Sunstate to HVB and ZBL?(Merged)

[bne019]

Hey, first post so please go easy :=

Rumour mill working over time..

Goss suggesting QantasLink will commence services to Biloela and Hervey Bay sometime soon with a staff memo. released on Friday.

Anyone heard any news? Talk also QFLink may go head on with ****** on some of their routes.. Townsville - Mt Isa perhaps :ugh:

Interesting news...

Cheers :ok:
bne019

[DutyofCare]

Oh Phil! Look what you've done...

[muddergoose]

"Popular Or Perish!"

[Mr.Buzzy]

Looking for a holiday destination?
Come to Biloela....
Cheeky and cosmopolitan......... Biloela.....
Fresh climate and warm folk....... Biloela....
Enjoy the esplanades and fine dining......Biloela....
Why not spoil yourself and enjoy some shopping.... Biloela....
Take time out with your partner....... Biloela....
Plenty of great kids activities........ Biloela....
Go on..... you know you deserve it.... There's something fun for all the family at Biloela.....Book Now!:rolleyes: :rolleyes: :rolleyes:

bbbbbbbbbbbbzzzzzzzzzzzzzzbbbbbbbbbbbbbzzzzzzzzzzzzzzzzzzzzz

[GAFA]

It's not only Sunshine's routes they are targeting, but Q'link are looking at a ******'s Townsville/Cairns to Mt Isa, Brisbane to Moranbah, Brindabella's Newcastle to Canberra and Big Sky's Grafton/Taree to Sydney.

Considering 3 out of the 4 airlines operate only Metro's, they have no hope against Q'link and a Dash 8.

It looks like Australia is about to lose a few more regional airlines, plus at a guess 200- 300 staff could be affected:(

Thanks Qantas, not!

[Phil D'Dil]

JetA OK it was you who thought that Qlink was your protection. Why didn't you take the advise from your own staff and do something earlier. It has been YOU AND YOUR SILLY IDEAS that had put the airline into its current difficult position with your I'M RIGHT ATTITUDE. Can you feel the pain your've put on us with new families...

[DutyofCare]

Sunshine Express has recently been hit for 6 with the announcement that Qantaslink would be recommencing daily flights to HBA and TNG from BNE. This is a direct response to the airlines poor performance on behalf of Qantaslink (and their customers) and the airlines boards decision to stay with the old Metros which at best were unreliable. The airlines board were fully aware of the maintenance issues and customers complaints and as a result have called in CASA to oversee the airlines operation 2days a week for the foreseeable future. Management is directly accountable for this situation and one can only wonder how long the company can last in its current format. Is the sun setting on Sometimes Express?

[touchncloth]

I seem to recall these were Sunstate routes and fobbed off due to expansion elsewhere and not enough A/C. Why not take em back. Pretty hard for the Hervey Bay Arthritic to get on and off a busted a@se heat soaked noisy texan sewer pipe anyway:p

[bne019]

The following was posted on another forum:

The Qantaslink services will begin from Oct 29.

32 weekly BNE-HVB-BNE services.

20 weekly BNE-ZBL-BNE services.

All these flights will be operated by 36 seat Dash-8 aircraft.

:ugh:

[Wanderin_dave]

Just heard up here (HVB) that the flights were gonna start THIS WEEK. Oct sounds much more reasonable. Is there any more to this than a rumor? Nothing bookable on QF's website.

[bne019]

Confirmed: No longer a rumour.

Qantas.com Newsroom (http://www.qantas.com.au/regions/dyn/au/publicaffairs/details?ArticleID=2006/aug06/Q3460)

QantasLink to Launch New Services to Hervey Bay and Biloela
Brisbane, 11 August 2006

QantasLink will commence services on two new Queensland routes - between Brisbane and Hervey Bay and Brisbane and Biloela - from 29 October 2006, subject to regulatory approvals.

