Airline Affairs

Ba Told To Pay:

In what has been described by the airline as an “astonishing decision”, British Airways has been ordered by a Paris court to pay out more than $A6.3m compensation to 61 French passengers taken prisoner by Iraqi troops when their Boeing 747 flight landed in Kuwait just hours after the 1990 Iraqi invasion. The court ruled that BA had “gravely failed in its obligations” to the passengers by not foreseeing the danger and should pay each of them between $A106,600 and $A160,000 compensation. BA has appealed the decision. Similar cases in English and Scottish courts have failed. The French judge ruled that although the Iraqi invasion might have been “unstoppable”, it was not “unforeseeable”. The aircraft had 349 passengers and 18 crew on board and was travelling to Madras and Kuala Lumpur via Kuwait. Many of the passengers were subsequently taken to Baghdad and others were used as ‘human shields’ at strategic targets in Iraq. The French passengers originally sought nearly $A12m and claimed the aircraft had made an unscheduled stop at Kuwait in order to drop off 15 undercover SAS commandos. This was not proven.

Hey Guys, How About Some Originality!

We congratulate one of our many competitors on its recent expansion though we do wish they would perhaps use a little more originality in designating the different sections of their ‘new look’ magazine. To our surprise and amusement Airline Affairs, Bottom Line, People and Short Finals all feature big in the new look mag. Now we are sure that these names will sound a wee bit familiar to long time AA readers. And of course why not. Airline Affairs has of course been the banner for our primary airline column for the past 13 years and usually runs from four to six pages each issue. Bottom Line and People have also been dedicated sections of our monthly Newsdesk section since 1987 while Short Finals was a popular tail end to the magazine for a number of years during the late eighties. We certainly wish our competitor well but wish that next time they could use a little more originality in developing their ‘new look’ magazine.

International Airlines Profitable:

The 234 member airlines of the International Air Transport Association (IATA) look set to record a combined profit of $US5.7bn in 1995, according to the association’s director-general, Pierre Jeanniot. IATA has forecast that total international scheduled passenger traffic will grow by 6.8% this year, a figure which is slightly greater than capacity growth. IATA’s member airlines between them control 98% of the world’s scheduled airline traffic. The $US5.7bn estimate has been extrapolated from known figures up to the end of September 1995. Australian Aviation has gone online, with the magazine and all our books now detailed at our new internet site on the World Wide Web. For details on the latest issue of Australian Aviation plus all our books, including the popular In Australian Service and Air Crash series, point your computer to https://msowww.anu.edu.au/-dfk/companies/aerospace/aerospace.html.

Saa-ansett Codeshare?

South African Airways is looking to establish a codesharing deal with Ansett which could involve services linking Australia, South Africa and Asia. The two airlines already have a commercial relationship through their frequent flyer programmes and SAA is keen to build on that as part of a strategy to expand its route network. There are potential benefits to both operators, particularly in efforts to combat the growing threat posed by the Qantas/British Airways partnership. If agreement is reached and approval given, Ansett and SAA could begin codesharing on Australia/South Africa flights during 1996. SAA is also interested in creating a three way partnership between itself, Ansett and Lufthansa.

First Qantas Agm Held:

“Qantas’ 75th year has been a significant one,” said Qantas Chairman Gary Pemberton, opening the company’s first annual general meeting since public listing, reports Julian Green. Over 800 shareholders attended the meeting in Sydney on November 22, amid the incessant and sadly routine anti-aircraft noise demonstrations. Indeed this was just one feature of the operating environment which Gary Pemberton said would shape the company’s success in the coming year. An immediate concern for Qantas is the inability to satisfy the demand from foreign investors to purchase large parcels of stock within the 49% foreign investment limit. Mr Pemberton said that many potential investors were turning away from the stock in frustration at not knowing whether they would be able to retain their shares. “I don’t think there is any question that at the moment the Qantas share price would be higher if foreign buyers could be sure that they could buy significant parcels of shares and still fall within the 49% limit.” Mr Pemberton flagged the possibility of a two class share system to allow freer offshore trading. Any such move would need to be put to a vote of all shareholders. Mr Pemberton also played down comments on foreign ownership exceeding the Government imposed limit, stating, “The level of foreign shareholding continually sits around or below 49%. There has never been any question of Qantas being foreign owned and controlled,” he said. “Experience so far has been that any notifications above 49% fall back within the limit as a result of normal buying and selling long before any notice to sell from the Board could take effect.” The pending Air New Zealand/Ansett merger, he said, was not a surprise, and that the Board’s decision to enhance domestic capacity assured the airline of continuing market dominance which presently stands at 53.7%. “We do not come to the issue unprepared. We will be selectively adding further capacity during the current year to defend and enhance our position in the domestic market,” Mr Pemberton said. “Internationally the outlook is less clear because of potential increased foreign equity in Ansett. We could well be entering a period of further significant change in aviation policy arrangements. In this environment, our equity interest in Air New Zealand becomes important. It will raise a multitude of considerations in order to ensure that we extract maximum benefit for our shareholders.” The softening in the domestic market affecting both yield and loads is expected to be balanced by higher than anticipated savings in the airline’s ongoing cost reduction programmes, lessening the likelihood of major deviations from the prospectus forecast. Reviewing the successes of the company, Mr Pemberton said that the $320 million profit recorded in 1994/95, the highest in the airline’s history, had laid a solid foundation for the way ahead. The airline’s leadership in the domestic market and the success of the public offering were attributable to the strong executive direction of the board and Qantas staff. “Together they have delivered what I consider to be one of the most significant corporate performances of recent times in this country.” Qantas is under pressure to maintain its “aggressive target” of the forecast net profit increase in 1995/96 of 32%. “We do not underestimate the challenges. We have the people, the strategies and the intellectual capacity to compete strongly in our new environment,” Mr Pemberton concluded.

