Airline Affairs

However, BASI calculations put the weight of the DC-3 at takeoff at 12,446 kg (27,414 lb), 562 kg (1,238 lb) above the max takeoff weight.

In addition, BASI found the aircraft captain knowingly used incorrect performance charts when planning the flight (to Norfolk Island via Lord Howe Island). BASI’s report states that had the correct charts been used for performance calculations, the pilot in command would have realised that the aircraft would not comply with the takeoff and landing weight limits at Lord Howe Island.

The DC-3’s port engine which failed soon after takeoff and thus directly resulted in the ditching had previously been granted a 100-hour extension by the then CAA to operate past the required 1,000 hours TBO, despite CAA analysis of engine oil samples which indicated “that the engine was suffering mechanical distress together with marginal cylinder compressions.”

EDC’s right engine had also been granted an extension past the 1,000-hour TBO. The port engine failed when an inlet valve stuck open.

BASI also found there was a 12,500-hour gap in EDC’s maintenance record between 1977 and 1988, and hence the aircraft’s AD compliance status was unknown.

The BASI report also found that the DC-3’s copilot, who was flying the aircraft at the time of the engine failure, “mishandled the controls” and thus degraded the available single-engine performance. The report also found that “the pilot in command delayed taking control of the aircraft until the only remaining option was to conduct a controlled ditching.” BASI’s investigations found that while the CAA had endorsed the copilot’s licence with a DC-3 type rating, it found “no evidence that the copilot had actually completed the required training” for his DC-3 endorsement (which had been conducted in the USA).

The report noted that “the success of the ditching by the pilot in command resulted in (only) minimal injuries to passengers and crew”; however, it found that the flight attendant was not wearing her seatbelt and thus was seriously injured in the ditching and was not able to aid in the evacuation of the aircraft. Regardless, all 25 occupants were successfully evacuated.

Other organisational factors which contributed to the accident according to BASI were inadequate communications between CAA offices and between the CAA and Groupair (the Moorabbin-based AOC holder) and Camden-based Southern Pacific, poor operational and airworthiness control procedures, and inadequate training.

The copilot (and part owner) of EDC was Nick Leach, who is a principal in intending startup domestic carrier Pacific Transair. At the time of writing, Pacific Transair’s first aircraft (a 737-200) had arrived in Australia but operations had not yet begun. The carrier says it will fly its domestic operations on Premier Airlines’ AOC (Airline Operators Certificate). Melbourne-based Premier flies a 727-200 freighter on behalf of DHL.

An in-depth accident analysis on EDC’s ditching by our air safety specialist Macarthur Job (author of our Air Crash and Air Disaster books) will appear in our June issue.

Air India maintenance staff’s year-long strike has forced the carrier to reduce its international activities by 20%. Air India has grounded six of its 26 long-haul aircraft for three months to reduce costs while it leases in aircraft to meet flight schedules. The airline is increasing its fares by 15% (on top of a 15% increase last December) to raise revenue. Pictured is a 747-200 in the airline’s old livery. (Bruce Malcolm)

Runway Ready to Go

Sydney Airport’s east-west runway has reopened following the rejection by the Federal Court of an injunction by four adjoining councils to stop it.

This realises one of the new Federal Government’s major election promises, although the councils involved will be appealing the decision and an earlier application has still to be heard. In its ruling, the court said the councils had not established a prima facie case, but emphasised his decision did not reflect the likely outcome of their earlier application. This is due to be heard on April 16, shortly after this issue goes to press.

The reopening of the east-west runway means that Sydney can operate as a true three-runway airport. Short-term measures to be introduced include ad hoc use of the east-west runway as traffic and weather conditions allow; departures by some propeller-driven types off the runway using the section east of the intersection with the main north-south runway; arrivals over the water onto the parallel runways with departures to the west on the east-west runway; and dedicated use of the east-west runway in light traffic periods when weather conditions are favourable, with the main north-south runway continuing to be available for larger aircraft. There will be no return to independent use of the intersecting runways (SIMOPS).

A longer-term operating plan is being developed taking into account revised flight paths which will have an appropriate balance between operational efficiency and environmental considerations.

