Spain by train: Fast, fun and still on track

The following article originally appeared in the Sun-Herald's Travel section.

Fast, fun and still on track

Spain by train.

Taking a high-speed train to the Costa del Sol might save a marriage or two, writes Justin Wastnage.

To read this article in its original form, click here.

I can admit to a touch of schadenfreude as I eased back in my chair, trying to contain my laughter. In a swanky bar in the upscale Spanish resort town of Marbella, a friend was recounting his wife's recent divorce threat.

He had chosen to drive from Madrid to the Costa del Sol, while I had opted for the new Alta Velocidad Espanola (AVE) high-speed Spanish train. With a scarred memory of tortoise-like Australian trains, he'd opted for the hare option of a rental car. Sadly for him, the tortoise has overtaken the hare in Spain, with a whole batch of 330kmh trains on new lines opening in the past few years, replacing the slow, shuddering rolling stock of yesteryear.

Spain is taking its high-speed trains very seriously, with an ambitious plan to overtake France in high-speed track by next year and to build an AVE station near to where nine in 10 Spaniards live by 2020. Lines into France and Portugal are also on the cards.

Iberia, the national airline, has almost pulled out of the Madrid to Barcelona route since the AVE arrived last year, with its ability to complete the 630-kilometre journey in 2 1/2 hours.

Speed aside, there are other things going for the train. My friend had romantic ideas of navigating the fabled land of windmills that Cervantes so famously made of La Mancha in Don Quixote. Instead, he found himself, accompanied by an ever-less understanding wife, driving through landscapes resembling the Western Plains of NSW.

Brown mountains give way every so often to vivid diagonal patches of verdant agriculture marking out a valley or other water source. Utes drive back and forth shuttling farmers between the olive groves and Rioja wineries, their drivers immune from the sun beating down on them.

This is gripping stuff for the first 20 minutes in my air-conditioned train, zipping along silently through the countryside, and an idle distraction from the newspapers for a further hour. In the car, however, it was a different tale. Tedium set in less than 50 kilometres from Madrid, my friend reported, and Spanish commercial radio reception was lost at the 100-kilometre mark. The driver tuned to AM radio; his wife tuned out.

Not that I needed much distraction; a full meal is free in first class. In truth, I have had better Spanish meals and much better Spanish wine but there is still something eminently civilised about having proper crockery to eat from and proper cutlery, rather than the airline-issue plastic.

Favourable comparisons with air travel are easy to make: Madrid's Atocha station is in the CBD and, although not as modern as the city's new airport, is a fascinating place to while away the hours, especially since its grand building has been converted into a tropical greenhouse.

Sadly, the station was the site of Europe's worst terrorist atrocity when an al-Qaeda splinter group killed 191 people in March 2004 using a series of bomb attacks on commuter trains. The memorial is a stark, modernist, glass tubular sculpture connecting the train station with the city life above, as the bomb attacks did.

A consequence is airport-style X-ray scanners are required before boarding, unlike much of the rest of Europe's high-speed network. But security is a small price to pay for a system so punctual that delays of more than five minutes result in an automatic full refund.

It was a good 90 minutes into the journey before the landscape changed in any meaningful way. The red, arid plains of the interior started giving way to the craggy mountains of Andalusia. As the city of Cordova looms into view, I get a glimpse of the Islamic architecture from the Caliphate period of Arab rule over Spain in the middle of the last millennium. The architecturally impressive train station is hidden from most of the old quarter of the city, which is the largest UNESCO-protected World Heritage urban site.

From here, the train continues its rapid descent into the Costa del Sol, a coastline synonymous to many British ears with Gold Coast-style hellraising holidays and cheap resorts. In truth, while there are pockets of the Costa in which high-rise condominiums dominate, much of it remains authentic Andalusian. The director of tourism for the Costa del Sol, Salvador Pendon, says Australians are mainly drawn in by the coast's abundance of well-manicured golf courses and famous whitewashed villages in the mountains.

Our terminus is in the port city of Malaga and to reach the impressive Maria Zambrano station (the philosopher was chosen ahead of Antonio Banderas as Malaga's most famous citizen) we squeeze between the city's two rivers.