Adelaide-malaysia Cargo Service:

Malaysia Airlines has established a new weekly cargo service between Adelaide and Kuala Lumpur, developed with the co-operation of the South Australian State Government. It is MAS’s first scheduled cargo service to Australia and will regularly deliver South Australian fruit, vegetables, horticultural products, seafood and high technology articles for the Malaysian market and for on-shipment to other outlets in Asia, the Middle East and Europe. MAS has previously operated charter freight flights to and from Australia, a recent example being the carriage of a 747-200 full of Formula One racing cars and equipment from Adelaide to Europe after the Australian Grand Prix. Malaysia is also planning to expand its passenger services to Adelaide from April this year when three (instead of two) services per week will be flown to Kuala Lumpur.

Solomons To Melbourne:

Solomons Airlines has introduced a twice weekly service between Honiara and Melbourne through a seat share arrangement with Air Nauru. Using Air Nauru’s Boeing 737-400, the service comes hot on the heels of the inauguration of a similar arrangement on twice weekly flights between Honiara and Sydney. Solomons Airlines also flies to Brisbane three times a week, using its own 737-300.

Qantas Develops New International Routes:

Qantas is to introduce a number of new services to India, Asia, Europe, the USA, Japan, New Zealand and South Africa as part of a major push to develop additional international services. The extensive programme includes an increase in services between Australia and Frankfurt from five times weekly to daily (July 1996); resuming services from Australia to India (Bombay) via Singapore (twice weekly from July 1996); increasing services from Melbourne to Rome via Bangkok from two to three per week (July 1996); adding two extra twice daily nonstop flights from Sydney to Los Angeles from January 1996 (now 30 flights per week to the USA); an increase of about 25% in capacity on the Sydney/Cairns/Honolulu/Sydney route; introducing a codesharing arrangement with American Airlines to provide links to Dallas and Miami; increasing the number of flights from Brisbane to New Zealand from seven to 16 per week (July 1996); introducing twice weekly direct services between Cairns and Auckland (April and July 1996); increasing the number of flights between Sydney and Auckland from 18 to 21 per week; adding a new service between Melbourne and Ho Chi Minh City for three months between November and February; increasing Sydney/Seoul/Sydney services from four to five per week (July 1996); adding a fourth weekly service to from Australia to Johannesburg (July 1996); and three Brisbane/Bangkok services, two of the return flights travelling via Cairns. Some of the proposed new services are subject to approval by the appropriate government authorities.

For The Birds:

Three US midwestern airports had to be shut down recently when huge flocks of migratory birds – probably geese – ‘jammed’ their radar systems. Omaha, Kansas City and Des Moines airports were out of action for several hours as the radar tried to process information on the birds. A computer system which is supposed to filter out radar echoes from birds by tracking their speed failed to operate, proving once again that Mother Nature will defeat technology every time…. something which is somehow reassuring!

Model Plane Versus 737:

A model aircraft has caused a near miss with a Qantas Boeing 737 on final approach to Melbourne Airport. The 737’s pilots believe the model – which had a wingspan of about two metres – was deliberately aimed at the airliner and missed by only between 30 and 100 metres. None of the 110 passengers aboard was aware of the incident. Civil aviation regulations prohibit the flying of model aircraft within 4km of an airport’s boundaries or above 300 feet unless within a designated zone for model aircraft flying.

Ansett Sells Tnt Stake:

Hot on the heels of TNT’s announcement that it is to sell its 50% stake in Ansett to Air New Zealand comes news of the reverse situation with Ansett divesting itself of its shareholding in TNT. Ansett has held over 23 million TNT shares for about a decade and has disposed of them for a total price of just over $44m. The sale is part of a general corporate restructuring and will provide cash for the group, expected to make a loss this financial year. Ansett is also planning a fleet re-equipment programme said to cost between $400m and $600m.

