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Aviation History
1986
1986 - 0069.PDF
Ansett WA is a regional subsidiary of Ansett Airlines. Ansett is in the enviable position of having its roots in the firm, fertile soil of the "Two-Airline Policy", and being based on the edge of a region of the globe where civil air transport in all its forms is a particularly fast- expanding business, Ansett's chiefs intend to take part in that business either this or a Government monopoly. Government monopoly has not been feared since TAA lost its leadership in the 1960s. The two fascinating struggles which will be watched this year are the East-West battle to be accepted as the Third Airline, with admittedly limited horizons, and the ability of the new general manager of TAA, former mining industry executive James Strong, to inject into that airline the quality of morale which Sir Peter Abeles did into Ansett in the early 1980s. Strong must come to some decision with his Board (actually the Australian National Airlines Commission) about the 727 replacement. TAA has long admired the A320, but has asked Airbus Industrie for an extended version with 160 seats in the TAA three-class configuration. AI has refused to do this, although Lufthansa also wants it. AI has told TAA that in due course it might well consider an extension to 175 seats (TAA style), but not until the early 1990s. TAA feeling is that the A300 has been a mistake, being too big for the actual growth in traffic, and this is particularly inappropriate during the off-peak periods. After the 757 seemed to have been discarded by TAA, Boeing has returned to the fight with a very "attractive" offer for the aircraft. That means a low unit price and a 170-175 seat cabin configuration. This has forced TAA to rethink the situation. But it does appear that TAA is now thinking seriously in terms of a 175-seat airliner as its biggest aircraft after the early 1990s, and that it will sell off the A300s in time. TAA is now certain to buy the Fokker 100 in due course, as it develops the right city- pairs among the smaller cities in Australia. TAA's and Strong's problem is that Sir Peter Abeles robbed TAA of re-equipment leadership when he ordered the A320 in 1985. TAA would appear to be following Ansett if it ordered the A320. One of FLIGHT INTERNATIONAL, 4 January 1986 Strong's first moves to revive morale in his airline is to make it at least appear that TAA is again, as in the 1940s and 1950s, the leader in aircraft selection. One of the reasons for Sir Peter's dramatic revival of Ansett morale in 1980/81 was the decision to buy the 767. As for East-West, the public sees this airline as a sort of Robin Hood, providing cheap fares on many routes, even if in smaller F.27s and F.28s. Ansett and TAA have aroused considerable public distaste by recently forcing the Department to take action within the Two-Airline Policy to check East-West's cheap F.28 stopping- service from Sydney to Perth. This will get into the Courts. Ansett and TAA simply regard the million passengers a year that East-West is now flying as a serious leakage of traffic. The solution may well be some controlled licence for East-West which will not allow head-on collision with the Policy. The big domestics cannot drive East- West out of business because it has a basis of intra-state operation within New South Wales, where the State has its own Two- Airline Policy involving East-West and (Ansett-owned) Air New South Wales. Those two airlines divide up NSW traffic between them on different route struc tures. The various States still retain the right to licence operators to fly services within those States. NSW public backing is very much behind East-West. What has to be fought out is the degree to which East- West can challenge TAA and Ansett. Frankly, East-West has not gone out of its way to make friends with the Department of Aviation on this whole matter, and has had a policy of offending TAA and Ansett at every opportunity. It may well pay dearly for that. Australia is a small nation. How does the Government in Canberra keep would-be airlines out of the intra state industry? By the simple expedient of denying import licences for any air craft which is considered to be a chal lenge to the existing operators. That power has been exercised since the 1950s. The simplicity of it is almost charming. Also simple are some plain facts about deregulation. The greatest enemy of deregulation is the trade union movement. In Australia the trade unions are showing far greater power than the Labour political wing ever dreamed they could. They, and the pilots, believe that deregulation will lead to unemploy ment, and to poorer conditions of service and wages. They want stability in the industry, above all else, and will fight for it. • An Ansett 737 takes off 63
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