Airline Affairs

However, one stumbling block to a true Single Aviation Market (SAM) remains, that of international beyond rights. The two ministers have agreed to postpone discussions on beyond rights until after November 1. Air New Zealand has been lobbying hard for additional beyond rights from Australia, a move that unsurprisingly Qantas has been equally vigorously fighting against.

Kiwi International Airlines has announced its intention to take advantage of the new agreement, saying it would fly six flights per week between Brisbane, Sydney and Melbourne. Air New Zealand has said that if its plans to acquire 50% of Ansett are successful it won’t fly domestic flights in Australia in its own right. Qantas has previously shown little interest in flying domestic NZ routes.

A previous plan to introduce a single aviation market in Australasia was cancelled by the then transport minister Laurie Brereton in October 1994.

Aussie Airlines by Year’s End?

The former boss of the failed Compass Airlines (Mk1), Bryan Grey, claims he will have his latest venture, Aussie Airlines, operating on Australia domestic routes by this November.

The claim follows a partial victory in the Federal Court, in which Mr Grey was seeking a declaration to force Qantas to allow his new airline access to terminal space at five airports. The court did not rule on the declaration but found in favour of Mr Grey by deciding that he had “sufficient standing” to seek the declaration and that Aussie Airlines was a new entrant to the industry.

In a written ruling Justice Raymond Northrop said: “The court declines to express an opinion on whether Qantas is required to enter into negotiations with Aussie Airlines preparatory to the granting of the sub leases … on all material before the court, I am satisfied that Aussie Airlines comes within the expression ‘a new entrant to the domestic aviation industry’ ”.

What the decision seems to mean is that Aussie Airlines can seek terminal access from Qantas. Not Surprisingly Qantas immediately announced it would appeal the decision and Mr Grey says he is going to pursue a damages claim of $100m for loss of earnings caused by the court action.

Mr Grey says Aussie Air will operate up to 10 aircraft and undercut the major airlines’ fares by about 25%. He also says he has the finances to start the airline with a choice of three funding parties of local and foreign origin. No funding will be sought from the public.

Qantas’s 747-200s have been undergoing a weight loss program of sorts recently. The 747-200s’ basic weight has been reduced by an impressive 12 tonnes (from 182t to 170t) as they are fitted with the new two class interior and improved galleys. Two of Qantas’s five 747-200s remain fitted with the original underfloor galley, VH-EBS was undergoing conversion at ASTAAS at Avalon in early July, and VH-EBR was due to undergo conversion in August prior to delivery to Air Pacific on a two year lease. (John Ruming)

The Next Issue of Australian Aviation Will Be On Sale August 28 — Don’t Miss It!

Valujet Grounded

Atlanta-based carrier ValuJet has been grounded by the US FAA in the wake of the crash of one of its DC-9-30 airliners into the Florida Everglades shortly after takeoff in May this year.

The grounding order was imposed in mid June, three weeks after the accident which killed all 110 passengers and crew on board. The airline had the choice of either voluntarily suspending operations or being forced to do so. The former option was chosen under the terms of a consent order.

Initial investigations into the accident indicate the aircraft was crippled by a fire that burned through the ceiling of the DC-9’s forward cargo hold and filled the cabin with intense heat and toxic fumes. The fire was apparently started and fuelled by about 144 chemical oxygen generators the aircraft was carrying. Many of the generators were not fitted with plastic caps over the firing pins, intended to prevent their accidental activation. If activated, the generators produce intense heat, sufficient to ignite their cardboard packing boxes.

The grounding is regarded as temporary by the airline, although at the time of writing (nearly a month after it was imposed) ValuJet was still not flying. Many observers predict the airline will never recover if the grounding lasts for over a month.

The timing is very bad for ValuJet, coming at the start of the peak summer season and just before the Olympic Games being held at its home base. Virtually all of its 4000 employees have been laid off.

ValuJet says the FAA’s action is “grossly unfair because the airline has been denied the opportunity to respond to the FAA’s concerns. The regulatory environment leading to this decision was accelerated by the tragic accident on May 11, which [we] believe will be proven to have no relation to maintenance or flight operations”.

ValuJet had been subject to several FAA inspections in the months before the accident due to concerns that rapid growth had outrun the carrier’s and the FAA’s ability to monitor the safety of its operations.

