Airline Affairs

Qantas is opposing moves to unify the trans Tasman aviation scene as it appears to have much to lose, especially if the ANZ/Ansett deal comes off. The result is that the issue of NZ airlines gaining “beyond” rights (flying through Australia to other countries) has not been included on the negotiations’ agenda. These will be discussed separately at another time.

Both the Australian and New Zealand governments are keen to see the remaining barriers between the two countries removed and a more regional, single market approach to aviation and tourism developed. If all develops as planned, Australia could next year see Air NZ operating domestic flights in Australia through its part ownership of Ansett, and other carriers such as Kiwi Air International operating domestic services in their own rights.

Airports Privatisation Delay?

Plans for the privatisation of Australia’s airports may be delayed following several recent developments on the issue of cross-ownership rules and uncertainty over Sydney’s second airport.

The Federal Government plans to drop the cross-ownership restrictions from the legislation, these being introduced by the previous government to appease the left wing of the ALP by ensuring ownership of the airports was spread and did not fall into the hands of a large private monopoly. They, for instance, limited the leaseholder of Sydney and the planned Sydney West (Badgery’s Creek) Airports to 15% of Brisbane or Melbourne.

This amendment to the Bill has been opposed by the Opposition to the extent that if it can harness the support of the Democrats and Greens in the Senate, it would be blocked. The threat was sufficient to cause the Government to think again, Minister for Transport John Sharp indicating he could use his discretionary powers in the legislation to ensure multiple ownership of the major airports.

If the Airports Bill successfully negotiates both Houses of Parliament, the first round of sales could occur as early as March or April next year. Brisbane, Melbourne and Perth are the airports involved. Adelaide is subject to negotiations with the South Australian Government, which wants to purchase the airport itself, while uncertainty over Sydney’s second airport could cause considerable delays to the sale of what is the “jewel in the crown” of the privatisation plan.

The sale of Sydney’s two airports as a package could raise about $1bn or half the total proceeds of privatisation, but its sale could be delayed for up to four years while the problem with locating the city’s second airport is being sorted out. According to Mr Sharp: “As much as I would like to think it [the sale] was going to be quick, I think two to four years is a reasonable estimation. Our commitment is to resolve the aircraft noise problems of Sydney before we put Sydney and Sydney West up for sale.”

Delaying the sale of Sydney could result in a loss of overall income from the privatisation plan, but Mr Sharp suggests that this is not necessarily so as it might be preferable to sort out the airport’s political problems first: “Until you have got the political heat out of the noise problems at Mascot, a number of people would say to you that these, coupled with the uncertainty over the second airport that has been hanging around for a long time, diminishes the value of Sydney. Until you can offer intending buyers a certain purchase, then people will hold back on bidding because they don’t know what they are going to be buying.”

A view has also been expressed that Sydney Airport should be subject to a public float rather than being sold to a consortium of private buyers, but this is not being considered by the Government at the moment.

Sydney’s Second – The Saga Continues

The saga surrounding Sydney’s second airport entered a new phase over the past month or so with speculation that the planned Sydney West (Badgery’s Creek) Airport will never be built and that the Holsworthy Military Reserve near Liverpool in Sydney’s southwest is once again in contention.

There have been growing doubts about the suitability of Badgery’s Creek as a site for a new airport on several grounds — lack of infrastructure, environmental problems, unsuitability of the local terrain and cost. In early June the Federal Government ordered a stop to all work at the Badgery’s Creek site, returning $600m of development funding to the Treasury. Money which had been set aside for land acquisition and roadworks is now unlikely to be spent in the 1996-97 financial year.

Badgery’s Creek was originally chosen in 1986 over nine other possible sites which included Holsworthy, Warnervale on the central coast (now subject to a separate development), Goulburn (eliminated as it was considered too far from Sydney) and other sites to the south, north and west of Sydney.

An environmental impact study was naturally commissioned but another is now to be carried out, one which will possibly conclude Badgery’s Creek is unsuitable after all. At the time of the original EIS, building an airport there affected fewer than 2,000 people, but that number has increased markedly over the last decade thanks to Sydney’s never-ending urban sprawl. Additionally, Badgery’s Creek lies on undulating terrain which would require massive earthworks and is situated in a fog-prone area which is not very effective at dispersing pollutants.

