Air Link (Rex) ceases RPT operations

[apacau]

Bad news for those folk out west (west NSW that is):

Change to Air Link Operations
Monday, 10 November 2008

As part of the regular and ongoing review of its network, Regional Express Holdings Ltd (Rex) has today announced plans to terminate all the RPT operations of its wholly owned subsidiary Air Link Pty Ltd.

With effect from 20th December 2008 Air Link will no longer operate the smaller routes currently serviced by 9 seat and 5 seat piston engine aircraft. The routes affected are those linking Dubbo to Bourke, Cobar, Coonamble, Lightning Ridge and Walgett as well as the Mudgee to Sydney run.

Services currently operated by Air Link’s 19 seat Beech 1900 turboprop aircraft from Bathurst to Sydney and Dubbo to Sydney will be upgraded to 34 seat SAAB 340 aircraft to be operated by Rex.

Air Link will continue to operate and develop its charter services in addition to growing its third party aircraft maintenance business.

Rex Managing Director Jim Davis said, “Regional aviation all over Australia is in great jeopardy because of spiralling costs, ever increasing regulatory requirements and the shortage of pilots and engineers. In this climate the very thin routes that Air Link operates out to western NSW do not make economic sense.”

“We are heeding the Federal Government’s advice to prepare for the termination of the en-route rebate by starting to phase out all marginal routes that would not be commercially viable without this incentive. Rex will continue to monitor the situation and make further adjustments as necessary.”

Mr Davis added that these changes were not expected to have any adverse impact on the profitability of the group and would result in few retrenchments as most staff not required by Air Link would be offered positions within the Rex Group.

Customers holding a flight reservation on the impacted routes for travel on/after Saturday 20th December 2008 can call 13 17 13 for a full refund.

[Skystar320]

Good grief who saw this coming?

With a fleet of nicely maintained Beech 1900D's it will be sad to see this operator go, must be disheartening for the previous owner as well

Wonder is the likes of Sharp or Brindabella will come in?

[Howard Hughes]

Sharp's I wouldn't think so, what about Aeroduck? They would probably be in the best position to take quick advantage...:ok:

[Skystar320]

Yes, i believe there is a spare 32 aswell

[apacau]

Most of these routes are operated by 5-9 seaters, so why are we suggesting J32s? Much as its sad to say, I think the likelihood of another airline picking up the slack on these thin routes is quite low.

[neville_nobody]

If they can't make it work in a 1900 and PA 31 why would it work in a Jetstream?

and the shortage of pilots and engineers

Hey Jim how about a shortage of livable pay and conditions!! Pilot licenses cost a fortune these days. You can go to uni do a degree pay less than 50% of the cost of a pilots license and start on a higher salary. No wonder you have a shortage!!!!

[Skystar320]

Most of these routes are operated by 5-9 seaters, so why are we suggesting J32s? Much as its sad to say, I think the likelihood of another airline picking up the slack on these thin routes is quite low.

Okay rex operated 19 seaters and have upgraded them to 29 seaters. Agressive marketing and good pricing!

[puff]

The issue isn't so much the 1900 routes, upgraded to Saabs. It's the thin routes out of Dubbo that rely on their air service as a link to the rest of the world, be it an overseas trip, getting to somewhere else to see relatives or just getting to Dubbo or Sydney to get to a specialist doctor.

The people of Cobar, Bourke, Coonanable, Lightning Ridge and Walgett are just that little bit more isolated when it comes to December. Sad that as time goes on the bush in a lot of cases gets worse air services than they did 20 years ago.

[john_tullamarine]

JRD's crucial comment relates to Government subsidies. Has been the case for decades that thin routes only survive because of handouts. If the local folk really want a service, then they have to support it sufficient for the operator to turn a dollar or two profit.

[aerocom]

Lucky the cadets are comming to the rescue to crew this new SAAB service. There maybe a chance now of crewing the Cooma as well as the cancelled ABX, DBO and other uncrewed sectors and overnights.

