Green light for China take-off flashed to Pacific Air Express
- Latest News
- Friday, 16 June 2017
Brisbane-based air cargo carrier Pacific Air Express will be moving into a new phase of operations thanks to a decision this week by the International Air Services Commission to grant it unlimited Australian capacity and frequency on the China route.
This green light comes as no surprise. As we reported at the time of application, the Department of Infrastructure and Regional Development’s Register of Available Capacity notes “there are no limitations in relation to frequency, capacity or aircraft type for dedicated cargo services between Australia and China”.
PAE managing director Gary Clifford explained the carrier “seeks to continue its development of trade routes using dedicated freighter aircraft by introducing a scheduled freighter service which will link northern Australia and the south west Pacific region with China.
“The proposed service will operate between Brisbane and Guangzhou using Boeing 757-200F aircraft with 32 tonnes freight capacity. Commencement of this service is planned for mid-November 2017.”
IASC undertook its legal requirement of calling for other capacity applications or relevant submissions.
Nobody put their hand up. Because the bilateral arrangement is an open one IASC was then required primarily to satisfy itself a capacity allocation would be of benefit to the public.
Approving the capacity request, IASC executive director Marlene Tucker, acting as delegate for the commissioners, noted that Qantas was the only other Australian carrier operating direct freight service on the China route (Sydney-Shanghai) while Federal Express and Polar Air Cargo also provided all-cargo services between Australia and China with connections to other cities such as Los Angeles, Honolulu, Tokyo and Auckland.
“Accordingly, the commission's delegate considers that the use of the entitlements by Pacific Air Express to operate all-cargo services between Australia and China would be of benefit to the public and has decided to allocate the capacity sought by that carrier.”
Conditions were tagged to the approval but these are nothing unusual: PAE can use the allocation only itself and not jointly with any other Australian carrier unless approved, substantial ownership or control of PAE must remain in Australian hands and the allocation must be fully utilised by April 30 next year unless other arrangements are made with IASC.
PAE was given a 10 year determination instead of the five years it sought – IASC is looking increasingly to the longer term in its allocations.
The carrier picked up another 10 year determination last week when IASC – as expected – gave it an almost open slather OK on the Nauru route, again with the usual caveats. This comes into effect next year, building on the current allocation.
PAE utilises B737 freighters on this and other Pacific Island all-cargo services.
- Kelvin King.