Airline Affairs

New Fac Board

Minister for Transport Laurie Brereton announced in late September the new board of the Federal Airports Corporation. Chairing the new seven person board is Ian Ferrier of Ferrier Hodgson & Co, famous for their administration of the demise of Compass Airlines. Joining Mr Ferrier will be lawyer Maxine Brenner, Jeffrey David of the Davids Limited Group, lawyer Joseph Gersh, accountant Penelope Hutchinson and Peter Sams a senior member of the ACTU Executive. Peter Core, Secretary of the Dept of Transport, who is an AirServices Australia board member also takes a place on the new FAC board.

AA Comment: Once again, this Government has successfully avoided obtaining the services of even one person with aviation skills. Out of the 18 recently announced positions on the new boards of CASA, ASA and the FAC, there are just two people who have aviation experience and both of them purely in the major airline world. General Aviation, regional airlines and industry are, as always, seemingly dismissed as being irrelevant. Maybe I will stand for the board of the AMA. After all, I once had an operation in a hospital and know my doctor on a first name basis, now surely that’s enough expertise!

New Brisbane International Terminal Opened

The penultimate project to be completed by the Federal Airports Corporation was opened on September 5 by the Prime Minister, reports Julian Green, with the new International Terminal at Brisbane Airport completed four months ahead of schedule and $40 million below budget, further adding to the already impressive record of the FAC in project management.

International operations have been greatly enhanced with the new terminal which was planned by Sydney based company Airplan, incorporating 11 parking positions with eight apron aerobridges and three standoff parking positions. The 66,000sqm, four level building is capable of handling initially 1200 passengers per hour, and progressive development will cater for up to 3000 per hour in the medium term and up to 24 widebody aircraft. The terminal will play a decisive role in establishing Brisbane as Australia’s second busiest international gateway.

Brisbane International is the first in Australia to be fully equipped with Common User Terminal Equipment (CUTE) enabling a high level of flexibility in airline operations and a greater accuracy in baggage handling. Up to 6000 bags per hour can be processed in the system, which incorporates a 10 digit barcoded bag tag laser scanner and sortation system to 28 conveyors.

In line with the success of retail operations in other FAC terminal developments, 27 shops and restaurants have been established. Sales are expected to exceed $75 million in the first year of operation. Designed as “a place for people”, Brisbane International has combined functionality with the effective use of aesthetics in an open plan design, making full use of natural light and subtropical landscaping.

Potential uses of the old international terminal include a specialised maintenance facility and regional freight hub. Both uses would be ideally suited to Brisbane’s position as an emerging aviation centre for the entire Asia/Pacific region. The new terminal plays host to 747s and 767s from Qantas, Australia Asia, JAL and Royal Brunei.

Westfield Looks At Airports

The Westfield shopping centre group is expected to look at expanding its US interests and new opportunities such as airport retail developments following the announcement of a $61.5m net profit for the 1994/95 financial year. Westfield won a tender for an airport retail development in Washington DC earlier this year and will tender for other similar developments coming up in the USA. Westfield is also expected to become involved in the privatisation of the Australian airports through its real estate development and retail expertise.

In other airports news, the exodus of top personnel from the Federal Airports Corporation continues ahead of uncertainty as to its future come privatisation and as a result of disillusionment within the FAC over the Government’s handling of the issue. The latest to resign is corporate secretary and general counsel Peter Robson and comes hot on the heels of the resignation of CEO Bill Swingler and the sacking of the FAC board. More than 100 key FAC personnel have resigned over the past 18 months.

Qantas Commemorative Playing Cards

Canberra based Transart has released a quality playing card set to commemorate Qantas’s 75th anniversary this year. The full colour cards have been designed by noted Sydney based aviation artist Don Stephens (who also designed the covers for our popular Military Aircraft of Australia, Air Crash I & II and Target Charlie books) and make a unique and desirable gift. Transart has been producing high quality Qantas memorabilia, including posters, calendars and postcards, under licence for the past five years.