The Government wants to overturn the existing ban on takeoffs to the north and to abolish the narrow flight corridor to the airport’s north. It is also looking at using airspace currently reserved for military traffic around RAAF Richmond.

Boost

Qantas’ domestic timetable for winter, which came into effect on April 1, features a 16.5% increase in capacity with additional frequencies at a number of key ports throughout the airline’s network.

The new schedule features 18 new services between Sydney and Melbourne per week during peak times; 20 new flights between Sydney and Brisbane per week; seven additional flights per week between Adelaide and Sydney; six new services between Adelaide and Darwin each week; four extra services a week between Darwin and Sydney, one new nonstop Sydney/Ayers Rock and return flight each week, and one additional daily Cairns to Sydney service.

Qantas is achieving the boost in capacity through increased utilisation of its current fleet, particularly better use of aircraft downtimes at ports such as Melbourne and Brisbane, the arrival of new Boeing 737-400s, and increased use of Boeing 767-300s on domestic routes.

The Qantas announcement of its capacity boost came just weeks after Ansett announced it was increasing domestic capacity by 10%.

(14%), the United Kingdom (9%), the USA (8%) and Singapore (5%). All these returned an increase on the previous year. Tourism now earns over $A12bn a year for Australia, putting it ahead of coal, beef, wool and manufactured exports.

Malaysia’s Australian Expansion

Malaysia Airlines continues its expansion of Australian services with the introduction in April of additional frequencies on existing services to Adelaide, Darwin, Perth and Brisbane.

The new flights include a third weekly flight from Adelaide to Kuala Lumpur (up from two), a second flight from Darwin, a seventh from Perth (from five) and a fourth from Brisbane (from two), all using Airbus A330s. Weekly departures by Malaysia Airlines from Australia now total 31 with seven each from Sydney, Melbourne and Perth, four from Brisbane, three from Adelaide, two from Darwin and one from Cairns. In addition, the weekly freighter service from Adelaide to Kuala Lumpur has been upgraded from an MD-11 to a Boeing 747.

The new services represent a 39% in- extraordinarily high landing fees); a subsistence problem has required substantial remedial expenditure; and interest payments and depreciation costs have been higher than expected.

As a result, the company which runs the airport is not now anticipating the payment of the first shareholder dividends until 2007, four years later than planned.

Tourism Still Growing

Figures released by the Australian Bureau of Statistics have shown another record year for overseas visitors to Australia in 1995 with 3.7 million people arriving here during the year, 11% more than in 1994.

Asia continued to provide the source of most of the growth with visitors from the region increasing by 21% to 1.09 million. Korea was the fastest growing for the third consecutive year, accounting for 168,000 visitors or a 52% improvement on 1994. Indonesia (up 28%) and Hong Kong (20%) also displayed strong growth.

Japan accounted for most short term arrivals with 782,700 visitors (21% of the overall total), followed by New Zealand.

Traffic

Domestic Growth

Australian domestic air traffic consolidated its strong June quarter gains in the December quarter with slight increases in average load factors, trip numbers, total passenger numbers and a small drop in total RPKs. Compared with the December 94 quarter results the figures show modest growth (total RPKs 6.9bn up from 6.5bn) reflecting a softening in the overall rate of growth in the Australian domestic airline market. Meanwhile Qantas is continuing to carry more passengers on fewer flights than rival Ansett (enjoying a higher load factor and thus yield-assuming similar overall price and cost structures).

The figures for the first two quarters of 1996 should be very revealing both majors continue to inject significant capacity even though growth has slowed.

Japan Spends On Airports

The Japanese Government is planning to spend $US34bn on several airport projects under a five year plan. Included in the scheme are a new airport at Kanto, a third airport in the Tokyo Bay area and a new runway at Kansai International. Kansai has proved to be a financial disappointment so far with international traffic only half what was expected (mainly due to extraordinarily high landing fees).

Qantas Canberra Upgrade

Qantas has unveiled plans to spend $8.18m upgrading its terminal facilities at Canberra Airport.

