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New airline, Air Macau began scheduled services from the newly opened Macau International Airport, near Hong Kong, in early December with leased Airbus A321s. The Airbus twinjets are used on regional Asian services. (Airbus)
Airline Affairs
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Pacific Transair Ready For Takeoff
New domestic carrier Pacific Transair is set to launch itself into major competition with Ansett and Qantas, targeting peak hour services between Sydney and Melbourne. Two ex-Continental 737-200s have been acquired to operate the services configured in an all economy class 128 seat cabin. The airline is offering $99 one way fares initially between home base Sydney and Melbourne, but will extend operations to Brisbane with the delivery of the second aircraft during March. One morning service will be operated departing Sydney at 0645, returning from Melbourne at about 0845, and one afternoon service departing Sydney at 1530 with a return departure at 1730. While the major airlines will obviously consider the small carrier a threat to peak hour services, Rex Banks, Chief Executive Officer of Pacific Transair, told Julian Green that the company hopes to build the market rather than steal established Ansett and Qantas passengers. Pacific Airmotive, who already provide services to Polar Air Cargo, AOM, Southern Air Transport, Federal Express and new startup Freedom Air International. The Australian registered aircraft have undergone the Boeing Genesis refurbishment programme in Louisiana, including D checks, internal and external refurbishment and the fitting of Nordam hush kits. Maintenance will be undertaken in Australia by ASTAAS at Avalon, where flight crew will also undergo initial training. The first C checks are expected in about two years. The rise of Pacific Transair, which is a privately funded company based in Sydney, was achieved without the fanfare associated with the two Compass launches. Its development reflects the airline’s aims to be a low key operator. “We want to keep this operation as low key as possible, and to do it well,” says Rex Banks. New Zealand will purchase TNT’s 50% stake in Ansett Airlines in two stages has been confirmed. ANZ plans to acquire half of TNT’s holding initially (or 25% of the operator) for $A200m and the remainder for $225m by February 1998. The agreement is subject to approval by New Zealand’s Commerce Commission and Australia’s Foreign Investment Review Board. There are some potential problems here. New Zealand is concerned about ANZ acquiring a half share in its only domestic competitor and the effect that could have on competition, while Australia wants a ruling on whether an Ansett half owned by New Zealand interests is a foreign owned or foreign controlled company as defined under the Air Navigation Act. The key to this is deciding whether or not Ansett’s other shareholder (News Corporation) is regarded as foreign. The Act restricts foreign airline ownership of Australian operators to 25%, although there is no limit on foreign non airline ownership. However, if foreign investment exceeds 49%, Ansett’s international carrier status could be changed on the basis that it is no longer a substantially Australian owned and controlled company. “We are not operating peak hour services necessarily to get business traffic, but rather to safeguard as much as possible any opposition from the majors. By operating two flights a day during the peak period, it makes it very difficult for them to attack us, because their flights are generally full anyway and cheaper discount tickets are very hard to purchase at these times. If we were to fly five flights a day in the New airline, Air Macau began scheduled services from the newly opened Macau International Airport, near Hong Kong, in early December with leased Airbus A321s. The Airbus twinjets are used on regional Asian services. (Airbus) If News Corp is declared a foreign company, the deal could be blocked and ANZ forced to return to the negotiating table with them, more than a year after off-peak times, we would be leaving ourselves open to a price war. We don’t want to get into a price war – that is not our intention, and history shows that this is not a favourable course of action.” Pacific Transair aims to attract both business and leisure traffic on a guaranteed $99 fare. A ticketless system will be operated through the airline’s own reservations system. Terminal access, which dogged the original Compass Airlines, has been largely overcome at the three ports to be served. Terminal facilities at Sydney are established at Domestic Apron 4 near the Impulse Terminal, while at Melbourne the airline has its own facilities adjacent to the main terminal building. Existing FAC common user facilities will be utilised in Brisbane. Ground handling is being provided by “There are no plans to have a dozen aircraft: we intend only to have two on scheduled services, with a third ultimately available as a back up and charter aircraft.” Pacific Transair sees a number of opportunities to operate charters, notably on the now heavily trafficked trans Tasman route from Auckland to Sydney or Brisbane. But the company will not undertake its own international services, saying, “We are happy to fly anyone anywhere, but we will not take the risk ourselves. The intention of Pacific Transair is to provide a safe and sensible service between Sydney, Melbourne and Brisbane.”
Ansett/anz Deal Confirmed:
Reported as being imminent in last month’s Stop Press, the deal whereby Air talks originally broke down. A further complication is provided by the fact that Qantas for the moment retains a 19.9% interest in Air New Zealand! Air NZ has in the meantime filed a submission with the NZ Commerce Commission which claims strong national benefits for the acquisition. It argues that it will help resist a Qantas/British Airways dominance of the South-East Asian market and also says it will not harm competition in the New Zealand domestic market. According to Air NZ: “Competition between the two New Zealand domestic airlines is vigorous and will remain so, because Ansett NZ’s operation will be quarantined from any control or influence (direct or indirect) by Air NZ”. Regardless, Air NZ gives no guarantees of continuing financial support for Ansett NZ, which has consistently made losses in most of the seven years it has been flying domestic routes.
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