The FAA says it has found numerous instances where ValuJet had failed to comply with FAA regulations and its own approved operating manuals and had system wide deficiencies in maintenance programs plus multiple shortcomings in quality control over outside maintenance contractors.

ValuJet’s management is working towards returning to operations, reducing its fleet from 51 to about 35 aircraft and giving airframe maintenance responsibility to a single contractor, a major DC-9 operator such as Air Canada.

The FAA order says the airline can reclaim its certificate and resume operations when it is deemed to be “qualified and capable of exercising the privileges of a Part 121 air carrier”.

Second Runway for Chek Lap Kok

Greater than expected traffic growth predictions have resulted in China and the UK agreeing to build a second runway at Hong Kong’s new Chek Lap Kok Airport.

The airport is due to open in April 1998 and the new northern runway will be operational six months later. The new work will cost about $US556m and includes bringing forward the construction of more apron parking and a second terminal arm which will provide 10 extra airbridges. This is in addition to the $US9.1bn cost of the airport in its original form.

Traffic forecasts have indicated that the original single runway would reach capacity saturation shortly after opening. It will be able to handle 37 to 38 movements per hour while the new runway will be able to increase that to 56 to 63 movements.

By comparison, Hong Kong’s existing Kai Tak Airport is expected to reach a peak of 31 movements per hour in late 1997.

Melbourne’s newly opened international terminal extensions. Refer text for details.

Euro Airlines Profitable

The Association of European Airlines (AEA) has reported that its 25 members recorded an overall operating profit of just over $US1bn in 1995, the first positive figure since 1989.

The airlines had between them built up a deficit of $US7.5bn over the previous five years, the low point being reached in 1992 when nearly$US2.5bn was lost. The improved result stems from a 7.8% growth in passenger numbers (including domestic services) in conjunction with modest capacity growth and successful cost control. Overall, the airlines recorded an average load factor of 69.8%, a new high.

Of interest is the fact that AEA members recorded growth of more than 8% on the North Atlantic market, while US airlines suffered a decline and were left with a reduced 43% market share.

The improved result is regarded as modest by the AEA and brings with it a warning about ongoing problems in Europe, notably that of congestion, air traffic control inefficiencies and the delays which result.

Planned European legislation which will change slot allocation rules in favour of new low cost operators at the expense of established carriers is also seen as a major potential problem which is bound to cause considerable dispute.

Air Pacific Profit Up

Fiji’s national carrier, Air Pacific, has recorded an operating profit of $F14.2m (approx $A13m) for the year ended March 31 1996, an increase of about$A12m over the previous year.

The after tax net profit was $A7.8m, a 4.8\% improvement on 1994-95 and total revenue was$A237m, an 11.4% increase.

The result gives Air Pacific its 10th consecutive year of profitable operations and according to the airline’s chairman, Mr Gerald Barrack, is especially commendable in view of the adverse effects of French nuclear testing on Japanese route revenue.

Significant factors contributing to the result were a full year of weekly Boeing 747 Nadi/Los Angeles and twice weekly 767 Osaka direct services; a full year of the joint operating lease of a 737-500 by Air Pacific and Royal Tongan Airlines; the introduction of a second Nadi/Los Angeles 747 service; and the revised codeshare arrangement between Air Pacific and Qantas on Fiji/Australia and Fiji/USA routes.

Air Pacific will further expand its international services in November this year when it begins operating a weekly flight between Nadi and Vancouver. This will increase the airline’s route network to 16 major cities in 10 Pacific Rim countries. The airline’s Boeing 747 (leased from Qantas) will be used on the new service.

Badgery’s Land for Sale

A 344ha (860 acre) rural/residential site at Badgery’s Creek near the proposed new Sydney Airport has been offered for sale.

Recently advertised by agents Raine & Horne under instructions from the CSIRO, the ‘strategic holding’ is zoned rural but the advert specifically mentions it would suit rural/residential development (with consent), surely a fairly silly thing if an airport is to be built next door! Or perhaps they know something we don’t ….

Augusta Airlines Qa

South Australian commuter airline Augusta Airways has been awarded Quality Assurance Certification to ISO 9002 Standards, the first regular public transport operator in SA to achieve this.

The airline says that QA has been a long term project and represents a further enhancement of management and operating standards. It is a major step for a small airline to achieve due to the stringent requirements.

