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Flying with a bike is a nerve-wracking experience - it's really easy for something to go wrong. I travel from Hobart to Melbourne with a bike about half a dozen times a year and unless I take the utmost care something always seems to get damaged. Usually it's the paintwork but I've also had brake levers damaged and derailleurs bent. Here's how to avoid the worst our nations' baggage handlers can dish out. Click on the photos to enlarge.
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Once you've procured a box and removed any protruding staples, you'll also need some packing tape and small knife, a smaller box so oddments don't get lost or float around causing havoc, a pedal spanner, some allen keys and about three metres of foam pipe insulation: it's black foam tubing which you can buy in hardware stores. About $20 worth will last you a few trips.
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Once this is done, remove the stem cap and stem fixing bolts and lift the handlebars clear of the steerer tube. (You may need to secure the steerer - I use an old stem part to keep it all nice. Tape will work in a pinch.) Rotate the handlebar assembly so it's parallel to the forks with the brake levers facing forwards. A couple of big rubber bands can be useful to hold the handlebars in place. Replace the stem top cap and bolt so they don't get lost. Pop the lot into the box.
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Made sure the small box contains the following: your allen keys, the pedal spanner, a left and a right pedal. The small box will usually fit neatly on top of the seat stays and seat post and saddle sit on top of that. Now is the time to check - very carefully - that nothing metal is rubbing on anything else metal and that nothing is likely to shift too far in transit. Use spare insulation an old rag or expendable clothing to protect the bits from each other. Keep in mind the box will very likely be dropped or laid flat and have luggage placed on top of it and may well be upside down at some stage.
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When you're happy with your effort, tape the big box shut. Write your name and address on the sides, whack on some fragile stickers for a laugh and you're nearly ready to go. Advanced students tape a piece of string to the box with their knife attached and drop it inside through one of the carrying holes so they've got a easy way of reopening the box at the other end. Put the unused packing tape in your carry on luggage for the return voyage and you're away.
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(Update) Someone pointed out to me that many bike boxes are large enough to put the bike in with the back wheel in place. That's is the case and may be a better way to pack for some people. I still prefer both wheels off, which allows more space at the front of the box to protect the delicate and expensive shifters. As always your mileage may vary)
517km so far this year.