Air Nz To India:

Air New Zealand has decided to tackle the Indian market, initially working with a number of partner airlines to carry passengers to connect with ANZ flights. New Delhi based travel company InterGlobe Transport has been appointed the airline’s marketing representative in the subcontinent and it is hoped that the presence of some 20 New Zealand companies currently involved in Indian ventures will provide some business along with the growing outbound tourism market from India.

Airline Deregulation Analysed:

The Bureau of Transport and Communications Economics has issued an analysis of the deregulation of Australian domestic airline services covering its first five years. Deregulation came into effect on November 1 1990 and according to the Bureau there have been considerable benefits to the travelling public including lower average air fares, increased competition (despite the demise of Compass I and II), more efficient operators, improved quality of service, continuing aviation reform and more people travelling by air thanks to lower fares. Air fares on the top 21 interstate routes have dropped by 22% in real terms since deregulation despite a 2.8% increase in the two years to June 1995. There have been peaks and troughs in average fares, the lowest points coinciding with operations by the two Compasses (particularly the first version) and the highest after Compass I failed in December 1991. Deregulation has seen a significant increase in the number of passengers carried with an average annual growth of 12.6% in the four years to June 1995. In 1991/92 passenger numbers increased by 25% over the previous year, despite the recession. The growth in Revenue Passenger Kilometres (RPKs) between 1991 and 1995 was 74% or an annual average increase of 15.5%, the higher than passenger numbers growth explained by the increase in traffic on leisure routes which Kiwi Travel International Airlines’ new Boeing 757 was placed into service on the carrier’s trans Tasman routes in late November. The 757 is leased from UK charter operator Air 2000 and is configured with 233 economy seats. It is pictured here at Sydney after its first flight from Hamilton. Refer New Zealand News for further details. (John Ruming) are generally longer than the routes favoured by business travellers. The report notes an overall improvement in the quality of service since deregulation, based on the frequency of flights between points rather than the service experienced once inside the aeroplane. A quarterly index of flight frequency for the top 50 domestic routes shows a 29% increase between the September 1990 quarter and the September 1991 quarter. By the September 1994 quarter the index was 58% higher than the pre deregulation level, while the overall increase between 1990 and 1995 is in the order 63%. Large decreases were recorded when the two Compasses failed, although the slack was quickly taken up by Ansett and Australian Airlines/Qantas. The report says that despite the failure of Compass Airlines and that the scope for entry at a major level is “quite restricted”, all indications are that the two major carriers are competing much more vigorously in the deregulated environment. It says that “Although the initial large drop in average airfares can be attributed to the increased competition of a third market participant, the continuing low average fares with two participants indicate that competitive market forces are still present.” There is also clear evidence of competition through frequency of service improvements since the demise of the second Compass Airlines. Competition for market share can be solely attributed to deregulation as market shares were broadly fixed in the pre-deregulated market through the Government’s regulation of airline capacity”.

Pacific Freight Connection:

Continental Micronesia is offering ‘seamless’ air freight connections to major markets in Japan, Korea, the Philippines and Hong Kong via its thrice weekly services from Sydney to Guam. The airline says that seasonal air freight consignments such as fresh food and live seafood – for which there is a great demand in Asia – can arrive faster and fresher using the service. The air freight market around the world is growing steadily and in Asia it is experiencing rapid expansion. Guam itself provides a growing market for Australian products through major hotels and supermarkets which are showing increased interest in local goods and dairy products. Tourism is also expanding on the former World War 2 B-29 bomber base, this resulting in a need to replace and upgrade infrastructure and in turn creating a demand for building materials and equipment. Not all ‘live’ product flying to Guam ends up on someone’s dinner table. Continental Micronesia caters for the region’s most popular sports gambling activity – greyhound racing – by regularly transporting Australian dogs to compete at the Guam Greyhound Park which operates six nights a week.

Clearing The Way For Parkes International Freight Airport:

The Federal Government has approved $130,000 for an impact study to be performed on the potential effects of the proposed international airfreight centre at Parkes Airport. As reported by Julian Green in Australian Aviation’s November issue, the Inland Marketing Corporation’s proposal to expand Parkes Airport to create an international grade facility capable of handling 747s has been met with enthusiasm by rural industries. The great potential offered by the export of high value perishables from Parkes has been recognised by the Federal Government with this recent announcement of funding.

Cairns Announces 1994/95 Figures:

A 6% increase in passenger movements was recorded at Cairns International Airport over the past year, bringing to 2.9 million the number of passengers using the north Queensland port, reports Julian Green. Domestic passengers comprised the majority of volume, accounting for 1.7 million, up 14% on the previous year. A 6% decline in overall international volume was largely due to a fall in the number of inbound Japanese tourists. At present 31 return flights a week are operated from Japan by Qantas and Japan Air Lines. Cairns’ position close to the Pacific rim was strengthened with increases in services from Hong Kong and Indonesia, and the addition of Madang in Papua New Guinea to the Air Niugini network. Of concern, however, is the decrease in direct inbound flights from North America, (these flights are now mostly rerouted via Sydney) a matter the Cairns Port Authority wishes to address in the near future. The 90,000 movements for the year represented a 16% increase, while growth was also experienced in international air cargo, which increased to 22,135 tonnes, up 12%. The port’s growing attraction as a tourism and freight hub for the region attracted three new carriers, including Australia Asia Airways, Malaysia and charters by Kiwi International during the year. The Cairns Port Authority, which manages the Airport, reported a $A15.4 million net profit from $58.9 million in operating revenue.