Augusta Airways flies between Adelaide, Port Augusta and Leigh Creek plus charter and contract operations. The airline also operates the “world’s longest mail run” from Port Augusta to Queensland’s mid west carrying mail, freight and passengers to remote cattle stations along the route.

Flightdeck Online

A new and innovative program for airline pilot recruitment is now on the Internet. The International Aviation Consultancy (IAC), in partnership with Aeronet, has developed a unique program designed to provide a rapid and effective response to companies seeking qualified flightdeck crew. With the advent of the world wide web on the Internet, Flightdeck Online has developed an extensive database to assist companies with their recruitment program. Companies will be able to search the database for suitably qualified personnel to match individual requirements. Flightdeck Online delivers a rapid response for both airlines (in their search for aircrew) and individuals seeking employment or a change of employer.

Flightdeck Online is run by the UK based IAC which was established in 1993 following the demise of Air Europe and intended to provide assistance to out of work pilots. Each month, pilots are provided with information on job opportunities, updates, advice and contact names, addresses, qualifications requirements and so on. As the database grows, companies will have access to an increasingly large number of individuals around the world.

Sia Named as Best

Singapore Airlines (SIA) has been named as the best overseas based airline in awards announced by the Australian Federation of Travel Agents.

Since the annual award was established in 1995, SIA has won it on both occasions, this year against competition from eight other airlines. Upon receipt of the award, Owen Phillips, SIA’s Passenger Marketing Manager, Australia, thanked the Australian travel industry for its support and emphasised the importance of the airline’s relationship with travel agents.

Air Nz-Lan Chile Codeshare

Air New Zealand has stepped up its South American marketing effort with the establishment of a codeshare arrangement with Lan Chile Airlines.

The arrangement began in July and sees an Air NZ flight code appear on selected Lan Chile flights from Santiago to Auckland. Lan Chile operates the service between Santiago and Papeete (Tahiti), connecting with Air NZ’s existing services between Papeete and Auckland. From Auckland, passengers can connect with Air NZ flights to Sydney, Melbourne and Brisbane.

The service was launched with the staging of Australia’s largest ever travel seminar involving 120 leading travel wholesalers and retailers from about a dozen Latin American and Caribbean countries.

Dhl Brisbane Development

International express freight company DHL Worldwide Express is to undertake a major redevelopment of the old international terminal at Brisbane Airport, turning it into a major storage, handling and distribution hub for Asia.

Announcement of the $5m project follows agreement with the Federal Airports Corporation over the whole of the former international terminal at Brisbane. It will create 100 new DHL jobs in Brisbane by the end of 1997 and up to 500 by the turn of the century.

Initially, DHL will develop 5000m² of warehouse and 1500m² of office space in the building, which is to become an Airside Global Distribution Centre providing direct tarmac access, on site customs clearance and bonded warehousing facilities for exporters. DHL ultimately plans to develop the whole 14,000m² complex.

Over the next two years, the entire existing structure at Brisbane Airport will be transformed into a state of the art Airside Logistics Centre. DHL will be submitting a number of options to the FAC and Queensland and Federal Governments which will enable the site to become Queensland’s first Free Trade Zone.

The Queensland Government has welcomed the move, which was decided after competition from other Australian states and Asian centres.

Air Niugini Privatisation

After a lengthy period examining the issue, the Papua New Guinean Government has cleared the way for the full or partial privatisation of its national airline.

After considering options for recapitalising the airline, the PNG Government’s National Executive Council has approved the corporatisation of the carrier which is now known as Air Niugini Pty Ltd. It will be free to issue shares to residents of PNG or to institutions as the first step towards privatisation. Several airlines in the region including Qantas (already a long standing commercial partner), Air New Zealand and Ansett are considered as possible investors.

Privatisation of Air Niugini will produce several benefits including enabling the airline to secure much needed additional capital and provide the PNG Government with revenue which could then be invested into improvements to the country’s domestic aviation infrastructure. However, before privatisation can take place, repeal of PNG’s National Airways Commission Act and other legislative amendments will have to occur.

Garuda’s Big Boeing Order

Garuda Indonesia has placed an order with Boeing for 23 airliners worth $US1.6bn. The order includes six 777-200s and 17 737-800/500s with options on six 747-400s. Delivery of the 737s will begin next year with the 777s following from 2000. No engine choice for the 777s has been announced as yet. Garuda is the 10th Asian airline to order the 777 and the 21st worldwide.

