Airline Profile – Tamair

Genesis

In 1949, two years after East-West was founded, Tamworth businessman Jim Packer received financial backing from local members of the community to purchase his own Auster, a type he had become familiar with during his brief stint at East-West as an engineer and pilot. On October 25 1949, Packer’s Tamworth Air Taxis flew its inaugural service and was soon building a strong rapport within the community who were using the service to destinations in north eastern New South Wales.

In the early fifties, Jim Packer gained a newspaper contract to fly Sydney papers arriving in Tamworth on the East West service to onward ports including Armidale, Gunnedah and Narrabri: a service that would provide the financial backbone of the company until the late 1980s.

A name change to Tamair in the early 1950s heralded the beginning of new growth for the company. Tamair’s fleet expanded from Austers and Fairchild 24s in the 1950s, Cessna 172s later that decade to the heavier 182 in the 1960s. By 1967 the company’s fleet had been rationalised on the type, streamlining the operation and reducing costs.

In that same year drought badly affected the rural communities in the Tamworth region and the company’s financial security, along with the prosperity of many of the region’s businesses and farms, floundered.

Following a reinvestment initiative by a new group of supporters, Tamair was reorganised and it introduced its first twin engined aircraft to the fleet, a Piper Comanche. This allowed IFR capability and also provided higher capacity and faster services.

Paul Bredereck joined Tamair in 1977 having attained his PPL while still at school and flying as a pilot for a skydiving operator to build up his hours. He was also a qualified engineer and worked with Tamair as a LAME until 1981 when he left to pursue his CPL, increase his flying experience through casual charter work and later in the mid eighties fly bank runs in the New England region.

As both pilot and engineer, Bredereck had built up a sound understanding of the basic needs of an airline and its employees. Having found no other opportunities in his local region to provide him with the satisfaction he dreamt of in aviation, he began to create his own environment, leading to the purchase of Tamair on July 1, 1985 by he and his partner, Vivien. 64 Australian Aviation September 1995 Vivien, also a commercial pilot, brought with her nine years experience with East-West Airlines as a senior flight attendant, thus helping to create a sound base on which to build an airline.

At the time of purchase, the airline’s business had decreased significantly; the fleet consisting of a Cessna 152, a Cessna 210 and a Piper Seneca, used for limited charter and flying training work. Paul and Vivien were able to add to this a Cessna 206 they had previously purchased.

They set about building up an operation that would support the needs of a region whose wealth was generated by a diverse range of industries, including that from the cotton industries in the Namoi and Gwydir River systems. The centre’s relative economic stability, devoid of the economic fluctuations often associated with single industry centres, formed the foundation on which the Brederecks established their airline, and within two years the company was operating three Piper Chieftains.

“We built the place up, didn’t have any great ambitions or dreams, but we were, and still are, very highly focussed on quality,” Bredereck says.

During the late 80s and early 90s Tamair purchased a number of light twin aircraft for freight services and bank contracts that formed the financial backbone around which the RPT operations would be built. Aircraft, including Cessna 310s, a Commander 690 and additional Chieftains were purchased, and since 1986 Tamair has operated on contract to TNT Air Couriers for the shipment of freight to a large number of towns throughout New South Wales.

On January 8 1993, Tamair was awarded its airline operators licence to commence services from Tamworth to Sydney with its first 19 seat Fairchild Metro III, VH-NEM, which was delivered to the company in April 1993.

The Metro was selected for its low seat per km cost, and the aircraft’s good payload/range capabilities and speed allow the airline to offer a high frequency of services between its ports. The aircraft also boasts Vref speeds comparable to that of many light jets, providing flexibility in terminal approaches between 130kt and 245kt (240 & 450km/h).

The Metros are not suitable for short or unprepared fields, and that the aircraft requires the same amount of runway as a small jet on hot days is not a limiting factor in the airline’s operations. In its first year of RPT operations the airline carried over 30,000 passengers on the Tamworth to Sydney route.

“Today the company’s turnover has increased 150 times on what it was a year before we bought the business.” Over 100 people are nowadays employed by Tamair, including 25 engineers and 45 pilots, operating and maintaining a fleet of 40 aircraft for its diverse RPT, charter and training services.

