More F100's for Alliance Airlines

[FL CH]

Here are a few rumours I've heard.

1. At least another 2 F100's on the way, with new routes added in QLD and NT. Along with Skywest and Sunshine Express will slowly expand and grow to be another Flight West or East-West airlines.

2. Have had talks with Qantas and my link with them. Qantas would use them on the SY/BN-NLk route and may use them on the BN-AS route, replacing the NJS 146.

3. They are only just staying afloat.

[apacau]

I've heard so many QQ rumours, that they just pass over me these days. Remember the talk of 4-5 F100s running BNE-SYD and BNE-MEL?

[FL CH]

So true apacau, however I have been told the CEO has been in Europe locating a few F100's.

[23 Metros In a Row]

More F100's??

And where would they be looking?

Oh I'll just go to Europe on spec to find an aircraft to bring home....great deals on them too.

First rule of business.............don't bite of more than you can chew....

Second rule of business...............dont buy expensive toys without a damn good reason.

Third rule of business.........stay well clear of aircraft

[topend3]

Herd on the Terrace

Edited by John Phaceas



Allies in friendly fire

NEXT month's launch of Skywest Airlines' new jet service from Perth to Broome is really ruffling feathers at the airline's new alliance partner Qantas Airways.

The alliance is supposed to create a complementary relationship with each airline feeding passengers on to the other's flights and other add-ons like the redemption of frequent flyer points.

But one thing you wouldn't expect it to include is head-to-head competition between partners.

According to several informants, the issue came to the boil at the weekend at the Regional Aviation of Australia conference at Coolum in Queensland, where Qantas' regional airlines boss, Chris McArthur, and Skywest chief Scott Henderson were spotted deep in animated conversation over the soon to be contested Broome route.

Henderson apparently pointed out to McArthur that he had to do what was best for his shareholders. Nonetheless, Qantas is extremely annoyed with the push on to what it regards as its turf - a point it made to various other executives at the conference.

Meanwhile, Skywest has apparently been privately talking up its plans to acquire as many as six 96-seat Fokker jets as part of its expansion plans, which include taking a stake in Sydney-based Regional Express.

[FL CH]

B]Norfolk Island carrier in Alliance alliance[/B

Norfolk Jet Express and Alliance Airlines have entered an agreement in which Alliance will charter its aircraft to NJE.

The agreement, effective from November 12, will see all flights marketed as NJE services, although the Fokker jet that Alliance uses on the route between Australia and the island will feature the liveries of both carriers.

Under the agreement, there will be 20 flights a week between the Australian mainland and Norfolk Island.

NJE will honour all Alliance bookings at current fare levels for travel to January 11.

Looks like Rumour number 2 could be correct.

[Flying Monk]

Wednesday, 8 October, 2003

JOINT ANNOUNCEMENT BY

MR GREGG PRECHELT, CHIEF EXECUTIVE, NORFOLK JET EXPRESS

and

MR SCOTT McMILLAN, MANAGING DIRECTOR, ALLIANCE AIRLINES

re

AIR SERVICES BETWEEN AUSTRALIA AND NORFOLK ISLAND


Norfolk Jet Express and Alliance Airlines are delighted to announce the formation of an exciting new relationship, in which Alliance will charter its aircraft to Norfolk Jet as part of a major restructure of the market.

Effective 12 November, 2003, Alliance will provide air transport services for Norfolk Jet Express, which will continue to develop its expertise and strengthen its brand as a specialist marketer of Norfolk Island, where it is based.

Under the new arrangement there will be 20 flights per week between Australia and Norfolk Island. Although more than half will be chartered from Alliance, all will be marketed as Norfolk Jet Express services.

Sydney will continue be the biggest market for the enlarged Norfolk Jet Express, which will now offer six weekly flights to Norfolk Island – two departures each Wednesday, Saturday and Sunday.

On the Brisbane – Norfolk Island route there will be three weekly departures, again on Wednesday, Saturday and Sunday.

Services to Norfolk Island will be operated with both a Fokker 100 jet flown by Alliance and a Boeing 737-400 aircraft, currently chartered from Air Nauru by Norfolk Jet Express. All aircraft will be configured with Business and Economy Class cabins.

Alliance will dedicate a specific Fokker 100 to Norfolk Island services, uniquely bearing the colour schemes of both companies – Norfolk Jet Express on the right side and Alliance on the left.

This also provides added exposure for Norfolk Island as a holiday destination when Alliance uses the aircraft to operate other services.

The combined strengths of Alliance and Norfolk Jet Express, and their commitment to the remote Norfolk Island community, will create more jobs on the island, and in Australia, as the relationship between the companies matures.