Ba/Comair Franchise Agreement

British Airways has signed its first franchise agreement with an airline outside Europe, with South African regional carrier Comair.

Comair will remain an independent South African company with its fleet repainted in BA livery while retaining Comair titles. The move will strengthen BA’s presence in Africa while at the same time providing Comair with the partner it has been seeking to develop its services. Cabin and customer staff will wear BA uniforms.

The franchise does not involve any equity investment by BA and Comair’s reservations will now be handled by the British carrier’s RTZ system which also runs on Galileo. Comair has a fleet of six Boeing 737-200s, two 727-200s and two ATR 42s. It flies an extensive network in southern Africa and carried over 700,000 passengers last year.

BA launched its franchise system in 1993 with Gatwick based CityFlyer Express. Since then, UK based operators Maersk Air, LoganAir, Manx Airlines, GB Airways and Brymon plus Denmark’s Sun-Air and Comair have joined. The UK based airlines carried a combined 3.4 million passengers last year, serving 80 destinations with a fleet of 76 aircraft.

It’s on the Box

Cathay Pacific’s economy class passengers will now be able to wile away the hours with a new diversion following the fitting of personal televisions to the airline’s long haul fleet.

Passengers will have six channels to choose from showing a variety of films, comedy, sporting and lifestyle programs. Cathay Pacific is spending $150m over the next two years to put televisions in every seat in its passenger fleet. Business class passengers will have the number of channels from which to choose increased from eight to nine.

Commonwealth Bank Emerges as Airports Contender

The Commonwealth Bank of Australia (CBA) will team with the operators of Amsterdam’s Schiphol Airport as part of a consortium which is expected to bid for control of at least two major airports when they are privatised.

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Brisbane and Melbourne have been mentioned as the airports most likely to be sought by the consortium, which is looking for one or two other Australian members to complete its ranks. When fully established the CBA/Schiphol consortium will provide a formidable rival for the other major groups — BAA/AMP/State Super, Australia Pacific, the Airports Group/Westfield and Lend Lease/Brambles.

Amsterdam Airport Schiphol is the preferred tenderer for the $US1bn terminal contract at New York-JFK and also has interests at several airports in Europe, South America, China and Indonesia. The CBA has invested in several large non banking projects including Melbourne’s CityLink and Sydney’s M4 and M5 motorways.

Qantas’ Gp Sponsorship Win

Qantas has been selected ahead of four other companies to become the naming rights sponsor for the Australian Formula One Grand Prix at Albert Park in Melbourne for the next five years.

From next year through to 2001 the race will be known as the Qantas Australian Grand Prix. The value of the sponsorship deal has not been disclosed.

The inaugural Melbourne Grand Prix in March attracted 11,000 interstate and 5000 overseas visitors to Victoria. The estimated worldwide television audience for a GP is 360 million, which should give the airline enormous international exposure.

Next year’s GP follows the Avalon airshow by one week, indeed a busy time for Melbourne.

Excalibur into Liquidation

British tour operator Globespan may have to revise its plans to launch a major holiday program to Australia following the collapse of Excalibur Airways, the airline it acquired partly for that reason.

As reported in last month’s Airline Affairs, Globespan planned starting UK/Australia charter flights with Excalibur this October using DC-10s, but the airline has been put into liquidation following some safety scares and the collapse of consumer confidence which followed.

Excalibur’s problems compounded when the leasing company from which two DC-10s were to be provided refused to do so. Another aircraft was obtained but this was not able to be placed into service in time to prevent Excalibur having to subcharter seats from other airlines, with considerable losses.

According to the airline, sensationalised press reports of two minor incidents which resulted in the aircraft being delayed resulted in a collapse of consumer confidence early in the northern summer season, a time when charter airline finances are most vulnerable.

The collapse left about 3000 customers temporarily stranded overseas. Excalibur’s liquidation does not mean that its parent company, Globespan, is in similar financial difficulties.

Capacity Rights up for Renewal

The International Air Services Commission (IASC) has begun consideration of the renewal of a number of capacity rights determinations due to expire on June 30 1997.

Under this process, the available capacity may be allocated either to the incumbent airline on a given route or to a new Australian airline.

This is an important milestone for the IASC as the determinations now in place were the first to be made following the Federal Government’s move to multiple designation of Australia’s international carriers in early 1992. They comprise more than 30 individual determinations covering 20 routes with a total capacity equivalent to approximately 160 Boeing 747s per week in each direction to and from Australia.