[Skystar320]

You'd sell your soul to get your name on the bottom of Rex press releases wouldn't you?


You are kidding right? :bored::bored::bored::bored:

[KRUSTY 34]

aerocom.

I sincerely hope your comments are tounge in cheek!

As for the cancelled REX services, get ready for more.

And speaking of the Cadets, even though it's still early days, it seems they are impressing all they come into contact with. Their positive attitude, academic prowess, and overall dedication to the task, is truely a credit to them all. Now let's see how sitting in the right hand seat for the next 5 years (if not permanently) on 20-25% less than the average national wage adjusts their outlook!

[Track Direct]

It is highly unlikely any other operator will be interested in taking on these routes vacated by Airlink. If they could'nt afford to run well maintained 310's & Chieftains on these very marginal routes, who else could do it ?

About the only pax on those services out west these days are those employed by govt departments who have their fares paid for.
Most struggling bush families have no hope of affording the airfares to DBO from those smaller towns, possibly with the exception of CBA where the mining companies are.
It's a sign of the times in the bush, it's another big blow to rural people in those small towns.
The people from western NSW are now worse off than they were when Hazo's operated the routes 25 years ago.

Govt personnel & specialists will still travel on charters but for the rest it will mean many hours of driving on the Mitchell & Castlereagh highways.

Looks like the bookings on the countrylink coaches will be chockers for this Xmas !

[Flyingblind]

Agree that its not a good situation for those in the affected community's, however just to stir the pot a bit and considering that its all transport related.

If the Federal Government is prepare to (again) spend Millions of our dollars on the big three car makers in OZ then why can;t they address supporting rural community air links?

The big three make (generally) products that are not in demand by buyers...other than Government departments and fleet buyers where as rural community's depend on their air link.

Know where I'd like my tax money going to.

[Horatio Leafblower]

My first thought when I read about this yesterday was that Miller would be mighty pissed off...

...but I heard today that he's OK, Jack, he's going to work for a mining company with 2 x PC-12s based at Dubbo. Nice one, Captain Cranky :ok:

[Socket]

Quote from Track Direct:

About the only pax on those services out west these days are those employed by govt departments who have their fares paid for.
Most struggling bush families have no hope of affording the airfares to DBO from those smaller towns, possibly with the exception of CBA where the mining companies are.
It's a sign of the times in the bush, it's another big blow to rural people in those small towns.


Its seems to me that if no-one can afford to use a service, and the service is removed then no one is missing out on anything, except the operator who gets to miss out on that red ink on the bottom line.

It really amazes me how some still believe that those that CHOOSE to live in the Bush should be subsidised for every little inconvenience.

Didnt rain, give me money.
Too far to drive, give me cheap airfares.
I grow stuff, give me a tax break.Dont complain to me about the hardships of living in the bush.

MOVE.

Rant finished

[go_soaring]

I heard that the AirLink drivers have been offered FO positions in REX. Not sure if it's only the 1900 drivers, or all their pilots regardless of aircraft type..


go_soaring! instead

[neville_nobody]

Yeah nice one socket...... if that actually happened then you'll be complaining about the fact the we have to import food from overseas. :ugh:

What I want to know is how will anyone get 500 multi command in the future? The companies available to get the experience are now just about all gone. Cairns companies going broke, Airlink winding down, Darwin is nothing on what it was..... how can anyone get the experience in this day and age.

[KRUSTY 34]

You can't Nev.

Wood for the trees mate, wood for the trees!

[Skystar320]

damn hippie Krusty.

I thought you knew better

[KRUSTY 34]

I assume you mean "Hippie" Skystar'

Peace man! :)

[Skystar320]

Cruelty free..... man

[bilbert]

I believe that there shouldn't be RPT for any aircraft under 5700kg or less than 9 pax. With the regulatory environment at present it is not economically viable. CASA wants to reduce the fare paying passenger risk by legislating and harassing any small aircraft RPT out of existence.

