Thread: Network A320
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Old 19th Dec 2018, 07:01
  #11 (permalink)  
Rated De
 
Join Date: Sep 2017
Location: Europe
Posts: 1,253
Originally Posted by dreamer84 View Post
Are these aircraft not a case of build it and they will come? A320s are increasingly becoming the weapon of choice for big miners in the West, particularly following narrow runway provision. Most (not all) Pilbara runways are 30m wide and +1500ft elevation, and the A320 on a closed charter basis makes much commercial sense for miners, over the B737. Network clearly want in and will make good ROI on these machines if they're successful in tapping into to this market. (IMO)
What is this ROI you speak of?
Network are given the aircraft owned by Qantas cycled out of Jetstar while Jetstar take even more aircraft ordered by Little Napoleon with much fanfare in 2011.
It is more a case of hoping that a subsidiary could be found to dump the air frames.
A little payload differential never worried QF management, what drives this is IR.
The mining wind off is an interesting study. Analysts will tell you that the big uplift occurs in the construction phase. Charter companies grow rapidly supporting the build up. State governments jump in with all sorts of inducements only to find that 'mature mines' are somewhat more automated than they assumed.

With QF having split the fleet, with crew bases in WA (rather like the RAN) and pilots in negotiations the more obvious 'return' on Network is scaring the herd in contract season, hoping that pilots don't notice the growing shortage.
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