Swissair Cuts Jobs

Some 1600 Swissair employees are to lose their jobs over the next 18 months as the airline strives to cut costs and restore yields, the latter dropping by 11% in recent times largely due to the strength of the Swiss franc. Despite a healthy growth in traffic, Swissair expects to return a very modest $US12m profit this year but still sees the need to cut about 10% of its workforce as part of a planned $US350m saving. It is hoped that most of the job losses will come from natural attrition but the company is making provision for up to 400 early retirements and 300 redundancies. Swissair subsidiary Crossair is not affected by the cuts and will in fact be adding 500 staff as it expands regional operations based around the Avro RJ.

Eva Air Brisbane/Auckland

Taiwan’s EVA Air is now flying between Brisbane and Sydney as part of a round trip service from Taipei to Brisbane, Auckland, Brisbane again and back to Taipei using a Boeing 767-300ER. As EVA Air has fifth freedom traffic rights between Australia and New Zealand, it will be able to pick up and set down passengers and cargo between the two countries. The airline initially operated one flight per week on the service (from late September) but from late October the frequency increased to three per week. EVA Air began operations to Australia two years ago and now flies to Sydney, Brisbane and Melbourne. It also serves 22 other destinations in Asia, New Zealand, Europe and the USA.

Njs To Indonesia And Singapore

The International Air Services Commission has issued a draft determination which if confirmed will allow Adelaide based National Jet Systems to begin operations to Singapore and Indonesia before the end of this year. NJS proposes to operate two services per week initially between Christmas Island and Singapore, one per week between Christmas Island and Denpasar via Surabaya and one per week between Broome and Denpasar. The operator wants to increase the frequency between Australia and Singapore to three per week and between Australia and Indonesia to seven per week during the course of 1996. Traffic between Indonesia and Christmas Island has grown strongly over the past two years following the opening of the Island’s resort and casino. All services will be operated with National Jet’s new RJ 70 Avroliner.

Sir Freddie Is Back

Sir Freddie Laker, the pioneer of cheap, ‘no frills’ trans Atlantic flights in the 1970s, is about to re-enter that potentially lucrative market with a new airline. Sir Freddie has announced the formation of Laker Airways Inc, a US based operator in which he will hold a 49% interest. The remainder of the shareholding will be held by oil tycoon Oscar Wyatt, already a partner with Sir Freddie in Laker Airways (Bahamas), formed three years ago to operate between the USA and Grand Bahama.

The new Laker Airways will fly from Fort Lauderdale and Orlando in Florida to London Gatwick, Manchester and Glasgow with expansion to Milan, Berlin and other European centres planned. This time, a high quality service with plenty of frills will be offered to passengers. Sir Freddie’s previous attempt to offer trans Atlantic services, the Laker Skytrain, was put out of business in 1982 after suffering from claimed unfair pricing tactics from other operators. Many analysts say the company was wound up prematurely as a result of outside pressures. Sir Freddie subsequently won about $12m compensation from other airlines in a series of out-of-court settlements.

Hazelton Job Cuts

Regional operator Hazelton Airlines is to make 16 pilots and five flight attendants redundant in the wake of its $2.35m loss in the 1994/95 financial year. The move is part of Hazelton’s plans to reduce costs and restore profitability following the disappointing result, in which both revenue and traffic increased by 13-14% but costs grew by nearly one third. The pilots will be made redundant on a last in, first out basis and 85 will remain with the company.

Cathay Bans Cds And Limits Laptops

Cathay Pacific has banned the use of personal CD players on its aircraft and is looking to extend restrictions on laptop computers using 486 or Pentium chips as more powerful units come into use. The airline has established the rules on safety grounds in the wake of the 1992 crash of a Lauda Air Boeing 767. Although the direct cause of the crash is known — the uncommanded deployment of the reverse thrust mechanism on one engine in flight – it is thought that this might in turn have been caused by electromagnetic interference. There is now an element of belief that several other unexplained accidents and incidents might also have been caused by this phenomena in recent years.

Cathay has extensively tested personal CD players and concluded that they and some other devices emit broad band radio waves which could have an adverse effect on aircraft electronic systems. The use of other digital devices such as laptop computers, hand held computer games, FM receivers, video cameras and tape players are banned by Cathay (and others) during takeoff and landing, but the airline says that the coming generation of more powerful laptops could result in their use being totally banned as well. On the subject of modern electronic devices, Emirates (the airline of the United Arab Emirates) has introduced free mobile phones for use by its first and business class passengers. The scheme is available to passengers flying into London who will be able to have the phones rent free for a period of 14 days. They can even take them out of the UK during the rental period and courier them back if they are not returning to London!