Interested persons have had the opportunity to comment on whether the incumbent airlines have effectively served the routes being operated and potential new entrants can apply for all or part of the capacity that is available for renewal. The closing date for submissions and applications will have passed by the time these words are read.

Flying Kangaroo to Taiwan

Australia Asia Airlines is now operating as Qantas on flights between Taiwan and Australia.

Qantas will maintain the existing schedule of five flights to and from Taipei each week. Since Australia Asia Airlines began operating to Taiwan in 1991, the number of passengers carried on the route has increased by almost 400%. The number of visitors to Australia from Taiwan is forecast to increase by an average 16% annually.

Compass Charges Laid

Doug Reid, the former deputy chairman of Southern Cross Airlines Holdings — operating as Compass Airlines (Mk.2) — has been committed for trial on 51 charges resulting from the collapse of the airline in 1993.

Mr Reid has been ordered to appear in the Supreme Court of Victoria this October following a committal hearing in the Melbourne Magistrates’ Court.

He has pleaded not guilty to various Crimes Act charges including theft, obtaining financial advantage by deception and making false documents. He has entered a similar plea to other charges under the Corporations Law: making improper use of his position, insider trading and providing false information to the airline’s board.

Compass II began operating in August 1992 but flew for only six months before collapsing.

More Pilots for Qantas

Qantas will increase its numbers of international and domestic pilots by 9.4% over the next two years.

The airline will employ 160 more pilots from February next year, following on from the recent conclusion of a program which has seen a record 526 new flight attendants employed during the 1995/96 financial year. Despite this, the airline has indicated that this amount of growth may be drastically reduced this year if the cost of staff continues to increase at a faster rate than revenue.

Observers see this as a warning to unions that they should not attempt to gain any substantial wage increases and a reaction to an 8% pay rise which Ansett has negotiated with its workforce under a recent enterprise agreement. Qantas’ enterprise agreement expired at about the same time the Ansett deal was negotiated. If this happens, then Qantas has warned that the resulting blowout in costs could mean job cuts and further contracting of services to outside organisations.

Recent examples of this are the closure of the airline’s inhouse printing unit with the loss of 30 jobs and the contracting of internal security at its offices and properties in Australia to an outside firm.

On the Buses

The Federal Airports Corporation’s commercial practices are “anti social and must be restructured before any planned selloff or privatisation of the national airport operator”, according to transport consumer group Action for Public Transport (APT).

The group – which advocates increased use of public transport — says the FAC’s over dependence on revenue from car parking at Sydney Airport was against the community interest and that government transport policy should ensure people use public transport as far as possible to access major traffic generators like Sydney Airport in order to minimise traffic congestion and the cost of access roads.

APT claims the FAC’s revenue raising principles are contrary to this philosophy and has called for a restructuring of the FAC’s finances including substantial increases in charges to airlines using the airports.

APT claims that car parking charges account for 45% of the FAC’s income. That figure is certainly correct for Canberra Airport.

AA Comment: Reducing the amount of traffic on the roads is a noble aim, but is it practical to do so?

In order to encourage people to use public transport instead of their cars, first you have to convince them that public transport is more efficient and much more convenient. Unfortunately, in most cases it is not, especially when it comes to travelling to airports. This writer spent many years travelling to and from Sydney Airport and the thought of catching a couple of trains and assorted buses to get there was never a viable proposition as it was uncomfortable, much slower than driving (traffic congestion notwithstanding) and grossly inconvenient. It still is!

As for substantial increases in charges to airlines using the airports — this will do nothing to reduce the number of vehicles travelling to airports, as is proven by overseas airports which do have higher charges and huge amounts of traffic.

Limited Loyalty

The ‘loyalty scheme’, a bonus share issue included with the Qantas float and intended to encourage buyers to retain their stock has met with limited success.

The extra shares were reserved for retail investors who held their stock for 10 months until June 1 this year. Nearly 78,000 shareholders qualified for the extra stock which has been issued on a 1 for 25 basis but one third of smaller shareholders have either played the market or sold their shares in the meantime. This relatively poor response to a marketing idea which was tried for the first time in Australia with the Qantas float has led to doubts that a similar strategy will be employed in forthcoming privatisations.

On the day the loyalty shares were allocated in June the price of Qantas shares was $2.15, the same as the first day of Qantas’ listing last year. It has since swung between a high of $2.47 and a low of $2.03.