Qantas Group General Manager Regional Airlines, Mr Narendra Kumar, said continuing growth in both regions had made the introduction of the new services possible. He said they would further expand QantasLink's network that already included 17 destinations in Queensland.

[apacau]

And just to complicate everything further, Rex has announced the purchase of Sunshine Express - their march continues and the rumour of moving to Qld is confirmed...

Press release attached below;

Media Release
REGIONAL EXPRESS TO ACQUIRE SUNSHINE EXPRESS
14 August 2006
Regional Express Airlines (Rex) announced today that it has fast tracked discussions
with Sunshine Express Airlines of Queensland to acquire its entire regional airline
operation.

In a joint media release made today, Managing Director of Sunshine Express, Mr Steve
Padgett, revealed that Sunshine Express and Rex had been in dialogue regarding the
possible merging of the two operations.

“We identified last year that as a small regional airline we have limited economies of
scale and a high cost of operation and regulatory compliance. We also needed
significant investment in new aircraft and resources to better serve the growing regional
Queensland market and to be a viable activity in the long term.” Mr Padgett added that
this requirement, had led to the commencement of discussions with Rex about a merged
operation.

“The need for greater support became more apparent recently when an accident caused
substantial damage to one of our Metro 23 aircraft during routine maintenance by a third
party resulting in the aircraft being permanently grounded. This led to a substantially
reduced capability to meet our schedules with the high degree of integrity necessary for
a regional airline,” Mr Padgett said.

Giving details of the background to the merger, Rex Managing Director, Mr Geoff Breust
said that Rex first held discussions with Sunshine Express last year but was reluctant at
that time to take on the added responsibility given its own significant expansion plans.

“However, the grounding of the damaged Sunshine Express aircraft and difficulty in
finding replacement aircraft resulted in Rex being informed that Sunshine Express’
position was becoming untenable and the future of its services and the 40 staff of the
airline were at stake. In discussions between the airlines, Rex and Sunshine Express
agreed in principle to merge so that there was a future for the airline, the air services and
the staff.

“We at Rex have gone through this experience twice in the last five years and we fully
empathise with Sunshine Express and its staff. We believe that they are motivated, loyal
and passionate about their work and we feel that they too deserve renewed
opportunities, just as what Rex was given after its precarious first ten months of
operations,” Mr Breust said.

“Then came QantasLink’s announcement late last Friday of its intention to fly into Hervey
Bay and Biloela from Brisbane, flying in competition with its alliance partner, Sunshine
Express.

“Rex’s initial reaction was to abandon the whole idea of a merger with Sunshine Express
as Rex already has a major expansion and a lot of work on its plate. Nevertheless, we
felt that such a reaction was selfish and not consistent with our mission of connecting
regional Australia. Taking the easy way out could mean the potential loss of vital air
services to seven regional centres from Brisbane and 40 jobs at Sunshine Express. We
felt we have an obligation to step up to the mark,” Mr Breust said.

“Rex will consult with all stakeholders involved – Sunshine Express, the local councils
representing the communities involved and the State Government of Queensland. If
there is a strong consensus and resolve, Rex will take up the challenge to take over and
improve on the current network.”

Commenting on QantasLink’s decision, Mr Padgett said that he was very disappointed
by this outcome. “QantasLink withdrew from the Wide Bay in 2002. Whilst Sunshine
Express has been able to operate the routes profitably, the situation is not much
changed today and I do not see any commercial reason for QantasLink to recommence
flying from Brisbane to Hervey Bay and Bileola.”

The parties have reached agreement in principle on the key commercial terms of the
deal. In the proposed transaction, all the shares in Sunshine Express will be transferred
to Rex for a nominal consideration. Following the acquisition, Rex will use its best
endeavours to bring in the resources necessary to improve the quality and reliability of
the services and to upgrade the services in ports that have potential. These proposed
initiatives are intended to provide for the continu ation of air services between Brisbane
and the regional centres of Maryborough, Hervey Bay, Biloela, Port Macquarie, Coffs
Harbour, Armidale and Tamworth.

