Strategic Airlines [Archive]

cyclone8888

1st Sep 2010, 23:06

I know this has been posted elsewhere however I believe it has far more relevance here

Defence bidders had inside help

Richard Baker

September 2, 2010
TENS of millions of dollars in Australian government aviation contracts have been awarded to companies that secured their bids with inside information about tenders provided by senior public servants.
Confidential emails obtained by The Age reveal two Defence Department officers working in the unit responsible for a $30-million-a-year contract to fly Australian troops to the Middle East were providing information during the tender process to the company later declared the winner.
The two Defence officials, Army Reserve captain and aviation consultant David Charlton and army warrant officer John Davies, were then given senior management jobs by the 2005 contract winner, Strategic Aviation, which has provided the troop flights to Kuwait since then.

The Age has also received allegations from well-placed sources that public servants in another government department have leaked commercial information to an aviation firm allowing it to undercut rival bids to win lucrative contracts.
In a series of emails written during the 2005 Defence tender process, Strategic Aviation directors refer to being ''fed'' information by Mr Charlton, and to Mr Davies being ''very handy to get information to us''.
At that time, the pair were working in Defence's Joint Movements Group, the unit responsible for troop deployment and overseeing the Middle East flight tender process.
In one case, Mr Davies used his official Defence email to send a document to a Strategic Aviation director in February 2005, well before the tender process had closed.
He also sent an email from his private account to the same director titled ''007'' and addressed to ''Mr Bond''. Other emails show Strategic Aviation directors discussing information provided by Mr Charlton and Mr Davies about key tender dates and Defence's preferred aircraft for the Middle East flights.
''I turned on the phone and Dave Charlton was just itching at the bit to tell me we have seven days to prepare this work. Short timeframe which I really do believe is favourable to our needs,'' wrote director Shaun Aisen in a March 2005 email.
A Strategic Aviation business plan written shortly after the firm was founded in early 2005 lists Mr Davies as its manager. He was he working in Defence's Joint Movements Group at this time.
Mr Charlton joined Strategic Aviation as general manager on a $174,800 job package, according to his December 2005 employment contract. By 2007, he had left to set up his SkyAirWorld airline venture and Mr Davies followed him to take up a senior management role.
Mr Davies yesterday denied any role in the 2005 Middle East tender and said he had informed superiors in Defence that he intended to take a job with Strategic Aviation.
He could not explain why directors had written he would be ''handy'' in getting information for them during the tender period. Mr Charlton could not be contacted.
In a statement, Strategic Aviation said it was in regular dialogue with members of the Defence unit responsible for troop movements in 2005.
''We have no regrets about the interaction with Mr Charlton and Mr Davies. At all times we have acted ethically,'' it said.
''In both cases, we made direct contact with [Defence], advised them of our intentions to recruit these individuals and received no objections.''
The revelation of the confidential emails comes a week after Defence cleared this year's Middle East aviation tender process of any irregularities, following allegations information had been leaked by Mr Charlton - who was back working in the Joint Movements Group after the $93 million collapse of his private airline last year - to winning firm Adagold Aviation.
The complaint was lodged by Strategic Aviation after losing the lucrative contract it held for five years. But Defence's chief audit executive, Geoffrey Brown, found no wrongdoing by the department, Adagold or Mr Charlton, despite his placement in the Joint Movements Group and Adagold consultancy role.
''The probity audit found no evidence that Mr David Charlton had any involvement in, or influence on, the Request for Tender or tender evaluation process … Mr Charlton immediately and appropriately, declared a potential conflict of interest noting his civilian employment as an airline industry consultant,'' Mr Brown wrote.
However, internal Adagold Aviation emails obtained by The Age reveal concern about its close ties to Mr Charlton - who worked with the company to win a 2008 Danish military contract - being publicly exposed.
In an email, an Adagold director told staff that if journalists called and asked for Mr Charlton, they were to say ''no David Charlton works for Adagold - nothing more''.
The Denmark contract has also been subject to a complaint by a Danish aviation firm that missed out on the contract. A member of the Danish Parliament's defence committee, Jens Lund, recently declared he would like to reopen an investigation into Adagold's contract to explore Mr Charlton's role.
Both the Defence Department and Adagold have declined to comment.
Greens leader Bob Brown said he was concerned by the Defence revelations. ''These are extremely serious allegations which warrant a parliamentary inquiry as soon as the next government is established,'' he said.
''They also indicate new rules to be required of people entering and leaving the public service to ensure there isn't a lucrative revolving door with the private sector that is against the public interest.''
Former Defence secretary Paul Barratt said public service guidelines were meant to ensure officials involved in tender processes did not take jobs with winning firms.