[Duff Man]

No offence to airlink pilots, but the fewer PA31s flying into YSSY the better for the rest.

[KRUSTY 34]

I doubt they would be too offended Duff.

It seems that they will be offered positions on REX's SAAB. If they have the quals for command (most probably at least hours wise), then provided they come up to scratch, a substantial pay-rise could be in the offing in around 8-10 months!

You never know they may even get the base of their choice?

[Stationair8]

Another sad day for regional communities that rely on airservices, unfortunately not every community has the luxury of several jet services a day.

I was talking to some Airlink guys last week and they have been short of crew for the B1900 for a while and have had one parked at Dubbo for some time. I had a sticky-beak at one of their C310's and Chieftain and those aircraft are very neat, not like you average GA sh*t box on it's 25 paint scheme!

I have done a few flights with Airlink recently, certainly a lot more impressive to fly with than a few others I had the misfortune to fly with on the East coast. At least they know what an on time departure is!!!

[Bort Simpson]

They have parked a B1900 for the last year 'cause he can't keep pilots with an attitude like that you see matey. That's the akrat story there for ya matey. I'm not a pilot there but what I'alls do is, ya see, is take that REX offer to fly a SAAB instead of polishing aircraft and sweeping hangers waiting for a charter customer to come along. Fark me, like there is a choice in the matter. :ugh:

[LM82]

You never know they may even get the base of their choice?

As long as they choose Sydney then I guess your right :}

But as you mentioned if they do have the hours then all they will need is 500 on the SAAB and then they will have a command in Sydney after a few months so they can relax in the left seat and sit back and watch the industry for the next 12 months or so while while getting >5700kg multi crew turbine command time which im sure is better than their chieftain time!:ok:

Chins up fellas as it just may be a blessing in disguise for you:ok:

for those guys that dont go to rex if your interested in heading up to Darwin i dont think you would have much trouble getting a job with chieftain time already. I wouldnt go up there expecting to see the glamourous pistons your used to though or class A maintenance but i definetly think you would get a look in with Hardees, Directair, Air Frontier and Chartair. Good luck to you all.:)

unfortunately though its not the first to go and im sure it wont be the last over the next <insert time here> weeks, months, years.

cheers all

[ohyeahright]

So getting back to the pressing issue of EBA neg - is everyone politely refusing to work RDO/Annual leave every numerous time they phone - I am!

It's the only way to improve our EBA, take a stand guys and girls, it's not going to happen without EVERYONE joining forces.

And what pilot shortage - I hear numerous Sim checks were canceled this week due lack of/sick Check Captains. And even the guru himself - all kneel- Capt Nifty - is in the box of terror as I write.

Ha - what pilot shortage :ugh:

[puff]

Rex jumped early on rebate: Minister - Local News - News - General - Daily Liberal (http://dubbo.yourguide.com.au/news/local/news/general/rex-jumped-early-on-rebate-minister/1359597.aspx)

The en-route rebate introduced in “extraordinary” circumstances during 2001 to shore up air services to rural communities would be available to Rex Airlines for another four years, a spokesman for federal transport minister Anthony Albanese has confirmed.
This week Rex Airlines announced it would cease flights from Dubbo to Cobar, Bourke, Walgett, Lightning Ridge and Coonamble from December 20.

Among its reasons was the Federal Government’s intended “termination” of the en-route rebate.

Marginal routes would not be commercially viable without this incentive, Rex managing director Jim Davis said.

However, the minister’s spokesman has told the Daily Liberal that the rebate would be available to the airline for four more years.

He noted that Rex had recently achieved a “record profit” but would not be drawn on its withdrawal from remote airports in western NSW.

“We understand they have made a commercial decision,” the spokesman said.

Nor would the minister’s spokesman indicate if the affected communities had a chance of convincing the Government to continue the rebate.