New Chairman For Airport Industries Australia:

At the first annual general meeting of Airport Industries Australia (AIA), held in Sydney during December, Hans Roser stepped aside from his position as founding Chairman, handing over responsibilities to ex Civil Aviation Authority CEO, Doug Roser. Mr Doug Roser accepted the position stating that many challenges lie ahead for Australia’s airport industry and the member companies of AIA which seek to support local and international airport programmes. In the coming 12 months the new Chairman has set a heavy agenda to steer the association’s members through a strong marketing initiative to help snare over one billion dollars worth of export contracts. “There are a number of significant issues facing our members over the coming 12 months,” Mr Roser told Julian Green, “but unless we have a sound marketing strategy we will not be able to meet the opportunities presented to us.” A new marketing plan is currently being prepared and is expected to be instituted in the coming months. The AIA, which is strongly supported by Austrade and the Department of Industry, Science & Technology, is also looking to attract new members to broaden the group’s capabilities.

Work Commences On Stage Iii Developments At Cairns Airport:

Sydney based architectural firm Woodhead Firth Lee, which was awarded the contract to design the domestic terminal redevelopments at Cairns International Airport, will see its plans come to fruition over the coming months as the airport enhances its facilities to meet the continuing 14% average annual traffic growth. The Woodhead Firth Lee design has shunned Australian terminal design convention of separate airline terminal facilities to create an enlarged common user departure lounge. The 3500 square metre lounge, which has been enlarged by about 50%, incorporates 1400 square metres of retail and food outlets: a key element of the design and a 250% increase in the available retail space. Gaye Scott of the Cairns Port Authority told Julian Green, “Passenger facilitation has, and always will be an important priority in airport terminal design, however, with this development a significantly increased emphasis will be placed on retailing. It is not the intention, though, to squeeze shops into every corner and square metre of the terminals. This redevelopment is being undertaken not only to accommodate the expected growth in passenger numbers, but also with a view to exceeding the expectations of travellers in terms of their airport experience.” The current redevelopment works include a 24 metre extension to the international terminal building and the installation of additional check-in counters, expansion and reconfiguration of the arrivals area, addition of two aerobridges and the expansion of the departure lounge and associated retail areas. Woodhead Firth Lee was also commissioned to design the extension to Cairns Control Tower which was due for completion this month. The Stage III redevelopment works, which are valued at about $A9 million, are expected to be completed by March.

Asiana Commences Services To Australia:

Privately owned Korean airline Asiana commenced services to Australia on December 5 with an inaugural flight to Cairns. The first Sydney service was operated on December 6, with Asiana President and CEO Park, Sam Koo and the Australian Tourist Commission’s Jon Hutchison cutting the ribbon at Sydney Airport and welcoming aboard the first guests. Asiana’s 767-300ERs will operate twice weekly services, providing further capacity to the rapidly growing Korean inbound tourist market. Already in the current year the number of Korean visitors has increased by a massive 62%. President Park told Julian Green, “We see Australia as a growing market, with both Cairns and Sydney being favourite tourism destinations for Koreans. Cairns in particular with honeymooners. We hope to further build the market to a point in November 1996 when we can start a third service to Sydney.” Jon Hutchison remarked on the value of Asiana’s service to Australia, saying, “Asiana’s services mark another milestone in tourism relations with Korea. Australia is ranked the highest in preferred tourism destinations with Koreans, and Asiana will enhance access to the Australian market.” Asiana has interline agreements with Qantas, who will also provide ground handling services at both ports. The Korean carrier is also believed to be in discussions with a niche market New Zealand carrier. The 767-300s, which form part of the youngest fleet in the world at an average 3.4 years, will be used in a two class configuration to Australia for the foreseeable future. It is perhaps auspicious that Asiana’s flight designator is ‘OZ’.

