On
the 27th of April 1981 the Wellington Aero Club commenced a
Wellington-Blenheim-Nelson service for carriage of The Dominion newspaper using a Cessna 320. By mid-July the Club
realised that the courier service, which operated on temporary licences, was becoming
problematic and it was decided to discontinue the service. It was this decision
that led to the establishment Air Albatross and Murray Turley applying for an
air transport licence to conduct scheduled services from Wellington to Blenheim
and Wellington to Nelson in July 1981.
Murray Turley’s flying career began in 1955 when he
learned to fly with the Nelson Aero Club in Tiger Moths and Piper Cubs. His
early two hundred hours flying time in the Nelson and Cook
Strait area established a knowledge and affection for this area. In 1959 he
went to Christchurch to join air traffic control before going to NAC as a pilot
in 1960. After four years, he left the corporation. After a break from aviation
he eventually returned to the air Wellington Aero Club and Capital Air Services.
 |
| Murray Turley, 28 January 1984 |
His
application for an air transport licence envisaged a minimum frequency of 3
return flights per week on both the routes from Wellington to Blenheim and
Nelson along with a non-scheduled service between Blenheim and Nelson and air
charter or air taxi services from Wellington to any licensed airfield in New
Zealand. Murray Turley’s intention was to operate as a sole trader under the
name of Air Albatross, a name chosen for his unsuccessful
tender to operate the Chatham Island service as a replacement for the Safe Air
Bristol Freighter service.
In
terms of aircraft the application looked to initially use a five seat Piper PA23
Aztec. As traffic built up it was proposed to replace the Aztec with a 10-seat
Aero Commander 680FL or a 9-seat Cessna 402. Murray Turley also sought the right
to negotiate increased or decreased freight rates on a contractual basis with
long-term customers such as The Dominion.
The application proposed a Monday Saturday timetable of flights departing
Wellington at 6.00 am arriving at Blenheim at 6.25am and Nelson at 7.05am. The
aircraft would then depart from Nelson at 7.25am to arrive into Wellington at
8.00am. The early flight times were to enable the early morning delivery of
newspapers, mail and courier freight to Blenheim and Nelson.
As
the application was being considered Air New Zealand announced its intention to
cut its early-morning return flights between Wellington and Blenheim in October
of that year. James Air, keen to replace Air New Zealand’s early morning
service to Blenheim, objected to Turley’s proposed service, even though they
had withdrawn from the very same service in April that year.
On the 2nd of September 1981 the Air
Services Licensing Authority granted M C Turley a licence to operate scheduled services on the
Wellington-Blenheim and Wellington-Nelson routes with a minimum of 5 return flights
on each route each week, a non-scheduled service on the route Blenheim-Nelson
route and air charter and air taxi services from Wellington to any licensed
airfield or authorised landing place in New Zealand using a 9-seat Cessna 402.
He was also granted the right to apply a discount up to but not exceeding 50%
of the adult fare for stand-by passengers and to grant discounts of up to 50%
on freight rates where contracts were negotiated for selected cargoes depending
on volume, type and density.
Services
began on or about the 3rd of September 1981 using Piper PA23-250 Aztec C ZK-DUB
which had been registered to Murray Turley on the 31st of August
1981. Fellow pilot Neil Bartlett was
also instrumental in the establishment of the fledgling airline. Advertisements in the Evening Post and
Dominion newspapers stated that Air Albatross was operating Cook Strait
services for newspapers, freight and urgent freight and that passenger services
would start on the 2nd of November 1981. Nonetheless passengers were
flown with 60 people using Air Albatross in September and 67 in October 1981.
ZK-DUB remained registered to Murray Turley until October 1982.
 |
| Air Albatross' first aircraft, Piper Aztec ZK-DUB at Wellington on 23 October 1981 |
 |
| Evening Post, 28 September 1981 |
In
preparation for more formal passenger services Cessna 402A ZK-DHW was purchased
from Westland Flying Services and it was registered to Murray Turley on the 28th
of September 1981 and subsequently painted in Air Albatross colours. Timetabled
operations began on the 9th of November 1981, with three weekday flights a day being
operated between Wellington and Blenheim, and two between Wellington and
Nelson, the morning flight being via Blenheim.
 |
| Back in Hokitika... Air Albatross had bought Cessna 402 ZK-DHW from Hokitika-based Westland Flying Services. It was back in Hokitika on an Air Albatross charter in August 1982 |
 |
| Timetable Number 1, Effective November 1981 |
On
the 8th of December 1981 Air Albatross was granted approval to grant discounts
up to 50 percent on fares for particular groups of people and/or for travel at
specified times or on specified flights. Using this concession, Murray Turley
nominated the entire schedule for the month of January, and all flights during
that time attracted what he termed “holiday incentive fares.” This meant the Nelson-Wellington
air fare was $35 down from its normal fare of $46 and Air New Zealand’s $52 fare
and the Blenheim-Wellington fare was reduced from $40 to $30 compared to Air
New Zealand’s $45 fare.