Mr Breust added, “We have given our commitment to a mixed 34 seat Saab / 19 seat
Metro operation just as we have successfully done in other States. We plan to eventually
bring two Saab 340s into the Sunshine Express network.”
Rex will spend the rest of the week in consultation with the stakeholders.
--00--

[GAFA]

Well done REX, some real competition to Qantaslink in QLD:ok:

Now all we need is a tie up between REX, Alliance and Virgin Blue so we could get some F100's going head to head with Qantaslinks Q400's:)

[lowlite]

ABOUT TIME!!!!!!

Qlink have had a monopoly in the southeast QLd for too long. Would love to see REX going into Gladstone, Emerald and Bundeberg to keep the bast@$ds honest!!
:) :ok:

[drshmoo]

very very very interesting. Hope the Sunshine Ex guys can stay employed:ok:

[Bluebottle]

Rex have pulled out of the deal......just announced on asx.:ouch:
http://www.asx.com.au/asxpdf/20060824/pdf/3y4811wvrxbg9.pdf

[Gravox]

That's a shame. What does this mean for SEA now? Suppose they will probably have to downsize.
What where the conditions that SEA introduced that weren't acceptable:ugh:

Best of luck to the boys and girls at SEA.

[eye_in_the_sky]

Hopefully this doesn't preclude REX still going into QLD... has to be on the cards sooner rather than later.

I hope it was something "big" that caused the deal to fall over ; alot of time and money wasted otherwise!

[apacau]

And the latest...
30 August 2006
For Immediate Release
SUNSHINE EXPRESS AIRLINES CEDES
SOUTHERN COASTAL ROUTES TO
BRINDABELLA AIRLINES
In a joint media release announced today, services from Brisbane to Coffs Harbour and Port
Macquarie have been secured following an agreement struck between Sunshine Express Airlines
and Brindabella Airlines. Subject to regulatory approvals the change will take place as from 1
October, 2006.
Executive Director of Sunshine Express Mr Phil Laffer said, “The negotiations with Brindabella
Airlines to take over the popular southern coastal routes will ensure the continuation of services
for two very important markets, Coffs Harbour and Port Macquarie who have supported us over
the years. Brindabella have agreed to take on a number of our existing flight crew to support their
operation. We are delighted to have reached such a mutually advantageous agreement with
Brindabella Airlines who share with us a high standard of business ethics and have been very
straightforward to deal with.”
Sunshine Express was left in a difficult situation following the destruction of one of its aircraft
during maintenance by a third party. Then Qantaslink announced it would compete on two routes.
These events were the catalyst to stepping up negotiations with Regional Express. Unfortunately
we were not satisfied that the future of the company and its staff would be entirely protected had
they proceeded with the acquisition.
Mr Laffer said, “As a small privately owned Queensland airline we have been through a tough
time and it is difficult to compete with larger airlines like Qantaslink following their decision to
operate over the top of us on two ports. This may mean the end of direct regional services to
some communities.
Sunshine Express continues to work with alternative carriers regarding the future of our remaining
routes with the aim of achieving uninterrupted services to all ports.
We have always enjoyed a close relationship with the communities and their respective councils
whilst operating to their ports. This has not been an easy decision for the airline; however it is
another case of “the small guy losing out”. It is now intended that Sunshine Express will
restructure operations focusing on charter services from South East Queensland”.
END

[Wanderin_dave]

Just heard on the ABC that Sunny Express will cease RPT ops from the end of September. :(

[bne019]

ABC News (http://www.abc.net.au/news/newsitems/200608/s1729792.htm)
Sunshine Express pulls out of scheduled flights

Sunshine Express Airlines has announced it will cease regional flights at the end of September, after QantasLink announced it was starting services on two of its routes.