Qantas Speed Sydney Domestic/international Connections:

Qantas has launched an exclusive new way of fast tracking passengers transferring between domestic and international flights at Sydney Airport. The $15 million project incorporates dedicated transfer lounges at both terminals, express air conditioned buses which operate airside within the airport boundary and an Advance Passenger Clearance system which provides speedy immigration clearance. Managing Director James Strong said the transfer system was a “first” for Qantas passengers, cutting the red tape for international travellers moving between the separate domestic and international terminals at Sydney Airport. “Qantas is the only airline able to offer this dedicated service,” he added. “We have around 300,000 passengers a year transferring between our domestic and international services in Australia.” Outbound from Australia, the new service is available for Qantas passengers travelling through Sydney from Melbourne, Brisbane, Adelaide, Perth, Canberra, Cairns, Darwin, Hobart, Coolangatta and Launceston. Passengers can check their baggage at one of the nominated domestic terminals through to their international destination. Boarding passes are issued simultaneously for all domestic and international Qantas sectors of their journey. Using the Advance Passenger Clearance system developed by Qantas in partnership with the Australian Department of Immigration and Ethnic Affairs (DIEA) and the Australian Customs Service, a Qantas Customer Service Agent enters the passenger’s passport and visa details in the airline’s computer and sends the information, with flight details, for instant verification by the DIEA. Passengers are then issued with a new style outbound passenger card, preprinted with most of the information which was previously hand written. Only three questions have to be completed and the card signed by the passenger under the new system. Any problems with travel documents can be identified while the passenger is enroute to Sydney, minimising possible delays at the Immigration and Customs departure point. On arrival at the Sydney Domestic Terminal, Qantas passengers can relax at a new spacious transfer lounge before boarding a bus for a short journey on roads inside the airport perimeter to the international terminal. At the international terminal, passengers have their advance clearance cards “swiped” and identification checked at one of the six Qantas dedicated Customs and Immigration clearance counters for a speedy trip through to the departure gate or The Qantas Club lounge. Qantas customers arriving in Australia at Sydney also benefit from the new facility. In the Customs Hall, they use a dedicated baggage carousel from which they are processed through a Customs and Quarantine counter exclusive to the Qantas Domestic Transfer Lounge. This lounge provides baggage recheck facilities and a full range of Qantas services, including seat allocation, confirmation and ticket sales. The international and domestic transfer lounges feature a new Qantas corporate design and offer facilities including telephones, rest rooms, refreshments, flight information and television viewing. The lounges are linked by dedicated buses (with facilities for disabled passengers), operating every 10 minutes with a travel time of about five minutes between the two terminals. The new system development of Badgery’s Creek (Sydney West) Airport has been taken out of the Federal Airports Corporation’s hands along with instructions to return $48m development funding allocated to it in 1992. The move comes as a result of the Government’s airports sales legislation being defeated in the Senate and means the project will be delayed by up to 12 months. The airport therefore has no chance of being operational in time for the Sydney 2000 Olympic Games, although many were sceptical that deadline could be met anyway. In a letter to the FAC, Minister for Transport Laurie Brereton says there are “a number of sensitive policy and administrative issues over which I will need to have more direct control”.

Senate Committee Recommends Reopening East-west Runway:

In what is yet another major blow against the credibility of the Federal Government and the Minister for Transport in particular, the Senate Select Committee into aircraft noise at Sydney Airport has recommended the east-west runway be reopened. The report rejects the position of Prime Prime Minister Keating and Transport Minister Brereton and even goes so far as suggesting that both AirServices Australia and the Bureau of Air Safety Investigation (BASI) only went along with the Government’s position because they were told to do so. According to the report: “The Minister for Transport has repeatedly rejected more extensive use of the east-west runway on ‘safety grounds’ … AirServices Australia and BASI are agencies within the minister’s portfolio responsibility. Each agency has made general comments about the comparative safety of intersecting and parallel runways in terms which echo those of the Minister.” The committee notes, however, that AirServices was unable to support its assertions with any form of supporting evidence. In one sense, AirServices Australia speaks for them all when its says its role is to implement Government policy. “On the evidence before it, the committee concludes that the concurrent use of all three runways will not, in reality, reduce the airport’s capacity, as some have suggested, but will approach and may even exceed the promised capacity of the parallel system”. The committee was also highly critical of the environmental impact study which accompanied plans to build the parallel runway at Sydney, as it had failed to predict the noise impact. The Senate Committee’s report says the opening of a parallel runway system and closing the east-west runway has had the effect of concentrating aircraft noise over a much smaller area. As a consequence, a variety of medical effects are likely to occur, among them sleeplessness, hearing difficulties and physiological and psychological problems. The report says: “On the evidence put before the committee, it is no exaggeration to say that the consequences of the construction and operation of the third runway at Kingsford Smith Airport, and the closure of the east-west runway, have scarred a city, and irretrievably complicated the future of airport development in Australia…. Unless some lessons are learnt, and cautions heeded, all future attempts to expand capacity at Australian airports will be treated with suspicion”.

