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

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Occasional Paper 871984, 2-3). A specialised air cargo product 1 ine including newservices such as on-board couriers, satchels and same-day services wasdeveloped. These services, which prior to 1980 had often been left tothe forwarding industry, required the enlargement of the existingground transportation fleet.In October 1982 TAA’s cargo operations were re-organised with aseparate management structure that was given responsibility forformulating and implementing policies necessary to achieve profittargets (TAA 1983, 14). Freight space on aircraft was to be sold tothe cargo division at a price determined by management and accepted bythe Commonwealth Government. TAA subsequently decided to concentrateon retailing container rates to bulk shippers while at the same timeselling net rates to the forwarding industry (Giles 1984, 5).The major changes in cargo strategies by the trunk airlines weredirected at the air freight sector. Developments in the carriage ofair mail were less dramatic. Although the equal sharing provisionsfor air mai 1 were abolished in 1981, the principle of the sharingarrangements was maintained by informal agreement between the threeparties (Australian Postal Commission 1985, 2).Other operatorsAfter the relaxation of direct Commonwealth Government regulation,several existing operators expanded their cargo operations and therewas some new entry in the domestic air freight market.In March 1982 IPEC, which was already operating charter servicesacross Bass Strait, was issued with an airline licence for cargooperations between Essendon and Launceston with its Argosy aircraft(Department of Aviation 1982, 16). The licence was extended toinclude Melbourne-Sydney-Brisbane-Rockhampton-Townsville services inSeptember 1982 and operations to all ports except Rockhamptoncommenced in the following month (Department of Aviation 1983b, 13).The Melbourne-Adelaide route was added to the licence in October 1982.IPEC also introduced a DC9-33F freighter aircraft into domesticcharter ,operations from Melbourne to Hobart and LauncestoninSeptember 1982. This was the first large turbo-jet aircraft to beused on domestic services by a cargo-only operator. The Argosyaircraft previously used on this route were redeployed on the nightlyfreight service between eastern State capitals (IPEC 1985, 1). Thecompany also re-acquired the Argosy 101 which it had earlier sold.In February 1983 new air service licences were created specifically to32
Chapter 4accomnodate pure freight operations (Minister for Aviation 1984, 7).They included cargo charter licences, cargo airline licences and cargosupplementary airline licences. Cargo charter 1 icences weresubsequently issued to two new operators, Bloodstock Air Services andCargomasters. Cargo airline 1 icences were issued to IPEC andEast-West Ai rl i nes.The only new entrant under the modified air freight policy wasBloodstock Air Services which was given approval in principle on 6September 1982 to import a 8727-1OOF aircraft for pure cargo charterservices (Department of Aviation 1983b, 13). The aircraft comnencedoperations in mid-l983 and was primarily intended to carry livestockon both domestic and international routes. However, it was leased byTAA and operated on regular freight services between Melbourne andPerth for most of the period that it was in Australia (Department ofAviation 19844, 23). TAA relinquished the lease on the BloodstockB727 in Apri 1 1984. AT1 subsequently bought the aircraft and leasedit to a freight operator in the US. Bloodstock was wound up in August1984.There was a second new entrant after the relaxation of regulation butthe operation had been approved under the specialist servicesprovision of the old policy. Cargomasters comenced domestic purefreight charter operations in August 1982 using a Hercules freighter(Minister for Aviation 1984, 8). The aircraft was operated ondomestic routes and to the Ok Tedi project in Papua New Guinea until30 May 1983 when it returned to the US to carry out operations for thecompany's joint venture partner. At this point, Cargomasterseffectively wound up its Australian operations.East-West's cargo operations were initially restricted by thecompany's concentration on the passenger market and by the limitationsof its aircraft and route network. However, after a period of rapidexpansion the company acted to upgrade its cargo operations byestabl ishing a separate air cargo operation in November 1985. Theservice initially covered 50 ports including all State capital cities.It was proposed to use lower deck areas as we1 1 as cabin space onEast-West flights with adequate empty seats and to charter space fromother operators where necesssary. The managing director of East-WestCargo stated that air cargo should ideally provide between 10 and 15per cent of airline revenue (Shires 1985).ForwardersThe large forwarder groups continued to develop their air freightoperations during this period and TNT and Mayne Nickless evolved as33
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 28 and 29: Occas ioml Paper 87market, Ansett a
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 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
Page 92 and 93:
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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