Ansett/Eva Codeshare

Subject to final approval from the International Air Services Commission, Ansett Australia and Taiwan’s EVA Air will enter into a codesharing agreement from early December this year. Under the agreement, each carrier will exchange 170 seats (160 economy and 10 business class) per week on each other’s services, doubling the number of flights between Sydney and Taipei. EVA Air currently operates five flights per week between Taipei and Australia with Sydney, Brisbane and Melbourne served. The new codeshare arrangement will increase the carrier’s scheduled flights per week to seven — four Sydney/Melbourne/Taipei and three Taipei/Brisbane/Taipei. In addition, EVA and Ansett will enter into a block arrangement whereby EVA will allocate 120 seats per week (40 on each flight) to Ansett for the Brisbane/Auckland/Taipei sector. The Taiwan/Australia route is growing rapidly at a rate of about 20% per annum. Tourism forecasters are predicting that Taiwan will be Australia’s second biggest inbound market within five years.

Usair For Takeover?

USAir has been holding talks with United and American Airlines which could result in one of them taking over the struggling, sixth largest US operator. USAir has accumulated losses of more than $US3bn since 1988 and is therefore ripe for takeover (or ‘merger’, as it is politely referred to) by one of its larger rivals. Any such deal would result in the owner inheriting USAir’s extensive east coast route network. This is particularly appealing to United, which is strong on the west coast.

News of the talks with United and American resulted in USAir’s share price immediately increasing, while United’s and American’s both fell, reflecting doubts about the real value of any deal. United’s shares dropped the most, indicating the market thinks it is the most likely potential buyer.

Of great interest is British Airways’ position in the overall equation. BA invested $US400m in USAir in 1993 for a 24.6% shareholding but wrote off half of this amount earlier in the year. BA’s options are to sell its shareholding (possibly at a profit) or to form an alliance with the buyer of the remainder. Such an alliance would result in a formidable global airline powerhouse involving Qantas which is 25% BA owned. Some analysts are suggesting that USAir is not worth buying considering its poor financial state and the fact that it is highly unionised and as a result has the highest labour costs in the industry. The USA’s anti trust laws might also come into play.

Dinner Is Served

Qantas is giving the public a chance to experience inflight service and enjoy a delicious meal at very low cost, all without leaving the ground. As part of their training, new flight attendants serve ‘passengers’ in a full size aircraft cabin mockup at the airline’s Sydney Airport jetbase. Qantas needs about 2000 people who are prepared to pay a nominal charge to enjoy the same meals they would experience on an international flight. The economy class lunch costs $5 while the business class fare costs $10 per person, which has got to be the best dining value in Sydney. Paying volunteers are needed between now and January. For details contact Sue or Karen at Qantas on (02) 691 1269 or (02) 691 1667.

Anz’S New Flights

Air New Zealand is in the process of introducing several new flights from key tourist markets for the northern hemisphere winter season. Five new services will be introduced including increased access from Korea, Japan, Thailand, Hong Kong and London. From early October, ANZ began linking Korea and Fiji by starting a weekly flight between Seoul and Auckland via Nadi. Five flights per week from Korea will be available from next month.

Other new flights include twice weekly services between Fukuoka in southern Japan, bringing the number of Japanese cities served to four and the total number of weekly flights to Japan to 16. A new weekly flight between Sydney and Bangkok is to be introduced this month, as will a third weekly flight between Auckland and Hong Kong. Services between Auckland and London Heathrow will also increase, from four to five per week.

Airfares Going Up

Australian domestic airfares rose by an average 6.4% in the June quarter of this year, according to figures released by the Prices Surveillance Authority. The PSA’s survey of the 21 major interstate routes (which between them account for 80% of passenger traffic) also revealed that fares increased by an average 4.1% over the 12 months period to the end of June. Decreases were recorded in the first three quarters of the period. The June 1995 quarter result is almost identical to that recorded in the same three month period of 1994. The PSA’s figures also show that the average airfare in the quarter was 17.27 cents per passenger kilometre, the highest since the same period of 1991, immediately before the price war which contributed to the demise of the original Compass Airlines.

