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DHL has recently opened a $3m Airside Distribution Centre at Sydney airport, and placed into service its new hushkitted Boeing 727-200. The $10m hushkitted 727-200 (pictured) has replaced a 727-100 and is used on trans Tasman services, providing an overnight service five days a week between Sydney and Auckland. Ansett Air Freight has committed to take 50% of the freighter's capacity. DHL's trans Tasman shipments have been increasing at the massive rate of 120% year on year for four years. Growth in DHL air express shipments out of Australia to key Asian markets such as Singapore, Hong Kong, China, Malaysia, Indonesia and Taiwan has grown by 50% per annum for the last three years. (DHL)
Airline Affairs
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Aussie Air Takes On Qantas
Bryan Grey’s proposed new entrant airline, Aussie Air, is moving to confront Qantas head-on in the courts over the ever-controversial issue of terminal access. Grey claims that Qantas has continually fobbed off his attempts to negotiate a fair and sensible lease for two gates at Qantas’ domestic terminals at Sydney, Melbourne, Coolangatta, Adelaide, and Perth. Bryan Grey originally wrote to Qantas making an application for terminal space on February 21 this year. When no response was forthcoming, he responded on the grounds that under its terminal lease with the FAC, Qantas must offer at least two gates under normal commercial terms to any viable new entrant. However, Qantas is openly dismissive of the Aussie Air project, claiming in its prospectus that “Qantas is not yet satisfied that this party qualifies as a new entrant.” The prospectus also confirms that Aussie Air has commenced legal proceedings against Qantas in relation to this matter in its Litigation and Administrative Action section.
The FAC has now taken up Grey’s case, stating that Qantas must take the bid seriously and is to commence negotiations with the new entrant immediately. Again, in its prospectus, Qantas outlines its attitude to third parties using its highly valuable terminal space, stating that “New entrants using these gates have a major impact on the consistency of branding and service at the airport terminals. More importantly, any loss of gates would restrict Qantas’ current operations and impose limits on growth and profitability, in particular in Sydney where Qantas is utilising all of its existing gates.” Qantas has just recently announced the signing of a $194m contract to expand its presently overtaxed Sydney domestic terminal from 10 to 15 gates including eight capable of accepting wide-bodied jets. The additional gates will increase passenger throughput from 1520 to 2320 per hour.
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