savings are, coincidentally, about the same amount that Qantas fell short of its hoped for profit for the six months to the end of 1994.

More Visitors From Taiwan And Korea

Underlining the present and future importance of the overall Asian market to the inbound Australian tourist industry, recently released data confirms that Korea and Taiwan have emerged as significant growth areas. While Japan remains the largest source of visitors to Australia with 721,000 (up 7.4%) in 1994, Taiwan, Korea and Indonesia all showed large increases. Their 1994 figures were: Taiwan 142,500 visitors (up 32%), Korea 110,700 (up a massive 77%) and Indonesia 105,600 (up 47%). The last figure is interesting because for the first time, Indonesian visitors to Australia exceeded the number of Australians travelling to Indonesia. Thailand is also regarded as a potential growth market in the short to medium term, while it is expected that China and India will start making substantial contributions to Australian tourism figures sometime in the next decade. Australia received a total of 3.36 million tourists last year, a 12% increase on 1993.

Statistics have also been released on the share of arrivals logged by the three major international airports between 1990 and 1994. Sydney led with 45% of arrivals (down from 50% in the previous period), Brisbane was next best with 21% (up from 16%) while Melbourne dropped to third place with 12% of market share, down from 16%.

Air India Returns To Perth

Air India has reintroduced services to Perth in order to develop what is seen as a potentially strong market for Australian tourism. The airline has resumed a twice weekly Bombay/Perth service, operating via Bangalore and Singapore. The Western Australian government has welcomed the move, saying the services present tourist opportunities for its state because of India’s huge and as yet untapped market. Barely 1000 Indians visited WA in the 1993-94 financial year.

New Operator Planned

Another new Australian international operator is trying to get off the ground, but this time it is attempting to enter the freight rather than the passenger market. Asia Freight Airlines plans to lease a DC-10 freighter to ship fresh Australian produce to Taipei three times a week. The necessary applications have been lodged with the International Air Services Commission (IASC). Asia Freight Airlines says many export opportunities for Australian perishables are lost because of a lack of direct flights to the market, particularly Asia.

There are some impressive names behind Asia Freight Airlines’ attempt to get started. Rothschild is reported to be providing $500,000 initial capital and acting as sub underwriter for the proposed $20m share float. Proposed directors include the former Governor of NSW and former RAAF Chief of Air Staff Air Marshal Sir James Rowland and former Liberal party federal president Sir John Atwill. Former Qantas airport manager Bob Mullighan and Don Thomson, whose background includes involvement with small operators in Europe and Singapore.

Pollie Wants A Freebie

Those of you who are — let’s say — suspicious of Australia’s federal politicians can continue that train of thought with the news they have picked up some new perks thanks to a recent ruling by the Department of Administrative Services. As of now, politicians can keep the frequent flyer points they earn while travelling around the country and the world in first class at taxpayers’ expense. This means that most will quickly build up large numbers of points which will allow them to not only fly off on private trips at no cost but also use the accumulated points to take their families with them. The new rules state that free travel taken under the frequent flyer system must be government related, a very wide definition which could be interpreted extremely liberally but would involve a highly laborious process to police.

In case you didn’t know, Australia’s federal pollies already get: a life Gold Pass for free first class travel after 20 years’ (or seven parliaments’) service for backbenchers and their spouses, or six years for ministers; free parking in Canberra, the fringe benefits tax in which is specifically excluded for politicians; spouses are not subject to fringe benefits tax if they are taken on an overseas trip, as they are for the rest of us; superannuation of an extremely generous nature which no-one else can get; subsidised (by us) food and alcohol in the Parliament House dining rooms; free telephones and postage; free cars (everyone else with a ‘company’ car is subject to ever worsening FBT); and free first class airline travel within Australia plus one round-the-world trip in first class for every parliamentary term.

At Last, The Meaning Of Noise

In view of the present kerfuffle going on over noise at Sydney Airport, we thought reproducing the following from Flight International’s Straight & Level column might help clarify the situation somewhat.

Uncle Roger’s Big Noise Dictionary. Actual Noise: The noise which aeroplanes make. This is reducing all the time. Permitted Noise: The noise which aeroplanes are allowed to make. This is also reducing, but not as quickly. Unacceptable Noise: The noise made by people who move next door to airports, then complain because Permitted Noise is greater than Actual Noise, and because Actual Noise can sometimes be heard over the noise of their stereos, lawn mowers, barking dogs and the tinkle of the ice in their gin glasses at anti noise parties. Unbearable Noise: The noise which Neddies make while they are pandering to those people.

All clear? Good – we’ll be asking questions after the next blockade!

Sa Wants Adelaide Airport

The South Australian Government has proposed that it be given Adelaide Airport free of charge in exchange for spending $70m on the airport’s planned upgrade, including extending its main runway. If accepted by the Federal Government, the proposal would nullify an existing agreement under which the Commonwealth would allocate up to $40m for the upgrade and see South Australia take total control of the asset estimated to be worth $300m. South Australia has already committed $20m to the upgrade and will contribute another $50m over the next two years if it gains control of the airport.

Korea To Cairns Direct

A bilateral agreement between Australia and South Korea has resulted in approval being given for direct flights between Seoul and Cairns. The decision has been made in order to help boost tourism prospects in both countries. Asiana Airlines has indicated an interest in servicing the route, the first move in its declared intention to contest the Australian market with Qantas and Korean Air. Ansett has also reconsidered its position on the Korea/Australia route and evaluated entering the market (it has unused rights to fly the route) but has not yet decided to do so.

New Qantas Us Services

Qantas will introduce two new services from Australia to the USA in July as well as rescheduling one service, providing travellers with more options and convenient connections with the US east coast. The airline will add a fourth Melbourne/LA via Auckland flight and introduce an additional nonstop service from Sydney to LA. This brings the number of nonstop Qantas flights across the Pacific to 13 each week. The airline has also adjusted the departure time of its five times a week QF107 service to LA in order to improve connections to the east coast. Qantas has also become the preferred supplier of international and domestic travel for the Australian Defence Department over the next three years.