Hazelton Opposes Airports Privatisation

Max Hazelton, managing director of regional operator Hazelton Airlines has issued a warning against the privatisation of Australia’s airports, saying it will harm regional Australia. Mr Hazelton says it is the Federal Government’s responsibility to have airports strategically placed around Australia, not only for its social and economic obligations but also for emergencies such as flood relief, medical evacuations and for defence purposes. He says: “These airports belong to the people of Australia, built by taxpayers’ funds and are a major benefit to all people as they bring in tourists and business. Federal airports located around Australia are part of a national network and I believe politicians should have been more cautious when considering radical policy changes such as the privatisation of the FAC airports”.

Tasmania-Avalon Link

Avalon Airport and the Tasmanian Government have been discussing the establishment of air links between the Geelong area and Australia’s southernmost state. A Geelong Chamber of Commerce report has revealed that Avalon Airport Geelong Pty Ltd has put forward various proposals which if enacted will see links from both Avalon and the Port of Geelong established. It is reported that the Tasmanian Government supports the proposals and is considering funding a study to determine the demand for such services. Using Avalon as a central ‘hub’ for the services will bring great benefits to the Geelong region in both business and tourism terms as well as helping ensure a viable future for the airport.

Tourists To Pay For Perth Noise

The Sydney Airport noise hysteria has spilled over to Perth, where it has been decided that families who claim to be disturbed by aircraft noise will be able to either sell their homes to the Federal Government or qualify for free sound insulation. Schools, hospitals, child care centres, churches, nursing homes and other similar buildings deemed to be noise affected will also be eligible to have insulation installed. The bill for this is expected to reach about $10m which will be raised by taxing airline passengers. If adopted, the plan will add between $2 and $5 to the price of an airline ticket into Perth. Tourism Council of Australia WA branch president Noel Semmens has stated it is unfair that the industry should pay for the Government’s plans and quite rightly points out that people who moved near the airport “went in with their eyes open and knew it was going to be noisy”.

Airlines Fight Charges Increase

The Federal Government’s plans to introduce greatly increased landing charges at airports ahead of privatisation — the idea being to increase profits so as to maximise the selling prices — is being fought by the airlines. At the time of writing, it looked as if the Government was backing down to some extent. The Department of Transport produced an options paper which in general provides for a ‘graduated’ move towards a 75% level of cost recovery on aeronautical activities compared with the present 57%.

A summary of the proposed charges includes a 13% per annum increase at Sydney over the next three years, 17% at Melbourne, 22% at Brisbane and 16% at Perth. Fees on various other infrastructure services (such as use of terminals) would increase by between 20% and 50%. Other airports would be subject to further annual increases in charges, averaging 14%.

The new charges would increase the cost of landing a Boeing 747 from $2708 to $3106 at Sydney Airport, to $3198 at Melbourne and to $3324 at Brisbane. A 737 would increase from $372 to $425, $437 and $492 at Sydney, Melbourne and Brisbane, respectively. The airlines say the new charges will add tens of millions of dollars to their annual operating costs.

The airline industry presented a united front at a recent meeting on the subject, with the result that the Government appears to have backed down somewhat, a new philosophy emerging which agrees to broaden the definition of aeronautical charges once the airports are privatised. This was one of the Prices Surveillance Authority’s major recommendations when it examined the issue but it was not included in the original proposals. In addition, the airlines are now hopeful that charges at the major airports will fall if the policy of levying uniform charges through network pricing is abolished.

Kiwi’S Innovative Fares

New trans Tasman operator, New Zealand’s Kiwi Travel International Airlines has introduced an innovative fare pricing structure involving a bulk buy voucher system. The idea has been developed in response to Air New Zealand’s competitive trans Tasman fares and is aimed at the corporate market. It revolves around purchasing a minimum of three and a maximum of ten return trip vouchers which get progressively cheaper. The first two vouchers cost $699, the third $399 and the remainder steadily reduce until the tenth costs just $299. The vouchers are valid for a period of 12 months from the date of issue.