Congratulations to the clever indivdual at Strategic who decided it would be a good idea to use the media to wage a war that could not be won. :D

You would have to expect the odds of Strategic ever securing any government work from now on would be extremely long.

zanzibar

1st Sep 2010, 23:08

Defence bidders had inside help (http://www.theage.com.au/national/defence-bidders-had-inside-help-20100901-14njz.html)

I can't believe SA were SO stupid as to cry foul when they should have known their own involvement in such deeds would be discovered eventually.

What direction is the coriolis effect in W.A?

cyclone8888

1st Sep 2010, 23:31

Some good emails they have secured here...

The sky's the limit

Richard Baker

September 2, 2010
Ads by Google (http://www.fairfax.com.au/ads-by-google.html)

Australian tender writer Professional tender preparation

WHEN his private airline collapsed last year with $93 million in debts, entrepreneur and army reservist David Charlton found refuge within the Defence Department's Joint Movements Group, the unit responsible for deploying Australian troops overseas.
His return to Defence coincided with the time the department was tendering for the lucrative contract to fly 6000 troops to Kuwait City, before their deployment to Iraq and Afghanistan.
In 2005, the last time Charlton worked in the group, the contract was also up for grabs. Not surprisingly, Charlton is a man aviation companies seeking the Defence contracts have wanted to know.
Advertisement: Story continues below
An investigation by The Age has uncovered emails linking Charlton and another Joint Movements Group figure, former army warrant officer John Davies, to the directors of Strategic Aviation - the company which that year won the contract to fly troops to the Middle East - during the 2005 tender process.
The emails show the Strategic directors referring to being ''fed'' information by Charlton and Davies about the tender process they would end up winning.
''The A330 will be good as Defence are ramping up to a bigger force. David has indicated that the tender will start on the 9th of May,'' wrote Michael James in an email to Strategic co-director Shaun Aisen on February 23, 2005.
''I don't think [competitor] Tadros is being fed too much just the same as David has told us. But this is where John is very handy to get the information for us.''
That same day, Davies sent Strategic's James an email from his Defence email address that showed he was stationed at the Joint Movements Group headquarters at the time. A week later, Davies sent James another email, this time from his private account. The email was titled ''007'' and addressed to a ''Mr Bond''.
It is clear from this and other emails that Strategic was getting some inside information from Charlton and Davies about the Middle East tender that would later earn it tens of millions of dollars over the next five years.
There is little doubt the tender process was compromised by the relationship between Charlton and Davies and Strategic Aviation. But making matters more serious is the fact that later in 2005 both men ended up being employed by Strategic in senior management roles.
Moving forward five years to this year's Middle East troop flight tender, Defence found itself in a similar predicament. Charlton was back in the Joint Movements Group and once again had a relationship with the company that won the contract, Strategic's bitter rival, Adagold Aviation.
In effect, Charlton had switched sides. Since 2008 Charlton had been acting as a consultant to, and prospective business partner of, Adagold. Indeed, The Age has obtained documents showing Charlton was in Denmark in 2008 accompanying Adagold executives in talks with Danish military officials about a contract to fly their troops to Afghanistan.
When Strategic's directors this year learned the Defence Department wanted Adagold to fly its troops to the Middle East instead of their firm, they leapt on the presence of Charlton in the Joint Movements Group and pointed to his consultancy role with Adagold, and Strategic lodged an official complaint alleging leaking of information to Adagold about the 2010 tender.
Last week, a Defence audit cleared the department, Adagold and Charlton of any wrongdoing. In fact, Defence auditors praised Charlton for pointing out his conflict of interest with Adagold and then excluding himself from any area remotely related to the Middle East tender process.