The cost of the project is also subject to scrutiny and could total over $5bn including $1.3bn to build essential road and rail links, and up to $600m to establish an aviation fuel pipeline from Port Botany. Nearly $800m had already been committed to the site.

Despite this, Badgery’s Creek is still officially regarded as the preferred site for the airport, at least for the moment and until a viable alternative is found.

Holsworthy returned to the equation when doubts about Badgery’s Creek began to surface. This site was originally ruled out due to the cost of developing it and that of relocating defence facilities. On the positive side, it was considered the most accessible of the ten sites studied, being close to a major highway and railway line. It is also a superior site for noise impact because it is surrounded by a green belt including the Royal National Park to the south, is closer to central Sydney, could be used for 24 hour operations and is largely unaffected by fog.

One definite minus is that the opening of a major airport at Holsworthy would almost certainly result in the closing of Sydney’s only effective general aviation airport at Bankstown. In terms of aircraft movements, Bankstown is Australia’s busiest airport with numerous aviation-related and other businesses located there. Nearby Hoxton Park would also most probably be closed.

Other, less realistic options have also been discussed such as using Canberra as Sydney’s second airport. This is generally considered geographically impossible with or without the use of a very fast train between the two cities, although Canberra’s plans to be upgraded to international status could see it operating as an “overflow” for Sydney. Goulburn (which is considerably closer to Sydney) was also rejected as being too far from the major city.

Williamtown near Newcastle is the latest site to enter the equation, the RAAF base already having a 7,900ft (2,408m) runway, some infrastructure and civilian operations taking place. Newcastle political and business leaders are keen to see the site developed as Sydney’s second airport and some consider it to be ideal for the reasons mentioned above and the fact that at 110km as the crow flies it is much closer to Sydney than Goulburn (170km) and Canberra (240km).

Russian airline Kras Air recently took delivery of its second DC-10-30 leased from McDonnell Douglas (MDC).

Qantas To Sell Island Resorts

Qantas is to divest itself of its troubled island resorts subsidiary, Australian Resorts Pty Ltd, within a year. The company operates the Barrier Reef resort islands of Great Keppel, Dunk, Lizard, Brampton and Bedarra.

The group was inherited from the former Australian Airlines following its 1992 takeover by Qantas and has been providing poor returns, not recording a profit between the pilots’ strike in 1989 and 1994. The five resorts vary in quality (between two and five stars) and can be sold individually if necessary.

No formal valuation has been made public but a price of around $70m in total has been mentioned. Analysts suggest that the list of possible buyers includes Village Roadshow (the recent purchaser of Daydream Island), Club Crocodile or even Ansett which has airport rights at Hamilton Island and owns nearby Hayman Island.

It does not seem to be a good time to sell island resorts. Daydream Island was sold for just $22.5m, only a quarter of what was owed to the syndicate of banks which took control of the resort following a redevelopment in the late 1980s. Hamilton Island was also recently sold at a price two-thirds of the float value of its shares and South Mole Island has gone into receivership.

Frequent Flying Not Taxable?

In what could be a landmark case resulting in thousands of claims for refunds from the Australian Tax Office, the Federal Court has ruled that benefits derived from frequent flyer programs are not taxable.

The decision overturns a 1993 ruling by the ATO that the value of an airline ticket acquired through frequent flyer points and earned from travel paid for by the frequent flyer’s employer was taxable — in the taxpayer’s hands — if the ticket was transferable. The decision resulted from a case brought by an accounting firm employee who had accrued 190,000 frequent flyer points with Qantas through business-related travel. The ATO sought to tax the resulting benefit, which were free airline tickets given by the employee to her parents so they could fly from England to Australia.

The ATO argued the points were incurred as a result of employment and were therefore subject to income tax in lieu of fringe benefits tax, but the court ruled the benefits arose out of a personal contract between the employee and the airline. Perhaps significantly, membership of the frequent flyer program was paid by the employee herself, not her employer.

It is important to note that the decision was confined to employees only and does not address the implications for self-employed people. Also, it is sure to be challenged by the ATO.

Qantas/JAL Deal Close

Qantas and Japan Airlines (JAL) are planning a wide-ranging codeshare alliance covering major air routes between Japan and Sydney, Cairns and Brisbane.