The project will add a new Qantas Club lounge large enough to accommodate more than 200 members, a departure lounge, check in counters, a conference room, an additional ticket counter, a large baggage collection area and a new Chairman’s Lounge. The work is scheduled to be completed by the end of November this year.

In the meantime, Qantas regional subsidiary, Eastern Australia Airlines, has added 13 extra services between Sydney and Canberra each week, bringing its total number of flights between the cities to 78 per week. The addition of Eastern Australia’s first Dash 8-200 to its fleet has allowed the increased frequencies.

Ansett Wins Olympic Rights

Although not officially announced as yet, Ansett will be appointed the official carrier for the Sydney 2000 Olympics, beating rival Qantas and ensuring substantial extra business in the lead up to and during the games.

Ansett’s ‘Olympic Alliance’ partners in the bid to win the rights were Air New Zealand, Thai Airways, Malaysian Airlines, South African Airways, Lufthansa and United Airlines.

Qantas lost on price, general manager Geoff Dixon saying “Our offer was to the maximum commercial value we placed on the sponsorship and obviously was not good enough”. Ansett’s sponsorship deal starts in January next year and runs for four years. Being named the official carrier for the Olympics allows it to carry the Olympics logo on its aircraft and in promotional material.

Ansett’s winning of the deal will not be formally announced until after this year’s Atlanta Olympics, for which Qantas is Australia’s official carrier.

Tax Ruling Threatens Airlines

The Australian Tax Office (ATO) has handed down a final ruling that financial incentives offered by aircraft manufacturers to airlines to encourage them to buy a particular product is income and therefore is taxable.

The so called ‘aircraft manufacturers credits’ have always been regarded by the airlines as merely a discount on the price of an airliner but since 1992 the ATO has maintained that this is a direct source of income. The ATO’s final ruling on the subject is to be applied retrospectively and will most likely mean that the credits will be treated as income in the year the credit is granted. This is despite the fact that in many cases airlines do not use the credit against the cost of a new aircraft until much later.

It is thought that credits will now only be regarded by the ATO as a purchase discount where it arises and is applied against the same aircraft for which the credit is given. Where the credit is made available as a cash rebate, the credit will nearly always be treated as taxable income rather than as a discount.

Major China Air Services Breakthrough

The new Federal Government has negotiated a substantial increase in air services between Australia and China, the first time the Air Services Agreement between the two countries has been updated since 1984.

As a result of the new arrangements, six airlines can now fly on services between Melbourne and Sydney and Beijing and Guangzhou with frequencies immediately increased to nine per week and in stages up to 13 per week by 1998. Previously, only one flight per week was permitted on this route.

In addition, Brisbane, Perth, Shanghai and Shenzhen will be added as new points open to Australian and Chinese carriers.

The agreement is a major coup for new Transport and Regional Development Minister, John Sharp, as it rectifies a situation which was previously clearly inadequate considering China’s already substantial and rapidly growing market for Australia. Business will also benefit as travellers will now be able to fly directly to China more easily, whereas before they were usually forced to travel indirectly via Hong Kong, Singapore and Japan.

Ansett is planning to take advantage of the new arrangements and is leasing in a fourth Boeing 747-300 to start services to probably Shanghai by the end of the year, while two new Chinese carriers, China Southern and China Eastern, are possible entrants to the market. Existing carriers Qantas and Air China now have the opportunity to increase services. Qantas is also planning to commence services to Shanghai later this year.

Meanwhile Australia has also established new air service agreements with Bahrain and Malta. Under expanded arrangements with Bahrain, Gulf Air will be able to operate to an additional point in Australia and introduce direct services to Perth. The airline is planning to introduce the Airbus A340 on Australian services by the middle of the year.

The agreement with Malta means that Australia will have direct air services to the island for the first time. Air Malta will be able to operate two services per week with aircraft up to the size of an A340 on a route via India and Singapore to Sydney and Melbourne.

Ba Trains Cadets In Adelaide

British Airways has selected Adelaide’s Australian Aviation College as one of three worldwide to train its new pilots.