Ave means bird in Spanish and as our own AVE swooped down gently on our terminus, we arrived relaxed and refreshed. It took quite a few drinks to make my mate feel the same way about his journey. Threatened with a solo journey on the return, he dropped the rental car off in

Read more: http://www.smh.com.au/travel/fast-fun-and-still-on-track-20090409-a1j6.html#ixzz1LS2RXfZb

Efforts bearing fruit

The following article originally appeared in TravelWeekly Australia.

Encouraging indigenous tourism is a key priority for the federal government. Justin Wastnage asks will Australians join overseas travellers in experiencing our diverse cultural heritage?

When Queen Elizabeth II
opened the Sydney Opera
House in October 1977 the
controversy that most remember is
the absence of Danish architect
Jørn Utzon, whose genius was
belatedly celebrated in Sydney last
month. Instead, the appearance on
the Opera House’s sails of Ben
Blakeney, a direct descendant of
governor Phillip’s trusted Eora
translator Bennelong, raised
eyebrows from most and ire among
others who saw little place in
honouring the original inhabitants
of what is now Bennelong Point.
Fast forward 30 years and
relationships between indigenous
and non-indigenous Australians
have improved. But tourism is still
in its infancy: roughly one in six
overseas visitors have a tourism
experience involving either
Aboriginal or Torres Strait
Islanders, whereas for domestic
Australian travel this figure is
barely one in a hundred.
For most of the operators
gathered at the first Australian
Indigenous Tourism Conference in
Townsville last month, the figures
for Australian visitors are usually
less than 5%. “I cannot remember
the last Australians we had walking
with us,” says Francis Walker,
manager of Walker Family Tours in
Wujal Wujal, a coastal community
380km north of Cairns.
Yet there are signs of change.
Aden Ridgeway, executive
chairman of Tourism Australia (TA)
Indigenous Tourism Advisory Panel
says polls show that some 60% of
Australians express some interest
in having an aboriginal experience.
This figure has jumped from 40%
thanks to Baz Luhrmann’s Australia
and its Stolen Generations plot.
There is an opportunity this year,
Ridgeway insists, for travel agents
to sell indigenous experiences as
part of the credit crunch trend for
domestic holidays. TA data shows
that domestic indigenous tourism
visitors stay twice as long as other
domestic visitors. They also spend
more per night, making their total
spend three times as high as
traditional domestic trips.
The problem is, according to
Caroline Densley, director of
Diverse Travel, one of the largest
wholesalers of indigenous product,
that very few agents know where
to go to find information.
“There is also reluctance among
what I would describe as ‘my
parents’ generation’ to venture into
aboriginal areas,” she adds.
But agents only sell what is
demanded by their clients says
Michelle Sawtell, domestic product
manager at Flight Centre’s Infinity
Holidays. Infinity and Discover
Australia Holidays (formerly
Discover West Holidays) are among
the mainstream wholesalers adding
more indigenous product to their
domestic packages.
Densley says the current “gentle
sprinkling” of soft experiences like
the popular Anangu Waai! cultural
tours at Uluru will increase as this
generation becomes more
comfortable with aboriginal people.
Perhaps due to a level of
nervousness, domestic overnight
indigenous tourism visitors spend a
greater proportion of their total
expenditure on organised tours and
packages than other domestic
overnight visitors, TA found.
Equally, indigenous tourism visitors
were less likely to stay with friends
and relatives than other domestic
visitors, which gives travel agents a
better stab at commissions, says
Marlene Harding, executive
director of Discover Australia.
Of the experiences themselves,
many have a strong environmental
aspect. “There is a strong
connection between us and the
land and its sustainability,” says
Terrence Coulthard from South
Australian eco-lodge Iga Warta.
There are many cultural tours,
often including traditional
interpretations of the land, its flora
and fauna. Nature projects, like
turtle rescue are also popular.
Yet there has been a paucity of
high-end indigenous product. There
are some exceptions: Alice Springs
Helicopters runs private art tours
and is owned by the Santa Teresa
community. Home Valley Station, a
new luxury ranch modelled on El
Questro, has an on-site technical
and further education (TAFE)
college for indigenous youth.
There are also efforts underway
to address the lack of
professionalism that has blighted
indigenous tourism endeavours in
the past. The Australian Tourism
Export Council (ATEC), the peak
body for the Australian inbound
tourism industry is actively
engaged in making indigenous
operators “export ready”, which
involves having a contingency plan
for the mass mournings, or sorry
time, that follows a death in the
community and can lead to
unplanned tour cancellations.
Similarly, the Northern Territory
government with federal assistance
has established Central Australia
Aboriginal Experience, a marketing
company to interface with
wholesalers. “The aim is to have a
roster of around ten tour operators,
so that some will flourish and go on
their own, but if others die or
disappear for a while, as they often
do, we will guarantee a tour by
having a suitable replacement,”
says Neil Hermès, its director.
In short, there is a lot being
done, but there is a long path to
travel. But just as ‘welcome to
country’ ceremonies are now part of
the Australian cultural landscape,
indigenous tourism should be on
the path to becoming mainstream.