This
precipitated a growth in passenger traffic adding to the growing amount of freight
being carried. In February 1982 Murray Turley sought permission to add a second
Cessna 402 to the fleet. In his letter to the Air Service Licensing Authority
he stated that, since 1 September 1981 we
have had to offload freight on our
early morning mail and newspaper flights to Blenheim and Nelson on seventy-one
flights out of 123 flights operated, with an average offload of 200 kg and a
peak offload of about 500 kg plus offloading freight on an additional 17
flights since mid-November 1981. These figures are current to 31 January 1982...
Also the strong pressure for a back-up aircraft would be understood by the
Authority, and reinforces the need for an additional aircraft on the licence to
cover maintenance and weather disruptions… The need for the additional capacity
is immediate and pressing, hence the attached application for a temporary air
service licence for one extra Cessna 402 namely ZK-DSG to provide a short term
partial solution to our capacity problems.
A
temporary licence was subsequently granted allowing the use of ZK-DSG. From the
15th of February 1982 Air Albatross introduced an additional weekday
late afternoon/ evening flight between Wellington and Blenheim. Air Albatross
was rapidly changing Cook Strait travel. Murray Turley was reported as saying the
competition between his company, James Air and Air New Zealand was a unique
situation. “It’s the first time two
private schedule operators have been placed in a competitive environment
alongside Air New Zealand.” Air New Zealand’s Nelson manager, Mr Bob Bryan,
admitted “the two private operators have
been taking a few passengers away from us. Albatross had their cheap fares in
January which proved popular but it is difficult to gauge if they have
attracted a significant amount of passengers away from us as we were down on
traffic last year which reflected a nationwide trend. We are losing some
customers to private operators but not in droves. Most people preferred flying on Friendships
than on smaller aircraft. Tourists and other people often get a fright when
they see Albatross’s Cessna 402. They like the bigger plane.”
 |
| Air Albatross' "temporary" Cessna 402, ZK-DSG at Wellington on 21 September 1982 |
In
April 1982 Air Albatross introduced a 10-trip concession ticket at a 10 percent
discount, the first of its kind in New Zealand. A return fare on the concession
ticket from Nelson to Wellington cost $83 compared to the $122 charged by Air
New Zealand. Then, in May 1992, Air Albatross applied to amend its licence by adding
a 19-seat Swearingen Metroliner to its fleet. Air Albatross was certainly
making its presence felt and it was this point that marked the beginning of a
battle with Air New Zealand and the Air Services Licencing Authority.
Air
Albatross’ first eight months of operation had seen a meteoric rise in traffic.
In September 1981, the first month of operations, 17,641kg of freight was
carried. By 1982 this had grown to 28,940kg. Passenger growth was even more
dramatic. 60 passengers were flown in September 1981, 834 were flown in the
discounted month of January 1982 and 950 passengers were flown in April 1982.
In support of his application Murray Turley reported that since February 1982,
freight was offloaded on 33 occasions and severely restricted on a further 85
occasions, to give a total of 118 flights. Payload was severely restricted on
14% of the total flights completed in the period February to April 1982
inclusive, and on over 50% of the Nelson flights. He also stated that a factor
having a strong influence on passenger growth rate was the passenger fare
increase granted to Air New Zealand. This had resulted in a significant fare
differential of up to $29.00 for a return fare between Wellington and Nelson. Air
New Zealand’s fare increase had an immediate and sustained increase in
passenger traffic on Air Albatross’ services but this increase was constrained
by the aircraft used and timetable. “The
travelling public has unquestionably demonstrated a preference for the lower
fares, not even being deterred by the disparity in size and comfort of the
equipment offered viz Cessna 402 vv Fokker F27. To illustrate this point, a
further 112 flights during the period February to April 1982 inclusive carried
full passenger loads with unsatisfied waitlisted passengers.” His application
also detailed a growing air charter market for the fledgling airline.