The $2m contract comes following BA’s decision to restart flight crew recruitment after a five year gap. The airline plans to recruit 100 cadets a year over the next two years to ensure it has enough pilots to replace those who will be retiring over the next few years. BA recruited its last cadets in 1990, shortly before the Gulf War and recession caused a slump in demand for flight crew. At one stage 350 trained pilots had no job to go to, but these have all now been absorbed.

The Australian Aviation College already trains Qantas flight crews, the first batch of which started in 1990/91 and are now working as second officers on the airline’s long haul services.

The Drover’s Dog

Qantas seems to be introducing new selection criteria for its flight attendants, if this excerpt from Richard Glover’s ABC radio programme is any indication — or is it just another shaggy dog story? According to Glover (on Sydney’s 2BL): “Some good news today for unemployed Sydneysiders: Qantas is looking for flight attendants. It is starting its biggest recruitment drive for long-haul flights since 1988. You have got to have a few runs on the board, I must say. Candidates need to be 21 years or over, they have to be bilingual and preferably fluent in an Asian language such as Mandarin, Thai, Korean or Japanese. They also need to have Australian residency and at least two years of customer contact experience. They also have to be able to lift a 28 kilogram (62lb) weight. I’m told that is about the size of a medium blue Heeler dog. So if you can lift a blue Heeler dog and speak Mandarin you can get the job from Qantas!” It is unlikely that successful applicants will have to lift too many blue Heelers, however. The 28kg lifting requirement actually refers to the weight of an emergency exit window plug.

Hazelton Welcomes Runway Action

Leading regional carrier Hazelton Airlines has welcomed moves by the Federal Government to reopen Sydney Airport’s east-west runway and begin the process of changing air traffic management procedures. Hazelton believes these actions are an important first – and long overdue – step in improving the efficiency of the airport. The airline says the planned changes are particularly welcome for regional air travellers who have been proportionally disadvantaged by the management of Sydney Airport over the last 18 months. The changes will mean an immediate reduction in delays, an improvement in the on-time performance of regional airlines and a reduction in unnecessary extra flying costs, says Hazelton.

BA/QF Integrate Asian Operations

Qantas and British Airways have decided to integrate their operations in Bangkok and Singapore, the new arrangements involving the establishment of joint offices in both cities along with the merging of sales, marketing and operational activities. The move is described as being a logical development in the alliance between the airlines, which will maintain their individual brand names and entities but at the same time create a strong presence in the region, and provide co-ordinated services and better value for customers. New first and business class lounges have just been completed at Singapore and Bangkok Airports, similar to the joint lounges Qantas and BA have already opened in Hong Kong and Manila.

Sydney Curfew Changes

Changes to the shoulder period curfew at Sydney Airport — introduced by the former Federal Government — are expected to cause congestion as they come into effect, according to the Federal Airports Corporation. More flights will be rescheduled to arrive from 6am (an hour later than usual) in order to decrease the number of international aircraft allowed to arrive in the shoulder period of the curfew from 42 to 24 per week. As a result, the airport and terminal has to handle an extra two to four flights per day in the hour from 6am — potentially 1,200 extra passengers during this period. The changes were announced only last December and did not allow enough time to construct an extra baggage carousel, but an additional 747 parking spot has been made ready. Extra baggage trolley and carousel staff and Customs officials will be on hand to cope with the rush. As with most things associated with the former government and its transport minister, there is a certain irony behind this and the inconvenience it will cause. Those 5-6am arrivals were virtually silent anyway as only runway 34 was used and thrust reversers weren’t! But expedient politics won the day… again.

No-one’s Perfect!

Just to prove that those of us who can be regarded as amateur aviators aren’t alone in making the odd procedural blue, here’s a tale of embarrassment in much higher places. It seems an AirServices Australia Fokker F28 was testing the navigation aids at Sydney Airport last March and was cleared to take off to the south from the main north-south runway (16R). The proper procedure is to turn right soon after departure but in this case the F28 turned left, across the flight path intended for aircraft using the parallel runway. Luckily, there was no conflicting traffic at the time and therefore no damage done, apart from that suffered by those involved’s level of embarrassment. The matter has been referred to BASI and the Civil Aviation Safety Authority. AirServices has also launched an internal enquiry. “He that is without sin among you, let him first cast a stone…” (St John Ch.8 v.11).