Forced Retirement

In what could be a landmark decision, the Industrial Relations Court has ruled that Qantas acted unfairly when it terminated the employment of an international pilot when he reached the age of 60.

The split decision overturned a previous ruling by the Chief Justice, who found that being under 60 was an “inherent requirement of a position as captain of a Boeing 747-400” because a number of countries to which Qantas operates do not permit pilots over 60 years of age to fly airliners.

The Industrial Relations Court rejected this view and dismissed Qantas’ argument that a contract between the airline pilots’ union and the airline gave the company the right to enforce compulsory retirement. One of the three judges agreed with the earlier ruling.

The decision also has implications in many other industries, but for Qantas it has the potential to cause major rostering headaches as pilots regarded as overage and therefore illegal by some countries will have to be kept away from them.

The immediate result is that four Qantas pilots who were forced to retire between 1990 and 1992 when they turned 60 are likely to sue the airline for lost income. Others will probably follow.

The Human Rights and Equal Opportunities Commission earlier this year ruled that Qantas’ policy was discriminatory towards the four pilots. All were medically fit and qualified to fly but as the Commission has no power to enforce its decisions — only to make recommendations — the airline was able to ignore it.

Ansett Ups the Ante

Ansett has gone on the offensive in the frequent flyer discount war by reducing by 40% the number of points needed to earn free flights on many domestic routes.

The offer applies to the two months between July and September this year — traditionally a relatively quiet period — and some of the routes are important business sectors such as Sydney/Canberra, Adelaide/Melbourne, Sydney/Perth and Sydney/Brisbane.

For example, an economy class return ticket between Sydney and Brisbane can be obtained for 5400 points instead of the normal 9000, while Sydney or Melbourne to Perth requires 18,000 points instead of 30,000.

Ansett frequent flyers can also earn double points if they travel on the airline’s new Seoul service and for travelling with commercial partner All Nippon Airways.

Both Ansett and Qantas have lowered fares by about 70% on certain domestic sectors during the winter months, although the latter says it will not be drawn into a frequent flyer points discounting battle. Qantas claims that Ansett is trying to get rid of excess points which have been accumulated by its frequent flyer members.

Melbourne International Terminal Extensions Opened

The Prime Minister officially opened the $200m extensions to Melbourne Airport’s international terminal in early July.

The extensions doubled the size (to 70,000 square metres) and capacity of Melbourne’s international terminal, allowing the airport to handle 1200 international passengers an hour with parking bays for 12 aircraft. When needed, the installation of additional aerobridge connections, baggage reclaim carousels and new check-in counters will extend the terminal’s processing capacity to 1800 passengers per hour. Retail outlets have increased from 10 shops and four larger kiosks in 1988 to 43 shops and two kiosks today. Total retail space in the international terminal is 5230 square metres.

Remarkably, during the redevelopment, Melbourne Airport was ranked seventh in the world in an IATA survey of 40,000 international passengers for overall passenger convenience, and the world leader for restaurant and eating facilities, while in 1994 and 1995 a Business Traveller Magazine readers survey ranked the airport seventh in the world and the best in Australia.

The official opening of the terminal extensions (it has been operational for several months) marks the completion of the FAC’s major infrastructure improvements program begun when the Corporation gained control of the country’s major airports in 1988. Since that time the FAC has invested over $1.6bn in its airports, including new passenger terminals in Sydney, Brisbane, Darwin, Alice Springs and Melbourne, infrastructure to support the domestic airlines’ own terminal extensions, and Sydney’s parallel runway.

Singapore Twice Daily to Sydney

Singapore Airlines inaugurated twice daily flights to Sydney on July 2.

The new schedule sees SIA’s A340-300E Celestars operate daily morning flights from Sydney to Singapore, with daily afternoon flights operated by 747-400s. Singapore Airlines already operates A340s on daily flights to Melbourne.

Airports to Get Internet Machines?

Sydney company Internet Public Access Terminals is gearing up to have coin operated Internet terminals in Australia’s airports and shopping malls, pubs and clubs over the coming months.

For $20 an hour users would be able to freely roam the Internet while waiting for their flights. The machines are based on a 586 computer with a 28.8Kps modem built into a ‘pub friendly’ cabinet.