Instead, he said it had always been a “transitional arrangement” put in place to ensure flights to regional and rural communities were sustained after the September 11 terrorist attacks in the United States and the collapse of Ansett Airlines a day later on September 12 in 2001.

“It was introduced in extraordinary circumstances as a temporary measure,” the spokesman said.

“By the time it ends in 2012 it will have been in place for 11 years.”

Since Rex’s announcement on Monday, the Federal Government has come under fire for moving to wind up the rebate program.

State MP for Barwon Kevin Humphries says if the Federal Government can “subside the Bass Straight Ferry for an alleged $500 million a year”, it should revisit the issue of the remote air operator rebate.

Federal MP for Parkes Mark Coulton is calling on Mr Albanese to “act immediately to protect local communities”.

The minister’s spokesman said the Government was about to release an aviation green paper addressing the major issues facing regional aviation.

“Communities will be asked to have input into that process,” he said.

[KRUSTY 34]

Wait a minute. The rebate will be available for the next four years! So why is REX winding up Airlink RPT just before Christmas?

Could it be that the Chairman and his cronies are attempting to hold back the Red Sea with a broom? Could it be that the sale of Airlink assets may just keep the profits a little healthier, at least for the next financial year? Lets see now. REX are cancelling flights at an unprecedented rate. Pilots (especially Captains) are now well and truely "over" working on days off. The prospect for the Xmas schedule is looking dire. What will cost more? Marginal profits on the thin routes, or serious brand and revenue damage on the main game over the festive season? The problem of course is that it's already too late to plug the crewing sieve (typical). The few experienced guys from Airlink may bear fruit in some small measure into the new year, but it's too little too late. At least we may have a half dozen more upgradeble F/O's. I mean, that's better than nothing, right? :ugh:

I wonder if the communities of far western NSW would see the logic in it?

[pa60ops]

I guess as far as getting the flight hours up goes, CASA will pin their hopes on the all singing all dancing multi crew pilot licence - then all those new folks out there with 70 PIC can breeze into the left seat of a >5700 kgs without a care in the world - or something like that :*

[KRUSTY 34]

I've heard about the "discount" on command hours being proposed for the MPL as distinct from the ATPL!

As far as REX's current crop of Cadets go (around 48 I think), they have been trained and certified under the existing system (CPL-ME/IFR). I can see it now. CASA finally approves the MPL. All future cadets are trained in that system.

MPL Cadets advance to command. They cannot leave for a better position because their MPL is not transferable.

Existing cadets become permanent F/O's because the ATPL requires command hours well in excess of what their course has provided. They cannot leave because nobody at airline level will take them on as they cannot hold an ATPL.

End result: Captive workforce!

Absolutely evil, Absolutely brilliant!!!

Time to awake now LKH, CH, JD...... Wakey, wakey...

[Stationair8]

It also might be a very convient way to streamline the fleet. Getting rid of the Beech1900, Chieftains and Cessna 310 and then between Rex and Pelair standardize on the Westwind, Saab 340 and Metro.

I hear the B1900 going into Cobar, that will now be done by the Saab?

[KRUSTY 34]

Quote:

"I hear the B1900 going into Cobar, that will now be done by the Saab?"

Doubt it very much. 30 uncrewed sectors today alone. Weekends are becoming a nightmare for staff, with absolutely no improvement in sight. Poor old Cobar has lost it's service for good. you can have all the SAABs in the world, but it's not much good if you don't have enough pilots to fly them.

Over the coming months REX will be forced to further "rationalise" it's network. Ports far more profitable than Cobar I'm afraid will be coming under the knife.

But it's OK, "...by years end we will have a surplus of pilots."!

[DUXNUTZ]

I agree NEV, it seems the piston/light turbine operators are an endangered species...

[Lodown]

End result: Captive workforce!

Disagree Krusty. End result: No Rex.

In an environment where the consequences for errors can be brutal, a seriously disgruntled workforce (pilots without options) is insane. An MPL, as simply envisioned with Rex above, has Buckley's chance, unless the crew is seriously dumbed down. The industry can't go much further down as it stands.

