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Capitol Airlines Defers Launch:
Blaming a downturn in the Australian economy combined with a lack of viable terminal facilities, Capitol Airlines’ joint managing director, Mr Vic Dungca announced in early May that Capitol would defer its launch by at least six months and may well scrap the pro- ject entirely.
Mr Dungca considered that the overall outlook for the Australian economy did not look bright for the coming year and that it would take longer than initially expected for the damage to tourism caused by the pilots’ dispute to be reversed. Primarily though, Mr. Dungca cited the lack of suitable terminal facilities in the key ports of Sydney and Melbourne as the major impediments to establishing a viable airline operation in a deregulated environment. Capitol officials stated that in the original Ministerial statements on deregulation in October 1987, ‘reasonable’ access would be provided to new entrants with both Ansett and Australian providing a minimum of two gates at each of their terminals where common user facilities were not available. What Capitol claims has happened is that the gates on offer are at opposite extremes of the terminals (making connections difficult), most lack aerobridge facilities and that baggage handling will be undertaken by the landlord airline. At both Sydney and Melbourne Capitol was also restricted to just four check-in counters which at peak times would result in inevitable queuing and passenger delays.
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