View Full Version : Qantas to Buy Impulse?

1st May 2001, 13:28
The Radio just mentioned that Qantas are going to buy Impulse. The routes would be kept though. Any one know anything??

1st May 2001, 14:40
Following from Air Transport Intelligence:

Impulse to halt schedule ops and ally with Qantas
Andrew Doyle, Sydney (01May01, 05:35 GMT, 420 words)

Impulse Airlines is to withdraw from operating scheduled services in Australia under its own brand and is entering into a commercial arrangement with Qantas Airways that will see it operating flights on behalf of the major carrier.

Executive chairman Gerry McGowan and Qantas CEO Geoff Dixon say in a joint statement that Impulse will cease operating on Sydney-Melbourne and Sydney-Brisbane trunk routes from 14 May. Impulse will contract to Qantas its eight Boeing 717s and 13 Beech 1900Ds, “complete with pilots and cabin crew”.

Impulse will operate 717 flights for Qantas “under the Qantas brand and livery, to primarily leisure destinations”, while Impulse will operate new services for Qantas “to regional ports where Qantas does not currently operate”.

Qantas will also provide funds “to allow Impulse to buy back its institutional shareholders’ shares and provide working capital”.

The move follows the withdrawal of Impulse’s institutional investors, and Dixon and McGowan say in the statement that their new relationship is a “direct result of the increasingly competitive conditions in both the Australian and world aviation markets”.

“Impulse and a number of its institutional shareholders had decided the major trunk route market was too difficult for Impulse to continue operating on its own,” the statement says.

McGowan adds: “This agreement will strengthen Impulse financially and protect its future. Impulse will continue to be a major employer of skilled aviation personnel and will continue to maintain its own aircraft. Today’s announcement is all about two Australian-owned airlines working strategically together to deliver highly competitive air services to more Australian destinations.”

The agreement is subject to approval from the Australian Competition and Consumer Commission “and due diligence”, the two carriers say. They add that the deal will see Impulse “owned by its founders, Gerry and Sue McGowan”.

Dixon says: “This agreement will secure over 1,000 jobs at Impulse. While the new arrangements could involve some transfers for a small number of Qantas staff, these staff will be offered ongoing employment with Qantas.”

He adds: “The Australian aviation market is as tough as it has ever been and it remains very competitive. Our relationship with Impulse will result in increased regional and leisure services in Australia and Qantas will continue to offer a wide range of discount fares.”

Impulse, an established regional player, entered into low-fare domestic trunk route operations last year using leased 717s. Its withdrawal from scheduled services leaves Virgin Group carrier Virgin Blue as the only independent airline operating on trunk routes in competition with Qantas and Air New Zealand-owned Ansett Australia.

Was Impulse another "Compass"? Will Virgin Blue survive or will Australia return to its 2-airline "policy"? Interesting times ahead dunnunder.

2nd May 2001, 21:47
HMMMMMMMMMMM, what waits ahead? We shall see

3rd May 2001, 02:03
A long way from sure.......

Ansett have lodged objections with the ACCC, also are putting a counter offer and threatening court action.

See many threads on "Dunnunda"

"I USED to be a PPRuNaholic, but now I'm CURED"

3rd May 2001, 13:11
So Qantas are to Impulse buy?
Act inhaste repent at leisure!

3rd May 2001, 18:07
Impulse was about to become No-pulse very soon and now Qantas and Ansett are diving in to give it mouth-to-mouth resuscitation! :)