Merger talks between Sunshine Express and Regional Express Airlines fell through last week. The Sunshine Coast-based airline services Maryborough, Hervey Bay, Biloela and several New South Wales locations. The airline's executive director, Phil Laffer, says the company has serviced regional Queensland for seven years.

"Unfortunately, it has been an incredibly difficult situation for us over the recent weeks particularly after the QantasLink announcement," he said. "We just cannot continue airline services under those circumstances."

The airline will continue to offer charter services.


:ugh: :eek::{

[onya]

Hopefully Rex will have a close look at Mac Air. Wouldn't have a clue what value Mcfarlane has placed on the company but I'd love to see them get out of bed with Qantas. Could only mean good things.

[Bendo]

26 Pilots put out of work at the end of the month, my sources tell me.

That will soak up a few of the available positions :ugh:

[drshmoo]

The sunshine pilots from what I understand will be helped to find work with Brindabella/Pearl/Alliance.

Good to see an operator that has to pack up try to take care of their staff:ok:

[bne019]

Local airline's switch will cost SEQ services

Maryborough will lose its air link, and Brisbane services to Tamworth and Armidale are in doubt after a decision by Maroochydore-based Sunshine Express to concentrate on charter work.

But from October 1, its Brisbane to Coffs Harbour and Port Macquarie services will be operated by Brindabella Airlines.

Sunshine Express ran into trouble last month when one of its five aircraft was written off in an accident during routine maintenance. But the final coffin nail was driven by QantasLink, which decided to service Hervey Bay and Biloela once again.

Sunshine Express spokesman Phil Laffer said the airline had been able to justify the cost of flying into Maryborough and Hervey Bay, "But we cannot do Maryborough alone and because QantasLink has taken away out Biloela market as well, we have no choice but to scale back our operations from the end of September," he said. "It is a classic case of the big guy winning over the little guy."

Mr Laffer said the company was working hard to find alternative airlines to operate to Tamworth and Armidale.

Fortunately and agreement with Brindabella meant the Canberra-based airline would take up to two of Sunshine's four Metro airlines and five pilots. Talks were proceeding with other airlines which might take some of the remaining staff.

Mr Laffer said the airline's future lay in charter work, which was plentiful because of the continuing minerals boom. "We saw the writing on the wall with the finals straw being the QantasLink move into Hervey Bay and Biloela," he said. "We are moving towards controlled shutdown. It will not be a financial disaster."

Last month Sunshine Express appeared likely to become part of the REX aviation group, but talks collapsed because there was no certainty that it would employ Sunshine's workforce of 40.

[ComeByChance]

The GM has been very busy over the last few days trying to locate jobs for the pilots and operations staff. From what I hear he has been successful in securing 18-20 jobs/interviews for pilots and 3-4 positions for the ops staff.

It’s a shame to see SEA go (just short of its 8th Birthday), but if all goes well the pilots and ops staff should have jobs at Alliance, Brindabella, Pearl, Pel-Air, Rex, Qantaslink and possibly OzJet.

[wallabyblue]

From what I hear there will be few (if any) staff left without employment and that Managment are working hard to place staff with other/replacement operators.

Rex should be ashamed of the way they have acted in this whole saga

[bne019]

Found the following on another site:

QantasLink accelerates plan for regional flights

QantasLink will accelerate its plans to launch flights to Hervey Bay and Biloela flights following the demise of Sunshine Express. It will now begin the services on October 1, one month ahead of schedule. Sunshine Express will cease its schedule operations at the end of September.

Qantas said it will carry all passengers holding Sunshine Express tickets from Brisbane to Hervey Bay, Maryborough and Biloela for travel between October 1 and January 31. Qantas group general manager Regional Airlines Narendra Kumar said Sunshine Express passengers should contact the carrier or their travel agent for details.

The offer to take passengers will rub salt into the wounds of Sunshine Express, which claimed the launch of the routes was a key factor in its decision to call a halt to operations.

Hope they find a carrier for Brisbane-Armidale/Tamworth flights ASAP :(