But despite Defence's absolution of all involved, many questions remain about its decision to accept David Charlton back into the Joint Movements Group in the first place and also about the findings of the recent audit.
As for Strategic's loss of its most lucrative contract, one prominent Australian aviation figure says: ''It's the old adage about people in glass houses.''
THERE are many millions to be made flying Australian troops to war overseas, federal ministers to the outback and asylum seekers to detention centres.
In 2007 Adagold, winner of the most recent Middle East troop flight contract, flew Guantanamo Bay detainee David Hicks back to Australia on a chartered Gulfstream jet at a cost to taxpayers of $578,000.
In recent years the Brisbane-based aviation broker, which finds aircraft to suit the needs of clients, has organised a large proportion of federal Immigration Department flights to transport asylum seekers to detention centres. The contracts have been worth more than $10 million.
It has also provided VIP flights to the Department of Prime Minister and Cabinet, taking ministers and senior public servants across the country.
Given the huge sums of money at stake, the competition among aviation brokers and airline companies to land taxpayer-funded contracts is fierce and alliances between the relatively small number of players involved in the Australian industry change all time.
''You are always looking over your shoulder to see whether your rival is trying to stitch you up,'' says one airline director.
Both Adagold and Strategic have experience in being dudded by their own. In 2005, Strategic director Michael James was secretly working to establish the company with partner Shaun Aisen while he was on the books as a senior consultant with Adagold.
Corporate records show Strategic Aviation was founded in January 2005. It was a new name given to an old company associated with Aisen since 1993. According to Strategic's business plan, its mission was to become the leading aviation contractor to the Australian Defence Force.
It got off to a flying start by winning the 2005 Middle East flight tender - getting some help from inside the Defence Department through Charlton and Davies along the way.
But as Strategic's business plan made clear, the road ahead was tough. The company had entered a field occupied by operators who, like Strategic, ''have realised that the government contracts are the biggest aviation charter contracts in the industry.''
To outsiders, the ethics of Michael James working for Adagold in 2005 - in a role where he knew so much about what it would offer to Defence to hold on to its Middle East transport contract - while secretly setting up a rival firm that would wrest the contract from Adagold are highly questionable.
Here is what he wrote to Strategic co-director Shaun Aisen in March 2005: ''I have set myself up to leave Adagold if required, my only concern is that if I write Adagold's tender it may cause troubles for us later on.
''This is why I have set myself up, I can stay with Adagold up until almost completion of the tender so I know what they have but I don't want to really put us in a position that Adagold goes complaining to Defence about our actions.''
But to those familiar with the often incestuous nature of the relatively small Australian aviation industry, James's actions ultimately proved to be good business. Strategic has had the Middle East troop contract for the past five years and the multimillion-dollar fees from the government that went with it.
Strategic yesterday said James had a non-exclusive role with Adagold and was free to pursue other opportunities.
But like its rival Adagold, Strategic also experienced betrayal from the inside. The cosy relationship that formed in 2005 between Defence officers Charlton and Davies and Strategic turned sour in 2006-07.
Strategic was in the process of setting up a deal to operate a commercial airline service to the Solomon Islands. Charlton, as the firm's general manager, was heavily involved in the negotiations.
But he also had designs on setting up his own airline and believed that he could offer the Solomon Islands a better service than Strategic.
So in 2007 Charlton established SkyAirWorld and set about stitching up a deal with the Solomon Islands government. John Davies followed him, leaving Strategic to become SkyAirWorld's business development manager.