For customers currently booked to fly Alliance Airlines to or from Norfolk Island, all existing reservations for travel between 11 November, 2003, and 11 January, 2004, will be honoured by Norfolk Jet Express, at the prices which people have paid.

Alliance Airlines passengers currently booked to depart beyond 11 January will be contacted by Alliance with details of any changes.

The agreement between Norfolk Jet Express and Alliance Airlines has been borne of necessity since a change in the marketing funding policy of Norfolk Island Tourism, which now restricts the amount of direct marketing support provided to industry. This policy, which both carriers have consistently opposed, has made it more and more difficult for two carriers and the industry to promote the destination effectively in Australia.

Both Norfolk Jet Express and Alliance Airlines have stated publicly their commitment to supporting and expanding the tourist market from Australia to Norfolk Island, and through this new agreement they will remain true to their promises.

By combining their strengths, the two companies will be able to deliver sustainable and reliable services to the Island, supported by a consistent schedule.

There is considerable seating capacity to accommodate market growth, and a strong ongoing commitment by Norfolk Jet Express to work closely with the travel industry to build visitor numbers to Norfolk Island.

Norfolk Jet Express and Alliance Airlines share the view that their combination of expertise will prove to be the most logical and beneficial course of action not only for the two companies, but for the future of the Norfolk Island tourism industry.


GREGG PRECHELT SCOTT McMILLAN
Norfolk Jet Express Alliance Airlines
:ok:

[Major Minor]

I've heard that there's more good news from the Alliance camp . . . .

1. They've recently won a significant mining charter contract from Maccair.

2 All Alliance's engineers are completing additional courses . . . . maybe additional aircraft are on their way!

[dirtylittlefokker]

"Head down, Chin Up??????"

The time has come.

QQ is on the way at last.

[Tail_Wheel]

DLF: If Alliance needs more F100's, why did FNY go to Skywest? :confused:

[dirtylittlefokker]

Tail_Wheel, FNY didn't GO to Skywest, it was and is their aircraft from the start.
QQ just help them set the show up having the F100 on our AOC.:=

[Stick Pusher]

thanks dirtylittlefokker, finally someone who has it right! can't get it through some people's heads (ie cruze power).

FNY is XR's - end of story!

cheers!:ok:

[cunninglinguist]

400k of spares....................1/2 an engine:confused:

[Major Minor]

Cruze Power, Aircraft finance 101 - an OPERATING lease does not appear on the balance sheet whereas a FINANCE lease does.

This is one of the positives of entering into an operating lease - it keeps the asset and the liability off the balance sheet and in certain instances this benefit alone can be sufficient to justify such an arrangement.

In order to put it into simplistic terms an operating lease is akin to a rental agreement. If you rent a house you don't include its value and the amount owed by the landlord to his bank in your personal statement of assets and liabilities.

Then again Cruz Power maybe you've come up with some creative accounting techniques that would make the most creative bean counter proud!

By the way I'd also check your facts on the contract mining charter won by Alliance from Maccair - services start next week I'm told.

I'd say the ink is dry . . .

[Tail_Wheel]

I would think it a fair bet that two (if not all three) F100's in Australia belong to a finance company in Sydney, the finance Capital of Australia. Owing to devaluation in aircraft values since 911, the aircraft are over capitalised and are now on operating leases only.

[FL CH]

Looks like rumour number may also be on the cards.

SkyWest Considers Merger with Other Regional Operators
Date October 15th, 2003
Source Financial Review - Yvonne Ball

Regional West Australian airline Skywest has initiated preliminary merger talks with other Australian regional carriers.

Managing director Scott Henderson said yesterday that the airline's improved operational performance, after its financial restructure, had raised a number of growth opportunities, including possible mergers and acquisitions.

``We're talking to a number of parties,'' he said.

``We've got a management team in place now with a very strong capability of running our airline and I think we're looking at the potential of where we can extend it.''

The former Ansett Airlines subsidiary posted a $546,000 net profit in 2002-03 but a normalised loss of $2.2 million on an operational basis.

Mr Henderson said the airline had been trading profitability for six months and was on track to at least meet forecast net profit of $2.4 million in 2003-04.

``I think now we're one of the strongest airlines in Australia, which gives us a great platform for growth,'' he said.

``There are so many options for us: organic growth through additional jets and growth through merger and acquisition type activity as well.

``My vision of the aviation market is that there needs to be a national regional airline as well as Qantas and Virgin Blue and . . . given our strength and our balance sheet, and our business model now, we've got a fairly transportable model.''

Mr Henderson said a listing on the Australian Stock Exchange was a possibility but Skywest didn't need funds after its recent $4.2 million capital raising through an oversubscribed convertible note issue.

``It is something we're in a couple of minds about,'' he said.

``The market is red-hot at the moment but it would be good to have a bit more of a track record behind us.