Airports Update

Albany: The Federal Government has given WA regional aviation a grant of $4.5m, part of which will be used to lengthen Albany Airport’s runway and upgrade the terminal building. Manjimup and Murrayfield airports will also receive lighting systems and navigational aids. The improvements will allow jet airliners of up to BAe 146 size to use Albany airport.

Essendon Airport will celebrate its 75th anniversary over the weekend of August 10 and 11. Festivities planned include a formal dinner on the evening of Friday the 9th, an anniversary air pageant on the Saturday and Sunday (admission is free), an informal sausage sizzle on the Saturday night and a Patrons Lunch on Sunday. For details phone (03) 9379 9077. Meanwhile Victorian Premier Jeff Kennett has predicted that Essendon Airport will close by the end of the century.

Alice Springs: The Royal Flying Doctor Service has opened a new hangar at Alice Springs airport containing patients’ waiting rooms, nurses’ and pilots’ offices, a modern aircraft workshop and storage areas for medical supplies and spare parts. The new facility means the RFDS will be able to provide a more efficient service in Central Australia, in conjunction with its two new Pilatus PC-12 aircraft which offer greater carrying capacity and operational efficiency than the Piper Navajos they replace. The hangar was paid for by RFDS fundraising and a $3.4m grant from the Federal Government.

Ayer’s Rock: The $11.5m extension of the runway at Ayer’s Rock by 500m to 2500m and the strengthening of its pavement will allow a substantial increase in aircraft arrivals, according to Ayer’s Rock Resort. Qantas will increase its frequency of weekly flights from 25 to 37 from September and Ansett will also increase frequency. The upgrade allows aircraft up to Boeing 737-400 size to use the airport. An additional taxiway and aircraft parking bay have also been built.

Burnie: Burnie Shire Council will ask Qantas and Ansett why discount airfares they offer from Launceston are not available from Burnie and Devonport. The Council says the north west coast area of Tasmania is suffering because of the lack of discounts, with customers using Launceston instead. Burnie and Devonport are both serviced by Ansett affiliate Kendell Airlines and Qantas subsidiary Southern Australia Airlines.

Cathay Pacific has taken delivery of its first A340-300. Cathay has six A340-300s on order and as they are progressively brought into service they will replace the four A340-200s the airline has on lease from Airbus. The A340-300s are configured in a spacious three class 261 seat arrangement. (Airbus)

Busselton: The airport’s funding saga continues with the WA Government standing firm on its decision not to contribute an extra $500,000 for a terminal. Busselton Shire Council has attacked the stand, saying that the process behind the Government’s 1994 decision to put $3.5m into the project appears to have been flawed. Council does not believe it should have to pay for the terminal. Stay tuned!

Broken Hill: Broken Hill Council has plans to spend $1.8m upgrading the city’s airport so it can handle medium sized jets such as the Boeing 737. At the moment, the BAe 146 is the largest airliner the airport can handle. The Council wants the upgrade so Broken Hill can be better placed to take advantage of the international tourist market. Most services to Broken Hill are currently flown by Saab 340 or Metro turboprops, but Council says the city needs to be serviced by bigger jets at least twice weekly or if demand is great enough, daily.

An Airbus A319 in Air Inter Europe colours. Air Inter is now owned by Air France (hence the livery) and Air Inter and Air France’s European operations are soon to be merged. (Airbus)

Cairns: A new $14m domestic passenger departure lounge has been opened at the north Queensland airport. The interesting design features a central departure lounge with retail outlets feeding off the lounge. Stage two of the facility will open in a few months. This will have seating areas, a food court and other retail outlets.

Essendon: Labor MP for Wills, Kelvin Thomson, has called for plans to build a $30m pilot training complex at Essendon Airport to be scrapped. The MP opposes anything that might increase traffic at the airport, dragging out the 1993 crash of a de Havilland Dove shortly after takeoff as the basis for his argument.

Flinders Island: The new Flinders Island air terminal has been opened by Federal Transport Minister John Sharp. The facility cost nearly $400,000 of which half was provided by the Commonwealth. It provides the island’s airport with a much needed boost. The minister said that the building and negotiations preceding transfer of the airport’s ownership to Flinders Council set a standard that many local airport operators in Australia would envy.

Warnervale: A private members bill passed in the NSW State Parliament has capped daily movement rates to 88 and restricted the length the runway can be extended to 1200m, thus effectively blocking the proposed development for the time being.

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