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

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Occasional Paper 87domestic routes by Qantas could be substantially reduced. However,this traffic would not necessarily be transferred to the domesticairlines. If containers were broken down by forwarders in Sydney andMelbourne, most of the cargo would probably be moved by roadtransport.The extent to which international cargo is positioned domesticallycould also be affected by changes in schedules for international airservices. In particular, the introduction of more direct services tosmaller ports such as Adelaide could reduce the level of domestictransfers.The impact of these kinds of changes is not included in the forecastspresented in Table 8.1. Actual growth in domestic air cargo trafficmay therefore deviate substantially from these estimates.INDUSTRY STRUCTURE AND OPERATIONThe major influences on the future structure and operation of thedomestic air cargo industry can be considered in terms of theregulatory arrangements, curfews, aircraft and the broader operatingenvironment.Regulatory frameworkIt was noted in Chapter 4 that the domestic air cargo industry isstill subject to significant direct regulation. Several Stategovernments continue to regulate intrastate operations, access todomestic cargo by international airlines is restricted and theCommonwealth Government requires prospective entrants to establishthat there is a demand for their proposed services. Changes to thesepolicies could directly affect the structure and operation of thedomestic air cargo industry.The regulatory framework for airline passenger operations will also bea key determinant of the industry's structure in coming years.Inparticular, the arrangements implemented by the ComonwealthGovernment when the Airlines Agreement expiresin 1990 will have asignificant impact.Current arrangementsUnder the present regulatory regime for the domestic airline passengermarket, Australian and AAF would be expected to retain prominentpositions in the domestic air cargo industry. This reflects the lowoperating costs of mixed-configuration aircraft for daytime cargoservices, the advantages associated with established customer andservice networks and the links with major forwarding groups. Some68
Chapter 8expansion of other existing operators could occurbut this wouldprobably be limited to market niches requiring small aircraft or otherspecialist services not provided by the major airlines.The opportunities for profitable operation of freighter aircraft inthe Australian market are unlikely to increase significantly in thenear future. The small size of the domestic air cargo market,directional imbalances in traffic and the relatively high freightrates required for profitable freighter operations mean that the scopefor additional all-cargo operators is limited. AAF has reportedlyconsidered the operation of an Adelaide-Melbourne-Sydney-Brisbanefreighter service using two BAe 146 aircraft but concluded thatpresent traffic would not be sufficient for a viable operation(Aircraft 1986, 12). The experience of Bloodstock Air Services andCargomasters suggests that additional specialist freight carrierswould find it difficult to secure viable long-term niches in themarket, particularly if they did not have substantial financialsupport and links with major shippers. However, managerial strategiesand changes in economic conditions may have been significant factorsin the withdrawal of these operators.It seems unlikely that changes in the trunk airlines' operations wouldhave major effects on the networks operated by TNT Air, Wards Expressand Security Express - Country Couriers. The forwarders havespecialised in the carriage of high yielding traffic in smallfreighters and operate at times or on routes where the airlines do notprovide the required cargo services. However, scheduling changesbythe trunk airlines could eliminate the need for some small freighteroperations such as services into Darwin.The forwarders' operations could be significantly affected by anychanges to the arrangements for the transfer of bank documentation.In particular, increased use of electronic facilities could lead tothe withdrawal of many freighter services as non-bank cargo alonecould not support these operations.Arrangements for the transport of mail by air may be affected by theoutcome of the review recently undertaken by the Australian PostalComnission. The successful use of small charter aircraft on a trialbasis to move mai 1 between Melbourne , Sydney and Brisbane from June1986 may also have implications for the carriage of air mail. Thisexercise arose from attempts to overcome capacity problems on theearly evening passenger flights into Brisbane. The operation wasextended to include Canberra in June 1987. Limited use of charteraircraft on selected routes where the major air1 ines cannot provide69
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BTE Publication SummaryDomestic Air
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CHAPTER 7CHAPTER 8CHAPTER 9APPENDIX
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7.2Annual change in average yield i
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CHAPTER 1INTRODUCTIONThe discussion
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CHAPTER 2 THE AIR CARGO MARKETThe d
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Chapter 2involved in the movement o
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Chapter 2176 -150 -150 -140 -130 --
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Chapter 21984-85. The importance of
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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 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 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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