WHAT is clear from the tumultuous and fiercely competitive world of aviation contractors is that the operators who survive long-term need to be street smart and tough.
In the case of Adagold, its founder, Mark Warren Clark, showed his strength by winning a series of hotly contested South African Defence Department contracts through his company, Adagold Africa. His business partners in Adagold Africa, which later became Adajet, included Lawrence Pietersen, a former South African intelligence officer.
Between 2004 and 2006, Adagold Africa won several South African defence contracts despite being found to be the highest bidder. One of Adagold's most contentious South African contracts was to fly ballot papers for elections in the Democratic Republic of Congo. The company won the tender even though it charged $1.3 million more than rival bidders.
In 2006 Adagold's African arm became embroiled in legal action in the Pretoria High Court after a company also directed by Adagold's Pietersen was accused by a rival of receiving beneficial treatment from South African defence officials.
The Pretoria High Court granted an interdict preventing South Africa's defence department from proceeding with Pietersen's Ibhubesi Trading, with the court finding the country's defence secretary, January Boy Masilela unfairly influenced the decision of his department's procurement committee. Ibhubesi and Adagold reportedly shared offices in South Africa.
In its recent complaint to the Australian Defence Department, Strategic Aviation highlighted Adagold's past controversies in South Africa as something Defence officials should take into consideration when awarding the Middle East troop flight contract.
However, Defence's chief audit executive, Geoffrey Brown, said there was no evidence to support allegations of tender irregularities involving Adagold in South Africa. Moreover, he said Defence did not consider the South African matters relevant to Australia because Mark Clark and another Australian Adagold director involved in South Africa severed ties with their South African partners in ''early 2007''.
What Brown does not address in his response to Strategic's complaint is the fact that most of Adagold's tender controversies in South Africa occurred between 2004 and 2006 - a time when Australian Adagold directors, including Clark, were on the board of the South African company.
Brown's assertion that Clark severed ties with his African business colleagues in ''early 2007'' is also misleading. South African company searches show Clark was still a member of the South African company's board in 2007.
Adagold director Stuart Lee declined to answer questions from The Age. So did the Australian Defence department.
Strategic Aviation defended its interactions with Davies and Charlton during the 2005 tender and said it advised Defence of its intention to recruit the pair. ''At all times we have acted ethically,'' Strategic said in a statement.
Davies denied any role in Defence's 2005 Middle East tender, but when confronted with his emails to Strategic, he conceded that ''it might not look great in hindsight''.
And what about the man at the centre of it all, the enigmatic 36-year-old Charlton? Well, he is uncontactable. He is understood to have moved house in Brisbane since the collapse of his business last year. Also, staff at Brisbane liquidator P. A. Lucas & Co refused to disclose the email address they use to contact Charlton.
But Charlton will have to appear publicly later this year when liquidator Peter Lucas will grill him in public examinations over allegedly trading while insolvent and uncommercial deals associated with the $93 million collapse of SkyAirWorld.
Among his 420 unsecured creditors is the federal government, which amazingly gave SkyAirWorld a $2.2 million payment to subsidise flights from Perth to Christmas Island and the Cocos Islands in January last year. Tickets were sold but no flights took place.
The level of due diligence done by the government regarding the SkyAirWorld contract is questionable given the company grounded aircraft and sacked 40 staff just weeks after winning the $2.2 million tender.
A few weeks later SkyAirWorld was in receivership and Charlton, who claims to have lost $10 million in the process, was soon back inside the Defence Department and working in the unit handling the latest Middle East aviation tender process.
As one of his former business associates remarked this week, ''David is a true soldier of fortune.''