While
awaiting a decision on the addition of a Metroliner to the fleet Turley had to
keep operating the second Cessna 402 under temporary licences. In August 1982
he applied for an amendment for a fresh temporary licence to cope with an expanding
schedule as well as allowing him to operate additional flights as demand
required.
 |
| The hoped for Swearingen Merlin IV 'Metroliner' VH-CFO at Wellington on 21 September 1982. There is a small "Fly Albatross" sticker below the cheatlines under the cockpit. Air Albatross wasn't going to fly this aircraft in 1982, however, in 1984 it was added to the fleet as ZK-SWB |
The
Air Services Licensing Authority, however, were becoming unsettled about the manner
in which Air Albatross was discounting its air fares and the Authority called
Murray Turley to report to a public inquiry to decide whether the Authority should
amend or revoke or substitute the special condition granted in December 1981
whereby Air Albatross was authorised to apply discounts up to, but not
exceeding 50% on fares on scheduled and non-scheduled services in respect of
particular groups of people and/or for travel at specified times or on
specified flights subject to such restrictions as may be specified by the
licence holder.
The
hearing gave a detailed account of the discounting Air Albatross had applied.
In January 1982 the airline discounted ordinary fares for persons travelling Wellington-Blenheim
and Wellington-Nelson by 25%, the main effect being on Air New Zealand and
James Air. Other discounts offered included the sale of 10 trip concession tickets
with a 10% discount, a discount of 10% on all return fares and a 20% discount
on the 6.30am flights from Wellington to Blenheim or Nelson.
The
Licensing Authority had to consider whether the discounts granted were of a
kind authorised by the special condition granted in December 1981, namely, whether
the concessions have been “in respect of particular groups of people and/or for
travel at specified times or on specified flights” within the meaning of those
words in the context of the whole condition. The Authority was of the opinion that
the condition extended no further than to give Mr Turley the right to grant
discounts only in respect of particular groups of people and/or only in respect
of travel at particular or specified times or on particular or specified
flights. Its view of “specified” flights were that they must be expressly named
by reference to their time of operation or by other such details. Similarly for
travel to be at specified times, the times must be named, that is, as to the
days of the week or the times of the day. In the same way it said unless a ‘particular
group’ exists a discount cannot be offered. “All
persons now travelling on Mr Turley’s flights have the right to purchase ten
trip tickets or discounted return tickets. The availability or use of such
discounts cannot in result in persons purchasing the discounted tickets becoming
a special group having something predicated to them which is not predicated to
others.” The Authority said the only discount being correctly applied is the
20% discount allowed to passengers travelling on the early morning newspaper
freight flights leaving Wellington at 6.30 a.m. Evidence presented showed that the
additional Cessna 402 operated on temporary licences since February 1982 was
used not only to cope with the freight build up but also to exploit the
potential passenger traffic. The Authority was “satisfied that this exploitation has been an active campaign on the
part of Mr Turley assisted in no small measure by offering improper discounts.”
 |
| Hopeful - A photo of a Metroliner appearing on the Air Albatross timetable effective 5 September 1982 |
In
coming to its decision the Authority stated, “It is our view that the valuable role of commuter airlines is in
supplying complementary services. This should be done (and is now being done on
a number of routes throughout the country) only to the extent of providing
adequate capacity and adequate frequency of operation to provincial towns and
centres which cannot sustain regular Friendship operations. It was because of
the need to provide a service not available from other operators (i.e. a
complementary service) that Mr Turley was licensed. By using the temporary
licence which he was granted to assist with overloads on that complementary
service and by using improper discounts he has considerably expanded that
service and is now operating in direct competition with Air New Zealand in
particular and to a lesser extent with James Aviation… It is not possible for
commuter operators to offer the complete type of service available from Air New
Zealand. On most such operations the pilot carries the bags, loads and unloads
the aircraft, closes and opens the doors and flies the machine. While the
services offered by commuter operators may well suit a section of the
travelling public who do not require the additional facilities provided by Air
New Zealand the loss of a service such as Air New Zealand provides could result
in less advantaged travellers being left without any service or a less than
adequate service to meet their special needs.”