Australian Company Wins Contract At Chek Lap Kok:

Special building products group, HH Robertson, has been awarded a $A22 million contract to design, engineer, fabricate and install in excess of 40,000 sq m of external cladding to the 38 aerobridges of the Chek Lap Kok terminal. The Sydney based company has also won additional contracts forming part of the infrastructure connected with the new airport, including typhoon deflector shields on the main bridge connecting the island with the Hong Kong mainland, and both architectural and protective metal cladding for the airport light rail depot. These further contracts are valued at $A24 million. Lester Rundle of HH Robertson, said, “The award of these contracts highlights Robertson’s ability to provide project specific services to clients involved in major construction projects in the Asia/Pacific region’s infrastructure sector.” The company has already supplied similar cladding products for airports at Adelaide, Brisbane, Cairns, Coolangatta, Melbourne and Sydney, as well as in the USA and Europe. Robertson is a member of AIA reports Julian Green.

Loch Ard Awarded Major Contracts In Europe:

Australia’s Lochard Environment Systems has been awarded two significant contracts in Europe for the installation of noise and flight track monitoring (FTM) systems, reports Julian Green. Finland’s CAA has recently awarded Lochard the contract for a noise and FTM system at Helsinki’s Vantaa Airport, while the company will also be supplying an environmental monitoring programme at EuroAirport Basel Mulhouse Freiburg. The new system at Basel will be the first of its kind and will include real time flight tracking and noise monitoring, complaint handling, air pollution and water quality analysis. Melbourne based Lochard has won contracts in over 14 countries, and has its environmental systems installed at Amsterdam’s Schiphol Airport, Zurich, Ben Gurion Airport in Tel Aviv, Washington Dulles and National, and Vancouver International.

‘new’ Trans-tasman Player:

A new airline offering low priced charter flights between Australia, New Zealand and the Pacific Islands has begun services. New Zealand based Freedom Air International flew its first service between Australia and New Zealand in early December using a leased Britannia Airways Boeing 757 fitted with 235 seats in a single class configuration. The airline will initially offer twice weekly charters between Sydney and Auckland, weekly Sydney/Christchurch, Sydney/Hamilton, Sydney/Wellington and Sydney/Dunedin charters and another weekly charter between Brisbane and Dunedin. Return fares from Sydney have been set at $499 and $549 from Brisbane. Freedom Air International is owned by the Mount Cook Group, itself a wholly owned subsidiary of Air New Zealand. Refer Reece for comment and New Zealand News for additional information.

Only Room For Two:

The general managers of leading regional operators Hazelton and Kendell Airlines have said there is sufficient traffic for only two operators on the Wagga/Sydney route. Hazelton, Kendell and Qantas subsidiary Eastern Australia have all applied to the NSW Air Transport Council for a licence to operate between the two centres. Hazelton has held a licence since 1993 and Kendell took over Ansett Australia’s services last July. Both have said that allowing a third airline on the route would call into question the validity of the existing operators’ services.

Badgery’s Building Ban?

A parliamentary enquiry into the proposed Sydney West Airport at Badgery’s Creek has recommended that all new residential developments within 10km of either end of the planned parallel runways be banned and that approval for housing developments under the flightpath be suspended. At least five of these are underway with housing planned for within 5km of the airport. In an effort to avoid the noise problems now associated with Freedom Air International, Air New Zealand/Mount Cook’s new charter arm began trans Tasman operations on December 8. Freedom leases this Britannia Airways 757 configured in a 235 seat single class arrangement, which it is using initially on services between Auckland, Hamilton and Dunedin and Sydney and Brisbane. Refer New Zealand news for further news and Reece for editorial comment. (Richard Kuluz) Sydney Airport, the enquiry committee has also proposed exploring ways of concentrating night operations to the south-west of the airport, restricting jets turning from the runway alignment within 5nm of takeoff, placing noise monitors at appropriate points around the airport, and minimising the impact of noise on densely populated areas.

New Fac Boss:

The Federal Airports Corporation (FAC) has appointed Mr Barry Murphy, the former chairman and chief executive officer of Caltex Australia, as its new CEO. Mr Murphy replaces Bill Swingler, who left the FAC last July. The FAC’s chairman, Ian Ferrier, says that Mr Murphy brings vast experience and talent in managing large organisations with complex infrastructure with him.

Gold At The Top:

Delving through the fine print of last years Qantas annual report can lead one to some interesting bits of information. For instance, did you know that there are no less than 120 senior managers on salaries of more than $100,000 per annum, up from 96 in 1993/94. Of the 120, 28 earn greater than $200,000 per annum as against 23 the previous year. CEO James Strong gets $1,270,000 for his efforts (almost double what Ansett’s Graeme McMahon gets) while three other QF execs each earn in excess of $500,000. It doesn’t seem so long ago that the dreaded forces of Coopers and Lybrand had swept Qantas clean of its myriad levels of multi management enclaves. Entire divisions of reporting had been swept away overnight and more than 5000 people lost their jobs due to the C&L corporate cleansing and subsequent Australian Airlines merger. Following a return to solid growth the airline has consistently increased its personnel base, up from 21,903 in mid ’93 to 23,238 at June ’94 and 28,948 at June 1995. Qantas is expected to exceed 30,000 employees by the end of 1996/97 year.

