Airline Affairs

Australian Air Express reacted quickly to the decision by announcing its compliance through introducing two extra National Jet operated BAe 146 Quiet Trader Freighters into service. The National Jet operated 737-300 was withdrawn from service to Sydney immediately, and the two new 146s, also to be operated by National Jet, will enter service in the coming months.

Independent Air Freighters operate into Sydney on services for Mayne Nickless using two hushkitted DC-9s, however its operations into Sydney during curfew hours were already restricted. During curfew aircraft have to land from the south, but the DC-9s are unable to land with a tailwind greater than 10kt (19km/h), restricting the type’s operational flexibility greatly. At this stage Independent Air Freighters has no plans to acquire new aircraft.

Transport Minister Laurie Brereton announced that all night freight operations into Sydney would be transferred to Badgery’s Creek immediately when it opens, to be achieved through introducing sunset clauses in aviation regulations.

New Jets For Qantas

Qantas has placed new orders and options for additional 767-300ERs and 737-400s to cater for anticipated traffic growth, particularly in the domestic market.

Qantas has placed an order with Boeing for three 737-400s, with one option, and two 767-300ERs, with options on a further two. These aircraft will be progressively delivered from December 1995. In addition, Qantas is purchasing a 737-400 from Air Nauru, which will be delivered in July.

Qantas’ Managing Director James Strong commented on the orders saying “Having won back significant market share, Qantas needs to ensure it has sufficient capacity to at least hold that position. The orders and options also support our strategy of harnessing current and projected cash flows to reduce debt levels as quickly as possible.”

The estimated value of the orders, including spares and the 737 from Air Nauru, is about $US300m. The new firm orders will give Qantas a core jet fleet of 31 Boeing 747s, 24 Boeing 767s, 38 Boeing 737s and four Airbus A300s.

In other news Qantas will operate 28 Boeing 747 flights on domestic routes during the winter holiday period to meet strong demand for travel during school holiday peak times from Sydney to Perth and Cairns. Qantas plans six return 747 flights between Sydney and Cairns and eight between Sydney and Perth.

Qantas has also announced that it is converting its two 747-200 Combis to a full passenger configuration.

Another Thai Long Haul Airline?

The Thai Government is considering the options available to it with a view to eventually allowing the creation of a second international airline.

The options are to licence a second airline as a subsidiary of Thai Airways International; to give new licences to investors to create a new privately owned airline; and to liberalise the industry to the extent that anyone can apply for a licence to establish a new airline. The crucial Thai government decision on the issue – whether it wants any new operator to compete with or support Thai Airways – has yet to be made.

Nine companies have already applied for licences to operate domestic flights in Thailand following an ‘open skies’ policy in the airline industry. At the moment only Thai Airways and Bangkok Airways (plus some charter operators) fly domestic services.

New Indian Domestic Operators Strong

India’s independent domestic carriers have only been in operation for three years against state owned Indian Airlines but have already captured 40% of the market.

The new airlines have pioneered new routes, established more convenient frequencies and improved standards of service, the primary element of competition bringing new customers into the market, particularly from the business sector. Indian domestic revenue passenger kilometres (RPKs) increased by 15% in 1994 with the two leading independents – East-West and Jet Airways – recording load factors of more than 85%. Of great importance has been the high level of schedule reliability they have demonstrated despite India’s poor infrastructure.

Lufthansa In The Black

Lufthansa has returned a pretax profit of almost $A306m for the 1994 calendar year, compared with a $53m loss in 1993.

The improvement stems largely from a 7% or $1bn increase in revenue while expenditure was kept down to 1993 levels. Unit costs were reduced by a further 4.4% due to a decline in labour costs (substantial staff cuts were introduced), lower interest charges and a reduced fuel bill. A significant point was the airline’s 50% reduction in debt, down to about $A2.1bn, while equity capital was increased.

Lufthansa has introduced a major restructuring programme in recent times and has been partially privatised. The remainder of its government held stock will be sold later this year.

Australian International Traffic Grows

Australian international scheduled airline passenger arrivals grew by 9.1% in 1994, taking the number of international passengers to a record 11.1 million for the year.

Figures released by the Department of Transport show that in the 10 years to December 1994, international traffic to and from Australia grew at an average rate of 8.9%, compared with a worldwide average of 6.2% during the same period. The Qantas market share increased from 40.4% in 1993 to 40.7% last year.

Sydney/Auckland remained the most heavily travelled route with 6% of the overall market, followed by Sydney/Los Angeles (5.1%) and Sydney/Tokyo (4.4%).