The
Authority decided that the rights held by Air New Zealand were encroached upon
in a manner and to a degree which cannot be regarded as healthy competition. Air
Albatross’ success had come from the improper discounts he was offering and the
introduction of services not in any way connected with the early morning
freight trips. The Authority revoked the December conditions and substituted these
by authorising discounts up to but not exceeding 20% on fares on scheduled
services departing Wellington at 6.30 a.m. for Blenheim and Nelson. Air
Albatross’ application to operate a Metroliner on its services was also
declined.
 |
| Air Albatross' Cessna 402B ZK-EHT at Nelson on 15 April 1984 |
Murray
Turley was not happy with the decision and announced that he would continue to
offer discounts on 10-trip and return tickets until an appeal against the
ruling was heard. In November 1982 the company returned to the Air Services
Licensing Authority to amend its licence to add a Metroliner and either a Cessna
402 or Cessna 441 Conquest to its fleet and to add a new Nelson to Auckland
route to its services. At the hearing in mid-December 1982 Air Albatross was accused by Air New
Zealand’s counsel of ignoring the Air Services Licensing Authority by its
continued sale of discounted fares and for operating aircraft beyond the number
of aircraft authorised by its licence. “One
could excuse a minor operating error - but this applicant seems intent on
continuing to completely ignore the authority,” he said. The Air Service
Licensing Authority “adjourned indefinitely” the hearing of the application for
a direct Nelson-Auckland service until the four other applications were heard
by the appeal authority.
In
June 1983, a week before Air Albatross was to present its Licencing Authority
appeal Air New Zealand announced its decision to reintroduce a direct Nelson-Auckland
Friendship service despite the fact that Air Albatross’ application to operate
the same route had still not been heard. Murray Turley was quoted as saying that
“when Air New. Zealand decided earlier
this year to withdraw its Napier-Christchurch service, Mount Cook Airlines and
Central Air immediately applied to take over the route. As a result Air New
Zealand then reconsidered its decision. The resumed Nelson-Auckland flight
showed Air New Zealand was only prepared to give the public what it had to. The
announcement would have no effect on Albatross’s plans. Air New Zealand will
have competition.”
Air
Albatross’ appeal was eventually heard on the 14th of June 1983. The airline
argued that the Licencing Authority had erred greatly in its assessment of the
public interest in this case and submitted that both consumers and operators had
to be considered and that healthy competition was desirable. Air New Zealand
had no right to special treatment and the alleged illegal operation involving
discounts and temporary licences for the use of the second Cessna 402 were not
relevant. The Appeal Authority agreed with the Licensing Authority that some of
the discounts offered were illegal and played a large part in the growth of
passenger numbers. With the decisions of the Licencing Authority upheld Air
Albatross lost its rights to offer discounts on most of its Cook Strait flights.
The application to operate a Metroliner was also declined. Marlborough’s MP Mr
D. Kidd told the Evening Post that while the decisions were correct in law, the
result showed that qualitative rather than quantitative licensing is needed,
and that judgement on the quality of an air service would be better for
provincial services around the country. Mr Kidd was Chairman of a Parliamentary
Select Committee which was at this time studying the Air Services Licensing
Amendment Bill.
With
Air Albatross’ appeal being unsuccessful the airline returned to the Air
Service Licensing Authority in July 1983 once again seeking a temporary licence
to operate its second and a possible third Cessna 402. By this stage the
Authority seemed to be getting frustrated with Murray Turley. The finding
recorded, “While accepting that he (Murray
Turley) has a licence to operate “only one aircraft” he agrees that “since
February 1982 I have been using two Cessna 402 aircraft in the operation of air
services for freight and mail and passengers”. From early February 1982 Mr
Turley applied for a series of temporary licences for additional Cessna 402.
The grounds for these applications are covered in Decision No. 65/1982 and in
Appeal No. 88. Not all periods since February 1982 have been covered by
temporary licences authorising Mr Turley to operate additional Cessna 402
aircraft. The last temporary licence issued expired on 1 October 1982. It is
clear that for certain periods after 5 February 1982 and continuously since 1
October 1982 Mr Turley has operated timetabled services during both mornings
and afternoons which have resulted in two aircraft being used when his licence
has permitted the operation of one aircraft only. We are not in doubt that the
build-up in traffic he speaks of in the supporting statement has resulted from
improper discounts (vide Appeal No. 88) and from his use of a second aircraft
for which he has held no licence. Evidence obtained by illegal operations has
always been rejected by the Air Services Licensing Authority. When the evidence
obtained in this way is excluded we can find no grounds that would justify
granting Mr Turley the right to operate two additional C402 aircraft without
restriction. The fact that he has accepted forward bookings is not a matter to
which we can give weight. There is no evidence that Air New Zealand and James
Air are unable to cope with the available traffic which cannot be accommodated
and carried legally by Mr Turley. Accordingly we are not satisfied that it is
established by any admissible evidence that the proposed service is necessary
or desirable in the public interest or that the needs of the districts to be
served require the addition of two further aircraft to his existing rights. The
Licensing Authority has in granting earlier temporary licences accepted that
there can be a need to operate one Cessna 402 aircraft from Wellington to
Blenheim and a second from Wellington to Nelson on the early morning newspaper/
freight/ passenger services. This was the purpose for which licence No. 1555
was granted. The Authority is of the opinion that this need should be met and
that a temporary licence should be issued for one C402 aircraft restricted to
operating on such early morning services and the return journeys thereof. The
application is granted to that extent only.” This, another temporary
licence, was again only valid for one month. The following month Air Albatross
had to apply all over again.
