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Hazelton/Geelong Replacement Sought

The withdrawal of Hazelton Airlines from the Geelong (Avalon)/Sydney route (refer Airline Affairs this issue) has prompted the City of Greater Geelong to attempt attracting another operator to the service. Discussions are already taking place with possible replacements and the scheme has the full support of the Geelong Chamber of Commerce which says that too much infrastructure had been developed at Avalon Airport to let Hazelton’s withdrawal be the end of the story. Hazelton operated the service for only five months before withdrawing from it due to substantial losses.

Problems At Darwin Caa Office

A Comcare study into the Darwin office of the Civil Aviation Authority has revealed serious problems among its staff. The study lists a large number of grievances including cynicism as to the CAA’s commitment to staff, concerns about a decline in services and a high level of dissatisfaction. Staff health could be jeopardised by “uncertainty, confusion and conflict”, according to the study, while significantly high distress levels, an unwillingness for management to tackle the problems, overwork and intensely negative feelings towards senior management were also revealed. A 25 point action plan to address the issues raised by the Comcare report has been developed. It will examine the situation in other CAA offices throughout Australia and review current standards for occupational health and safety. Perhaps the most damning part of the report is that despite previous indications from the CAA that things would change, nothing in fact has. According to Comcare: “CAA has documented its commitment to tackling occupational stress in the enterprise agreement but there was no evidence of this commitment being actioned”.

Impulse Hands Back J4ls

Regional operator Impulse Airlines has withdrawn its fleet of five British Aerospace Jetstream 41 turboprops from service and returned them to the manufacturer. A further five aircraft on order have been cancelled. The move comes in the wake of associated company Pacific Aviation having had an administrator appointed following financial difficulties. Impulse says it will be able to maintain services using smaller Beech 1900D and C99 aircraft. The airline was the Australian launch customer for the 29 passenger Jetstream 41. Buyers will first be sought in Australia but failing that there is a ready market for the aircraft in the USA.

No Fac Charges Increase

The Federal Airports Corporation (FAC) has ruled out increasing aeronautical charges to the aviation industry before the end of the year, the current charges (set in 1991) continuing until December 31. The General Landing Charge will remain at $5.72 per aircraft tonne and the Domestic Terminal Infrastructure Charge at $0.90 per aircraft tonne. When compared with the level of increases in the Consumer Price Index (CPI) since 1991, the four year freeze on charges represents a reduction of 8.2% in real terms. The FAC has also announced that the Counter Terrorist First Response (CTFR) security charge to the airlines is to be reduced from $0.60 to $0.55 per aircraft tonne.

Amo Places More 146s

British Aerospace subsidiary Asset Management Organisation (AMO) continues to place BAe 146 regional jetliners in which it has a financial interest with operators. AMO has 112 used 146s on its books, almost all of which are on short and long term leases. The airline latest to put the aircraft in its fleet is US regional operator Atlantic Southeast Airlines (ASA) which is acquiring five 146-200s on five year leases. Options on a further 15 aircraft have been placed. ASA is one of the larger regional airlines in the US with a fleet of over 80 turboprops flying services into Atlanta and Dallas/Fort Worth as a Delta Connection carrier. Other recent AMO customers who have added 146s to their fleets include Melilla Jet, a new Spanish operator (two 146-100s) and leading Swedish regional carrier Malmo Aviation (its ninth 146-200).

Caa Denies It Lied

The Civil Aviation Authority has categorically denied allegations made in a recent Sydney Morning Herald newspaper article that a ‘leaked’ memo indicated the CAA had lied to the Minister of Transport over aspects of the Seaview Air Turbo Commander crash. The CAA says: “The allegation is false. The CAA did not advise the Minister on November 4 1994 about Twin Commander aircraft as stated by a CAA officer in his memo of March 29 1995. If the Herald had bothered to check, it would have discovered that those briefing the Minister and who are said to have lied did not know about the failure of some maintenance organisations to work to manufacturer’s specifications until 1995. If the Herald had bothered to check, it would have discovered that the so-called leak involved a document which is an exhibit before the Royal Commission and had been in the public domain for at least two weeks. There is no basis for the claim that the Minister was misled by the CAA when he stated in the House of Representatives on 10 November 1994 that ‘I am further advised by the Civil Aviation Authority that it has no information — I repeat no information — at the present time which would lead it to ground all Aero Commander aircraft operating in Australia.’ The CAA had no grounds then, or now, to declare the Twin Commander aircraft type unsafe or unairworthy. The CAA continues to monitor the airworthiness of all aircraft flying in Australia, including Twin Commanders”.

