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Qantas Wins India Rights:
The International Air Services Commission has allocated Australian carrier traffic rights to India to Qantas over proposed new start Australian Connection Airlines. The IASC stated that the air services agreement between Australia and India allows only for single designation status, meaning that only one applicant could be allocated capacity on the route. Although the Commission saw merit in several aspects of the ACA proposal, it considered that there was insufficient evidence of firmly committed funds that would enable ACA to implement its proposal at this time. Qantas will operate twice weekly 767-300 services between its Singapore hub and Bombay with a comprehensive range of feeder connections to and from Australia’s international gateways into Singapore. Meanwhile, Dept of Transport data released at press time reveals that Qantas has slipped to its lowest level of international market share in two and a half years. The airline’s share of international traffic in and out of Australia dropped to 39.4% in the year to November 1995, 1.4% lower than the same period the previous year. DoT data shows that Qantas has consistently lost ground over the past year to Air New Zealand, Ansett and Singapore Airlines. Singapore Airlines has continued to boost its capacity into Australia with excellent direct nonstop connections to the major European capitals (a market that Qantas seemingly believes does not exist) while Air New Zealand continues to make the most of its not inconsiderable Brisbane hub and nonstop services to Los Angeles out of Sydney. Ansett, whilst having minimal relative long haul capacity, is still capable of eating into Qantas’ long haul services via its seven Asian and trans-Tasman services.
Charrak Electra Arrives:
Charrak Air’s long awaited Electra freighter (N360Q) was finally due to arrive at Avalon on April 15. Charrak will fly the freighter (initially under Renown Aviation’s AOC) on services between Whyalla/Sydney and Hobart/Sydney, carrying produce. A full report will appear in our next issue.
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Fokker Update:
Further to the story on Fokker’s bankruptcy (refer page 21 this issue) comes news that the company is considering completion of more aircraft than originally planned following pressure from customers who have aircraft on order. It had earlier been decided that 15 aircraft would be completed but this could now be increased to between 27 and 33, prolonging aircraft production for a further eight to 12 months. The strength of feeling on the subject of Fokker’s closure and the confidence operators have in its products is indicated by the fact that some customers want to order more aircraft to complement their fleets and new customers have even come forward! According to the receivers, prolonging production would present several advantages. The proceeds of the manufacture of more aircraft would benefit the estate and thus Fokker’s creditors. Moreover, Fokker’s know-how and assets would remain intact for the time being, avoiding a waste of capital and providing more time to find a buyer. This is now doubly important as it appears there is no short-term prospect for Fokker’s aircraft manufacturing activities to be sold. Discussions have been held with Korea’s Samsung and Sweden’s Saab but neither will make a bid for the company. Talks are also being held with the Russian Aircraft Manufacturers consortium but these are in their very early days.
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Qantas Expands China Services:
Qantas is planning to increase the frequency of its services to China, starting with the introduction of a twice weekly service to Shanghai in late August. The airline has just opened an office in Shanghai and is also seeking approval to operate another two weekly flights to China by the middle of next year. This will bring Qantas’ weekly frequency between Australia and China to five, operating to Shanghai and Beijing and is seen as a major step towards the objective of operating daily flights to China’s two main cities as soon as possible. Qantas resumed flying to Beijing in March 1995 operating Boeing 767-300s on the route.
NZ Vetoes Ansett Sale:
New Zealand’s competition watchdog, the Commerce Commission, has ruled against Air New Zealand’s plan to purchase the 50% stake in Ansett currently owned by TNT. The Commission’s ongoing anti-competition concerns are behind the decision, although the vote by the four-member panel was far from unanimous, going 2-2 before the chairman, Dr Alan Bollard, presented his casting vote. This meant he voted twice, once in the normal course of events and again when the panel was split. The decision has been widely criticised and Air NZ is considering a High Court Appeal. The airline has also lobbied the NZ Government to amend the Commerce Act on the grounds that it has failed to keep pace with the realities of the Closer Economic Relations Agreement between Australia and New Zealand. The stumbling block remains Ansett NZ, which at the moment competes with Air NZ on the domestic market. The Commission considers that if both airlines were owned by the same organisation there would be a lack of competition and therefore the opportunity to keep fares artificially high. TNT still regards the buyout plan as operative, although the Commerce Commission’s rejection of it opens up several other possibilities. Singapore Airlines has hinted at its interest in Ansett but other reports indicate its plan revolves around a three-way alliance with Air NZ and Ansett only after the latter had become part of the Air NZ stable. Other possibilities include the closure of Ansett NZ (not a viable alternative according to Ansett) or Ansett’s other shareholder, News Corp, developing a revised structure under which it would wholly own Ansett NZ and therefore overcome the Commerce Commission’s anti-trust concerns. Added complication comes from the fact that Qantas owns just under 20% of Air NZ’s stock. Qantas has indicated it wants to hang on to that shareholding at least until the Air NZ/Ansett alliance is consummated. If that happens, it is possible that Air NZ and Ansett could be partially owned by one of their major competitors — Qantas!
New Air Commander:
Air Vice Marshal Peter Nicholson AM has been appointed the RAAF’s new Air Commander Australia. The former Chief of Operations at Air Command was commissioned into the RAAF in 1968, initially flying Mirages and subsequently attending the Empire Test Pilots’ School in the UK, flying with the ARDU, serving as Officer Commanding RAAF Tindal and as Commander Northern Command in Darwin. AVM Nicholson replaces AVM Gary Beck, who becomes Commandant at the Australian Defence Force Academy.
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