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It’s the festive season, so let’s all relax and take a peek into the future at what might be, if only … This is Newsdesk, January issue year 2000.

Qantas Accepts Final A340

Qantas accepted the 15th and final in its order for Airbus A340-300LRs on Christmas Eve. “The type has allowed us to pioneer a whole range of new and exciting services previously beyond the airline’s capability,” stated Chief Executive Sandra Macintyre at the naming ceremony. Qantas took delivery of its first A340-300LR in 1998 and uses the 280-seat three-class aircraft largely to support its daily European capital services from its large Bangkok, Singapore, and KL hubs. Since going daily (during the peak season) to Rome, Athens, Amsterdam, Frankfurt, Belgrade, and Vienna, the airline has seen traffic to these ports soar with a corresponding increase in priority non-discounted air cargo also now featuring nicely in the airline’s revenue analysis. On several of the routes, Qantas also codeshares with the host carrier which allows better market penetration in that country while offsetting some of the A340’s capacity against pre-sold seats to the participating airline. Sandra Macintyre made a point that despite strong opposition from within certain sections of the ‘older’ Qantas establishment at the time, the decision to buy an aircraft like the A340 and target these routes which had largely been ignored by Qantas since the seventies, had been proven to have been the correct option in developing the airline beyond its previous fixation with concentrating its focus on LA, London, and some of Asia. “When I took the helm, the first thing I wanted to do was to take advantage of these untapped markets,” stated Ms. Macintyre. “After all, it was as plain as day that we were missing a great opportunity with DoT stats telling us that year after year more than half the people flying to Europe didn’t even want to go to the UK. We lost most of that traffic to our Asian competitors year in and year out, who also turned out to be aligned with our competitor’s frequent flyer plan and so we lost out on both counts.” Qantas presently operates a primary jet fleet comprising 15 A340s, 44 747-400s, 35 767s, and more than 60 737s.

RAAF to Rebuild Hornets?

Following confirmation that the fatigue life of the RAAF’s F/A-18 Hornet fleet is running out much sooner than expected, McDonnell Douglas has offered an unsolicited proposal in developing a programme whereby the RAAF’s aircraft are rebuilt to E standards. A similar proposal has been put to the US Navy, which is seriously looking at an upgrade of some 500 early build F/A-18 A/Cs. The USN stated in November that the project cost of upgrading the existing aircraft to full zero-timed E standards was $US18m a plane, about a third the cost of a new Super Hornet. It is expected that Australia could dovetail in on the USN programme whilst keeping the work in Australia with ASTA Defence at Avalon being the primary contractor. The US Government has also offered Australia an additional batch of A-model Hornets, believed to be 20 aircraft, at $US6m a unit, which could also factor into the upgrade to ultimately bring total RAAF Super Hornet strength to some 90 aircraft. With the Spratly dispute worsening in recent months and the civil disturbances in Papua New Guinea becoming an international UN quagmire, it is expected that the Government will opt for the additional aircraft if the upgrade decision is in the affirmative. A decision is expected by year-end while recent ARL data suggests that the bulk of our existing Hornet fleet will be G-limited by 2005 at the latest.

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Ansett South American Success

Ansett International has scored its third big year in South America and is celebrating with a special holiday package that takes in the best from Brazil, Argentina, and Chile. Ansett codeshares out of Melbourne with its 747-300s with Aerolineas to Buenos Aires, Lan Chile to Santiago, and Varig to Rio. Neither airline has the individual multi-engine long-haul equipment to fly the route profitably in its own right, an opportunity that was quickly set upon by Ansett in 1997 to serve a market that has turned out to be stronger than even the optimistic Australian Tourist Commission predicted at the time. Trade with South America has increased considerably since the early nineties while inbound tourism from Brazil, Chile, and Argentina this year is expected to top 250,000, which is about the size of the US inbound market a decade ago. Ansett focused much of its initial marketing on the basis that the middle-class ‘travel capable’ market in these three South American countries alone equalled that of Japan in the mid-eighties and that there was a high curiosity level throughout the region towards Australasia. Retiring Ansett CEO, Graeme McMahon stated recently, “Qantas didn’t seem interested in going into this market so we looked at it and took the decision to give it a go in concert with the flag carriers of the three leading economies in the region. I’m glad we did.” Ansett has recently signed codeshare extensions till 2004 with all three carriers and from this September will begin phasing in its new 747-500s to boost its daily peak season services.

Aussie Express Expands

Aussie Express, the new entrant international owned by transport giant, Lionel Wolf, has announced that it has leased a third DC-10 for its Australia/Europe services. Aussie Express has met with considerable success since commencing services in May 1998. The addition of a third DC-10 will allow it to offer daily services between Australia and London Stansted for the coming northern summer season. The airline operates its DC-10-30s in a 220-seat configuration offering an early nineties style business class configuration of seven abreast at a 44in pitch, while only charging a fare equivalent to the mainline airlines’ non-discounted standard economy fares. Catering is to better than long-haul economy standards and baggage allowance is a generous 30kg. The airline routes Sydney/Saigon/Tel Aviv/London three times a week and the other four flights will be Melbourne/Singapore/Athens/London. Load factors through the peak season last year were running in the 90s while even through the northern winter most flights were in the low 80s. Alex Walsh, the airline’s marketing manager, stated that a big reason for being able to maintain the high loadings is that the airline serves ports not readily serviced direct from Australia and that they are not as affected by the northern winter travel downturn. The third DC-10 is expected in Australia late April for crew training and the airline has still not discounted the possibility of launching services to North America via Hawaii. If this occurs, services will commence next year to coincide with Aussie Express’ move to the new Badgerys Creek airport in Sydney where it is also constructing a maintenance and admin support facility.

RAAF Accepts First 747 Tanker

The RAAF’s 33 Squadron accepted the first of two Boeing 747SP tankers in a special pre-Christmas ceremony. The second SP will be delivered to the RAAF this March after reworking to a boom tanker configuration by HdH and IAI, the companies responsible for conversion of the squadron’s existing four 707 tankers in the early nineties. Acquisition of the two SPs from Qantas, which was keen to sell them as they had become orphans in the primarily QF 747-400 fleet, was timely considering the 1998 Defence Budget approval to finally provide a tanker capability for the F-111 force. Experience gained during the Spratly crisis reaffirmed the RAAF’s long-extant requirement to provide a long-range stand-off capability for the F-111 force. The SPs are also equipped for wingtip hose and drogue operations for the F/A-18 and allied A-4s in addition to being able to carry up to 440 fully equipped troops on the main deck. Two additional belly tanks have been installed to enhance the aircraft’s range, which with maximum fuel is now a startling 9000nm (16,675km). The RAAF has also purchased components of the two ‘Junior Jumbos’ airline interior to allow rapid conversion for VIP and general passenger duties.

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