Asia Pacific Growth Leader

The Asia Pacific region will lead the world in air travel growth over the next 20 years, according to Boeing’s Current Market Outlook forecast for the commercial airliner industry. Boeing predicts the region’s passenger traffic will grow at an average 7.1% per annum over the period, China alone growing at a rate of 11.5%. By contrast, Boeing’s forecast for the growth of world passenger traffic is an average 5.1% per annum between now and 2015. Boeing expects the region will require more than 5,500 new jet airliners over the period or about 35% of the world market. This will be needed to cope with growth and also to replace ageing airliners. The market for new airliners seems to be steadily improving after the slump of the early 1990s. Total jetliner orders were only 347 in 1994 but jumped to 714 in 1995, the first time orders have exceeded deliveries since 1990.

Swiss airline Crossair has painted one of its MD-82s in full McDonald’s livery and serves the famous fast food chain’s hamburgers on board!

Over The Limit

Qantas seems to be facing regular breaches of its foreign ownership limit if its performance over the last few months is any indication. Foreign ownership in the airline is limited by law to 49%, but immediately after its share float in July last year it reached 53%. It has fluctuated regularly since then, dropping to 49% last November, 47.5% in January this year and then rising again to 51% in late March. This is a problem which applies to all Australian companies in which foreign investment has been limited, although most of them have a lower limit of around 40%. When this is temporarily exceeded it is rarely noticed but in the case of Qantas the company’s sharemarket activities are very much in the public eye. There are various ways of getting around this, one of them being to issue two classes of share — one for foreign investors and another for locals. The problem here is that the foreign class shares will invariably attract higher prices, thereby disadvantaging holders of local shares. Breaches of the foreign ownership limit always causes a small drop in share prices but this is usually only temporary as the market knows that a breach of only 1% or so will most likely settle down to the proper level quite quickly. If the level of foreign ownership in Qantas ever reached a higher level — say 54 or 55% — the effect on share prices could be much more serious. Qantas institutional shares were issued at $2.00 each and rose to $2.15 after the first day of trading before dropping to $2.03 when it became known the foreign ownership limit had been exceeded shortly after the float. The maximum price they have reached is $2.47, while by early April this year they had returned to a level around the $2.24 mark after a gradual decline following the latest announcement of the foreign ownership level being breached.

Woodhead Firth Lee Wins Two Important Contracts

Woodhead Firth Lee has been awarded two significant contracts for works at Sydney Airport. The design of Ansett’s Seamless Transfer Facility aims to make transit between the international and domestic terminal more convenient by offering complete airside facilities, including a 1,000sqm transfer lounge at the International Terminal. WFL’s concepts for the design form part of Ansett’s master plan for improvements at the Airport. The company has also successfully tendered for the redesign of the Sydney International Baggage Reclaim Facility. The project will address continuing changes in demand at Sydney Airport. David Holm, Woodhead Firth Lee’s Director of Aviation, said about the baggage reclaim design: “In the short term, baggage facilities need to deal with the variations in demand associated with the curfew works at Sydney Airport. Previously 42 flights landed between 0600 and 0700. Restrictions to aircraft movements between these hours will now permit only 24 flights to land during these hours, resulting in an increase in demand for baggage facilities between 0700 and 0800.” The current project is part of a long-term scheme to provide solutions to projected growth in international passenger arrivals at Sydney Airport. The final objective is to create a common baggage reclaim area by uniting the two current baggage halls. The initial phase of redevelopment is expected to be complete by November 1996.

Ansett Shakeup Prepares For The Future

Ansett has undergone a top management shakeup in the wake of reduced profits, loss of market share to Qantas on domestic services and in preparation for the Air New Zealand buy-in. Gone are managing director Graeme McMahon (retired after 40 years with Ansett), general commercial manager Gary Smith (resigned) and the head of airline operations, Ron Entsch (early retirement). According to Ansett Australia Holdings chairman Ken Cowley: “I have decided to reorganise the airline’s executive to give Ansett Australia a fresh leadership team to take us forward with strength, dynamism and flexibility at this critical time in our industry.” The new post of chief operating officer is taken by Hugh Thorburn (former head of international operations), Allan Harrison changes from director of maintenance and engineering to general manager technical, and Rick Ellis becomes general manager of sales and marketing.