Qantas has ordered three additional 737-400s (pictured) and two extended range 767-300ERs, with later options on another 737-400 and two 767-300ER aircraft during 1997. The aircraft will be delivered progressively from December 1995. Further, Qantas will purchase one of Air Nauru’s two 737-400s for delivery in July 1995. (Rob Finlayson)

Nan Party Will Carry On

Despite its disappointing showing in the recent NSW election, the No Aircraft Noise Party has stated it will continue its fight and field candidates in the next Federal election.

Before the NSW election the NANP stated it was confident it would win at least one seat but in the end it made no difference to the result with sitting members being returned. The NANP polled best in the Labor held seat of Marrickville with about 25% of the primary vote but the seat was easily held by sitting member Dr Andrew Refshauge. It is thought that most NANP preferences went to Labor in the seats already held by that party. Other seats contested by the NANP saw the party poll between 8% and 20% of the primary vote, insufficient to cause change.

An interesting sidelight was the possible damage done to the NANP’s prospects in the week before the election by Marrickville Mayor John Cotter, the leader of the protests and blockades against the airport. Cotter showed his true loyalties by urging voters to support Labor, an action which possibly resulted from pressure from ‘above’.

Qantas Anniversary Celebrations

Qantas celebrates its 75th anniversary this year, and a number of events will be held over the next few months to mark the occasion, culminating in a worldwide birthday dinner party in November.

Other items on the agenda include: a special commemorative logo, publication of a book telling the Qantas story, open days, special advertising incorporating the special logo and a ‘Dawn of Aviation’ theme, a Qantas heritage preservation project, inflight videos on the airline’s history, a commemorative aerogram and an exhibition of Qantas art at the NSW Art Gallery.

There will also be an air race from Archerfield to Longreach via Charleville planned for October.

Food for thought dept: 11.1 million people paying the $27 departure tax is quite a boon to a Government who incidentally used to use this booty to specifically fund the non revenue generating activities within the CAA and its predecessors. Now the money simply goes into consolidated revenue and aviation has to fund the difference. Makes you think, doesn’t it!

Aus-Air To Albury

Victorian regional operator Aus-Air has launched services between its home base at Moorabbin and Albury.

Aus Air has begun scheduled passenger services between Moorabbin and Albury. Twice daily flights depart Moorabbin at 6.45am and 4.10pm and Albury at 8.15am and 5.35pm each Monday, Wednesday and Friday, while a single return service is operated on Sunday. Pictured is one of Aus Air’s Bandeirantes after having just completed the inaugural service to Albury. (Aus Air)

The services will operate twice daily on Mondays, Wednesdays and Fridays plus once each Sunday. Aus-Air will operate an 18 seat Embraer Bandeirante turboprop or a nine passenger Piper Chieftain on the route which will cost $224 return. Additional flights are expected to be added later in the year.

Aus-Air says it has developed a strong customer base in the southeastern suburbs of Melbourne through the benefits of Moorabbin’s simpler access and free parking. Passengers wishing to travel on to Canberra can do so with a change of aircraft and airline at Albury.

Night Position Hold Clearances Banned

The US Federal Aviation Administration (FAA) has directed air traffic controllers to refuse departing aircraft clearance to hold on runways being used for arrivals at night.

The move follows several incidents over the past few months where arriving aircraft have had to fly over aircraft holding on the same runway awaiting takeoff clearance. One incident, in November last year, saw a TWA MD-80 which was taking off hit a Cessna Conquest which had been cleared to backtrack on an adjacent runway. The Cessna’s pilot acknowledged the controller’s instructions but did not read it back and made an incursion onto the runway being used by the MD-80. Both on board the Cessna were killed and eight of the MD-80’s passengers were injured.

Lend Lease/Brambles Airports Bid

Transport company Brambles and property/infrastructure organisation Lend Lease are looking to join forces to bid for control of some of Australia’s airports when they are privatised.

The two companies say they are now evaluating the situation before finalising an agreement and that a decision on whether or not to proceed depends upon the terms on which the airports are offered for sale by the government. They have so far not indicated a preference for any specific airport or airports.

One of the proposed conditions for the sale of Sydney Airport is to be dropped by Minister for Transport Laurie Brereton. The initial plan was that Sydney Kingsford Smith and the planned new airport at Badgery’s Creek should have separate ownership, but a total lack of interest in the latter has forced Mr Brereton to concede that this is not commercially viable. The change means that potential buyers will be able to bid for both Sydney and Badgery’s Creek airports if they wish, something that has raised considerable criticism from the noise affected councils beneath KSA’s north/south flightpaths as they logically contend that a single owner would save capital by delaying work on Badgerys Creek whilst concentrating on gaining more productivity from Mascot.