Both airlines are already leading players on the Japan/Australia market and are looking to increase revenue and make their operations more cost-efficient. Qantas and JAL had close links until 1993, that arrangement lapsing with the arrival of a new management team at Qantas. Since then, contact has been re-established with numerous codesharing options being discussed.

When implemented, the new arrangements will see one airline operating directly from Japan to Cairns and the other to Brisbane. In addition, they will operate to Sydney on a more conventional codeshare basis.

The deal will put intense pressure on the arrangement between rival Ansett and All Nippon Airways and could see Qantas and JAL become the major players on the route which, although witnessing up and down growth in recent times, is currently growing strongly. Interestingly, JAL is reported to have shown concern about the impact of the ban on smoking on Australian inbound and outbound flights, due to come into effect this month.

Australian Domestic Air Traffic – March 1996 Qtr

The above includes all domestic operations using aircraft larger than 35 seats (plus AN Capital Shuttle SYD/CBR Saab 340 services). Data courtesy DoT & RD.

Tickets In Cyberspace

The selling of airline tickets has moved onto the Internet, with some analysts predicting they could soon be traded like any other commodity.

Cathay Pacific recently staged a “virtual auction” on the Internet in a successful attempt to sell 50 off-season business class round trips which remained unsold. They went for a discounted average $US1,500 per ticket, considerably better than having the aircraft depart with the seats unfilled and at the same time earning revenue which otherwise could have gone begging.

American Airlines has also conducted similar “auctions” on the Internet to get rid of unsold seats. Buyers got some bargains and the airlines filled their aircraft. Successful bidders have paid only a fraction of the retail value of airline tickets in the handful of auctions held so far, but with benefits for all concerned, these are bound to increase as time goes on.

Wall Street Aviation analyst Julius Maldutis of Salomon Brothers says that until now, airlines’ pricing strategies have been back to front with highest prices being put on last minute seat availability. He says it should be the other way around, as is happening with these Internet auctions.

The idea is not entirely new, although the original lacked today’s technology. As long ago as the 1970s, cut-price pioneer Freddie Laker introduced a youth standby fare for flights between New York and London. The fares were designed to fill empty seats and a ticket could be bought for as little as $US75. Long queues formed when those tickets went on sale, although the modern version — via the Internet — will appeal to a wider audience and the transaction will be able to be performed from the comfort of one’s computer station chair.

Airlines Still Improving

The world’s scheduled airlines experienced improved operating results for the third year in a row in 1995, according to preliminary estimates released by the International Civil Aviation Organisation (ICAO).

The operating revenues of scheduled airlines in ICAO’s 184 member states (excluding the CIS) are estimated at $US274bn in 1995 against estimated operating costs of $US260bn, leaving an overall operating profit of about$US14bn, or 5.1% of revenue. The equivalent figures for 1994 and 1993 were 3.4% and 1.0%, respectively.

Operating revenues rose by 11% in 1995 against a 9% increase in costs. Traffic increased by 8% and operating revenues per tonne kilometre rose from $US87.7c in 1994 to an estimated$US89.8c last year. The net result of this (after deduction of non-operating items such as interest, subsidies and tax) should be an overall profit for the first time since 1989. The 1994 net result was just marginally negative.

Aus-Air Turns 40

Independent Moorabbin-based regional airline Aus-Air has celebrated its 40th birthday.

The operator flies a fleet of Embraer Bandeirantes and Piper Chieftains to Burnie, Devonport, Flinders Island, King Island, Launceston, Merimbula and Smithton. It also operates charter and air freight services around Australia and carried over 30,000 passengers in 1995.

Aus-Air itself grew out of Australian Air Charterers and the anniversary includes the predecessors of this company.

Hazelton Traffic Grows

Leading regional operator Hazelton Airlines has recorded strong growth in the March quarter of this year, carrying 92,500 passengers during the three month period or 17% more than the same period of 1995.

The airline says that a considerable amount of the increase resulted from marketing initiatives designed to attract passengers who would not normally travel by air. This growth — plus Hazelton’s cost cutting and productivity improvement program — should see the airline’s profitability improve in the near future.