down3gr33ns

2nd Sep 2010, 00:54

so, their eggs are no longer all in the one basket, half of them are over their faces, now!!!

If their growth plans are being handled by the same characters that decided on the pursuit of Adagold - well, it'll possibly all be over soon.

d_concord

2nd Sep 2010, 04:28

Finally a journalist that has put both sides stories together. Both should be excluded.

And as for the Defence investigation. What a whitewash. Talk about put spin on their own investigation. If someone quits due to conflict of interest after the tender is let then that conflict exists into the future. Follow that up with the wrong conclusion on the corruption in Africa. Now we need an investigation into the investigation.

I really feel for the people that work for both these organisations as however this plays out one or both organisations are probably finished.

You would have to think DC and his mate may end up in handcuffs on both this and the previous tender.

witwiw

2nd Sep 2010, 06:43

[quote]What direction is the coriolis effect in W.A?

Don't think it matters much when you're going down the gurgler ...............

Trojan1981

2nd Sep 2010, 07:43

And as for the Defence investigation. What a whitewash. Talk about put spin on their own investigation. If someone quits due to conflict of interest after the tender is let then that conflict exists into the future. Follow that up with the wrong conclusion on the corruption in Africa. Now we need an investigation into the investigation.

I really feel for the people that work for both these organisations as however this plays out one or both organisations are probably finished.

You would have to think DC and his mate may end up in handcuffs on both this and the previous tender.

Are you suprised? Don't expect any true transparency from Defence. My bet is that no sooner will this be out of the headlines and DC will be promoted. Old boys network and all that...:ugh:

Section28- BE

2nd Sep 2010, 08:20

Fear not- Bob Brown's on the job............ Apparently....... he's signed on and locked & loaded- with Julia.

Ex Cyclone's post & quoted article:

Both the Defence Department and Adagold have declined to comment.

Greens leader Bob Brown said he was concerned by the Defence revelations.

''These are extremely serious allegations which warrant a parliamentary inquiry as soon as the next government is established,'' he said.S28

Whiskery

2nd Sep 2010, 09:28

Bob Brown loves those parliamentary inquiries. :mad:

jack diamond

3rd Sep 2010, 01:30

Whats the latest on the W.A ops?

hongkongfooey

3rd Sep 2010, 03:30

I can understand the corruption, the underhandedness, even the waste of millions of dollars of taxpayers money, but what really turns my stomach, what makes me want to explode is .............

''I turned on the phone and Dave Charlton was just itching at the bit

Mixing Metaphors, aaaaaaaaaaaaaarrrgh !!

and for the last time it's " CHAMPING at the bit ", no chomping, not itching, not bluddy clutching, C H A M P I N G :ugh:

;)

d_concord

3rd Sep 2010, 07:19

Faulkner to probe Defence contract scandal
Richard Baker
September 3, 2010
THE Defence Minister, John Faulkner, has promised a ''further examination'' of a $30 million contract scandal to fly Australian troops to the Middle East, while his department has suggested other authorities could be asked to investigate.

The Herald yesterday revealed how Defence's 2005 Middle East troop flight contract was compromised by Joint Movements Group officers David Charlton and John Davies, who passed inside information about the tender to the winning contractor, Strategic Aviation, which later employed them.

Confidential emails written during the 2005 tender showed Strategic Aviation directors referring to being ''fed'' information by Mr Charlton and to Mr Davies being ''very handy to get information to us''. Strategic Aviation has provided the Middle East troops' flights since 2005.

The Defence Department, which for a month has declined to answer specific questions about the Middle East troop charters, last night said the matters raised regarding Strategic Aviation's contract would be reviewed and referred to ''the appropriate authorities for action if necessary''.

The most likely authorities to investigate the tender process would be the Defence Department's Inspector General or the Australian Federal Police.

A spokesman for Senator Faulkner yesterday said that although the minister was constrained by caretaker conventions, he was confident the 2005 Middle East charter tender process would be subject to ''further examination''.

This year's Middle East charter tender process has also been hit with allegations of impropriety, with Mr Charlton again working in the Joint Movements Group while also having a consultancy arrangement with the winning firm, Adagold Aviation.

Senator Faulkner's spokesman said this year's Middle East troop flight contract, which Defence awarded to Adagold Aviation, had yet to be approved and was still being examined.

A Defence internal audit released last week cleared this year's Middle East tender process of any irregularities. The audit cleared Adagold Aviation and Mr Charlton of any wrongdoing.