To read the article as it originally appeared, click onto the PDF above

The Call of the Wild

The article below originally appeared in the April-June 2009 issue of Vacations & Travel magazine.

Justin Wastnage heads to the northern reaches of Japan to explore the wideopen landscapes and natural beauty of Hokkaido.

Dmitry Medvedev had won the
lottery, Mayumi Yamamoto tells me
as she opens the door to the
Presidential Suite. In the subtle game
of diplomatic brinkmanship, the
Russian president had scored an early
coup: the best available room in the
imposing Windsor Hotel overlooking
Lake Toya on the northern Japanese
island of Hokkaido, where Yamamoto
is a manager.

Medvedev was in town for the G8
Summit meeting. Mayumi explains
that the guest list posed some
unique protocol problems. “We had
three presidents, four prime ministers
and a chancellor, so they couldn’t all
have the Presidential Suite,” she
recalls. Instead, they drew lots for
the best rooms.

As voyeurism goes, it doesn’t get
much better than trying to guess on
which side of the enormous bed
Medvedev slept. Even the bodyguards
would have had it pretty easy: the
suite comes with an adjoining family
room, where the burly minders could
have popped their earpieces on the
bedside cabinet after a day’s work.

Henchmen would not look out of
place here, for the hotel’s bold
design, by modernist architect
Hiroyasu Higuchi, is reminiscent of a
Bond film baddy’s retreat. A tower of
ever-smaller concrete slabs forms the
hotel and resort complex. Brutal and
angular, the building is in striking
contrast to the serene natural beauty
surrounding it. Sitting atop the 625-
metre peak of Mount Poromoi on the
Oshima Peninsula, it looks out over
both Lake Toya itself and Uchiura
Bay.

It is also at the end of a 20-
kilometre private road, perfect for
James Bond villains and G8 Summits.
Many hundreds make the journey
each year, not to stay in the hotel,
but to dine at the restaurants
contained within it.

French chef Michel Bras opened his second
restaurant at the Windsor in 2002,
only three years after receiving three
Michelin stars. The establishment has
been booked out pretty much every
night since.

Japan’s decision to host the G8
Summit in Hokkaido was part of a
wider renaissance taking place
around the northern island, best
known to Australians for its ski
resorts. There is much more to
Hokkaido than winter sports,
however. The island is Japan’s great
natural wilderness, frigid in winter
but bursting with life in summer.

Crystal-clear streams, lush green
mountains and deep, cold lakes are
reminiscent of Tasmania, but the
island’s ever-present volcanic activity
and hot springs lift it that notch
higher. In the far north of Hokkaido,
you can watch ice floes drift by in
February while in summer, gigantic
fields of lavender leave immense
purple bruises on the landscape of
the island’s centre.

Hokkaido has a distinct frontier
feel about it. The island is rugged
rather than dainty, wild rather than
cultivated. Even its architecture –
one area in which you’d expect to
find an orthodox approach – is
startlingly un-Japanese. The island’s
capital, Sapporo, is laid out in a grid
like a US downtown, brick
warehouses cheek-by-jowl with
sandstone office blocks, while the
countryside is punctuated with
Scandinavian-style chalets.