Tamair To Glen Innes

Tamworth-based regional operator Tamair has started scheduled services from Sydney to the NSW country centre of Glen Innes.

Two return services are flown each weekday along with one on Saturday and Sunday using Metro III and 23 turboprops. Tamair’s association with Glen Innes goes back to 1953, since when it has been providing daily newspaper and freight services to there and other centres in the New England region of NSW.

Tamair currently operates scheduled passenger services to destinations in NSW, Tasmania and Victoria (via Air Tasmania) as well as providing daily freight runs to 22 other NSW centres.

Indonesia Deregulates

Indonesia has begun deregulating its airline industry so as to make it easier for overseas tourists to visit the country. Indonesia is seeking to make tourism its largest earner of foreign exchange within a decade. Under new “open skies” policies, more foreign airlines and flights will be possible as will direct flights to tourist destinations. At the moment, flights usually terminate at either Jakarta or Bali.

As part of the reforms, the Indonesian Government has licensed Merpati Nusantara and privately owned Sempati Air to compete with state-owned Garuda on flights to the UK, the result of a new accord with Britain which will see two other British airlines in addition to BA flying to Indonesia. Merpati is a Garuda subsidiary which normally flies domestic services, while Sempati also has a government connection in that it is partly owned by President Suharto’s son. Garuda is to be partially privatised next year, while Sempati will shortly be listed on the Jakarta Stock Exchange.

Meanwhile Australia and Indonesia are to expand air traffic between the two countries by 38% over the next 18 months following the signing of a new passenger and freight services accord. Under the agreement, Merpati will fly Jakarta-Melbourne three times a week.

Ticketless Freedom Air

Air New Zealand trans Tasman charter subsidiary Freedom Air has introduced “ticketless” travel by replacing the traditional airline ticket with a single page travel document.

The document, which shows the flight time and record of payment, is intended to simplify the ticketing process. All passengers have to do is book, pay and turn up at the check-in counter. The document meets all the requirements for proof of travel for customs, immigration and duty free shopping. The system is based on similar processes used by low cost airlines in the USA and Europe and if a credit card is used, the whole process can be finalised over the telephone.

Impulse Skiers’ Service

Regional airline Impulse is to introduce skiers’ flights between Newcastle and Cooma for a brief period in August, allowing Hunter Valley people easy access to the Snowy Mountain ski resorts.

The flights will be conducted over four weekends from August 4 with a single morning flight on the Saturday and a return flight on Sunday evening. If successful, the service could be extended next year to include weekdays and increased frequency.

BA/American Alliance Imminent

The long-speculated commercial alliance between British Airways and American Airlines appears close to reality, with an announcement expected shortly.

It is thought that the initial agreement will see codesharing and joint marketing of flights, but analysts are suggesting that this could eventually lead to a US-UK open skies agreement.

The alliance will provide American with the opportunity to develop its operations at London Heathrow, while BA will gain access to American’s domestic and South American network. This complements the domestic network of BA’s existing US partner, USAir. Qantas (25% owned by BA) already has an agreement with American, and in combination with BA’s other airline interests, the three operators will make a formidable combination.

A potential hiccup remains with the US anti-trust laws, with approval for the deal unlikely to be given unless US carriers are given increased access to Heathrow. For its part, BA wants greater freedom in the USA. If these matters are resolved, an open skies policy could be the ultimate result. Other major European airlines have established alliances with US operators and received anti-trust immunity on the basis of open skies arrangements.

Record US Airlines Profit Predicted

The US Air Transport Association (ATA) has predicted that US airlines will return a second consecutive year of record profits in 1996.

The prediction is based on expected strong traffic growth outpacing a modest increase in capacity (resulting in increased load factors of 68 to 69%), improved yields and increased profit margin over 1995, when a 2.5% margin was achieved compared with 5.7% for US industry overall. The ending of the federal 10% domestic ticket tax will also make a significant contribution to the situation as it will mean either a reduction in fares or — if fares are maintained — better yield for the carrier.

US airlines got off to a good start in 1996 with traffic in the three month period between February and April increasing by six to 10% compared with the same period of 1995. An overall increase of 5% is expected for the year along with a $US7.2bn operating and$US3bn net profit. The 1995 net profit figure was $US2.4bn.