Atc Boss Says Open East-west Runway:

The former senior supervisor of air traffic control at Sydney Airport, Kevin Gale, has joined the long list of qualified people who say that reopening Sydney Airport’s east-west runway will increase capacity without compromising safety. Speaking to the Sydney Morning Herald, Mr Gale says that safety concerns have been grossly overstated by the Federal Government as part of it wanting to keep the east-west runway closed. He said: “They are saying on one hand that they allowed something to go on for 15 years and on the other, that they have to stop it because it is unsafe… if that were the case we should also shut down runways in the hundreds of major airports around the world that have intersecting operations. It’s ridiculous and it’s wrong”. Mr Gale believes AirServices Australia has been directed by the Government to find reasons to keep the east-west runway closed. He says that “if you put your mind to it, you can find all sorts of reasons to keep the runway closed – they won’t be lies but they will be distortions of the truth”. Mr Gale is not advocating a full return to Simops (Simultaneous Runway Operations), but a system whereby all three runways could be used safely with most takeoffs over Botany Bay from the new (north-south) runway and landings sequenced at appropriate intervals on the original north-south runway and on the east-west runway. Only the largest long haul jets would need to use the original (long) north-south runway and these could be directed to the south under most conditions. Not surprisingly, Minister for Transport Laurie Brereton has rejected Mr Gale’s ideas, while AirServices Australia remains in favour of the parallel runway system. According to the Shadow Minister for Tourism, Aviation and Customs, Senator Warwick Parer, Mr Gale’s comments raise “the question of deliberate Ministerial corruption by Laurie Brereton of the professional performance of his own department. The Senator points out that the Senate Select Committee on aircraft noise in Sydney discounted the evidence of AirServices Australia because of Laurie Brereton’s obvious domination of their input to the Government. He says “it is now obvious the Minister is deliberately, blatantly victimising the thousands of Sydney residents living under the northern flight corridors. It is sad that some bureaucrats in AirServices push professionalism aside to bow to the Brereton directions and allow this to happen”. AA Comment: Mr Gale’s remarks and some of those contained in the Senate Committee enquiry into Sydney Airport noise raise an interesting question. Are Government bodies such as AirServices Australia there simply to parrot that Government’s point of view – even if it is obviously wrong – or are they there to provide Government with proper advice from which constructive policy can be formulated?

Airports Update

Coolangatta: Coolangatta Airport posted a record profit in the 1994-95 financial, up 25% on the previous year. The result should ensure some vigorous bidding when privatisation of the airport goes ahead.

Cobar: Cobar Shire Council in western NSW is to commission a draft environmental plan for a proposed rezoning of the land near Cobar Airport. The proposed rezoning is from non urban to rural residential with individual holdings of at least 40 hectares (100 acres). The rezoning will have obvious effects on planning, mostly revolving around potential noise problems as the flightpath will cross some of the blocks.

Forbes: Forbes Airport in NSW has been chosen as the site for the establishment of an automatic weather station. Forbes Shire Council will provide and prepare the site and will contribute $25,000 of the station’s $35,000 cost.

Darwin: Darwin Airport has again recorded Australia’s fastest growth in domestic and international airline passenger traffic. The number of international passengers using Darwin increased by 20% in 1994, while the domestic figure rose by 19.9%. These figures compare with the overall Australian growth rate of 9.8% and 8.2%, respectively.

Innisfail: The far north Queensland airport could become a key centre over the next 20 years if the Queensland Government’s FNQ 2010 strategic planning scheme is developed as expected. The scheme recognises the need for a future secondary regional airport in the area as Cairns continues to grow as a major international and domestic airport with an inevitable squeezing out of general aviation activity.

Busselton: The WA regional airport project is facing a cost blowout of up to $1.2m and the State Government is probably going to be asked to make up the shortfall. Five companies are seeking the building contract and they have revealed that costs (which include burying a power transmission line under the runway and purchasing 71 hectares (175 acres) of land have resulted in a shortfall. The local council was allocated $3.5m by the State Government to finance the project.

Melbourne: The $190m upgrade of Melbourne Airport should be completed by the time these words are read. The upgrade included increasing gate capacity by 40%, doubling the number of passengers which can be handled to 1200 per hour, building a satellite wing for the international terminal, installing modern baggage handling equipment and improving the arrivals and departures areas. Work on a new four level car park costing $55m will start this year.

Port Macquarie: There are claims that the NSW coastal resort town is losing thousands of dollars worth of business each year due to its airport’s $6 landing fee. A local aircraft operator says that light aircraft pilots are flying elsewhere because of the fee. Mr Graham Bell has asked the local council why people in light aircraft are charged a landing fee when those travelling in cars do not pay any toll. He says general aviation uses very little of the infrastructure at the airport.

East Sale: The Victorian RAAF base could be opened up to commercial use if a submission by a local MP is acted upon. The submission is to an enquiry into the freighting of fresh produce from the Gippsland area, using East Sale as a distribution point to markets in Australia and overseas, especially Asia.