AD2 In Sight!

Just a short note to remind you that the long awaited Air Disaster Volume 2 will be on sale May 1 at most major news agencies near you. Advance order soft cover direct mail clients will have their books despatched prior to the end of April. Hard cover orders will follow three weeks later. The wait has been worthwhile however – 14 detailed chapters on some of the world’s most famous jet airliner accidents backed by specially commissioned and often dramatic artwork. On sale now at your local newsagent or available direct from Australian Aviation ~ refer advert on page 60 of this issue for details.

Ansett Launches Capital Shuttle

Ansett Australia has launched a new high frequency schedule service between Sydney and Canberra called the Capital Shuttle, in conjunction with Kendell Airlines. Key features of the Capital Shuttle, which came into effect on March 31, are increased frequencies — 17 or 18 return flights on weekdays and 12 or 13 on Saturdays and Sundays — the replacement of Ansett’s 46-seat Fokker 50s with Kendell Saab 340s and a dedicated gate lounge at Sydney Airport (Gate 14B) with complimentary tea, coffee and newspapers. The Capital Shuttle timetable incorporates six additional jet services and 16 extra turboprop services per week compared with the previous schedule. This is the first time Kendell Airlines has operated a major trunk route. The airline is dedicating two Saab 340s to the operation specially configured in a 32-seat layout and fitted with a coat cupboard, while Kendell’s Capital Shuttle dedicated aircrew and cabin crew will be based in Sydney. A business class style service will be served on the Capital Shuttle Saab flights with Canberra region flavoured dishes served, including Merimbula Breeze and Clyde River Paradise. Competition on the high yield Canberra/Sydney route has intensified of late, with Qantas earlier announcing an upgrade to its terminal at Canberra airport and a new schedule with 100 return services a week and Eastern’s introduction of its newly delivered high-speed Dash 8-200 on the route.

Fumes In Ansett 146s

Several flight attendants and passengers have complained to Ansett about fumes entering the cabins of the airline’s BAe 146 jetliners. While Ansett says some recent press reports of the problem have been exaggerated, there have been a number of instances of fumes entering the aircrafts’ cabins, particularly on operations out of Cairns. Ansett, the flight attendants and British Aerospace representatives have met to identify and solve the problem, however the source of the fumes has proved elusive and no specific problems with the aircraft have been discovered. Filters have been fitted to the aircrafts’ air conditioning to combat the problem. The flight attendants are concerned about the effects of recurring exposure to the smoke could have on their health.

Strong Air Traffic Growth In Fiji

With increasing inbound traffic being generated by Air Pacific’s widening network, domestic carriers Sunflower Airlines and Air Fiji experienced steady growth during 1995. Sunflower posted a record year, carrying 150,000 passengers in 1995, a 30% increase over the previous year. Capacity over Sunflower’s network was enhanced in 1995 with the addition of a Shorts 330 to the fleet. The aircraft is operated between Nadi, Suva Nausori, Labasa and Rotuma. Broadening its network to Taveuni and Malololailai, Air Fiji has gained valuable traffic from Sunflower Airlines. Air Fiji provides feeder connections to Air Pacific’s services using a fleet of Bandierantes and Twin Otters. Ansett meanwhile, is rumoured to be considering services to Fiji with the delivery of new 737s and 767s from May 1996. Ansett’s entry to the market, while welcomed by inbound tour operators for the additional capacity, would further reduce yields on the Australia/Fiji services which continues to be lacklustre.

Airlines Continue To Come And Go At Sydney

Aeroflot has become the latest airline to withdraw services from Australia (again), operating its last Moscow/Bangkok/Sydney A310 flight on March 31. Aeroflot joins Continental Micronesia in departing Australia as a result of insufficient yield.