There are some negatives to be considered, however, including the cost of labour which has increased by an average 4.4% annually since 1987; and proposed changes to aircrew flight and duty time requirements which could add $US1.242bn to the airlines’ costs in the first year and$US800m per year after that.

Globespan To Australia

Leading British tour operator Globespan is launching a major holiday program from the UK to Australia and has acquired its own in-house airline to do it.

Globespan has purchased Excalibur Airways, established in 1992 with backing from Air Malta and a travel operator, to conduct holiday charters during the northern summer. Globespan will also use the airline to expand its trans-Atlantic operations and says that even though it has developed a successful limited program to Australia over the past few years, it has had difficulty securing aircraft to support its expansion.

Globespan will operate Australian charter flights between October and March using DC-10-30s. Flights will operate to Brisbane, Sydney and Melbourne from London Gatwick and to Sydney from Manchester. There will also be a direct link between Australia and Scotland for the first time with flights between Glasgow and Sydney. Globespan was established in Scotland in 1974.

Have You Got Your Aviation Internet Directory?

Australian Aviation Internet Directory is now available. Listing hundreds of interesting aviation related home pages, the Directory is available FREE to all direct mail subscribers of Australian Aviation. Simply write, fax or call us quoting your exclusive subscriber number (which appears above your name on the magazine address label) and we will do the rest. This service is FREE to all direct mail subscribers.

Ansett/Korean Codeshare

Ansett and Korean Air have entered into a codesharing agreement on flights between Seoul, Sydney and Brisbane.

The agreement allows the airlines to take up to 45 seats on each other’s flights between the three cities. It comes into effect on July 2 — the launch date of Ansett services to Korea — and is a boon to Ansett which would have been able to offer only two flights per week between Australia and South Korea against superior frequencies by Qantas, Asiana and Korean Air.

The codeshare agreement in effect increases Ansett’s frequency on the route to four per week.

Emirates Confirms Australian Services

Emirates, the airline of the United Arab Emirates, has confirmed it will be starting services between Dubai and Melbourne via Singapore (and not Jakarta) from June 25. The airline will initially operate two flights per week, increasing to three from the middle of July. Emirates will be using the Boeing 777 on the services, the first airline to operate the airliner to Australia.

Ansett ‘Airline Of The Year’

Ansett Australia has once again been named “Airline of the Year” at the National Tourism Industry Awards.

This is the third year in succession the airline has been afforded the accolade against stiff international competition. The other finalists were Qantas, Singapore Airlines and Cathay Pacific. Ansett also recently won the international Mercury Award for best airline catering.

OAA To Meet In Queensland

The 40th annual Orient Airlines Association (OAA) assembly of presidents will be held in Queensland in late November this year.

The meeting will bring together the chief executives and other senior managers of every major airline in the Asia Pacific region and provide a forum for discussion on key matters relating to the area’s industry.

Cathay Pacific has taken delivery of its first of seven 777-200s on order. The 777s are configured in two classes (50 business and 293 economy) and will be used on regional services to Tokyo, Bangkok, Seoul, Taipei, and Osaka and further afield to Bahrain and Dubai (Boeing).

Qantas chief executive James Strong will preside over the function in his capacity as retiring chairman of the OAA and will deliver an end-of-year address before handing over to his successor.

Sydney Movements Cap Remains

The cap on flight movements at Sydney Airport will remain in place despite efforts by the airlines to have it made more flexible so as to ease pressure at peak times.

The major international and domestic carriers which use Sydney have lobbied the Federal Government to use its 80 movements per hour maximum as an average spread over the day, thus allowing more movements during peak times. Operators are concerned that delays will increase significantly at Sydney if the hourly cap is strictly enforced, especially if the building of a second Sydney airport is delayed.

The airlines have argued that averaging the hourly limit over a full day will allow up to 90 flights per hour at certain times, providing flexibility which would cope with demand for some years. The idea has been rejected by Minister for Transport John Sharp despite representations from the airlines and the tourism industry. Some operators want the government to apply the limit only to jet aircraft and point out that during peak times, just over half the total movements are conducted by turboprops.

Canberra Looks To Go International

The ACT Government’s plans to make Canberra Airport into an international facility look to be a little closer following a Federal Government indication that it might pay for a comprehensive study into the issue.