But the areas of urbanisation are
tiny; for the main part, Hokkaido
remains untouched by humans. What
draws most visitors to Hokkaido is
open space and water. The island is
still being formed, thanks to active
volcanoes dotted around, and
virtually all the tourism hot-spots in
the southwest are located near real
hot spots. While the onsen communal
bathing experience should be a
mandatory inclusion on any Japanese
itinerary, Hokkaido is where it
reaches its zenith: cold air on your
skin heightens the sensation of the
geothermal water on your body.

While the idea of bathing naked
with a loved one may put off only
the most prudish, bathing with
colleagues or strangers is a whole
different matter. Yet the onsen is a
strangely liberating experience.
Stripped down to your bare
essentials, there is no room for airs
or graces and everyone, rich or poor,
must scrub themselves down before
plopping into the steaming water.

Getting back to nature is a whole
lot more appealing in this part of
Hokkaido. Soaking up the hot water,
we are metres from Lake Toya, our
modesty preserved by a hedgerow.
Women, meanwhile, get far better
treatment on the fifth floor, their al
fresco bath commanding spectacular
views of the caldera lake, its islands
and the surrounding mountains.

Lake Toya has had a chequered
history. Created by volcanic activity,
its popularity among domestic
tourists has been equally dented, at
regular intervals, by volcanic
eruptions. Walking around the
Volcano Science Museum in Toyako,
it is easy to see why.
Mount Usu, one in a ring of
mountains that border the near-circular
lake, last erupted in 2000,
washing away two highways and a
rail track and burying countless
vehicles and buildings under its lava.
A text-book evacuation plan meant
no-one was killed. The town’s tourist
chiefs have clubbed together to stage
nightly fireworks displays on the lake
during summer ever since – best
viewed from one of the many cruise
ships that ply the lakefront.

Hokkaido is also loved by Asian
tourists, who flock here for the
island’s food. Considering its
northerly location, it is surprising
that Hokkaido’s produce is giantsized.
Red apples barely fit into an
adult palm; wild salmon leap
upstream in such great numbers that
only the extra-large ones get caught;
but the pièce de résistance has to be
the island’s red king crabs. Dozens of
restaurants dedicated to consuming
this hairy crustacean dot the
coastline near Lake Toya.

I sit, transfixed, as a crab the size
of an average dinner plate is wheeled
out, followed by another until
everyone sitting alongside me at the
steaming cauldron has received one.
I avoid making any sudden moves
until one of my companions
unceremoniously chops off a giant
claw and pops it into the broth. We
all follow, until the cauldron is awash
with vegetables, tofu and limbs. A
few minutes later, as we scoop out
the flesh from inside the cavities of
our crabs, it is clear to see why this
is a must for all Hokkaido-borne
travellers. The taste is incomparable.

This beauty had been swimming,
care-free, that morning, probably in the deep,
cold ocean surrounding Hokkaido, when it had
been yanked out by one of the hundreds of
Japanese and Russian fishermen who call the
picturesque port of Otaru home. Not that the
Russians have always been welcome in Hokkaido:
there is a lingering land dispute in the
northernmost islands. But this didn’t stop the
Japanese hosts plying Medvedev and fellow G8
summiteers with the giant crab during their stay.
With food like this, Medvedev would have
known for sure he had won the lottery.

To read the article as it appeared, click on the page images above.

Mad for Montreal

The article below first appeared in the January-March 2009 issue of Vacations & Travel magazine.

Once a city divided over language, heritage and culture, the Canadian metropolis of Montreal is united in its love of the arts, says Justin Wastnage

International des Feux Loto-Québec – Montréal International Fireworks Competition
© Tourisme Montréal, Stéphan Poulin

I had a sense that Montreal was going to be different the moment I picked up my newspaper. Having arrived in the dead of night in a standard North American limo and driven around very North-American-style streets, I had not glimpsed much of what makes the city so different from its US and Canadian peers. Yet any city in which a daily newspaper supplement of jazz edges out the sports section and the pull-out on autos deserves a closer look.

