Skywest silence the doubters???
Media Release 2004-10-21
Media Release
21 October 2004
SKYWEST’S GROWTH TAKES OFF
Skywest believes Western Australia is on the verge of a substantial regional tourism boom following the release today of figures which show Skywest passenger numbers have increased by 65% over the past 12 months, reflecting the airlines growth with the introduction of jet services.
Releasing the airlines passenger numbers today at a function in Esperance, Skywest Managing Director Scott Henderson said that regional air traffic is booming, signalling a future growth surge in regional tourism throughout Western Australia.
Mr Henderson said the average number of passengers had increased by 65% a week during September 2004 compared to the same period in 2003.
Average 28 day forward bookings, a key indicator of future performance, for September 2004 was 16,423 compared to 9829 during the same period in 2003. Bookings in September 2004, reached as high as 17,583. The sharp increase in bookings was attributed to an emphasis on building the airline’s jet routes to WA destinations and the lowering of average fares across the network.
“Strong operating performance over the past twelve months has enabled us to invest in the expansion of both the Fokker 50 turboprop and Fokker 100 jet services,” Mr Henderson said.
“The result has been an additional five new routes with the majority of passenger increases being seen in flights to the North-West and the Goldfields. We believe both these areas are well placed to capitalise on the record traffic created by booming resources and tourism sectors.”
Mr Henderson said Skywest’s plans to list on the Australian Stock Exchange would greatly assist the company pursue new growth opportunities and provide new access to capital not previously available to the company.
New growth opportunities have been underpinned by increased airport traffic in the North-West creating an opportunity for Skywest to compete for valuable market share. Port Hedland and Karratha have seen a substantial growth in traffic with passenger numbers consistently exceeding forecasts week after week.
Average weekly traffic for Port Hedland and Karratha for September was 321 and 411 respectively, both destinations up from 220 and 308 (+46% and +33%) at the end of June 2004.
Kalgoorlie traffic has grown by 57% between September 2003 and September 2004.
Weekly Broome figures are also booming at a September average of 824, up from a 471 weekly average (+75%) during the 2003/4 financial year.
Other routes introduced by the airline have managed to attract niche tourism nodes such as its Island Bound service from the Pilbara to Bali, generating maximum potential for the first time.
Scott Henderson said the figures only reinforced the opportunity that local tourism has to encourage Western Australians and visitors to explore the state and help build tourism across all regions.
“It is important that Western Australia has a dedicated regional airline that links this state to international markets and provides global reach to international tourists”, he said.
Skywest’s commitment to WA tourism was further highlighted earlier this week, at its inaugural Skywest Showcase, held at the Perth Convention Exhibition Centre.
“This gathering gave 150 travel agents the opportunity to experience a showcase of the best that WA tourism operators have to offer. Skywest was proud to facilitate such an event that contributes tremendously to further tourism growth,” Mr Henderson said.
Mr Henderson went on to say that the airline’s business strategy, to embrace and stimulate tourism development, would transcend numerous benefits to the wider communities of regional Western Australia.
This strategy reinforces Tourism Minister, Hon Bob Kucera’s media statement released yesterday, where he said that “…continued commitment to building regional communities, creates jobs and business opportunities through a vibrant tourism industry".