The plans for the airport revolve around upgrading it so it can handle international passengers and freight. While talk of Canberra in effect becoming Sydney’s second airport is unfounded, it is thought some use can be found for it as a kind of “overflow” airport for Sydney at peak times as well as taking some of the international traffic which will be arriving for the Sydney 2000 Olympics. The ACT Government believes that Canberra could become an international freight hub and with a 75 minute very fast train connection to Sydney, a viable feeder airport for Sydney.

The study into Canberra achieving international status will cost about $1m and take six months to a year to complete. It is incapable of taking Boeing 747s at the moment due to restricted runway length and width but can accommodate smaller widebodies such as the 767 and A300/310. The cost of upgrading to full international status is put at about $90m if the modifications to accommodate the 747 are included and $20m if not.

Ansett Protects Overseas Rights

Ansett is reportedly preparing to protect its overseas air rights by separating its international operating arm — Ansett International — from the overall group and giving it an injection of capital from local institutions.

Ansett International is at the moment a wholly owned subsidiary of Ansett Holdings, but if the reorganisation takes place it will be separated from that organisation and re-established with its own board and management. Shareholding would be rearranged with local institutions holding 51% (and injecting capital into the company at the same time), Air New Zealand a maximum 25% and News Ltd 24%. Integral with the move is the successful completion of Air NZ’s purchase of TNT’s 50% interest in Ansett Holdings.

Ansett’s motivation is protection of its vitally important Asian air rights. Under the terms of the Bermuda One agreement, the airline must be substantially owned by and effectively controlled by Australian interests. If those conditions are not met, it is possible that Japan could withdraw rights. Japan’s definition of “substantially owned and effectively controlled by Australian interests” is a minimum local shareholding of 50%.

The recent increase in Chinese ownership of Cathay Pacific has attracted the attention of the Japanese Government, as Cathay is deemed to be a British carrier.

Name Game

For the past year we have been working on a two part book project incorporating the best of our On the Airbands and Tales pages.

The name we intended for the two books was Laughter in the Air. Regrettably we have only just come to realise that this title has already been used for a similar series of books in recent years. Consequently we have to conjure up an alternative title and this is where you come in.

We are offering readers the opportunity to suggest an appropriate title that will encompass the humorous side of aviation while also being short and self descriptive. If you think you have a great idea for a name then contact Jim Thorn at AA at PO Box 1777, Fyshwick ACT 2609 or fax (06) 280 0007 before the end of August. The winning reader will receive a free one year subscription to AA, so go to it.

Airport Developments For Berlin & Moscow

Berlin’s famous Tegel and Tempelhof Airports will be closed at the turn of the century when Schönefeld Airport is expanded to create Germany’s new international gateway.

The $US9.3bn project will replace the confined urban airports to provide capacity for up to 4.5 million passengers a year. The available space at Schönefeld, 50km south of Berlin, will also provide opportunities for further expansion as the seat of German government is moved there in coming years.

Meanwhile the Russian government is planning to modernise Moscow’s three civil airports to meet international standards, upgrading Sheremetyevo, Vnukovo and Domodedovo Airports at a projected cost of $US1.5bn.

Radical Sydney Airport Idea ‘Floated’

Seadrome International has proposed an innovative solution to Sydney’s continuing airport problems: a $7bn 450 hectare four runway airport located seven kilometres offshore.

The Seadrome airport would be based on almost one million six-metre diameter concrete drums. The honeycomb of inverted drums would trap air bubbles, flattening out waves as high as 12.5m. On top of the drums would be two 4000m north/south axis runways and two 3000m east/west cross runways. A prototype of the concept has been successfully trialled off San Diego in the USA.

With no noise restrictions the Seadrome would be capable of 24 hour operations. It would only be used for aircraft operations and some maintenance, with new terminal facilities built at Kingsford Smith and passengers transferred to the Seadrome by wave-piercing catamaran ferries.

Meanwhile the Australian International Pilots Association has come out in support of a more conventional solution to Sydney’s airport problems — Holsworthy. The AIPA has criticised Badgery’s Creek as badly flawed because of fog, traffic conflicts with RAAF Richmond and significant turbulence activity from the nearby mountains.

