And from today's The West Australian
Qantas set to nab Network Aviation
RACHEL DONKIN, The West Australian October 6, 2010, 6:26 am
WA's aviation industry appears poised to lose one of its few remaining independent operators, with Qantas in friendly takeover discussions with the owners of the State's third-biggest regional airline, Network Aviation.
Network Aviation's fleet is three 100-seat Fokker 100 jets and six 30-seat Embraer Brasilia turboprops, and it offers general charter and fly-in, fly-out services. According to the airline's website, it operates fixed-flight schedules to Fortescue's Cloudbreak mine and Aditya Birla's Nifty copper project in the East Pilbara.
A spokesman for Qantas yesterday confirmed the parties were in "commercial in-confidence" negotiations over a possible takeover, but refused to disclose details of the offer. Network managing director Lindsay Evans also declined to comment other than to confirm his company was in "amicable" discussions with Qantas.
But reports have put Qantas' offer at more than $30 million, which would mean a windfall for Mr Evans and his partners.
The media-shy Mr Evans, who left charter airline Skippers Aviation to establish Network in 1998, owns 49.9 per cent of Network Aviation Pty Ltd. Subiaco-based commercial lawyer Nick Murfett and former VDM Group chief operating officer Stuart Cuthbert each hold a 25.05 per cent.
If the deal goes ahead, Qantas will gain ownership of WA's third-biggest regional airline as demand for fly-in, fly-out services mounts by the day.
The State Government has also put several previously protected regional routes to tender and has flagged plans to deregulate the Geraldton route.
Qantas has previously confirmed it has tendered for routes to Albany, Esperance and Exmouth. It already operates services to WA resources hubs such as Kalgoorlie, Karratha and Port Hedland through its regional carrier QantasLink.
Skywest, the biggest regional player in WA, has also signalled its intention to snare a bigger slice of the regional market.
It told shareholders at its interim results presentation in February that it was actively scouting for more fly-in, fly-out contracts with the State's major resources players.