British Airways’ Billion Dollar Cabin Revisions

British Airways has unveiled arguably the most profound enhancements to business and first class products in many years, writes Julian Green. Innovations in the $500 million ($A1.04bn) ‘Insight’ programme include the introduction of individual cabins, or ‘seat pods’, to BA’s premium product which has been renamed First. Each seat has its own personal space divided from other passengers by partitions, while two pairs of seats are retained for couples travelling together, incorporating the latest features. Each seat can be laid completely flat to form a 198cm (6’6″) bed, or alternatively the area can be modified into a mini-conference or dining facility for two, with facing seats and a retractable table. Passengers are able to dine at will, and are served on an individual basis rather than from a trolley.

Club World (business class) benefits from vastly improved seats featuring a mechanism that tilts the seat base to cradle. Headrest wings support head and neck, while, like Qantas, seat pitch has been increased to 127cm (50″). Service enhancements include a more flexible approach to dining by introducing the ‘Raid the Larder’ concept of inflight snacking, available to passengers throughout the flight in the Club World galley.

Inflight service has been further improved to reflect a more personalised service, the airline saying “we have thrown away the manuals and we are relying on the personality of our staff to provide more spontaneous one-to-one service for every passenger”. The service is designed to make passengers “feel more at home.”

Addressing the needs of 85% of its passengers, British Airways will also be introducing an improved World Traveller (economy) product by mid 1996. Aircraft conversions, which are being accomplished through BA’s own Engineering facility at Heathrow over the next three years, have already commenced, with 30 of 80 longhaul aircraft already completed. The company’s 777s are being retrofitted on arrival from the Boeing plant. Aircraft in the program include the 747 fleet, 777, DC-10 and 767-300. All classes will benefit from a new interactive entertainment system currently being trialled by BA and Qantas, featuring inflight shopping, a much expanded range of videos, games and inflight information. British Airways is spending £500m ($A1.04bn) on a comprehensive three year long upgrade of its aircraft cabins. Part of this is a new first class with a revolutionary new seat which converts from an armchair with a visitors seat to a unique 198cm (6ft 6in) long flatbed.

Qantas To Macau?

Qantas and Ansett have won the right to operate between Australia and the Portuguese colony of Macau near Hong Kong. The agreement is particularly significant to Qantas in view of its ongoing battle with Cathay Pacific over ‘onward rights’ from Hong Kong. The Hong Kong Government has continually refused permission for Qantas to operate between Hong Kong and London in direct competition with Cathay. Operating to Macau provides an alternative which is only one hour from Hong Kong by high speed ferry. The Macau option is indeed an interesting one in that it also provides additional access to the booming southern China market and could prove valuable if at some point in the future internal strife was to make Hong Kong a potentially unattractive destination.

Sydney Airport Saga Continues

The mess surrounding Sydney Airport’s parallel runway, noise problems and so on continues, most of which has been reported in the daily press. The last month or so has seen considerable activity, the biggest news revolving around the Federal Opposition’s decision to block legislation to privatise Sydney’s airports until the east-west runway is reopened. The Government responded by saying that the decision will effectively block the whole privatisation process because without Sydney (“the heart of the network”, according to transport minister Brereton) there would be reduced interest from bidders.

The question of reopening the east-west runway continues to cause controversy. The Government remains steadfastly opposed, ostensibly on safety grounds but really because it would prefer to see air traffic passing over seats held by the opposition than its own seats, particularly those of Laurie Brereton, Gary Punch and Prime Minister Keating. Both Ansett and Qantas have stated their opposition to reopening the runway (raising the question by many within the industry of what threats are being held over them) while the Australian International Pilots Association, senior Qantas pilots, and air traffic controllers have all gone on the record to state they see no problems. Also supporting use of the east-west runway are regional operators led by Hazelton Airlines, Kendell and Tamair, while the incoming head of AirServices Australia (ASA), Bill Pollard (most recently head of air traffic control in the USA), stated that cross runway operations were not unsafe. Not surprisingly, a ‘correcting’ statement was quickly issued by ASA!

Laurie Brereton added another aspect to the issue when he announced the intention of imposing a movements cap on Sydney Airport via slot control which is ultimately intended to force operators to use Sydney’s proposed second airport at Badgery’s Creek (Sydney West). This is despite the fact that Mr Brereton had previously given assurances that he would not use legislation or regulations to do just that. Mr Brereton has already directed that night freight operations move to Badgery’s Creek as soon as it opens, allegedly in 1999, although many observers feel that this is a wildly optimistic timetable. Meanwhile, Mr Brereton’s boss, Prime Minister Keating, recently stated in Parliament that all three runways at Sydney cross each other, which is simply not true and yet another example of how little understanding of the problem is held by those who govern us.

