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

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Chapter 5newspapers accounted for more than 50 per cent of regional airlines'freight traffic in New South Wales in the 1960s and 1970s but much ofthis business was subsequently redistributed to road transportcompanies as road improvements reduced their transit times (Review ofNew South Wales Air Services 1986).Air Queensland and East-West were the only regional airlines thatrecorded increases in traffic over the five years to 1985-86. In AirQueensland's case, this probably reflected the expansion of itsairline operations as it reduced its involvement in the comnutersector. East-West expanded its service network and placed greateremphasis on air cargo during the latter part of the period. A companyofficial has claimed that East-West used competitive freight rates tocreate new markets, particularly in rural areas (Daily ComnercialNews 1986, 3).There are strong ownership 1 inks between the two trunk airlines andthe regional carriers. Ansett, Air NSW, Ansett NT and Ansett WA areall operating divisions of Ansett Transport Industries (Operations)Pty Ltd. TNT and News Corporation have recently moved to acquireEast-West. Air Queensland is owned by Australian.Comnuter ai rl inesThe amount of cargo carried by comuter air1 ines has generallydeclined in recent years. Their share of total traffic fell from 2.6per cent in 1981-82 to 2.0 per cent in 1985-86 in terms of tonnes andfrom 1.2 per cent to 0.8 per cent on a tonne-kilometre basis. Thisdecline probably reflects the impact of increased competition fromroad transport operators, the concentration of comnuter airlines onthe passenger market and the deterioration in economic conditions inmany rural areas over this period. The five largest operatorsaccounted for 63 per cent of the cargo carried by comnuter airlines in1983-84 (Department of Aviation 1985b, 28-50).2Charter operators and freight forwardersAs noted earlier, the data in Tables 5.1 and 5.2 do not provide acomprehensive description of the air cargo industry as they excludetraffic carried by freight forwarders and charter operators. Chartersreportedly accounted for around 10 per cent of total tonnes embarkedin 1975-76 and 6 per cent in 1981-82 (Gawan-Taylor 1984a, 9). IPECwas the largest carrier in this group up to 1982.2. The operators were Air Queensland, Air Tasmania, Avior, Air Northand Skywest.43
ExpressOccasional Paper 87The major forwarders providing scheduled services are TNT Air and theWards ~ and Security Express - Country Couriers divisions ofMayne Nickless. These companies generally fill market niches that arenot adequately served by the airlines. They specialise in the highyielding air express market including the carriage of bankdocumentation.International airlinesThe pub1 ished data exclude domestic carriage by internationalairlines. Qantas can provide transport on domestic routes foroverseas cargo which is under bond.3Where an international container is landed in Sydney on a Qantasflight but has an ultimate destination elsewhere in Australia, thereare several arrangements for domestic transfer. Melbourne traffic ismainly moved on Qantas flights and the majority of Brisbane traffic isalso carried by Qantas. There is limited carriage on internationalservices through other ports. The available data indicate thaton-carriage of international cargo on domestic sectors by Qantasamounted to 22.7 million tonne-kilometres in 1985-86 (Qantas, pers.comm. 1987). This was equal to 14 per cent of the cargo carried bythe domestic airlines in that year.Where Qantas does not provide domestic on-carriage on its own flights,it attempts to use air transport wherever possible. Internationalcargo transferred direct from Qantas flights to domestic aircraft fordomestic' on-carriage amounted to 2.1 million tonne-kilometres in1985-86 (Qantas, pers. corn. 1987). Additional cargo is passed to thedomestic airlines by freight forwarders who handle most of Qantas'cargo. However, industry sources indicate that international oncarriage(including forwarders' traffic) passed to the domesticcarriers accounts for less than 10 per cent of the trunk airlines'traffic.Forwarders contacted during the study advised that internationalconsolidation cargo arriving by air in Melbourne or Sydney is mainlymoved by road on domestic routes. This reflects the relatively highcosts of air transport and the ability of road transport operators toprovide overnight delivery on the major routes. Several companiesspecialise in moving freight by road between forwarders' premises atvarious ports.3. Cargo under bond has not been cleared by the Australian CustomsService.44
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 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 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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