LEITHEN FRANCIS / SINGAPORE

A new Australian cargo airline has been set up by a group of Sydney investors and former Ansett Australia employees, and plans to launch operations in mid-year using four Boeing 757-200Fs.

Australian Challenge Airways (ACA) is headed by Sydney-based Neil Hansford, chairman of aviation consultancy Strategic Aviation Solutions and a former executive director of Ansett Air Freight in Australia as well as TNT Express in Europe. He says that undisclosed Sydney investors are bankrolling the start-up, which is aimed at a perceived gap in the Australian cargo market.

Hansford says ACA expects its air operator's certificate application will come through in June.

ACA - which will be based in either Sydney, Brisbane or Melbourne - plans to start operating in mid-2004, on domestic as well as international routes between Australia and Asia, says Hansford. ACA is in the process of negotiating a contract with the Melbourne maintenance company, which was previously part of Ansett Australia.

Qantas and Australia Post, which jointly own Australian Air Express, dominate the local air cargo market. In October, Australian freight operator TransAustralian Air was disbanded and in December Qantas and Australia Post acquired road freight operator Star Tracks.

Source: Flight International