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30th May 2008, 03:31
Skywest snares Fortescue deal
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Geoffrey Thomas | May 30, 2008
PERTH-BASED Skywest Airlines has landed the highly prized contract with Fortescue Metals Group for scheduled charter services from Perth to Cloud Break, in Western Australia's Pilbara region.
The contract is for six or more weekly 100-seat Fokker 100 flights for three years, with a two-year option. Skywest chairman Jeff Chatfield said yesterday he was delighted with the deal.
"Fortescue's project at Cloud Break represents one of the world's major iron ore developments," he said. "This contract is an excellent opportunity for Skywest to develop its scheduled charter business. The company is pleased and humbled to be selected to service this major iron ore production project by Fortescue."
Cloud Break is the site of Fortescue Metals' world-leading iron ore extraction project.
Mr Chatfield said revenue from the contract would vary depending upon the number of services flown during the three years.
The contract includes provision for price adjustments to reflect increases in fuel prices and will fully occupy one of the F100 aircraft recently leased by the company.
The contract continues the spectacular rise of Skywest, which only two years ago had three under-used Fokker 100s - operating just five hours a day - and five Fokker 50s. The airline last month took delivery of its sixth Fokker 100, with one more to arrive next month. It also now operates seven Fokker 50s.
Skywest is also in the process of completing its application to add an Airbus A320 to its air operator's certificate. It is expected that the A320 - the first in a potential fleet of four - will arrive in November.
The dramatic turnaround has been led by a new management team that includes managing director Hugh Davin, chief executive Paul Daff and chief operating officer Mike Hoar. Industry sources suggest Skywest is close to announcing another resource contract in the next month.
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Font Size: Decrease Increase
Print Page: Print
Geoffrey Thomas | May 30, 2008
PERTH-BASED Skywest Airlines has landed the highly prized contract with Fortescue Metals Group for scheduled charter services from Perth to Cloud Break, in Western Australia's Pilbara region.
The contract is for six or more weekly 100-seat Fokker 100 flights for three years, with a two-year option. Skywest chairman Jeff Chatfield said yesterday he was delighted with the deal.
"Fortescue's project at Cloud Break represents one of the world's major iron ore developments," he said. "This contract is an excellent opportunity for Skywest to develop its scheduled charter business. The company is pleased and humbled to be selected to service this major iron ore production project by Fortescue."
Cloud Break is the site of Fortescue Metals' world-leading iron ore extraction project.
Mr Chatfield said revenue from the contract would vary depending upon the number of services flown during the three years.
The contract includes provision for price adjustments to reflect increases in fuel prices and will fully occupy one of the F100 aircraft recently leased by the company.
The contract continues the spectacular rise of Skywest, which only two years ago had three under-used Fokker 100s - operating just five hours a day - and five Fokker 50s. The airline last month took delivery of its sixth Fokker 100, with one more to arrive next month. It also now operates seven Fokker 50s.
Skywest is also in the process of completing its application to add an Airbus A320 to its air operator's certificate. It is expected that the A320 - the first in a potential fleet of four - will arrive in November.
The dramatic turnaround has been led by a new management team that includes managing director Hugh Davin, chief executive Paul Daff and chief operating officer Mike Hoar. Industry sources suggest Skywest is close to announcing another resource contract in the next month.
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