Virgin Atlantic’s Yvonne Kershaw has become Britain’s first 747-400 captain. Captain Kershaw joined Virgin as a First Officer on 747-100s and -200s in 1990, before being promoted to captain on these aircraft in 1993. Previously she has been an MD-83 captain, while her first jet command was on a BAe 125 in 1986. In Australia, there are no female 747 captains yet, although Qantas has a female 767 captain.

Keating Criticises Government

United Airlines’ Australian boss Anne Keating has criticised the Federal Government through Tourism Minister Michael Lee for plans to introduce a new tax on international air travellers.

The $27 passenger movement charge comes into force on July 1 and replaces the former $27 departure tax. It is to be collected by airlines and travel agents and according to Anne Keating is “a very hostile way for passengers to start their journey”. She has urged Mr Lee and the Government to rethink the tax. The Travel Agents Association of New Zealand has advised its members not to collect the tax.

Previously the Departure Tax was the responsibility of the passenger with each person buying a Departure Tax stamp at the airport or at their local Post Office, a simple and cost effective system that has been changed to something requiring considerable workload not only within the individual airlines but also in the Government’s own bureaucracy.

Qantas Looks At Chile

With more Australian business people travelling to Chile, and South America in general, and having to endure unwieldy schedules and long hours in the air (and in transit lounges) Qantas is looking at introducing a service to the capital Santiago.

Whether the service would be Qantas’ own or involve a codesharing agreement with Chilean carrier LanChile remains to be seen but LanChile is reported to be interested in coming to some kind of arrangement with Qantas.

Australian business leaders have recently called for improved air services to Chile and South America in general. One way to travel from Sydney to Chile at the moment is to catch a weekly Qantas or Air New Zealand flight to Tahiti (via Auckland in the case of ANZ) and then connect with a LanChile service from there to Santiago via Easter Island. Other options are flying to Los Angeles and linking with a LanChile flight or travel to Auckland to catch an Aerolineas Argentinas service which travels to Santiago via Buenos Aires.

The viability of a more direct Australia/Chile service needs to be proven. Although 7500 travellers flew the indirect routes each way last year (up 16% on 1993) this is still a small number and would not justify dedicated flights by two carriers.

American To Sell MD-11s

American Airlines is to sell most and possibly all of its fleet of 19 MD-11 widebody trijets to freight specialist Federal Express.

An initial agreement covers 12 MD-11s which will be delivered to FedEx between January 1996 and October 1999. The aircraft will be converted to pure freight configuration for service with FedEx. The remaining seven American MD-11s are to be favoured by the Federal Government to win the right to take over Sydney Airport and the new Sydney West (Badgery’s Creek) Airport when these assets are privatised.

Also reported elsewhere is the fact that the government has reversed its earlier decision to not allow one consortium to control both airports, the difficulty in selling Badgery’s Creek as a stand alone entity being the main reason for the change. The government is nevertheless considering banning those behind the winning Sydney/Badgery’s Creek bid from investing in other airports, although whether this is practical remains to be seen.

Badgery’s Creek is to receive backing from both the Federal and NSW State Governments, the former planning to buy more land in order to build a full international facility and the latter intending to establish a corporation to fast track the development of the airport. In both cases these moves are intended mainly to eventually take the political pressure off the current noise problems at Sydney by spreading the load between two airports. The Federal Government has already moved to restrict overnight cargo flights in and out of Sydney to services operated by the very quiet British Aerospace 146 (refer separate item).

As for other airports news, a number of companies are currently having talks with the Gold Coast City Council as part of a joint venture bid to buy Coolangatta Airport when privatisation comes into effect; and Adelaide Airport is likely to come under South Australia State Government control by the end of the year. This will allow work on the planned runway extension to begin early in 1996. The SA government is hoping Adelaide Airport (worth about $300m) will be transferred to it at no long term cost to SA taxpayers. The government would take responsibility for the airport’s runway extension and associated works and then lease it to a private operator, resulting in an eventual recovery of the state’s investment and perhaps even a profit further down the track.

Record December Quarter

Data from the Dept of Transport on domestic air traffic for the December 1994 quarter indicates yet another record period with per annum growth in the region of 10% now becoming the norm rather than the exception.

The figures come on top of a very strong September quarter (refer p20 April 95 AA for full analysis) and augers well for the fiscal future of both Ansett and Qantas domestic activity in the year ahead. Total passengers carried in the December quarter were just over six million recording a total of 6.5bn Revenue Passenger Kilometres (5.8bn in ’93) for an average load factor of 74.1%. Compared with the same quarter the previous year this represents a softening in load factor, from 77.4% (largely due to an enormous increase in capacity added to the domestic network since last September) whilst Qantas has successfully turned the tables on arch foe Ansett in terms of market supremacy.