Montreal was Canada's largest city until the pro-French language laws of the 1970s helped already-burgeoning Toronto take top honours. But Montreal continues to be considered the country's cultural capital. Foreign tourists to Montreal flock to the patchwork of seventeenth-century French buildings in the charming vieux quartier. But savvier visitors from neighbouring provinces and US states converge on the city every weekend to sample its vibrant arts, fine dining and eclectic fashion scenes.

Montreal is, in short, very different from the Canada of picture postcards. Sure, there are Mounted Police but here, they are called gendarmes; there is a mountain but, at 233 metres, Mount Royal is hardly the Rockies; and while ice hockey is still a local preoccupation, festivals celebrating comedy, fireworks, and of course jazz, draw bigger crowds.

Much of the city's difference lies in the history of Quebec, the province in which Montreal sits. Settled by the French 400 years ago, it has a population of seven million people, who have stubbornly held onto a distinctly European way of life despite being located within a Commonwealth country. Today, half of all the wine sold in Canada is bought in Quebec - naturellement, as it's the perfect accompaniment to unpasteurised cheeses in which Quebec excels, despite their being banned almost everywhere in North America. The province's farms also produce foie gras in defiance of US-inspired food laws.

Just as is the case in its big brother, New York, taking a walk around Montreal is the best way to appreciate its bold contrasts. Like New York, the city has a significant Jewish heritage and a multicultural mix that few other big cities can rival, and that has resulted in a metropolis comprising a series of village-like neighbourhoods rather than a sprawl of soulless suburbs.

To read the rest of the article, click here to visit Vacations & Travel's site.

Worth paying the premium

Article originally appeared in TravelWeekly Australia

As airlines battled it out in the business class cabin, other sections of the aircraft were forgotten about. But, as Justin Wastnage explains, that dogfight has now moved further back down the plane

With Qantas launching premium economy on its long-haul services in mid-March, many of your clients will now have a real choice between economy class and business class.

Premium economy has been available in Australia for several years, with British Airways (BA) and Virgin Atlantic among the airlines to already offer the hybrid class. But John Borghetti, executive general manager at Qantas Airways, said the time is right for the national carrier to follow them.

Borghetti said that the "arms race" in business class seating has created a "gulf" between economy and premium seating where previously none existed. "Five years ago there was no need, but then came flat beds, then everyone needed flat and horizontal and so it goes on. But there is now a niche in the market for it," he said.

Unlike BA's World Traveller Plus, Borghetti believes Australian straightforwardness demands a straightforward name. Just like the Australian national carrier's loyalty scheme before it, simply called Frequent Flyer, the carrier's first foray into an enhanced cabin version of coach class travel was christened premium economy. "You cannot criticise Qantas's marketing, that's been proven over the years. We call it what it is, instead of coming up with a sexy name like 'blue class'," Borghetti said.

Qantas started flying the new service from April 1, with the four Boeing 747-400s that ply its Kangaroo Route to London via Bangkok and Singapore being the first aircraft to be refitted with the new cabins. Johannesburg services from Sydney received premium economy soon after, followed by Melbourne to Hong Kong services in mid-May and from Sydney by early August. The airline's Airbus A380s coming on stream at the end of the year will also feature the new class.

Premium economy aircraft will have 32 new Marc Newson-designed seats in a two-four-two layout in place of 60 standard economy places.

The seat itself is a clear advancement on coach. Qantas's seats are exactly half a metre wide, with a full metre of space, or pitch, between each seat and the one in front on most of the 747s. Virgin Atlantic's seats are one centimetre wider and offer the same pitch; as do those from BA, albeit over two centimetres narrower. Qantas's main local rival, Singapore Airlines, has 51cm wide seats in its Executive Economy section of the Airbus A340-500 it flies non-stop to New York and Los Angeles, but each seat has an inch less pitch.



