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Aviation History
1993
1993 - 0035.PDF
regional-type approach to aviation. There's a domestic component there which is im portant, but the more important aspect is the international one." Coming changes in the ownership of Ansett, now seen as certain, will also motivate that carrier towards strategies which will enhance its market attractive ness. "From an Ansett New Zealand per spective, the introduction of trans-Tasman operations here will see the value being added to the operation," says Ansett New Zealand's chief executive Gary Smith. Ansett now has commercial alliances with Malaysia Airlines, All Nippon Airways, Cathay Pacific Airways, United Airlines, Northwest Airlines, and British Airways. Its future polarisation will hinge on the strategic equity in Qantas. Strategies on the Tasman will be shaped by a number of factors: the levels of existing and new competition; by the Closer Eco nomic Relations (CER) policies of the two national governments (including the new single aviation-market initiative); by the speed of both nations' eco nomic recovery; by im provements in terminal and passenger-handling arrange ments; and by developments in Asian and other foreign tourism markets. Trans-Tasman operators agree on one thing: for years it has been difficult or im possible to make stand alone profits on New Zealand-Australia services. "The market on the Tas man has three elements, says Robertson. "New Zeal and, Australia, and others. New Zealand and Australia have been in recession for some time, and traffic on the Tasman, both from a New Zealand and an Austra lian point of view, has de clined in numbers in recent years. The US carriers have operated some of their fifth- freedom sectors between Australia and New Zealand as extensions of their US- New Zealand services at marginal cost; they've made the routes pretty competitive. "The ability to compete on the Tasman and drop fares even further has got to be questionable," says McCrea, who adds: "The US carriers have been here for a long time, operating at those very competitive fares. I think we may get to an overcapacity situation, but that won't necessarily dis suade US carriers from being here. It's not the trans-Tasman business they're here for, it's simply the inbound and the outbound business between the USA and Australasia." With US outbound-passenger numbers also relatively static, perceived future Asian market-growth potential, rather than Aus tralasian regional business and tourism vol ume, is the background against which trans-Tasman move and counter-move will Carriers often extend US-New Zealand services across the Tasman now be made. In that trade the US carriers, without significant fifth-freedom rights on Asia-Australia sectors, will be left behind. Qantas' Tasman planning for the coming (April) schedule change is conservative, but with a wary eye on competitors' initiatives. "Our initial plan is to continue what we have today," says Robertson, "but in the northern winter there are all sorts of opportunities. Australian Airlines will take delivery of more Boeing 737-400s and, by late 1993, we'll be expanding the use of Qantas 767s on domestic routes, which could free up more 737s." Australian, domestic feeder for Qantas, may have to take initiatives to provide a seamless service ANSETT'S PHILOSOPHY Ansett, which is expected to begin trans- Tasman operations in about March-April 1993, sees its Airbus A320 fleet as an ideal start-up type and there are signs that the carrier's philosophy of focus on the busi ness market will be extended to the Tas man. "The significant commercial advantage of the Ansett group is the ability to link its two unique and quite separate domestic networks," says Smith, who, however, does not overlook tourism potential. "We wouldn't go into the Tasman operation with a view to being just another operator sharing the existing traffic. We'd go in with a clear intention of developing tourism between the two countries." Existing Australian and New Zealand terminal arrangements will be unhelpful in FLIGHT INTERNATIONAL 6 - 12 January, 1993 33
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