Ais Athletes Travel Ansett

Ansett Australia has won the contract to provide air travel for the Australian Institute of Sport, taking over from Qantas.

The contract is reported to be worth about $6m a year and comes at a time when Ansett has contributed $1m towards the construction of a new visitors’ centre at the AIS in Canberra. Ansett will also provide an additional $2m to the Australian Sports Commission (the AIS’s operating body) over a six year period.

New Brisbane Freight Terminal For Qantas

Qantas is to build a new freight terminal at Brisbane Airport with its opening scheduled for April 1996.

Situated adjacent to Brisbane’s new international passenger terminal, the new facility will be constructed by local firm Concrete Constructions (Queensland) at a cost of $21m, of which a large proportion is for the high technology freight handling equipment to be installed.

The terminal will also incorporate the latest security and surveillance systems. Design work has already begun and phase one of the development will meet Qantas’ needs for the next five years. The terminal’s design allows it to be expanded by 25% in the future.

Gold Coast International Flights

The Gold Coast’s Coolangatta Airport has seen its first international flights with the commencement in April of charter services between there and Hamilton in New Zealand.

Run by Kiwi Travel Air Charters, the initial plan was to have just four return flights between New Zealand and the Gold Coast in April to test demand for the service, but the response from residents on both sides of the Tasman has been so great that the operator is planning more flights in 1996 and perhaps even additional services this year. Kiwi Travel says it is looking forward to developing the Gold Coast as a permanent market for international air charters.

The initial four flights were conducted by a Boeing 737-400 chartered from Air Nauru and all had a full load of 126 passengers on board.

Icao Predicts Moderate Growth

The International Civil Aviation Organisation (ICAO) has forecast that airline passenger traffic will grow by an average 5% annually through to 2003.

ICAO’s new long term market forecast expects passenger-kilometres flown by the world’s scheduled carriers will rise from 1.953bn to about 3.4bn in 2003. By comparison, air traffic growth averaged 5.6% per annum over the ten years to 1992. The forecast also predicts that average annual freight growth will be stronger at 6.5% in terms of tonne-kilometres. International traffic is predicted to be the area of strongest growth both in terms of passenger traffic (6.5% annually) and freight (7.5%).

The forecast says that the annual total number of domestic and international aircraft departures on scheduled services will increase by 25% in the 1992-2003 period to 18 million, the overall number of passengers carried will go up by over 50% to 1.8bn and freight tonnage carried will also grow by over 50% to 27 million.

The trans Pacific and Europe/Asia Pacific routes are expected to be the fastest growing international route groups for passenger traffic during the forecast period.

Malaysia Airlines commenced Boeing 747-400 services into Adelaide in late March, replacing DC-10s. Pictured is 9M-MPF at Adelaide in early April. (Robert Wiseman)

The airlines of the Asia Pacific region are forecast to return above average passenger and freight growth.

Airliner manufacturers have long recognised the growth potential of the Asia Pacific market and a new study from Airbus Industrie confirms this.

Airbus predicts the Asia Pacific jet airliner fleet will more than double over the next 20 years and that 3800 aircraft in the over 70 seats category will be required to meet this and replace much of the current fleet. Airbus expects the region’s available aircraft seat capacity to overtake that of North America during the period in question.

Continental Wins Payments Deferral

Continental Airlines has won agreements with its major lender and others to defer payments of $US370m, part of a plan to recover from its disastrous Southwest-like ‘Lite’ exercise into the world of short haul cut price services. The Lite services will disappear by July this year after losing the airline $120m in 1994.

Meanwhile, United Airlines has reduced the scope of its fleet expansion plans in order to help protect its financial position with a net fleet increase of only 19 aircraft instead of the originally planned 48 between now and the end of 1997. The airline has now adopted a ‘retire and replace’ policy which will see 40 older aircraft retired over the next two years or so. The result will be a younger and more efficient fleet with lower operating costs. United operated 543 aircraft at the end of 1994.

More Qantas Capacity To Us

Qantas will increase the number of available seats on its flights from Cairns to Honolulu and Los Angeles by 30% from December this year.

The increase, from 992 to 1287 seats a week, will come with the introduction of all passenger Boeing 747 flights on the thrice weekly service in place of a mixed passenger/freight 747 Combi. A fourth Combi service will be dropped.

