Thurs "West Australian"
Skywest changes course for Argyle
By Geoffrey Thomas
http://www.thewest.com.au/20020815/b...-sto68029.html
SKYWEST Airline has stunned the local aviation industry by edging out National Jet Systems as the preferred bidder in the battle to win the fly-in, fly out contract for Rio Tinto's Argyle diamond mine.
The Skywest coup comes after Qantas picked up the Argyle contract last year in the wake of Ansett's collapse. It has used Boeing 737s but its schedules apparently do not suit Argyle.
Analysts pointed out last night the deal was not binding and questions remained over the commercial nature of the transaction, which involved only limited flying for the 91-seat Fokker 100 twin-jet, which is to be leased from Alliance Airlines in Brisbane.
NJS, the most experienced mining contract charter operator in the State, had bid for the contract with a four-engine BAe146 aircraft.
Skywest Airlines chairman and chief executive Patrick Ryan confirmed a 91-seat Fokker 100 aircraft would be wet-leased for one year for the required 20 hours of flying per week for the Argyle contract.
The wet-lease means Alliance Airlines will provide the crews and support for the aircraft because Skywest is waiting on Civil Aviation Safety Authority approval to operate Fokker 100s.
Details of the deal are sketchy with neither Mr Ryan nor Alliance Airlines prepared to discuss the precise nature of the transaction which apparently sees the Fokker 100 being under-utilised.
Analysts said that under normal circumstances a jet aircraft would need at least 45 hours of flying a week to break even.
Mr Ryan said the Alliance aircraft would be based in Perth and leased for more hours as Skywest secured additional work.
This has led some analysts to speculate that Alliance Airlines is taking a commercial risk on Skywest securing more business. Alliance denied this and said the deal was on commercial terms.
One Melbourne-based analyst suggested Skywest might be on a timetable to increase the hours over the next 12 months, but Mr Ryan denied this.
"We are under no pressure whatsoever to take the aircraft for more hours," he said.
Mr Ryan said the airline would look at other opportunities, which analysts have taken to mean it would target Woodside and Western Mining. But that move could bring them into conflict with the State Government which has given the airline protection on what is termed turbo-prop routes such as Geraldton, Albany and Esperance for its 46-seat Fokker 50 operations.
Alliance Airlines, owned by Queensland Airline Holdings, is the new airline to emerge from Flight West which collapsed in June last year.
It is owned by a consortium of aviation identities including Stephen Bond, the owner of Lloyd Helicopters, Hugh Jones, chief executive of New Zealand's Airwork and Steve Padgett, chairman of the Aeromil Group of Companies.
Argyle requires Skywest to start services on November 3.