Rpt Operations

Consisting of two Metro IIIs, Tamair’s RPT fleet services Sydney and Gunnedah from its Tamworth base. The Metros are dedicated to the Sydney service for freight and passenger duties, one based in Tamworth providing three return services a day, and one based in Sydney operating two return services each day via Gunnedah.

A typical day for the Sydney based aircraft has it departing Sydney at 0625 for Tamworth then Gunnedah, departing at 0800 for the return to Sydney. The aircraft then returns to Tamworth at 1110 and back to Sydney at 1230, before departing for Gunnedah via Tamworth at 1740, and returning back to Sydney at 1915. A reconfiguration of the aircraft is then commenced at 2230, to enable it to undertake freight Tamair’s two Metros which it operates between Tamworth and Sydney. work to either Brisbane and Melbourne arriving back in Sydney at 0430. The Metro’s seats are replaced and it is then readied for the first morning service to Tamworth at 0625. Both aircraft typically operate eight hours flight time each per day.

“We are extremely happy with the loads we are carrying on the Tamworth/Sydney sector.” Over its Tamworth based network, Tamair carried 44,000 people to November 1994 and it is looking to increase this figure closer to 50,000 by the end of 1995.

In competition with Eastern Australia Airlines’ Jetstream 31s on the 50 minute sector, Paul Bredereck welcomes the rival and says that the load factors enjoyed by both carriers attests to there being room for two carriers on the route.

“Tamair has a very good share of the market and we have over 50% of the seats,” he says.

“We have never seen the Tamworth/Sydney route as one where we were out to take passengers from Eastern. It has been one where we have been very conscious in our marketing to develop the route and to grow the market. We have done extensive advertising in the Tamworth region as well as direct marketing in the Sydney area,” he explains.

This is clearly demonstrated by the growth in passenger numbers from 1992’s 4500 passengers a month to around 6400 per month at present, notwithstanding a slump in late 1994 and early 1995 due to the delays encountered at Sydney Airport. The airline has been successful in attracting traffic from the rail and road networks servicing the region rather than from the competing airline.

In fact, Tamair and Eastern enjoy a remarkably amicable relationship in view of their competing status. “Although Eastern is our competitor on the route, and we will compete very hard in the marketplace, we have a very close working relationship with them. We contract all piston and turbine overhaul work to Eastern.” The company has provided additional capacity to the Qantas subsidiary, and has leased out Metro aircraft to it on occasions during maintenance downtime periods on the J31s and to augment seasonal capacity.

Yields on the route, through a reasonable mix of fares, are “very pleasing”, according to Tamair, which markets advance purchase, full and off-peak fares.

Key factors in Tamair’s success, according to Paul Bredereck, is its range of fares matched with a high frequency of services. The company achieved a 35% share of the market competing with Ansett Express up until that airline’s departure from the route in April 1993. It was at this time that Tamair formed an alliance with Ansett for terminal use at Sydney Airport and co-hosting in the major’s CRS. Ansett also provides oncarriage to Tamair from its eastern trunk routes at about 20%.

Business traffic accounts for up to 75% of total volume, however, Bredereck recognises the increasing leisure market as domestic destinations become more appealing to holiday makers. A major campaign to market Tamworth and the New England region was launched in April 1995. Schedules are developed to maximise the oncarriage opportunities between the two carriers and to avoid the delays often encountered in peak operations. “Our schedules are dictated first by what our customers require, and second by the schedules of the major airlines to offer a connecting service.”

The Tamworth carrier does not operate into Sydney during peak times, although delays occasionally mean operations do fall within the peak period.

“One of the inequities of that (peak surcharge) is that a flight may be scheduled an hour before the peak period, but because of delays into and out of Sydney, you end up facing a landing and departure during the peak. This (extra charge) effectively takes five seats off the profit.”

In line with many of his industry colleagues Paul Bredereck says, “The degree of profit made by the CAA and the FAC needs to be questioned. I think the profit levels of both those government business enterprises is scandalously high.” (The FAC routinely operates at a real world margin of 40%. Ed)

On the issue of airport privatisation, Paul Bredereck is wary of the potential impact to Tamair’s operations at Sydney Airport following the takeover by a new owner. In line with other regional operators accessing Sydney, he says, “There needs to be a strong safeguard to protect the right of access of services to rural New South Wales. We do not have an alternative airport in the Sydney region to operate to, and we, and other regional carriers, should not be priced out.”