With
the new the transport delicensing legislation passed, in mid-November 1983 Air
Albatross announced it would introduce a 19-seater Metroliner to its fleet the
following month and that it would reduce its fares on its Cook Strait flights. The
New Zealand Herald reported that for Murray Turley “the third reading of the Air Services Licensing Bill meant
exhilaration and intense excitement. It meant an end to his battling with the
Air Services Licensing Authority to keep his fledgling, Air Albatross, in the
air. An end to the ploys and counter ploys, the moves and countermoves, the
horridly expensive legal actions, and the manoeuvrings stopping just short of
skulduggery which had been his burden for two years.”
The
company’s first Swearingen Metroliner, ZK-SWA, was a 1978 model purchased for “around
the $1 million mark” from Skywest Airlines, of Perth. It arrived in Wellington in
late November 1983 in preparation for the amendment to the Air Services
Licensing Act came into force the following day. Speaking at the time of its
arrival Air Albatross’ deputy-operations manager, Mr Gary Moore, said, “Nelson is served with six Cessna 402
flights daily at present. When the Metroliner was introduced, probably in the
week beginning December 12, it will provide five flights a day and there will
be one Cessna 402 flight. This will increase passenger capacity from 45 to 90.
The Metro class fare proposed is $50 with a “leisure class” fare of $40 on the
Cessna 402 flight. Mr Moore said all air operators have to reapply for a
licence under the amended legislation. Provided the paperwork was satisfactory
the licence was expected to be granted automatically. Mr Moore said that
although the frequency of flights during the week will not be increased
initially, additional flights will be provided on each day at weekends. The
company is also considering extending its services by introducing a
Nelson-Auckland link using a second Metroliner.”
 |
| Air Albatross' first Swearingen Metroliner II, ZK-SWA, at Nelson on 15 April 1984 |
Air
Albatross began Metroliner operations on the 15th of December 1983 and by
Christmas 1983 the Metroliner was making four daily flights into Nelson and
three into Blenheim with its speed and rate of climb impressing locals in both
centres. Managing director Mr Murray Turley said air travellers had responded
well to discounted, off-peak fares. Traffic was heavy up to Christmas but
patronage since then had increased even further. “It has been very noticeable that people are more price conscious and
are shopping around to get the best deal. This is partly because they didn’t
have that choice before. It has meant that loadings have been a bit unbalanced
with heavier off-peak flights, but it’s all good business and we’re very
pleased. Because of the competitive fares many more families have been
travelling by air these holidays than I’ve seen for possibly five years.”
An
interesting Metroliner training flight was made to the 1600m Lake Station
airstrip near St Arnaud in late December 1983 in preparation for the opening the new Alpine Lodge Rotoiti. The lodge was officially opened on the 28th of January 1984 and invited guests, travel agents and media were flown to St Arnaud from Auckland and Wellington in Air Albatross Metroliner ZK-SWA and one of the company's Cessna 402s. The Lake Station airstrip was used during the Second World War as a training strip and was reactivated by Air Albatross in collaboration with the station's owner, Mr Lex McConachie. Air Albatross's managing director, Mr Murray Turley, flew in a fully-laden Metroliner for the first time, and said afterwards that everything went without a hitch. He still had plenty of runway left when the aircraft stopped. The strip could easily handle a Friendship or Hawker Siddeley aircraft, he said. The invited guests were taken on a 15 minute scenic flight over the Nelson Lakes National Park in the Metroliner before being flown home. Air Albatross plans to
promote the area and arrange direct flights for hunting, fishing, skiing, tramping
and river rafting came to nothing. It also looked to
develop at airfield at Collingwood and in July 1984 Air Albatross announced it
was is interested in developing a new airfield at Motueka.