Sydney: A new facility for Qantas first and business class travellers has opened at Sydney Airport. The Qantas Club has been extensively renovated over the previous facility. It is now spread over two floors, capacity is increased from 154 to 264 seats and the two classes are separated for the first time. An economic assessment of Sydney Airport by the Institute of Transport Studies at Sydney University has said the airport generates about 60,000 jobs and injects some $7bn into the NSW economy each year. The report says the airport plays a vital role in supporting the region’s economy with 30,000 jobs created directly by the airport and another 30,000 indirectly. The value of Sydney or any other large airport is well understood by most people, we believe, notable exceptions including certain members of the Federal Government, apparently!

Moruya: The proximity of NSW’s Moruya Airport to a river has prompted the development of a service to seaplane operators which allows the aircraft to operate from the river and then be easily taken onto dry land for hangarage and maintenance at the airport. The service is being offered by local operator PM Aviation and the first to use it was a Helio Courier operated by Australian Seaplane Association president Phillip Dulhunty.

Avalon: Essendon based flight training and charter operator Pearson Aviation is one of the first to look at establishing operations at an alternate site, in this case Avalon Airport. The company is covering its bases in case Essendon is closed. If the plan goes ahead, the company will fly from both airports in the short term but an Avalon only operation is probable if Essendon is closed.

Launceston: The Port of Launceston Authority is set to take over ownership of Launceston Airport following a vote by the North Midlands Council to that effect. The PLA is seen as an appropriate body to run the airport as it has the interests of the region at heart. The council says it’s important that control of the airport remain in Tasmania.

Narrogin: WA’s first ultralight flying training academy has been established at Narrogin airfield. The Ultralight Flying Academy is a division of welding and industrial supplies company Pacwest and is approved by both the Civil Aviation Safety Authority and the Australian Ultralight Association.

Bankstown: Australia’s busiest airport is operating profitably for the first time in seven years, mainly due to a high level of interest in acquiring land on the site. More than 200 private tenants have leased land at Bankstown and nearby Camden and Roxton Park airports in recent times. The three airports returned a combined profit of $200,000 in 1994-95 compared with a $30,000 loss the previous year and a $1.2m loss in 1992-93. Bankstown itself accounts for most of the profit.

Wagga: Kendell Airlines is planning to build an additional large hangar at its Wagga base at a cost of $1m. The hangar will be used for maintenance work on its fleet and the need for it results from simply running out of space. The building will include two storeys of workshops and offices.

Perth: A $590m project to upgrade Perth’s metropolitan roads will include establishing improved access to Perth Airport. The Great Eastern Highway which provides access to the airport will be widened at an appropriate point by 2002.

Melbourne: Hume Council is to lobby the Victorian Government to establish a rail link between Melbourne Airport and the city centre.

Adelaide: The South Australian Government is pushing ahead with planned runway extensions and improvements to Adelaide Airport despite uncertainty over the $44m federal funding promised for the project. Minister for Transport Laurie Brereton has blamed the Federal Coalition’s blocking of the sale of Sydney Airport for its decision to hold back the funding. SA Premier Dean Brown has accused Brereton of “wanting to play politics with the Adelaide Airport”.

National: A Bureau of Industry Economics report has stated that Australian airports – especially Sydney and Cairns – have the cheapest landing charges. Australia apparently ranks only behind Indonesia in other costs such as terminal and airport services.

Proserpine: The Whitsundays airport is scheduled to be upgraded to international charter status in order to promote long term growth of the region’s economy through tourism. Development has stalled for the moment due to the failure of the major resort at Proserpine, jointly owned by Ansett and Laguna Quays Resort. They had undertaken to upgrade the airport but that responsibility will now fall to whoever purchases the resort, now in the hands of the receiver.

Brisbane: The shopping emporium at Brisbane’s international terminal has proved to be a nice little earner for the Federal Airports Corporation. The 27 shops are not only attracting customers passing through the terminal but also shoppers from neighbouring suburbs. The shops opened last September and it is estimated that 90% of departing passengers visit them. The target $75m annual turnover will apparently be easily met.

Parkes: The NSW country centre has received support from Young Shire Council for a proposed international airfreight terminal at Parkes Airport. The idea is being promoted by three councils in the area (Parkes, Young, Lachlan and Cabonne) and money has been allocated to support the concept of the Wand Marketing Corporation. The area’s primary producers would benefit from a Parkes international airfreight terminal, with fresh fruit able to be exported within a day of picking.

Melbourne: An International Business Traveller magazine poll has named Melbourne Airport as the seventh best airport in the world, two places ahead of Sydney. The poll asked about satisfaction with airport services, duty free shopping, catering and ground transport. The top airports were Singapore, Amsterdam, Copenhagen and Zurich.

Armidale: Dumaresq Shire is installing a Cat III weather station.