However, the Herald yesterday reported that the audit did not fully address Adagold Aviation's controversial pursuit of South African defence contracts through its South African subsidiary. Adagold Aviation is also sensitive about its association with Mr Charlton, who in 2008 accompanied company executives in meetings with Danish military officials about a contract to fly the country's troops around Afghanistan.

Emails show Adagold staff have been told to tell any callers asking to speak to Mr Charlton to say that ''no David Charlton works at Adagol - nothing more''.

The Coalition defence spokesman, David Johnston, said he was concerned by the reports on the Middle East aviation contracts. ''Defence is clearly on notice to ascertain the factual basis underlying the media reports,'' he said.

Strategic Aviation has denied any wrongdoing in its dealings with Mr Charlton and Mr Davies. Mr Davies denied being involved with the 2005 tender and Mr Charlton could not be contacted. Adagold Aviation has declined to comment.

---------------------------------------------------------------------------------------

Heavy Cargo

4th Sep 2010, 10:46

Where's Clive :sad:

down3gr33ns

7th Sep 2010, 00:48

same place, exactly, as Evilc

XPT

8th Sep 2010, 07:57

heard that load factor is only around 50%. Not good considering they must have given away a few seats to media, industry etc. for launch flights a month ago.

dodgybrothers

8th Sep 2010, 11:38

50%? I heard 10%

topend3

8th Sep 2010, 13:37

Someone must have deep pockets, they spare no expense on advertising - panel screen in the KTA terminal promoting the virtues of the Bali service ex PHE...

cyclone8888

9th Sep 2010, 02:52

Someone must have deep pockets, they spare no expense on advertising - panel screen in the KTA terminal promoting the virtues of the Bali service ex PHE...

Someone has stopped putting their hands in their pockets because all the flashy billboards on Airport Drive in Brisbane have been replaced, and the radio ads have ceased... They were in use for all of about a month :D

Mr. Hat

9th Sep 2010, 08:16

Word is the 330's wet leased to VB..

any truth to the rumour

cyclone8888

10th Sep 2010, 06:09

Word is the 330's wet leased to VB..

any truth to the rumour

I would assume not as VB have advertised A330 positions

Virgin Blue Recruitment: Attention (http://www.bfound.net/list.aspx?CoId=43&rq=1)

Tankengine

10th Sep 2010, 08:19

Not for line pilots.:hmm:

Darwinism

12th Sep 2010, 19:07

It just refuses to go away:

Probes on deal to fly troops (http://www.theage.com.au/national/probes-on-deal-to-fly-troops-20100912-15701.html)

Rudder

12th Sep 2010, 23:40

It shouldn't go away until the truth comes out and the industry is rid of both of Strategic and Adagold.

I have heard a rumour that this corruption issue may extend to another Government Department and operator through one of these organisations. It will be interesting to see just how far this goes.

Cargo744

14th Sep 2010, 01:45

Seems to be nearly an article a day lately:-

Police to probe $30m Defence deal

Richard Baker

September 14, 2010
THE Australian Federal Police has been asked to investigate possible criminal offences in the awarding of a $30 million-a-year contract to fly Australian troops to the Middle East.
The Defence Department last night released a statement saying it had referred its 2005 Middle East Area Operations contract to the AFP following revelations by The Age about two Australian Defence Force officers, David Charlton and John Davies, involved in the tender process passing inside information to the winning company, Strategic Aviation, which later employed the pair in senior management roles.
''Defence has assessed these allegations and determined that, if proven, they give rise to a range of potential criminal offences,'' the department said in a statement.