By
the end of January 1984 Air Albatross was carrying more than 3000 passengers per
month with a fleet of three aircraft, the Metroliner and two Cessna 402s using 12
full-time pilots and a total staff of 25 based in Wellington, Nelson and
Blenheim.
In
February 1984 Air Albatross announced
its plans to acquire a second Metroliner and start a Nelson-Auckland service. Managing
director Mr Murray Turley told the Nelson Evening Mail, “The Nelson to Auckland service would operate seven days a week and
include an extra leg to Blenheim. The service is aimed specifically at the
business market and would complement, rather than compete with, the Air New
Zealand Friendship mid-morning service. The company has taken on three
additional co-pilots and a captain for the Auckland service.” At this stage
Murray Turley owned 80 per cent of Air Albatross with Ted Sweetman of Variety
Travel owing the remaining 20 per cent.
The
new Metroliner service proved very popular. Murray Turley was reported as
saying rewards come from the satisfied
customers who find bumping their own baggage to the· aircraft and talking to
pilots, not manicured hostesses working for the monolithic state enterprise, to
their liking. Many people say they fly Air Albatross simply because it isn’t
Air New Zealand. Turley thinks that is all to do with time. It saves
passengers, up to 20 minutes a flight if they can put their own luggage on
board, and carry it from the tarmac. He doesn’t think it would be wise to
implement a full baggage handling facility. Neither does he think it wise for
Air Albatross to leap into further expansion. Air Albatross’s financial success
to date is attributable to that geographical barrier, Cook Strait. Cook Strait
effectively forces people to fly between the two islands. Obviously we are
responsive to the principle of expansion and growth, but it has to be soundly based.
He could take risks and gamble when only three livelihoods were at stake. Now
he realises the responsibility that Air Albatross owes its 30 dedicated
employees. His accountant still shakes his head in wonder at the risks that
have got Air Albatross so far already - “who else would be mad enough to start
an airline in the middle of an economic depression, and make it work?”
A
second Metroliner in the form of Swearingen Merlin IV ZK-SWB arrived from
Australia in February 1984. This aircraft had previously been in Wellington in
1982 while Air Albatross awaited, unsuccessfully, a licensing decision.
The
Nelson-Auckland air service started on the 5th of March 1984. The 78
minute inaugural flight, which carried 11 passengers, was flown under the
command of Murray Turley. The airline service to Auckland operated twice a day
during the week with one flight a day on Saturdays and Sundays. A connection
was also made to and from Blenheim.
 |
| The second 'Metroliner', Swearingen Merlin IV ZK-SWB at Nelson on 15 April 1984 |
 |
| Air Albatross' Auckland timetable, effective 5 March 1984 |
In
mid-1984 Air Albatross announced it was trying to buy a third Metroliner for
its Cook Strait services. Murray Turley said the third plane was needed to
replace the Cessna 402s used in conjunction with Metroliners across Cook
Strait. Possible routes for the future included those between Nelson and Christchurch
and Nelson-West Coast. He also indicated that the company’s loadings were
averaging 56 per cent, with the Nelson-Auckland loading being higher still,
well above the break-even level.
In
September 1984 Nelson-based airline Avcorp Commuter which operated from Nelson
to Palmerston North, Wanganui and New Plymouth was put up for sale. The
business was offered to Air Albatross but with the change to the Air Licensing
Act and, as Murray Turley said, “What
Avcorp is having to face up to is that nobody has to buy licences any more to
fly a particular route. With the much easier air licensing you aren’t forced to
buy somebody’s licence. Avcorp is perhaps is having to face the reality that
its licence as such has no value.” Air Albatross announced it would fly from
Nelson to Palmerston North and New Plymouth from the 1st of October 1984. A daily
Nelson-New Plymouth-Auckland return service was to be operated using
Metroliners and a Nelson-Palmerston North service with a 9-seater Cessna was to
be operated on a twice daily basis. Morning flights were to operate Monday to
Saturday and the afternoon service would operate Sunday to Friday. The
expansion saw the return of Cessna 402 ZK-DSG to the fleet joining Cessna 402s
ZK-DHW and ZK-EHT.
 |
| Nelson Evening Mail, 29 September 1984 |
 |
| Back in the fleet, Cessna 402 at Palmerston North of 10 March 1985 |
In
February 1985 Air Albatross moved their main base from Wellington to Nelson. Richard Grayson, the engineering manager for
Mount Cook Airlines, was appointed as the engineering director with seven other
engineering positions to be filled.