The AIPA (which represents 2,300 pilots from Australia’s major airlines) says that runways could be positioned at Holsworthy so that aircraft taking off or landing would be no lower than 3,000ft over populated areas.

Airports Update

Amberley: Civilian flights from the RAAF base could start as early as July 1997 if community response to the idea is favourable. Kendell Airlines has expressed an interest in operating between Amberley and Sydney and estimates it could carry 20,000 passengers on the route in the first year flying two services a day using Saab 340s.

Cairns: Cairns Airport recorded a drop in international passengers last year for the first time in living memory but still remains Australia’s fifth busiest international airport. International passenger numbers in 1995 were 20,000 down on the previous year and in terms of the percentage of Australia’s overall total of overseas passengers, from 6.1 to 5.4.

Coolangatta: In what could be an important test case for its new aircraft noise policy, Tweed Shire Council’s decision to rezone residential land close to Coolangatta Airport has been upheld by the Land and Environment Court. The council decided to rezone high density residential land within noise affected areas to permit only single houses with appropriate soundproofing. The decision was challenged by a developer who wanted to build a block of 18 units in the area but was rejected by the court. Coolangatta Airport’s traffic is currently subject to noise monitoring to ensure pilots follow designated flightpaths and noise abatement procedures. Work has started on the first stage of a transport development at Coolangatta Airport. The development involves building a new area to house car rental, coach and other ground transportation operators.

Essendon: Victorian premier Jeff Kennett has expressed the view that Essendon Airport is no longer useful in its current capacity and should be replaced by an airport at Cranbourne which would complement services at Avalon and Tullamarine. He did, however, also say that Essendon could be used as a centre for the export of freight including fresh produce, for which the building of coolstores would be required. Mr Kennett is also involved in investigating an alleged conflict between plans to export fresh fruit from Avalon and the proposed chemical storage plant at nearby Point Lillias. Israeli company Meyraz — which is looking to buy Avalon and develop a fresh food export business there — has expressed concern over the proximity of the chemicals.

Maroochydore: Maroochy Shire Council is making a concerted effort to attract more aviation-related businesses to its airport as commercial airline usage increases. The number of passengers using Maroochydore Airport has more than tripled in recent years from 89,000 in 1990 to 306,000 last year but only two aviation companies have moved there since 1993. Security of land tenure is seen as the major obstacle to growth and the council has commissioned a commercial development plan to guide long term development of the airport and to attract more aviation organisations.

Parkes: The NSW Government has awarded Parkes a $130,000 grant to study its proposal to establish an international freight airport at the central western town. The grant indicates that Parkes is leading the race to win this important contract. The plan has support from local councils, 30 of which have already taken $2,000 options in an airport management trust. Others from as far afield as Bega in the south, Tamworth in the north and Bourke in the west are also likely to provide financial backing to the project. Parkes’ apparent advantage has caused some unhappiness among councils in the Riverina area, where the idea of an international airport for the export of mainly perishable goods began. They say it would be better to have the facility where the produce is, pointing out that the area produces 5% of rural commodities in NSW from less than 1% of the area.

Perth: The WA Department of Transport is seeking tenders for the provision of an environmental review of Perth’s planned second general aviation airport. The DoT&RD has been tasked with providing recommendations to the State Government on the site for the new airport north of Perth. Three sites are to be investigated — Nowergup (40km north of Perth) and two others further north in the Shire of Gingin.

Port Macquarie: The NSW coastal resort town has won approval to build a $100,000 freight depot at its airport. The development was approved by the Hastings Council and will be used for the storage and distribution of freight.

Richmond: It has been proposed that regional airlines could use Richmond RAAF base instead of KSA if capacity restraints necessitate slot control for aircraft of less than 38 seats. Upgrading of the existing road and rail system is also being considered.

Wagga: AirServices Australia has announced a review of the airport’s control tower services following rumours it is to be shut down. AirServices will be consulting with the local staff and Wagga City Council in relation to any proposed changes in the level of services at the airport, and says it routinely reviews operations at all controlled airports to ensure the service offered is appropriate for the level of traffic.

Newsdesk and Airline Affairs Contributors: Stewart Wilson, Gerard Frawley, Jim Thorn, Danielle Doney and Ian Hewitt.