The regulatory framework must provide a watchdog on the pricing policies of the airport owner, explains Bredereck. The impacts of significant price increases on airlines such as Tamair with aircraft in the 19 seat range would be profound, the lower capacity aircraft unable to absorb the discriminating pricing structure which many operators believe may be brought into effect.

Offshore Connections

Since November 1994, Tamair has leased Metro III VH-NEL to Airlines of Tasmania on a far reaching agreement between the two airlines that will see Tamair become responsible for the Tasmanian operation’s technical support and some management functions. The agreement may also see Airlines of Tasmania restructured and further developed in the coming years through an enhancement of the existing commercial agreement.

“We have an ongoing commercial arrangement through engineering and technical support for the operation that has culminated in introducing the Metro.”

The placement of the Metro has relieved the single Bandeirante and two Herons in service with the Tasmanian carrier, and has generated extra capacity by the Metro’s comparatively high speed. In keeping with the Tamworth based operations to Sydney, the upgraded Tasmanian services have enhanced the market by providing high frequency services in pressurised aircraft.

VH-NEL currently flies 17 sectors a day under a heavy utilisation programme that services King Island from Launceston and Wynyard, and La Trobe and West Sale in the growing market of eastern Victoria.

In addition to its involvement in Airlines of Tasmania, Tamair has also developed business in Malaysia with Metro VH-NEM based in Kuala Lumpur for contract freight duties. Asia Pacific Airlines wet-leased the aircraft for overnight newspaper deliveries from the Malaysian capital to Bandar Seri Begawan in Brunei.

Flying the service has been a valuable experience for Tamair in both support and operational terms. “Malaysia has been a good educational experience for us: operating in a different environment with the freight operation out of KL carrying 1.5 tonnes of newspapers 880nm (1630km) eastbound across the South China Sea to Bandar, leaving KL at 0245 every morning and arriving around first light when there is a 50% probability of fog each day.”

Paul Bredereck explains that visibility is limited to 1500m on a good day, with the ever present tropical combination of fog and tropical storms on bad days. Some storm heads rise to FL600, necessitating duly attentive flying over the 3.5 hour oneway sector.

In addition to its regular freight work, the aircraft provided passenger services from Kuala Lumpur to Langkawi and Kota Bharu, and frequently performed casual day charters around the Malaysian islands and peninsula. Occasional charters were also operated to Vietnam and Burma.

VH-NEM underwent maintenance each night in KL, and returned to the Tamworth base for heavier maintenance and inspections. The aircraft will ultimately return to Tamair to supplement its capacity on RPT and freight services in mid July when Asia Pacific Airlines took delivery of its own Metro 23. Bredereck carried out acceptance on this new aircraft on May 22 this year, and ferried it to KL via Canada, the Azores, Portugal, Sicily, Egypt, UAE and India. Tamair continues to support the new aircraft. 66 Australian Aviation September 1995

Developing Opportunities

“We will take on anything that comes our way,” says Paul Bredereck, but Tamair’s expansion will only meet niche market demands within its current resourcing plans.

“Our company’s immediate growth plans are based around the aircraft we currently operate. The Metro is an extremely good tool and we will look for opportunities to expand into markets that will sustain that type of operation. We will be looking for more niche opportunities in the 19 seat market that are suited to the Metro.”

Bredereck’s desire to stay with the Metro will provide cost savings in maintaining a one type fleet, and keeps the debt to equity ratio of the small carrier well within reasonable bounds. He is not about to over finance the operations, which, he suggests, has been the downfall of many regional and commuter operators in the past.

“We have no burning ambition to move into larger aircraft. We have a strong and profitable little company here at the moment, and moving into larger aircraft would require us going into debt to a larger degree than we desire.” All of Tamair’s Metros are owned by the company except VH-NEM, which is leased.