In other words, the seats are pretty similar. But premium economy is more than comfy seats. Sitting in the Qantas version, you'll notice several new features that differentiate it from economy class. Laptop power cables come built in, as does on-demand television with bigger screens than in standard economy. Qantas also offers an upgraded menu, "inspired by Neil Perry". It is better than the economy fare, but not actually created by the Rockpool chef, as its business and first class menus are. But the wine is better, with selections made by the Qantas Wine Panel Members rather than the mini bottles they offer you down the back.

Airline comparison site Seat Guru says that premium economy tickets generally cost 95 per cent more on Pacific routes, but only 85 per cent more on Atlantic or Asian routes. The Qantas fare from Sydney to London will be around A$4567, or "exactly mid-way between economy and business," said Borghetti. However, in terms of value for money, Seat Guru says premium economy is only worth a 20 per cent premium. It offers the tip that: "If you book closer to your departure date, premium economy is generally only 35 per cent more expensive than your standard economy fare. The extra cost can be as low as 10 per cent more, so remember to ask about premium economy if you have a last minute economy booking."

There is also more choice than you might think. As Virgin Atlantic was quick to point out, Qantas is behind the premium economy curve, having initially been resistant to it. In the past decade Air New Zealand, All Nippon Airways, BA, Taiwan's EVA Air, Japan Airlines, Singapore Airlines, Thai Airways International and Virgin Atlantic have all introduced versions of the third way of service into the Asia Pacific region, with another dozen carriers globally offering the class.

Where Qantas has an advantage, however, is in its loyal customer base of Frequent Flyers. "Premium economy is aimed at business travellers who travel economy or the older generation who can pay for more comfort but not as much as business class," Borghetti says. Small and medium-sized enterprises have been targeted through specific advertising and mail outs.

Experience from other airlines shows that few people downgrade from business to premium economy, but rather treat themselves for long-haul flights. Borghetti is a man known for reading the Australian avaiation landscape well, so you can believe his enthusiasm for the product, even if you do not believe the hype.

Make your Marque in Sydney

Review originally appeared in TravelWeekly Australia September 5, 2008

Booking business hotels in Sydney is tricky if your clients cannot spend $300 or more per night. The Marque Hotel Sydney is a renovated business hotel in great style with a central location. Justin Wastnage recently stayed at the property and had change to spare

The Rendezvous group recently finished a four million dollar makeover of the former Country Comfort Inn's central Sydney hotel. The Marque Sydney is now pitched at the trendy four-star market.

First impressions 7/10
The reception space is nicely done, with retro lollipop-coloured chairs and shiny plastic surfaces throughout. The check-in staff are pleasant and helpful, though not entirely at ease with the hotel's systems. Getting into the car park (a tricky thing in this neighbourhood of one-way streets and no entry signs) could have been better explained. All these points, plus the shabby lift, are no doubt teething problems and have probably already been sorted out.

Ambience 6/10
The Marque claims to be a boutique hotel brand. It's not. But that said, it pulls off the modern chic look with ease. It's minimalist, with blacks and reds complemented by grey furniture. The property is not huge, but the design team has worked wonders with the space it has. The location, almost directly opposite Central Station, means that slightly unsavoury characters and low-rent storefronts will remind you that you are in the cheap end of town despite the slick appearance.

Accommodation 8/10
There are still some lingering reminders of the old Country Comfort Inn, chiefly in the tight layout of the corridors and internal structure of the rooms. But again, the décor more than makes up for it. The suite's bathroom had a very funky angled marble floor to drain the water away in the shower that left the rest of the room dry. Drawbacks of the location become apparent, however, during weekend nights when the street outside is noisy from either drunken revellers or unlicensed drag racers using the five-lane intersection as a starting grid.

Facilities 7/10
Unfortunately, when I stayed, the much-vaunted iPod clock radio did not work and neither did the television, which appeared not to pick up the ABC. But the suite had a fully stocked kitchen in addition to the mini bar - perfect for the longer business stay. The downstairs Script restaurant makes a good stab of being a trendy lounge bar and the food is good. Nearby options are plentiful if your clients know how to get to Chinatown. If not, they will find themselves at a loss for culinary alternatives in the wrong end of town.