Airbus Forecasts Russian Market

Airbus Industrie foresees a demand for about 400 new jetliners in the Russian Federation over the next five years. According to Airbus, most of them will be to replace existing ageing aircraft and the number reflects acquisition from all sources including from Russian manufacturers. Airbus estimates there is some 900 ageing airliners in Russia, most of which will need to be retired in the near future due to international noise regulations, increasing maintenance costs and reducing productivity. It is estimated that the Russian domestic market will grow by about 4% per annum between now and the turn of the century, while international traffic (representing about 26% of the total) is expected to grow more strongly, at a rate of some 7% per annum. This sector is of great importance because it provides higher yields and hard currencies.

Airlines Want Stage 4 Delay

The International Air Transport Association (IATA) is reported as being likely to press for a delay in the introduction of new (‘Stage 4’) aircraft noise and emission standards. The new standards will cost the airline industry an estimated $US50bn. The Committee on Aviation Environmental Protection (CAEP) — part of the International Civil Aviation Organisation (ICAO) — is looking at new rules coming into effect in 1998 and 2003 for new aircraft certification and the halting of production of aircraft which fail to meet the requirements five years later. In its most stringent proposal, the CAEP is looking to a 4dB reduction in takeoff and sideline noise, a 2dB cut in approach noise and a 40% reduction in nitrous-oxide emissions. IATA does not want the proposals abandoned but delayed, or a lower standard adopted for the shorter term. The general feeling is that despite the costs involved and the marginal environmental improvement expected, political considerations will make some change necessary. The situation is confused by the European Commission, which wants a blanket 3dB reduction in noise and is expected to introduce its own legislation if ICAO fails to make a decision on the issue.

Extra Qantas Jakarta Flights

Qantas will operate two extra flights from Sydney to Jakarta and introduce three new Perth/Jakarta flights from October this year if government approval is forthcoming. If implemented, Qantas will operate Boeing 767-300s on the routes, and the airline will be able to offer daily flights between Sydney and Jakarta with connections linking Brisbane and Melbourne to the services. The new services will be a benefit derived from the Qantas-British Airways joint services agreement, allowing Qantas to redeploy capacity from its Perth/Singapore flights onto the Jakarta sectors. Australia and Indonesia have agreed to a large increase in air services between the two countries following the latest round of bilateral negotiations, resulting in Ansett also applying to operate high frequency flights to Indonesia (it already flies to Bali) and National Jet Systems (NJS) planning a weekly tourist shuttle to take South-East Asian gamblers to Christmas Island. In other Qantas services news, the airline will introduce a third weekly Boeing 747 flight between Seoul to Brisbane from November as well as a third weekly 747 service from Sydney to Johannesburg, subject to government approval. The flight will continue on to Harare, increasing services from Australia to the Zimbabwean capital to two per week.

Conflict Of Interests?

Staff in the Department of Transport’s aviation division have reportedly been ‘warned off’ purchasing Qantas shares due to a potential conflict of interests. A memo has been circulated among staff which apparently talks of disciplinary action if they buy shares in the float and reminds them of their responsibilities under the Public Service Commission’s guidelines relating to conflicts of interest arising from financial and private interests including shareholdings. Members of the Department of Finance’s asset sales taskforce (who have been intimately involved in preparation of the Qantas float) have also been warned of a potential conflict of interests.

Oil Shortage Warning

Former OPEC secretary, Indonesian General Subroto, has warned that world oil demand could exceed supply by the end of the decade. Gen Subroto predicts that demand will rise from the current 66 million barrels per day to 72 million by 2000 and 80 million by 2010. OPEC countries are producing 25 million barrels a day at the moment and non member countries another 40 million but this might start to fall. The 12 OPEC countries will therefore probably have to make up the difference of seven million barrels a day at the turn of the century and 15 million barrels a decade later, meaning they will have to move quickly as the exploration-to-production cycle takes at least four years. Gen Subroto expects the price of oil to remain at below $US20 per barrel until 2000 and then rise sharply as demand begins to outstrip supply. He says the highest demand area will shift from the industrialised West to the rapidly growing economies of East and South-East Asia. One positive aspect of this is the extra work new exploration and production will generate for the helicopter industry.

Embraer Sheds’ Staff

Newly privatised Brazilian manufacturer Embraer is to cut its staff by a massive 30% from 5550 to 3850 in an effort to reduce costs. Most of the redundancies will be voluntary and will be mainly from administrative staff. However, 500 engineering jobs will go, though none in the fabrication and assembly areas. The cuts are being made in an effort to save the company, which has sustained losses of about $US80m per annum over the past five years. Embraer’s 1994 results have yet to be posted but only eight EMB-120 Brasilia regional turboprops and eight EMB-312 Tucano military trainers were delivered during the year. In addition, the company has had substantial costs associated with development of the EMB-145 regional jet, due to enter service in 1996. The company’s delivery schedule will improve this year, with 19 Brasilias and 28 Tucanos due to go to customers.