“If in the future opportunities present themselves where we need to operate from airfields with altitudes much higher than Tamworth, or we move further north with higher operating temperatures, it may be necessary to move to the Metro 23 with the improved (Garrett) dash 12 engines. However, while we’ve got long runways, not particularly high altitudes, we have no payload limitations on the (current) aircraft and all of the aircraft are higher gross weight ‘B’ variants (7256kg MTOW).”

In line with industry forecasts, Paul Bredereck sees the larger regional carriers moving away from smaller nine to 19 seat aircraft, leaving this sector of the market open to niche carriers such as his own. “I think the other regionals in New Passengers disembark from another Sydney/Tamworth service. Tamair has a commercial agreement with Ansett covering the Sydney/Tamworth services. (Julian Green) The recently returned Metro VH-NEM in formation with Tamair’s two Metros used for RPT services. South Wales will more and more focus on the larger aircraft such as the Dash 8. Hazelton’s, however, has a broader approach with its mix of Saab 340s and Metros.”

Supporting the fleet is the company’s own hangar which it acquired in October last year as a means of increasing its self sufficiency. Within the ex-EastWest facility is housed an extensive support capability including workshops for sheet metal, electricals, avionics, machining, interiors and structures. Some 25 engineers, a third of whom came from EastWest, cover two shifts providing these services as well as component overhaul, painting and refurbishing.

“Tamair offers a very good range of licence coverage,” explains Paul Bredereck, noting that much of this knowledge and experience was brought to his airline from EastWest. Engineering capabilities and expertise cover the Fokker F27 and F28, BAe 146, Metro, Dash 8, J31, Bandeirante and various smaller GA types. Tamair has already completed third party work, including that for a New Zealand F27 operator and more recently for operators in the Northern Territory, Tasmania and Malaysia.

“Over 50% of our actual work is conducted on aircraft from other companies in Australia and southeast Asia.”

Training

“From day one we put a very heavy emphasis on training, and this is why we have the flying school today. It is an integral part of the business and is very important to us.”

The company’s training facility provides it with greater self sufficiency and the ability to train and select its own pilots. Tamair offers its extensive training portfolio to ab initio and more advanced pilots seeking specialised ratings. The town’s weather conditions are ideal for flying training with only one or two serious fog days in a year.

The company’s focus is very much related to quality rather than quantity and it is cautious about expanding its facilities too far, losing the high instructor to student ratio it currently enjoys. The school is “not a sausage factory” and employs highly experienced instructors. “The quality of the product that goes out the door at the conclusion of training is very high. We are not looking for bulk international markets, rather the types of people we would like to employ ourselves,” Bredereck says.

In addition to its own requirements, up to 20 CPL and 30 PPL pilots are trained each year by a staff of seven. A further 20 IFR/instrument ratings are completed each year together with around five ag qualifications. Tamair has a broad commercial agreement with Airlines of Tasmania including the lease of Metro VH-NEL, pictured. (Julian Green)

The Tamair range of aircraft and activities provides a good career path for graduates, who have the opportunity to progress from Cessna 210s and Bonanzas on bank runs to a Cessna 310 and Chieftain passenger charters. Pilots then have the option to continue to command on the company’s Rockwell 690, a goal attained after progressing through second officer passenger and freight duties, to 1500 hours for a first officer and 3000 hours for a captain.

Increased capabilities in engineering training have also matched the airline’s growth. “The move to engineering was essential to control the standard of reliability on the aircraft and to increase the income for the company.”

Such has been the standard of engineering training for the Metro aircraft, that Tamair has become the recommended ground training facility for this region.

“Reputation is very important to the business. We are very pleased with the performance of the airline over the past two years.”

The final word is left to Vivien Bredereck who points out the company’s Staff Management Policy which states If you look after the staff, they will look after the customer. “There is an unbelievably high degree of camaraderie with everybody giving 120%,” she says.

Promoted as Tamworth’s Own Airline, Tamair is filling the hole left by the departure of EastWest from the scene in the wake of its takeover by Ansett, and it has gone a long way to repairing the damage to the local economy caused by the EastWest closure.

Tamair will retain its own identity because of its success and the strong community base from which it operates. It receives a high degree of regional public support, and has not been afraid to put something back into the community. Tamair is a family airline, and its larger family, the residents and businesses of the New England region, certainly support what they’re proud to call their own.