The aircraft will have new cabin furnishings and will be fitted with 34 business class and 395 economy class seats. The morning departures from Cairns will continue to connect in Honolulu with codeshare flights to Vancouver and Toronto and in Los Angeles to flights to a range of destinations in the USA.

Lufthansa Surrenders To Rail

Lufthansa is examining dropping its shorter domestic routes due to the expansion of Germany’s high speed rail network and the increased competition it offers to airlines.

Lufthansa is losing money on these short haul services as the rail network gains in efficiency and popularity and the airline only keeps operating them as a feed to keep passengers within its network. If the decision to drop the routes is taken it will effect services equivalent to two hours or less of ground travel time.

German regional carrier Eurowings has already announced it will phase out its short haul services over the next few years, again mainly as a result of competition from high speed rail. Eurowings has cut its Nurenburg/Hannover services by 50% and expects to drop Hannover/Berlin flights well before the end of the decade.

First Stage Of Melbourne International Terminal Open

The FAC has opened a new terminal gate at Melbourne airport with Australia’s first multi level aerobridge, part of extensions to the international terminal.

Melbourne is now currently one of only three airports worldwide with a multi level aerobridge, providing elevated linkage to both departures and arrivals levels. The $1m, 70 metre long, New Zealand built aerobridge provides arriving and departing international passengers direct access to the partially opened satellite terminal building through movement of the bridge structure between two levels of the terminal.

The new gate is the first of nine to be opened in the three level satellite terminal at the end of the international concourse. The satellite concourse is bigger in size than the playing area of the MCG and will eventually provide additional shopping, airline lounge and food outlet facilities for international passengers.

Pigs Might Fly

The dangers of transporting animals by air were well illustrated recently when a South African Airways Boeing 747 en route to its home country from Britain had to turn back after 72 flatulent pigs set off its cargo hold fire alarms.

The collective heat and methane from the pigs not only set off the alarms but also the aircraft’s automatic fire extinguishing system. The halon from the system unfortunately asphyxiated 15 of the prize breeding animals. The pigs were put on a passenger flight because it was more direct than a pure cargo flight and theoretically less traumatic, according to the airline. Unfortunately it turned out to be very traumatic for everyone involved, man and beast.

And now, something fishy from Qantas. The airline has flown 35 sharks, rays and assorted other denizens of the deep from Australia to Marine World at Fukuoka in Japan. The load – carried on a special charter flight – comprised Port Jackson sharks, wobbegongs, Eastern and shovelnose rays, whitetipped pointers and groupers. They were carried in nine especially designed tanks holding 25 tonnes of seawater, the total load being 55 tonnes once the equipment needed to pump oxygen and simulate movement for the sharks is taken into account. A Boeing 747 freighter was used for the job.

Icao Recommends Ils For The Future

A special meeting at the International Civil Aviation Organisation’s (ICAO’s) Montreal headquarters has recommended a global strategy for the implementation of all weather non visual approach and landing operations over the next 20 years.

The meeting also laid the foundations for a dramatic improvement in the use by international civil aviation of VHF radio for voice communications.

The 340 participants in the meeting from 79 countries and 15 international organisations resolved to: retain the existing instrument landing system (ILS) as an international standard for precision approach and landing guidance for the foreseeable future encourage only limited implementation of the microwave landing system (MLS) in locations where it is operationally required and economically beneficial; promote the continuing development of a multimode receiver or equivalent airborne capability to maintain flexibility for aircraft operators in regions where there may be a mixture of ILS, MLS and global navigation satellite system (GNSS) approach and landing procedures; and promote the ongoing research and development for GNSS to be used for all weather approach, landing and departure operations.

The ICAO’s preference for the continuing use of ILS as the standard system effectively marks the end of the aspirations of those promoting MLS. At one stage it looked as if MLS would prevail (the USA and Canada had wanted to completely replace ILS with it) but a change of mind by those two countries last year and the ICAO’s latest resolution has ended that.

On the subject of VHF voice communications, ICAO has recommended i

Ansett To Taiwan

The International Air Services Commission (IASC) has issued a draft determination to give Ansett capacity to operate flights between Australia and Taiwan from November this year.

The proposed determination would allow Ansett to operate two weekly non stop services between Sydney and Taipei, utilising all remaining currently available capacity on the route. Ansett would have to fully utilise the capacity by February 1 next year.

The IASC has also issued a draft decision that would allow Qantas to operate additional seats between Australia and Canada. The draft proposes to allow Qantas to offer an additional 181 seats initially and later a further 173 seats per week on its joint services with Canadian Airlines between the two countries via Hawaii.