Turbulence ahead for new airline
A leading aviation industry expert has given new regional airline Australiawide six months before it collapses.
Aircraft Owners and Pilots' Association technical director Bill Hamilton does not believe the airline, to fly as Regional Express, or REX, will survive.
"Airport charges, fuel charges, the cost of maintaining aircraft, the cost of paying for all the services you have to have for an aircraft, the minimum costs that have to be covered, are really quite high," Mr Hamilton told ABC radio.
"At the end of the day, this is what will beat them."
He gave the airline six months before it folded.
"I would be very surprised to see it go much longer than that and I'll be very, very happy to be proven wrong," he said.
Australiawide took ownership of former Ansett subsidiaries Kendell and Hazelton airlines last week, overcoming a range of hurdles to merge the two regional carriers.
Former Hazelton owner Max Hazelton said there was little doubt the airline faced a bumpy ride because of expanding operating costs.
"They can only make money on discount fares providing they get the high load factor.
"They've got to get their costs down to where that can be achieved."
Mr Hazelton said the key factor for the new airline was to get schedules right.
"(Passengers) like to leave the country in the early morning and arrive in Sydney at around 8.30am where they can be in the city by 9am, and they want to leave the city at five or six o'clock at night," he said.
"Australiawide have got a fleet of 29 aeroplanes, so they might be able to give some pretty good services."
Former Kendall company secretary Kerry Carmichael said there was no passenger loyalty anymore and people looked only at price.
"If the price is cheap, they will go with that particular airline," he said.
İAAP 2002 Ninemsm for you to read........complete......