``The other thing is, we don't need additional capital at the moment.''

Meanwhile, he said Skywest should learn this month if its bid to win a federal government contract for a twice-weekly passenger service to the Christmas and Cocos islands was successful.

It is also considering extending its new Perth to Broome service, following its successful launch earlier this month, as well as adding Karratha to its service early next year.

Skywest is looking to acquire a second, and possibly a third, Fokker 100 jet to meet growing demand for scheduled and charter services.

[izee]

wake up cruze power
Ive read your negative crap far too much
your obviously a very bitter pilot
89 maybe

I've actually met the owner of skywest's F100 and it certainly wasnt anyone to do with Alliance or capital finance.
He was from somewhere in europe ( i think maybe from holland) from a leasing company.
The aircraft is supposedly the dearest in the world with the lease costs but does have the extra MTOW and heavy gear. It was too expensive for alliance as they are cheaper to buy from us airways. Heaps sitting in the mojave.
But thats another GREAT story, oops sorry rumour

But thats the facts jack

Sounds like we might have some very angry pilots out ther who might be employed by a charter company that QF have just terminated the services of.
NJS is all but finished in the east with only approx 1 146 left running, and a coastwatch dash occasionally.

Good rumors on sunstate getting Q400's to take over from NJS and the runs impulse have been doing.

And as for a 146 being better aircraft to operate.
Think about it, Alliance CEO is an accoutant and we all know how tight an accoutant at the helm of a company can be.
But maybe pax are happy being terrified to death by the horrifying sound of the gear and the flaps going up and down. Scared the hell outta me.
And lets say nothing of the fumes.
Dying breed those 146's
BAE (bring another engine)
Sorry

And i garantee by the end of the year more F100s on the register

[Dash Man]

Strong rumours about that Skywest and Alliance are having conjugal visits at the moment - there's a little bit more than a hook up on the cards.

[23 Metros In a Row]

Difficult to see Alliance going back to the turboprop age........

[Kwaj mate]

izee
The Alliance GM is a beancounter?
The F100 has almost the same DOC's as a 737-300 with less seats.
Just look at the AVStats (US DoT) to see how much F100's compare with other aircraft types & series in the US.
Remember that Ansett CEO's (after Sir Reg) were accountants.

[topend3]

australian aviation reports a third and fourth f100 from us airways are on their way soon.

i see alliance and norfolk jet are using the same f100 now...

also, aa reported a second f100 is due in wa by december...

Skywest profit boosts plan for float

By John Phaceas



SKYWEST is again dusting off its float plans following a bumper first quarter profit and renewed investor appetite for share offers.

The regional WA airline yesterday unveiled a better than expected net profit of $745,000 for the September quarter - $200,000 more than its maiden full year profit in 2002-03 - and said it remained on track to post a full year profit of $2.4 million.

Chief executive Scott Henderson said the board was now seriously examining the potential to float early next year, given Skywest's good prospects and above-budget earnings in the past two quarters.

"We're now agreed that the business fundamentals are there, the market is there, so we're looking very seriously at when we're going to do that," he said before addressing shareholders at Skywest's annual meeting.

"We can't really make a commitment, but we're probably looking at the March period next year."

Mr Henderson said it was still too early to say how much capital Skywest would target in any float, but that it would be determined by growth plans.

"So there's quite a large range of capital we might raise during an IPO (initial public offering) but we'll leave a substantial amount on the table for new investors in the company," he said. Heavy demand for shares in Virgin Blue also boded well for a float.

Mr Henderson said Skywest's big September quarter, in which operational cash flow came in $800,000 above forecast at $2.3 million, coupled with extensive balance sheet restructuring in 2002-03, had built an excellent platform for future growth.

"We basically now have zero net debt, which is driving a position that this airline is one of the strongest in Australia. That is just a remarkable turnaround from 12 months ago," he said.

"And if you look at cash flow from operations, it has been quite an extraordinary result . . . and is an indication of the strength that is in this business."

Mr Henderson said Skywest saw strong opportunities to grow organically, largely through an expansion of its jet services to the North West.

Passenger numbers on its thrice-weekly Perth-Broome jet service, launched last month, had been twice as high as initially expected, he said.

The company now hoped to introduce jet services to Karratha and other towns such as Exmouth next year once its second Fokker 100 jet came into service.

[Air Ace]

"The Alliance GM is a beancounter?"

Kwaj mate, definately a matter of opinion. His and mine differ..... :yuk:

[Qduck]

"The Alliance GM is a beancounter?"

""Kwaj mate, definately a matter of opinion. His and mine differ..... !!!""

Watch this space, "Air Ace"

I think all of his beans may be big, black juicy ones!!!

[Air Ace]

I'm watching! I'm watching! About as much action as watching grass grow! :ugh: