skywest wins new contracts

[sleeve of wizard]

Dear All,

Unfortunately we have been advised today by RIO TINTO that we were not successful with the RFT to provide ongoing regional jet services for their West Angeles and Barimunya mines.
RIO advise that the jet services have been awarded to Skywest with F 100 aircraft and our services will be phased out over coming months

Yours sincerely



P.... N......
Chief Executive Officer

[Capn Bloggs]

I told DH years ago we should have got a fleet of 30 cheap Fokkers! :ugh:

I suppose HD will be personally turning on the TURBO switch in the summer so his jets don't end up in the ravine...:}

[betaman]

What effect if any will this have on NJS 146 pilot numbers?

[ITCZ]

Re-deploy to 717 as required. No redundancies, probably just slow down external hiring.

[Warped Wings]

When is the Cocos/Christmas Island contract up for renewal?

[JetRacer]

ITCZ wrote:

Re-deploy to 717 as required. No redundancies, probably just slow down external hiring.

I wish I shared your optimism! 717 numbers almost as required, 3 spare 717s sent offshore, not many 717 slots there!

Another sad day for NJS... :{


edited cos I cant type

[Capn Bloggs]

Jet Racer you'll never make the LHS with a pessimistic attitude like that! :E

[sfde]

Future Horizons are looking sad. Forcing HD out the door was another masterful management decision. At least Skywest don't make you pay for your endorsements.

[nig&nog]

My flat mate who is a B717 FO said there are heaps of slots going especially with a couple of captains heading to VB and J* Viet. So shouldnt be any worries for the 146 crews. Nig not nog

[Icarus2001]

I for one would be interested to hear from some Skywest drivers about whether SW have the capacity available to do this contract. (15 flights per week) and if it relies on NEW F100 aircraft arriving where are the crews?

Secondly, how is the OEI performance looking out of YANG at 40 degrees?

[dodgybrothers]

Sad day for NJS. I knew, when I was at a meeting with PN a few short years ago and he said the 146 was going to be the backbone of the fleet for the next 10 years, that the writing was on the wall. Combine that with the departure of hugh then the for sale sign should have been put out the front. Well done to skywest, a company that 2 years ago really looked as though it was teetering on the brink, but now is a real powerhouse. Excellent effort.

[yowie]

Great effort if they can deliver:confused: 20 extra flights plus Fortescue, cancelling RPT runs, Telfer by all reports not happy with OTP. A lot of flying for 5 jets? Can see the incumbant continuing the charter arrangement that is already in place:} Just what photos has HD got anyhow:bored:

[muII]

5 Jets? FNR,J,Y,T,N,C, that looks like 6 to me and FNU within weeks.

[Dog One]

Sad to see a contract lost, I was under the impression that NJS had recruited a top line contract manager.

[sfde]

Recruited a top line contracts manager to replace the top contracts manager who obviously still is.

[XRlent100]

Definately sad for the NJS employees but if they're interested I'd dare say there'll be some direct entry on to the F100 at Skywest very soon. And they'll be looking for experienced jet jockeys.

I believe there is a NJS Check Capt joining Skywest within weeks to take up a T&Cing roll.

:ok:

[ITCZ]

I believe there is a NJS Check Capt joining Skywest within weeks to take up a T&Cing roll.
NJS's loss is XR's gain. A gentleman and a C+T who will be missed.

Recruited a top line contracts manager to replace the top contracts manager who obviously still is.
NJS's loss is XR's gain. Also a gentleman. Parted ways with NJS due frustration and philosophical differences re: how an aviation contractor should do business with the resource sector.

I guess that argument is now settled!

When is the Cocos/Christmas Island contract up for renewal?
Cap doffing to XR ends here. You won't be flying that in a twinjet.

[727ace]

NJS also to lose the last remaining 727, contracted with Aae by end of year. Heavylift have purchased one aircraft that has been idle for a few months and will gain the second by years end only to operate them again on the PER-MEL-PER route for Aae, bravo NJS management !!!!
also more mines contracts to go in the near future as those 146's have outlasted their usefulness, should have opted for the f100 as we now see

[yowie]

ITCZ
Why cant Christmas Cocos be done in a twin jet?:cool:
BTW Good luck CT guy, glad you got out:ok:

[Capn Bloggs]

One of those other F@kker outfits at Perth have an "ETOPS" sticker by the front left door. I wonder what that means? :eek::confused:

[Lord Flashhart]

Yowie- I doubt that skywest have etops approval for going that far across the ogen.

[kimberleyEx]

Not quite the same distance, but QQ used to operate the F-100 to Norfolk. Is that what your referring to Bloggs?

K-ex

[yowie]

Lord,
Sorry, didn't realise the F-100 was the only twin jet around:ok:

Bloggs,
Doubt that the f-truk would have the ETOPS for that run, but who knows what can be approved these days:hmm: Direct that is:ok:

[Capn Bloggs]

Kim

QQ used to operate the F-100 to Norfolk. Is that what your referring to Bloggs?
I'm not familiar with Alliance's routings, but that would probably be it. What ETOPS (I should say EDTO) do they have?

[kimberleyEx]

What ETOPS (I should say EDTO) do they have?

Not sure Bloggs. But they required it to do Norfolk, and they held Auckland as an Alternate.

Cheers

K - ex

[dijon moutard]

Alliance held a 75 minute etops to cover norfolk ops (holding either auckland or tontouta as alternate's depending on the route flown out to norfolk)

cheers
mustard

[dijon moutard]

The Board of Skywest Airlines Ltd ("Skywest") is thrilled to announce that the Company has today signed a significant scheduled charter supply contract with Rio Tinto Services Ltd (ASX: RIO, LSE: RTZ) for air charter services to and from Perth to mine sites in Western Australia.


The salient details of the contract are:


The contract is for the provision of at least 15 return jet services per week of scheduled jet charter services between Perth and West Angelas, and Barimunya for the iron ore production workers employed by Rio Tinto;
The air services contract initial term extends for 3 years with a 2 year option extension;
Monthly provisions allow for price adjustments to reflect increases and decreases in jet fuel prices. Therefore, the directors anticipate no impact on the profitability of this contract from rising fuel prices; and
The Company will add an additional F100 aircraft to its fleet to meet the scope of requirements.Rio Tinto has been one of the most important customers of the Company since 2002 when services commenced to the Argyle Diamond mine in Western Australia. Due to the variable nature of fuel price changes, the precise revenues from this contract cannot be precisely estimated.


Fuel Pricing Policy
Skywest Airlines Ltd and all its subsidiaries have formally adopted a new policy concerning management of the impact of fuel prices. The policy involves the pricing of fuel being passed onto end user clients, which may be either the public or alternatively scheduled charter clients. The policy and process involves fuel price changes, in a totally transparent and honest manner, being passed on to clients with a rise and fall mechanism on a monthly basis. The scheduled charter contract with Rio Tinto contains provisions for the application of this Fuel Pricing Policy on a monthly basis.


Skywest Airlines Ltd Executive Chairman, Jeff Chatfield said: "The directors of the Company are humbled that Rio Tinto has chosen Skywest Airlines for such an important air travel supply contract. Skywest's management believes that this contract with Rio Tinto is the largest single air services contract in the Australian markets for services of this type. This contract further emphasizes the difference between Skywest and a number of other companies in our sector.


Providing services of this magnitude to one of the world's largest mining companies is proof positive that our strategy of focusing on the mining and resources sector is bearing fruit. Our scheduled charter contracts give us reliable estimates of work efforts. Skywest's additional contracted revenues, consequential to the last three scheduled charter service contracts signed, in aggregate, amounts to an additional AUD$111m over 3 years and subject to option exercise AUD$170m over 5 years. Applying an open and transparent fuel rise and fall policy is essential to provide consistent profits from those additional revenues."

regards
mustard

[topend3]

Skywest secures Rio Tinto contract
Font Size:DecreaseIncreasePrint Page:Print
Geoffrey Thomas, Airlines | July 04, 2008

PERTH-BASED Skywest Airlines has beaten off seven other airlines to snare a lucrative Rio Tinto contract from National Jet Systems to serve the West Angelas and Barimunya mines in the Pilbara.

The win continues the almost Emirates-like momentum of Skywest since it snared the former head of NJS in Western Australia, Hugh Davin, just over 18 months ago.

In that time, Skywest has won a string of mining charter contracts, including the highly sought after Fortescue Metals Group, and its fleet of 100-seat F100 jets has essentially grown from two to seven.

Skywest executive chairman Jeff Chatfield, who masterminded the luring of Mr Davin to the airline, said yesterday that the board was delighted with the latest coup.

"Providing services of this magnitude to one of the world's largest mining companies is proof positive that our strategy of focusing on the mining and resources sector is bearing fruit," he said.

The contract is for the provision of 15 scheduled jet charter services for three years with an extension option.

Importantly, the contract provision allows for price adjustments to reflect fluctuations in jet fuel prices.

The relationship with Rio Tinto builds on the contract won by Skywest in 2002 for services to the Argyle Diamond mine in WA.

But the Skywest win is a blow for NJS, owned by British-based Cobham, although Cobham Flight Operations and Services chief executive Peter Nottage told The Australian that business moved around in the highly competitive aviation industry.

"Cobham manages the movement of any business very well because it has the good fortune to be the largest, most flexible and most reliable contract aviation firm in Australia," Mr Nottage said.

"Cobham has $1.3 billion worth of business under contract through its NJS and National Air Support businesses (Coast Watch) and will continue to build its business around our reliability, our excellent safety record and our business viability."

But the Rio Tinto switch, the latest in a string of losses to Skywest, must concern NJS management. "Skywest now has NJS on the ropes," said one Perth-based industry observer, who added the BAe 146 aircraft used by NJS needed replacement.

In January, QantasLink forged a new relationship with Brisbane-based Alliance Airlines to operate a Fokker 100 in QantasLink colours in WA.

However, Qantas general manager regional airlines Narendra Kumar at that time rejected any suggestion the Alliance decision reflected any deterioration of the relationship with NJS.

Nonetheless, NJS had spare BAe 146 capacity after losing a daily fly-in/fly-out contract with Newcrest Mining and QantasLink turned its back on the 70-seat BAe 146 after operating a sizeable fleet with the company throughout the 1990s.

Adding to the complexity of the competitive situation is a move by Jetstar to open a crew base in Perth and increase its presence.

Some observers suggest that in the longer term Qantas may opt to bring the operation of its 11 Perth-based 717s, under contract to NJS for QantasLink, back under the Qantas Group's operational umbrella.

But Cobham noted the 146 and the F100 were out of production, with F100 production ceasing in the 1990s compared to 146s ending in 2002.

"I am very comfortable with our fleet age and reliability when compared to others in the marketplace," Mr Nottage said.

"Our 146 fleets range and size meets the needs of customers across a broad range of requirements. We continually monitor our fleet requirements and will continue to do so."

NJS won a five-year extension to its 717 operational contract in March last year and according to Mr Nottage the contract is working well.

The BAe 146 has proved to be a competitive aircraft over the 15 years, in large part because of the work NJS has done on the aircraft in rectifying engine reliability issues.

The aircraft's major advantage of a short-field performance, due to its four engines and high wing, has recently been negated with a number of key resource companies extending runways to accommodate larger jets, such as the Boeing 737-800 and A320.

But the BAe 146 is an early 80s analog-technology aircraft and some of the NJS aircraft are early builds, although a few were manufactured in the 1990s.

Mr Nottage told The Australian that NJS would "align the three BAe 146s with our business needs and capacity over the next few months and the lease on the three 146s falls due this year".

NJS did look at the state-of-the-art Embraer 170s and 190s three years ago but could not make the business case at the time. But with a softening of the world airline market - and thus lowering of lease costs - the situation could well be different.

[VH-UFO]

Anyone know when the changeover will occur?

[Atlantic55]

Anyone know when the changeover will occur?

Early November will be the first Skywest flight.

[Skystar320]

I heard NJS is losing a -100 shortly...........

[topend3]

with this loss of contract they might be losing another from november when the xr change happens unless they get some more work...

[Toolman101]

Latest I heard was they where going to can 2 -200's that were up for lease return

[Spanwise Flow]

Would like to know the initials of the T & C guru going from NJS to Skywest.

[Betwixt and Between]

Great news for XR, BUT, sources close to action tell me that NJS WA / NT ("blue tail") had major profitability issues, under past management, and that past management would secure business at any costs - get the business and try to increase charges later to get it to a point that was profitable.
And in the interim swallow losses.....interesting. Suggest it is easy to win business if you buy it. And that same management is now at XR - is there a pattern emerging?
Crewing some of these new jobs will be interesting also: as XR crew do not have the same flexibillity in their agreement to do augmented / extended shifts that NJS crew do - is this why Telfer flights include a dead leg between Telfer and Broome?? for crew change? - must cost a small fortune.
I don't believe all is as rosy as led to suggest by the gushing press releases - for example, I happen to know that MEL flights are a dead loss (as they were for QF also so no surprises there)

[Atlantic55]

Crewing some of these new jobs will be interesting also: as XR crew do not have the same flexibillity in their agreement to do augmented / extended shifts that NJS crew do - is this why Telfer flights include a dead leg between Telfer and Broome?? for crew change?

No, as crew often (infact, usually) do Perth - Telfer - Broome - Perth. Newcrest often have pax on the BRM/TEF and TEF/BRM sectors, also.