Meanwhile, the home soundproofing programme around Sydney Airport is proving to be less successful than envisaged and a report into the subject has now recommended that 16,200 homes be insulated rather than the 4200 currently covered by the scheme. The report also reveals that only 25% of noise affected residents are being adequately protected. The noise reduction campaign is actually costing more than the third runway!

The Government’s woes continue with reports that the NSW Government is considering suing its Federal colleagues to obtain additional compensation for the impact of the third runway. Compensation of $250m has been offered so far and legal opinion has been sought as to whether about $80m more could be obtained.

In other Sydney Airport news, Independent Visual Approach (IVA) equipment is to be installed for each of the parallel runways, allowing increased traffic movements along with maximum safety standards. Aircraft will be vectored onto the approach by air traffic control, and in clear weather they will be given clearance to conduct visual approaches using the IVA equipment.

Gareth’S Grand Plan

Minister for Foreign Affairs, Senator Gareth Evans, has come up with an extraordinary scheme designed to help fill the rapidly emptying coffers of the United Nations — that international air travellers should pay a levy to help make up the organisation’s current $3.5bn shortfall. The response has been understandably savage, Tourism Task Force chief Christopher Brown saying: “Air Passengers are already paying more than $32 in levies and taxes every time they touch down at Sydney Airport. Senator Evans now wants the tourism and aviation industry to bankroll the UN”.

The shadow minister for aviation and tourism, Senator Warwick Parer, probably summed it up most appropriately: “It is as illogical as it is reprehensible. The minister goes to New York to jeopardise Australia’s greatest growth industry and one of this nation’s greatest export earners. Either he has lost the plot or has deliberately produced a proposal that is self centred; ignoring the fact many jobs of young people would be sacrificed in order to improve his own career prospects”.

Parkes Airport Mooted As Major Freight Hub

With profits dwindling in the agricultural industry amid soaring costs and limited export opportunities, a very real solution is seen as improving export delivery systems to key Asian markets for high value perishable products. Julian Green was recently invited to hear details of an ambitious plan laid down by a co-operative of councils and farming bodies in New South Wales’ Central West region to create a $40 million international freight centre at Parkes. In its attempt to stem the economic downturn in regional NSW, the Inland Marketing Corporation (IMC), headed by Alex Ferguson, has undertaken extensive research on the need for improved infrastructure to allow rural NSW to compete more vigorously on the international market for its meat, vegetables and dairy products.

In its report, the IMC says that “Future growth in air cargo in Australia is being restricted by a trifecta of a lack of dedicated freighter services, a lack of specialised air freight facilities and a lack of interest in air cargo by Australian international carriers.” It noted that while air cargo on Australian carriers has been tied to passenger volumes, with 90% of cargo shipped under-belly, freight is the faster growing of the two sectors.

Alex Ferguson explains, “Rather than construct a facility on the coast or in the capitals, where there is congestion and environmental concern about further development and where exports from inland eastern Australia incur substantial transport and storage costs, it needs to be constructed central to the export catchment. A regional facility delivers the benefits of reduced transport, warehousing and handling costs for exports, and creates direct linkages between producers and markets. It also creates the opportunity to build new regional industries based upon both the exporting facilities and the reciprocal imports.”

The plan to establish Parkes as the freight centre will reduce delivery time from paddock to plate to within 36 hours, making Australian produce not only fresher, but also significantly more competitive. “We want real time delivery systems and we want to use our geographical position at the rim of southeast Asia to access markets far more aggressively than we have currently been doing. In so doing, we will cut down our competition from other nations such as Chile and South Africa. If we get the delivery system down to a very efficient overnight delivery to our markets, any extra costs we may have in Australia will be completely negated because our competitors will then have to pay significantly more to match the delivery time,” Mr Ferguson says.

