From Thew West this morning:
Qantas buys mine-flight network
GEOFFREY THOMAS, The West Australian December 14, 2010, 5:18 am
Qantas is about to enter the competitive fly-in, fly-out market after buying local operator Network Aviation.
The deal, flagged three months ago and announced yesterday, will dramatically change competition at Perth Airport, with Qantas using Network's established FIFO operation to fast-track its drive for a bigger slice of the WA market.
Network has two 100-seat Fokker 100 jets and six 30-seat Embraer Brasilias turboprops and the fleet will be expanded.
Airport insiders said yesterday Qantas was eyeing at least three Fokker 100s to add to the fleet.
The WA Government announced last month that Qantas would be allowed to operate on the Perth-Exmouth route.
The airline will also enter the Perth-Geraldton route, which is being deregulated.
Qantas will add planes to its WA QantasLink operation for those services.
Qantas chief executive Alan Joyce said the acquisition would provide Qantas Group with a new revenue stream and room for further diversification.
"This will significantly enhance the scope of what Qantas can offer the mining sector, bringing new competition to the marketplace," he said.
However, Qantas will find it tough going. Many key resource contracts are tied up for years with operators such as Skywest.