Domestic Air Cargo Industry in Australia - Bureau of Infrastructure ...

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Occas ioml Paper 87market, Ansett also operated two B727 aircraft in the 'Quick Change'configuration as well as the three Carvairs and one DC4 (Department ofCivil Aviation 1971, 3). In 1972 Ansett's Carvair and DC4 freighterswere replaced by Lockheed Electra aircraft which were transferred fromAnsett's passenger fleet and converted to a pure cargo configuration.Throughout the 1970s the two airlines continued to hold differentviews on the appropriate role of air cargoin their operations.Ansett placed greater emphasis on cargo and carried 54 per cent of thecargo moved by the trunk airlines in 1977. It earned 11.4 per cent ofits revenue from air freight and mai 1 in that year while thecomparable figure for TAA was only'8.5 per cent.5 These proportionswere much lower than the corresponding figures of 19.3 per cent and15.1 per cent in 1965 due to the faster growth of passenger revenue(Department of Transport 1979a, 104-106).The two trunk airlines also held different views on the appropriateaircraft for cargo operations in Australia. In 1977 TAA carried 12.5per cent of its cargoin freighter aircraft while the comparablefigure for Ansett was 37.9 per cent. At this stage, TAA relied onDC9s with freight loaded in bags on the seats and F27QC aircraft forspecialised freight operations whereas Ansett operated the fourLockheed Electra freighters as well as the 'Quick Change' F27s andB727s (Department of Transport 1979a, 103-105).ENTRY OF OTHER OPERATORSThe Commonwealth Government was generally opposed to the establishmentof competing specialist air freight carriers for much of the post-warperiod. This apparently reflected a belief that such operators wouldbe uneconomic or dilute the air freight revenue received by the twotrunk carriers. However, specialist operators later achievedasignificant position in the industry as the restrictions on competingcarriers were relaxed.Activities of freight forwardersThe organisations interested in the operation of air cargo servicesincluded the freight forwarders. The expansion of forwardingactivities was a major feature of Australian transport in the post-war5. The Ansett figure underestimates the relative importance offreight in the company's airline operations as the total revenuefigure covers Ansett Transport Industries Ltd as a whole. Freightreportedly accounted for 17 per cent of Ansett's total airlinerevenue in 1975-76.20
Chapter 3period. Forwarders introduced the concept of a single invoice underwhich they assumed responsibility for door-to-door movement as part ofa total package of transport services. They also consolidated smallconsignments into larger loads which attracted lower carriage rates.Part of the reduction was passed onto shippers in the form of lowerfreight rates.Forwarders initially developed in the road transport sector but theyquickly achieved major positions in rail and sea transport. By the1960s companies such as Thomas Nationwide Transport Ltd (TNT),Alltrans Pty Ltd, Mayne Nickless Ltd, Ansett Freight Express andInterstate Parcel Express CO Ltd (IPEC) handled a substantialproportion of the traffic carried by these modes.Development of forwarder activities in the air cargo sector was muchslower as the trunk air1 ines initially preferred to rely on their owndirect selling efforts to obtain freight business. Forwarders claimedthat the airlines treated freight as a second class cornnodity, withfreight not being loaded if passenger traffic limited the spaceavailable and not being unloaded if turnaround times for passengeroperations would be adversely affected. Attempts by forwarders tooperate their