''As this matter is now in the hands of the Australian Federal Police, it would be inappropriate to comment further. The Minister for Defence has advised the Minister for Home Affairs this action has been taken.''
Defence also confirmed it was reviewing this year's Middle East aviation tender process amid allegations that information was leaked to the company named as preferred tenderer, Adagold Aviation.
Mr Charlton, an Army Reserve captain, is at the centre of both the 2005 and 2010 Defence contracts through his role in the Joint Movements Group, the unit responsible for the tender processes and the deployment of troops overseas.
Mr Charlton rejoined Defence last year following the $93 million collapse of his private airline, SkyAirWorld. He has also worked as a consultant to Adagold Aviation. An internal Defence audit last month found no irregularities in this year's Middle East troop flight tender.
But The Age yesterday reported Defence Department secretary Ian Watt has engaged an external auditor to review this year's tender process.
The 2005 and 2010 contracts will also face parliamentary scrutiny with the opposition and the Greens promising to support an inquiry.
Strategic Aviation has denied any wrongdoing in regard to the 2005 contract, saying it advised Defence of its plan to hire Mr Charlton and Mr Davies. The Age has been unable to contact Mr Charlton

cyclone8888

14th Sep 2010, 02:33

Dont worry there is plenty more to come

3 Holer

14th Sep 2010, 03:21

So I believe...........could involve Cobham.

GAFA

14th Sep 2010, 04:25

"People in glass houses shouldn't throw stones"

Perhaps they should remember that. Should have accepted they lost the tender and moved on, but no they carried on and will most likely never be used by any government department again.

Ken Borough

14th Sep 2010, 05:40

Apart from Defence, I think a couple of Federal Govt departments (Immigration and PM's??) also use one of the name entities to source charter aircraft.

Surely an organisation the size of the Govt and with the expertise it has within, one would have to ask why it's necessary to go through third parties to secure charter aircraft? The money some people are profiting from the Govt would be enough to hire a dozen or so aviation experts to do this necessary work at a considerable saving and benefit to the taxpayer.

The bloke from the Fairfax group (SMH and THe Age) obviously has some good contacts but I hope he can dig deeper as the txpayer is far frm well served. Business as usual?.

3 Holer

14th Sep 2010, 06:59

the size of the Govt and with the expertise it has within

Government and expertise in the same sentence is your classic oxymoron!

topend3

14th Sep 2010, 07:17

Apparently the loads on the BNE-PHE-DPS sectors are woeful...

cyclone8888

14th Sep 2010, 08:20

According to this article the French DGAC has revoked Strategic's AOC today.

It is in French so you will need to use a translator

Tour Hebdo - site officiel - Transport : Strategic Airlines clouée au sol par la DGAC (http://www.pros-du-tourisme.com/actualites/detail/30772/strategic-airlines-clouee-au-sol-par-la-dgac.html)

In any case things are not looking good all round.

d_concord

14th Sep 2010, 10:11

3 Holer,

I think you will find it is not Cobham.

This will be the beginning of the end for both these organisations. Can't say I will be sorry to see it happen but feel for any staff that are just innocent parties.

Red Jet

14th Sep 2010, 10:36

AIR Airlines Strategic pinned down by the DGCA Published 9/13/2010 1:00:00 p.m. | The two Airbus A320 Strategic Airlines should remain on the ground starting Wednesday, the AOC maturing on that date . The Directorate General of Civil Aviation did not wish to renew, the company does not meet the standards required. Strategic Management of Airlines we contacted, admits that his documentary responses were requested by the civil aviation but swears that flight safety is assured. The flights scheduled in the coming weeks - 200 hours per aircraft per month - could have an impact on programs of tour operators who have hired this company. The double cross of Lyon on July 11 last flight STZ 621 of the company Strategic Airlines flights to Tenerife - and especially his way of managing - has certainly been the trigger for such non-renewal of AOC. Chartered by Fram, the flight could not leave on Saturday morning after a hydraulic problem. On Sunday morning, it detected a crack on the windshield, and necessitating its replacement has again delayed the departure of the aircraft. The two A320s are among the first built and had once stolen the colors of Air Inter. Strategic Airlines, subsidiary of an Australian startup that won contracts for transportation of personnel from the Australian Army in its overseas operations (Middle East, Afghanistan), has received his permit to fly August 13, 2009. She wanted to address both medium-haul network than long-haul Airbus A330 aircraft with an announcement for this winter. T.V.

elpilotofrances

14th Sep 2010, 12:17

when you know the maintenance is done by ...air france industries

Tango9

14th Sep 2010, 14:13

ADF charter contract referred to AFP | Australian Aviation Magazine (http://australianaviation.com.au/adf-charter-contract-referred-to-afp/)

down3gr33ns

15th Sep 2010, 05:23

cyclone8888

15th Sep 2010, 06:06

evilC,

Just thought you'd liketo know that the 737 you claimed Our Airline "had sold to pay their bills" is back operating on the Norfolk route.