I'm sure there will be career MPL's, but with most, it will be a step towards further qualifications. From Rex's current position determined not to pay a decent wage, it will probably mean the difference between pilots staying for one year or staying for three.

[KRUSTY 34]

Hear you loud and clear Lowdown, and absolutely correct!

My comments re: Captive workforce were more or less rhetorical and aimed at the mindset of REX management. They would love to have the scenerio I just described, but because of their complete dislocation from reality, they'll be left pondering their navels when it fails to eventuate!

Airlink, and the communities they served so well are just further casualties of REX management's drive to maintain group profits in the face of a shrinking business.

[Lodown]

Smoke and mirrors. The performance will make David Copperfield envious. Hope when the time comes that the guvmint will have a bailout package to share.

[TBM-Legend]

funny thing is that the 'fed' assistance for regional aircraft does not apply to pistons only turbines <15K kgs....

so what are they saying as only the B-1900 is covered here and the scheme as pointed out has four years to run...:{

[KRUSTY 34]

More B.S. from the REX P.R. machine! :suspect:

[Curved Approach]

KRUSTY hit the nail on the head, 6 more upgradeable FOs...

[bushy]

The favourites will be propped up with government money.
The others will go broke. The industry will keep getting sicker.

[Stationair8]

Now if it was the ABC Child Care Centre out the back of Bourke then the KRudd government would be throwing cash at it like it was going out of fashion, but essential air services to remote communities put that in the too hard basket.

I heard on Melbourne radio recently some dim witted politician saying that the collapse of the ABC Child Care Centres was the greatest crisis facing Australia and was far more significant than the collapse and eventual demise of Ansett and this would impact on real people. I thought that about sums up the clown running the country very nicely.
With that outlook what hope has GA and small regional airline companies got!

[Lodown]

Call me naive and ill-informed, but there are two things that the governments in their various forms and responsibilities should look at. First is the issue of subsidies and second is the RPT regulations.

Subsidies are going to the wrong crowd. Certainly in modern times, subsidies have gone to the large operator based in a capital city with the purpose of serving rural communities. Rural communities are absolutely essential to Australia's trade. Mining and agriculture are two areas where any other country finds Australia an extremely difficult competitor. In the future, Australia's competitiveness in these areas, by geography alone, will only enhance its lead. Rural aviation subsidies are going to the large operators based in the cities. There are many valid reasons behind this, but on the flip side, much of the money (both subsidy and fares from rural areas) transfers or stays in the cities and not in the rural communities where it should be going. I can’t recall the figures off the top of my head, but seem to remember something about $1 earned in a community creates something like $13 in flow-on effects. To a significant extent, so-called rural aviation subsidies seem to be a misnomer for metropolitan aviation subsidies.

Which brings me to the second part of the argument about RPT regulations. I harp on this subject, but RPT regulations in Australia are geared towards airline protectionism. In this case, airlines based in the major cities. Many of the rural areas don’t have the passenger numbers to support a full-blown RPT operation, but the regulations nevertheless prohibit a more flexible, enhanced and locally-based charter operation. An argument might be made that the regional communities can’t attract pilots and engineers. As a counter, there are quite a few ag operators in these areas already with qualified pilots, engineers and ground staff. I think many of us would be surprised at the level of innovation if the rural aviation industry was given a go.

I don’t mean this as a panacea, but as a suggestion. I think many aviation industry professionals are at a loss in how to encourage change. Local governments have enormous pull with the state and federal governments. At the same time, local government officials only know what they know. Have a chat with your local council members and bring some suggestions to the table.

[Stationair8]

Should go back to the good old days of Reg 203 operations.
Lot of dollars to justify all the crap Casa want, when you are only flying a single route twice a day.
Unfortunately the Casa policy of one size fits all, may apply to Qantas and Virgin but doesn't suit the smaller operators.