own aircraft were initially blocked by the CornnonwealthGovernment but the restrictions were gradually eased.IPEC AirA major development occurred in February 1963 when IPEC Air Pty Ltdcommenced regular air freight operations using a chartered DC3aircraft operated by Brain and Brown. This followed the provision offreight forwarding services through sub-contractors by Ansett and TAA.The airlines had then become IPEC's direct competitors in the freightforwarding sector as well as the only carriers of its air freight(IPEC 1985, 1).In March 1964 IPEC applied for licences to import five DC4 freighteraircraft and operate all-freight services between Sydney, Melbourne,Brisbane, Adelaide, Perth and Launceston. The applications wererefused by the Director-General of Civil Aviation in December 1964 onthe grounds that further facilities for theoperation of freightservices on trunk routes were not justified on economic grounds(Poulton 1981, 45). IPEC challenged this refusal in 1965. The HighCourt subsequently ruled in favour of IPEC on the question of theissue of a charter licence to operate freighter aircraft but againstit on the permit to import aircraft.There was some relaxation of Commonwealth Government controlson21
Page 1: BTE Publication SummaryDomestic Air
Page 6 and 7: CHAPTER 7CHAPTER 8CHAPTER 9APPENDIX
Page 8 and 9: 7.2Annual change in average yield i
Page 10 and 11: CHAPTER 1INTRODUCTIONThe discussion
Page 12 and 13: CHAPTER 2 THE AIR CARGO MARKETThe d
Page 14 and 15: Chapter 2involved in the movement o
Page 16 and 17: Chapter 2176 -150 -150 -140 -130 --
Page 18 and 19: Chapter 21984-85. The importance of
Page 20 and 21: Chapter 2sources indicate that the
Page 22 and 23: Chapter 2TABLE 2.4 AUSTRALIAN DOMES
Page 24 and 25: Occasional Paper 87commenced with t
Page 26 and 27: Occasional Paper 87required the two
Page 30 and 31: Occasional Paper 87specialist freig
Page 32 and 33: Occasional Paper 87characterised by
Page 34 and 35: Occasional Paper 87TABLE 4.1MAJOR E
Page 36 and 37: Occasiona 7 Paper 87general manager
Page 38 and 39: Occasional Paper 87also specificall
Page 40 and 41: Occasional Paper 871984, 2-3). A sp
Page 42 and 43: Occasional Paper 87the major operat
Page 44 and 45: Occasional Paper 87also substantial
Page 46 and 47: ~~CHAPTER 5 CURRENT INDUSTRY PARTIC
Page 48 and 49: Chapter 5TABLE 5.2 AUSTRALIAN DOMES
Page 50 and 51: Chapter 5newspapers accounted for m
Page 52 and 53: Chapter 5If cargo is not under bond
Page 54 and 55: CHAPTER 6 CURRENT OPERATIONAL PRACT
Page 56 and 57: Chapter 6not obtain as much of the
Page 58 and 59: Chapter 6divisions of AT1 at rates
Page 60 and 61: Chapter 6combined banks contract fo
Page 62 and 63: CHAPTER 7 RATING PRACTICESThe struc
Page 64 and 65: Chapter 7carried at the published r
Page 66 and 67: Chapter 7(Department of Aviation 19
Page 68 and 69: Chapter 7TABLE 7.2ANNUAL CHANGE IN
Page 70 and 71: Chapter 7contacted during the study
Page 72 and 73: Occasional Paper 87TABLE 8.1 FORECA
Page 74 and 75: Occasional Paper 87domestic routes
Page 76 and 77: Occasional Paper 87adequate capacit
Page 78 and 79:
Occasional Paper 87large amount of
Page 80 and 81:
CHAPTER 9 CONCLUDING REMARKSThe dom
Page 82 and 83:
Chapter 9but it appears that in at
Page 84 and 85:
a30TABLE 1.1 AUSTRALIAN AIRLINES' F
Page 86 and 87:
W TABLE 1.2 AAF'S FREIGHTER NETWORK
Page 88 and 89:
TABLE 1.3-TNT AIR'S OVERNIGHT FREIG
Page 90 and 91:
% TABLE 1.4 TNT AIR'S DAYTIME FREIG
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CO03 2r,TABLE 1.5 (Cont.) WARDS EXP
Page 94 and 95:
Occasional Paper 87(1984), Transpor
Page 96 and 97:
Occasional Paper 87- (1979e), Anset
Page 98:
ABBREVIATIONSAA F Ansett Air Freigh
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