Parkes is ideally located at an existing rail and road crossroads, linking Sydney, Melbourne, Adelaide and Brisbane. Eastern Australia’s principal rail junction lies on the outskirts of Parkes, and the comparatively little-used rail system would become a major resource in moving goods into and out of the centre, and to bring in aviation fuel. The catchment area for the freight centre will encompass the horticulture and meat industries of Gunnedah and Inverell, Dubbo, Narromine, Batlow, Wagga and the regions of Sunraysia and the MIA.

In 1993/94, the Australian Bureau of Statistics estimated that NSW airfreight export of these products equated to 361,747 loads, or 30,685 tonnes. Markets currently serviced by regular air freight operations such as Hong Kong, Japan and Singapore, accounted for 90% of perishable produce exports during the same period. With the enhancement of export opportunities driven by the proposed Parkes facility, the IMC forecasts that up to 200,000 tonnes of outbound freight per year could be handled through the new centre, through increasing volume on existing routes, and through the establishment of new air freight services to other emerging markets such as China, Malaysia and Taiwan.

Early indications from the State and Federal Governments have been positive. “We have been working with the Federal Government now for the past six months … and it has culminated in the Minister for Trade’s calling for the Standing Committee on Transport, Infrastructure and Communications to undertake an urgent review of perishable products,” says Mr Ferguson. The Government is presently reviewing bilateral freight transport agreements which could create greater access for dedicated foreign freight specialists. “We must look at what will happen if we do nothing, allowing this continual drift in regional Australia. This project has national advantage, and if we are really serious about getting Australia into a competitive position, this is a serious proposal” stated Mr Ferguson.

Airport Update

Parafield: About 176,000sq m of land at Parafield has been released for commercial development. The land is considered surplus and adds to land already being devoted to various major developments including a service station and do-it-yourself retail outlet.

Maroochydore: The planned $6m upgrade of Maroochy Airport (including doubling the size of the terminal and building a new taxiway and fire station) will more than double the traffic through the site each year, according to local business people. The new facilities will allow a significant increase in visitors to the Sunshine Coast because the airlines will be able to offer greater frequency of service to the airport. Maroochy has witnessed an increase in passenger traffic of 76% over the past two years. The upgrade will be completed in 1997.

Newcastle/Williamtown: Port Stephens Council is to spend $1.6m building three new hangars at Newcastle Airport, Williamtown. They are the first of a planned development of five hangars which will eventually be built near the airline terminal. Council will rent the hangars for 10 years and then sell them to Newcastle Airports Ltd. Two of them will probably be rented to Impulse Airlines at a cost of up to $188,550 a year.

Essendon: Legal experts have warned that if Essendon Airport is closed, the cost could be as much as $160m, or twice the figure originally forecast. The increase comes as a result of legal action operators might take against the Federal Government to cover damages claimed for loss of business. The Government estimates that the cost of closure would be between $50m and $80m, covering moving and compensating operators.

Mildura: Mildura Rural City Council has allocated more than $2.4m to extending and resurfacing the runway at Mildura Airport. It is planned to start work by the end of the year.

Bathurst: Bathurst Airport is to undergo some minor upgrading including building a small storage extension to the terminal and refurbishing the toilets. It is also planned to regravel the airport’s east-west runway in 1996/97 at a cost of $120,000.

Coolangatta: Calls by retiring Gold Coast Tourism Bureau chairman Peter Hughes to rename Coolangatta Airport ‘Gold Coast Airport’ have been rejected by the FAC as it is unlikely to bring in more tourists.

Margaret River: Plans are in place to upgrade the airstrip at Margaret River (WA) including sealing and fencing of the strip and providing lighting so the Royal Flying Doctor Service can operate at night.

Amberley: Approval for use of the RAAF base for civil and commercial operations has been given following discussions between the RAAF and local Ipswich political and business interests. The building of a civil terminal catering for commuter aircraft of up to 22 seats has been approved and longer term plans could see Amberley become the second major airport in south-east Queensland.

Western Australia: The WA government is planning to spend $7m on regional airports over the next three years as part of a plan to develop a network of country facilities. Highlights of the plans include building new airports at Busselton, Kalbarri and in the Karinji National Park as well as upgrading the strips at Hall’s Creek and Fitzroy Crossing to all weather standards. Future government assistance of WA’s regional airports depends on the financial viability of projects, the financial capacity of owners and the presentation of appropriate business plans.