With the arrival of a third Metroliner, ZK-SWC, in
February 1985 Air Albatross announced a
return air service between Nelson and Christchurch from the 1st of April 1985. Morning
flights were to operate Monday to Saturday and the afternoon service operating
Sunday to Friday. The company also announced an additional flight between
Nelson and Wellington to “plug a gap” in its timetable in the middle of the
afternoon and a third flight between Nelson and Palmerston North.
 |
| A series of adverts in the Christchurch Press in March 1985 |
 |
| The third Metroliner, ZK-SWC at Christchurch on 14 September 1985 |
 |
| Air Albatross timetable, 1 April 1985 |
In June 1985 Air
Albatross added a fourth Metroliner, ZK-SWD, to their fleet. From the 30th of
September 1985 flights between Nelson and Christchurch were increased to five flights
a day each weekday. At the same time Metroliners started operating the Nelson-Palmerston
North service with the middle of the day flight carrying to Auckland and return.
By this stage the airline had only one Cessna 402 operating in the fleet with another awaiting sale. This
was based at Wellington and mainly serviced Blenheim with two flights a day to
Nelson.
 |
"Aren't you flash" were the words I heard on my scanner of the controller to the Air Albatross flight arriving at Christchurch. I jumped in the car and went out to catch my first glimpse of the Super Blue scheme. Swearingen Metroliner II ZK-SWD in the spectacular blue scheme on November 1985
|
 |
| NZ Herald, 26 September 1985 |
 |
| Air Albatross, 30 September 1985 |
Tragedy
struck the company on the 4th of October 1985 when the Cessna 402, ZK-EHT,
operating Air Albatross flight 247 VFR from Nelson to Wellington, hit high
tension power lines and crashed into Tory Channel, in the Marlborough Sounds.
The 402 was carrying the pilot and eight passengers. The Cook Strait ferry
Aratika happened to be adjacent to the accident site and had rescue boats over
the side and searching for survivors within minutes of the aircraft crashing
into the channel. The master of the ferry, Captain Bill Jones, said the ship
was about 400 metres away from the aircraft. “It broke up in three large pieces and lots of little ones. There was
no flash… it happened so quickly. We were on the spot very quickly, but the
wreckage sank. We were right on the spot in two or three minutes.” Sadly
the ferry crew were only able to rescue one survivor, a 12-year-old girl who
was taken on board and the transported to hospital with a broken wrist, rib
injuries and mild shock. One body was recovered at the time of the crash. Divers and boats using sonar equipment located
the wreck and four bodies were recovered from the salvaged Cessna 402 three
days after the accident.
 |
| The ill-fated Cessna 402 ZK-EHT at Palmerston North on 22 February 1985 |
The
11 kV power line from Te Weka Bay on the mainland to Te Iro Bay on Arapawa
Island stretched more than 2km across the channel from three pylons at 290m on
the mainland and at 223m on the island. The pylons were painted red and white,
but even in clear weather were hardly visible. The cables hung at 160m above
the water in cold weather and sagged to 91m in warm. In speaking to the media a
distressed Murray Turley was critical of
the power lines across Tory Channel and produced a letter he wrote to the
former Minister of Transport, Mr Gair, in April, 1982. “I believe that unless
this aerial power line is replaced with a submarine cable it will inevitably
lead to tragic and unnecessary deaths of air crew and passengers,” the letter
said. “I respectfully urge you I to take remedial action as quickly as possible
in the I interests of saving lives,” he said. “Because of the amount of air
traffic that uses this route and because also up until now the route has been a
safe low-level entry and exit to the Marlborough Sounds via Tory Channel,
erection of the power line is an open invitation to aerial disaster.” Mr Turley
produced a reply from Mr Gair dated May 21, 1982. “These power lines constitute
a hazard to air navigation and pilots should either fly at a height sufficient
to keep the aircraft well clear of the obstruction or, if this is not possible
because of the low cloud base, avoid using Tory Channel in such conditions,” Mr
Gair said. “It is regretted that this hazard to air navigation exists,” Mr Gair
said. “However, power must be reticulated and the Marlborough Electric Power
Board advises that the alternative undersea cabling was fully investigated but
not adopted due to the quite unacceptable level of costs associated with
operating, faults, and maintenance.”
The
accident report, which was issued by the chief inspector of air accidents, Mr
Ron Chippindale in mid-1986, blamed the pilot for the crash by flying
unnecessarily low. He also blamed Air Albatross for failing to ensure that its
pilots knew of the high power cables and criticised the Marlborough Power Board
for not illuminating the wires, and the Ministry of Transport Civil Aviation Division
for not demanding that the cables be marked.