Service 7/10
Friendly staff were still finding their way when I stayed, but it's still early days for the hotel and overall the service was fine.

Overall 70%
Four-star hotels in Sydney are often rough around the edges, but The Marque is one a brace of renovated properties that have a definite cool factor in the mid price bracket.

A business bed and breakfast package at The Marque Sydney is available from A$170 per room, per night. For more information visit www.marquehotels.com/sydney

Pulling out the aviation crystal ball

Article originally appeared in TravelWeekly Australia September 5, 2008

The treacherous economic times have inevitably taken their toll on Australia's two biggest carriers. As Justin Wastnage writes, the future is still very much uncertain and each airline has a different outlook

Whether your glass is half empty of half full is usually a definer of an optimistic temperament. Yet late last month, Australia's two Australia's two largest airline groups, Qantas and Virgin Blue, issued starkly different forecasts for the year ahead, despite both having posted profits.

In fact, their two respective chief executives Geoff Dixon and Brett Godfrey acted out of character. The dour Dixon, who can usually be relied upon to be downbeat, predicted Qantas would make a smaller profit than this year, but still be healthily in the black to the tune of hundreds of millions. Godfrey, meanwhile, junked his usual bouncy demeanour to warn shareholders to expect rough times ahead.

Qantas (which includes low cost carriers Jetstar, Jetstar Asia and Jetstar Pacific in addition to the Australian flag carrier Qantas Airways), posted another record post-tax profit of A$970 million, up 44 per cent on last year's results. The group's gross profit was A$1.4 billion on a revenue of A$16.2 billion, which Dixon said "emphasises the underlying strength of the company."

His counterpart at Virgin Blue, meanwhile, was also celebrating a profit. Godfrey initially announced an "underlying net profit" of A$140.5 million. In fact, more orthodox accounting would have taken off the A$42.8 million the airline has already spent on launching V Australia. This left it with a profit of A$97.7 million, 55 per cent down on last year, but a triumph when taken in the context of analyst reports (possibly encouraged by rival airlines) which predicted a loss. Virgin Blue, which also includes Pacific Blue and Polynesian Blue, last year made A$216 million after tax.

The carrier, which has moved from the low-cost model towards a full service offering, blamed spiralling oil prices against which it has fewer hedges than rival Qantas. Brett Godfrey, Virgin Blue chief executive warned the coming year could be worse, with a loss predicted if fuel does not come down in price. During the launch of trans-Pacific V Australia, the group will incur more start-up costs related to underutilisation of its Boeing 777-300ERs. Godfrey also warned that the next three years could be worse than the aftermath of September 11, 2001 and severe acute respiratory syndrome (SARS).

Qantas's own figures were down around A$8 million, or 2.5 per cent, for the second half of its 2007/8 reporting year and Dixon admitted the group would make only half of this year's record profit, with pre-tax earnings "broadly in line with analysts'' consensus forecast." Pressed, Dixon clarified this would be around A$750 million. Dixon scotched talk of a three-year lull, saying it was impossible even to predict one year in advance.

Giovanni Bisignani, chief executive of the International Air Transport Association was in Sydney on the free day between the two companies' full year earnings announcements and he added gloom to the local outlook, by reiterating his view that globally the industry will lose US$6.1 billion this calendar year. He hinted that a further two dozen airlines would also falter before the end of the year, on top of the 25 that have already done so.

But Bisignani also praised Australian aviation for having transformed itself better than most, cutting costs where other airlines have struggled. This is reflected in both Virgin and Qantas's yield figures. Virgin, for example, saw its yield rise by 0.2 per cent despite the rising fuel prices. On average, the airline was able to charge just over 10¢ per kilometre flown, a rise of 0.7 per cent. Qantas saw its own passenger revenue per passenger kilometre rise to 11.81¢, up 1.2 per cent. But one percent price rises do not cover fuel price rises of almost 20 per cent. Instead, both airlines have managed to slash costs out of their businesses.

When looking into the future, further belt tightening will be required. But that need not mean the glass if half empty, as long as Australians continue to drink from the glass.