[Betwixt and Between]

Atlantic - yes that is the issue - this shift pattern via BME gets them back to PER faster and in a shorter duty period than if they did the layover at TEF as the NJS crew did. I think it was about a 12 or 14 day all up with most of the day on crew accom at TEF

[joepatroni]

Rumours floating around NJ at the moment are the Cocos and Christmas Island contracts will soon be operated by a F100? Would like to see the mess if one goes tech over there!

[Capn Bloggs]

Joe, if you are rumouring that Skypest will get Cocos/XCH with one of their F@kkers, since the ad for the contract renewal tender only appeared in the paper last week, I hardly think that NJ would be capitulating just yet.

Of course, NJ could be considering putting some F100s into service...

[Skystar320]

anyone know where i can view the Christmas Island tender>?

[topend3]

its a commonwealth govt tender so i would suggest searching the web

[cunninglinguist]

for example, I happen to know that MEL flights are a dead loss

Actually, I think it may be a surprise to airline operations guru XRlent, whose post from some time ago is below :

Just can't wait for an expert comment from the linguist with no cunningness!

.......and yours truly's retort :

Why not leave the gloating until you've been operating the route for more than 6 months and broken 50% load factors XR, like the other routes in WA that have'nt been handed to you on a silver platter by the labour government, there, happy.
With 3 flights a week, no on-carriage ( not everybody leaving KG wants to go to ML ), and no FF scheme, I give it 6 months. Very smart move not doing it in winter though, get the punters used to direct before you start diverting for fuel.

And yeh, still waiting for the 320s you were " definitely " getting.

So, unless B&Bs statement is incorrect, I guess XR can go suck a turd :ok:

PS. still waiting nearly 2 years later for the " definite" 320s :rolleyes:

[XRlent100]

Cunning,

Gee wizz, that's a statement from someone who's been boiling away for a while and finally burst. You've brought some old posts out of the hat for that.

Do you take the quote re MEL flights being a dead loss as gospel? who made that quote and what source are they using???? Because I know for a fact that they are not a dead loss. Have a look at the LSE anouncements re KG-MEL making a profit back in December.

The MEL service has been going for about 8-9 months now so your 6 month bet was a tad off the mark.

As for a FFlyer scheme, your obviously not up to speed with the Skywest. The Velocity FF program is up and running and in full swing at Skywest and has been for the past few months.

As for diversions during winter. How many have happened so far? I can tell you there's only been 2 in 9 months. One from KG-MEL because of 100% load factor which restricted fuel load out of KG on its short / hot airstrip. The other was from MEL-KG because of a scheduling error/requirement where a LGW aircraft with the small fuel tanks was used on the flight and hence didn't have the requirements. 2 out of 100 odd isn't too bad especially when one was because of XRllent loads that supposedly aren't happening.

So all up it seems it's just another ill informed post from someone who has a huge gripe with Skywest for whatever reason.

I'll let you in on a secret though. Skywest are perservering with the F100 on KG-MEL until the 1st A320 is available to take over the route.;)

[muII]

Yep, xrlent 100, you have hit the nail on the head, they ARE the facts.:D

[Wombat]

Geez cunning, thats a bit harsh. I used to think your post's were quite sensible. At least Skywest are making a go of it. No ,I don't work for them but sometimes wish I did.

[Atlantic55]

Plus on-top of whatever the Kalgoorlie council is paying Skywest to provide an interstate service. That route is doing quite well.

[betaman]

Plus on-top of whatever the Kalgoorlie council is paying Skywest to provide an interstate service. That route is doing quite well.

If that is true then is it really sustainable?

Here was I thinking that councils were there to provide infrastructure & services to all the rate payers. Not subsidize private companies to provide services to a minority.

[muII]

Skywest is not a private comany.....:)

[betaman]

MUII private or public it matters not. The concept is still same....:)

[PALMIS]

Councils provide libraries for the community. Only 10% of the population use them. Using your argument, funding for libraries should be abolished.

Many small communities in the USA have similar arrangement with carriers so all residents have the ability to use the service that would not exist without some financial assistance .

If you lived in KGL and your daughter /wife/mistress was injured in an accident on the east coast, would you prefer to backtrack a considerable distance, wait for a flight, then fly back over your home town if you have the option of a direct service just because you object to the principle of community support for a service?

If the answer is yes, why bother going at all.
If no, you have agreed that there is a beneft for the whole community for such an arrangement.

[Icarus2001]

It would appear that not only is Skywest taking some work off NJS they are also about to take a handful (or two) of crew.

NJS Perth base to drop from 10 BAe146 aircraft down to 6 aircraft.

Keep up the good work Peter. Think of the fuel svings.:ok:

[Capn Bloggs]

40 hairdryers down to 24. That should reduce the power bills. :}