Within
two weeks of the air accident Air Albatross announced that it was in serious
financial difficulty and needed an immediate cash injection. This news resulted
in a wave of public support. Despite its difficulties Air Albatross expected to
honour its commitment to its passengers and maintain flight schedules “subject
to any over-riding circumstances.” Within days the airline announced it needed an immediate cash
injection of $1m to $1.5m. “Receivership
is a very real possibility, but not a foregone conclusion,” Murray Turley was
reported as saying. At this stage Mr Turley was the major shareholder in the
airline, owning 57 per cent, Mr and Mrs Ted Sweetman, owning 40 per cent, and
Mr David Buck, 3 per cent. A staff memo stated the tragic loss of our Cessna 402 together with eight lives on October
4 last caused an immediate but totally understandable loss of patronage of our
services by the travelling public. This
loss of patronage was reflected in a significant drop in revenue. We also
experienced a frustratingly high defect rate in our Metroliner fleet during
this period. All the defects were minor and quickly fixed. However, they did
result on many occasions in delayed or cancelled flights with recurring
inconvenience to many regular customers. The absence of EHT (the crashed
Cessna) from the fleet compounded our
difficulties in maintaining our schedules by taking away our fleet backup
capability. The downstream effect of the accident has thus been far more
significant than we ever envisaged, with our gross revenue and cash flow
remaining in a depressed state… diligent
efforts are being made to seek outside support in the form of additional share
capital to provide a stronger base of working capital “in the rebuilding of
public confidence in Air Albatross that we now face.
Expanding on the memo Murray
Turley said that when Air Albatross had the Tory Channel accident, it had been
heading for a total of 12,500 passengers for the month. That would have
provided a “substantial cash surplus”. “We
would be quite comfortable above 11,000 to 11,500 a month in terms of cash flow.
However, since the accident the
numbers had dropped to fewer than 10,000 a month. The drop in cash flow
resulting from the Tory Channel accident has been the prime cause of our
present difficulties. If the crash had not occurred, with the normal passenger
growth we would have achieved, the cash flow would have been more than adequate
to see us through.”
Operations
continued throughout November but during that month the airline had two
emergency landings on one engine and this further eroded customer confidence.
Coupled with this the company was having difficulty with maintenance issues on the
Metroliners leading to increasing flight delays or cancellations.
On
the 6th of December 1985 the airline announced it was direct Nelson-Auckland
flights citing a lack of patronage coupled with lack of aircraft. The airline
maintained indirect flights to Auckland through Palmerston North and New
Plymouth.
By
mid-December the situation was critical and Murray Turley, revealed that his
airline was on the brink of financial collapse. Mr Turley said, the company had been discussing taking in
other businesses as partners. The company needs a broader capital base - $1
million to $1.5 million would satisfy that. The time factor is critical. Every
effort is being made and will be made over the next few working days to find a
solution. It was “quite feasible” for Air Albatross to trade out of its
difficulties if it could arrange the urgent injection of share capital.
In
the days following Air Albatross received widespread public support but this was
to no avail. The Metroliners were not helping the situation in these last days
with irate travellers confronted with
three of the four Metroliners grounded due to mechanical defects. On the 20th of December 1985
the ceased operations after announcing it was going into voluntary
receivership. The final flight, Albatross 261 took off from Wellington for
Nelson at 8.30 pm, the Metroliner’s pilot signalled the end of the airline’s
fight to stay in business with a last pass over the runway and a farewell
wing-waggle. About 100 staff lost their jobs and no redundancy agreement was offered
to them. 1500 people held useless
tickets for the Christmas period and 4000 to 5000 others with advance bookings.
In the days following it was announced that the secured and unsecured debts of Air Albatross added up to
more than $5 million. Attempts by various individual to resurrect the airline
failed.
As
the autopsy was carried out on the airline’s finances it became clear that the
airline had not been trading profitably either as at March or September 1985. By
mid-1986 the last of the Nelson-based Air Albatross aircraft had been sold and
unsecured creditors had been told by letter that there would be no money for
them.
 |
| Swearingen Metroliner ZK-SWC being prepared for export at Nelson on 21 January 1986 |
 |
| Cessna 402 ZK-DHW awaiting a buyer at Nelson on 22 January 1986 |
Despite
its failure Air Albatross holds an important place in New Zealand aviation
history. What it achieved was what I believe Air New Zealand was later to look
for in Air Nelson and Eagle Air, the birth of a national commuter airline.