CASA wbsite doesn't indicate any ownership change - maybe you could clarify matters?

Good luck getting a response to that D3G - unless it endearing to Mr evilC or indeed strategic he wont offer a response :ugh::ugh::ugh::ugh::ugh:

MyNameIsIs

15th Sep 2010, 12:38

he wont offer a response

He sounds similar to "blackbandit".
It is nearly a year on since his predictions of doom and gloom in "October". Guess he was wrong?

Back to Strategic.
topend3, I hear similar things.

Going Nowhere

15th Sep 2010, 21:56

Announced BNE-TSV-DPS from Dec. :ugh:

Fly direct to Bali for only $199 | Townsville Bulletin News (http://www.townsvillebulletin.com.au/article/2010/09/16/170641_news.html)

topend3

15th Sep 2010, 23:02

This is the problem for them - doing intl out of some regionals isn't a bad idea, but they have to get the aircraft there - most likely close to empty as most of the punters between bne-tsv will hop on the established carriers...

F111

15th Sep 2010, 23:10

Why did Alliance stop flying pax between BN and TL about 4 years ago, the numbers weren't there to support 4 airlines.

witwiw

15th Sep 2010, 23:48

Announced BNE-TSV-DPS from Dec.

IASC Determination 106 does not allow Strategic to carry pax between BNE and Indonesia. They would take a dim view of SA trying to carry BNE pax via TSV in an effort to circumvent the Determination.

As for domestic pax between these points - F111's post says it all.

Skystar320

16th Sep 2010, 00:31

Well thats new, even to the government body [that is unless they havnt upload it to IASC]

ebt

16th Sep 2010, 01:47

The IASC will likely have little to say because they want to encourage international services from regional centres, and the White Paper has put forward as policy that carriers who serve regional centres as an intermediate stop before a major gateway port won't have that counted in their allocations under the various bilaterals. If anything, it boosts their case for gaining more allocation on the hotly contested Indonesia route as they are showing their commitment to the market. Whether it works or not is another story.

Strategic already have authorisation for unlimited capacity to Indonesia from points other than Sydney, Brisbane, Melbourne and Perth under IASC Determination 106, so nothing underhanded there.

Heavy Cargo

16th Sep 2010, 05:20

Unlimited capacity from ports OTHER than SYD/MEL/BNE/PER to from Indonesia. Pax must originate from TVL for example:cool:.

ANstar

16th Sep 2010, 06:23

Strategic Airlines (France) to lose its AOC (http://blog.seattlepi.com/worldairlinenews/archives/221207.asp)

Strategic France loses its AOC. PResumably the 2 x 320's will come back to Australia

cyclone8888

16th Sep 2010, 06:31

Strategic France loses its AOC. PResumably the 2 x 320's will come back to Australia

To do what?? Gather dust??

Heavy Cargo

16th Sep 2010, 07:00

Strategic in the Age paper again today for 320s grounded in France. :cool:

Capt Claret

16th Sep 2010, 23:48

For a Co so strongly mooted to be going under, it's interesting to see their add in today's Australian looking for a wide range of staff for planned expansion. :confused:

wotwazthat

17th Sep 2010, 00:54

Ansett were still interviewing the week they went under...

Iamsosmrt

17th Sep 2010, 02:08

Skyairworld had a pilot that had started 1 week prior to going into administration. And that was 2 weeks after they had sent all the 145 pilots packing.

gas-chamber

17th Sep 2010, 06:39

What better way to send up a smokescreen than run a big advert for staff while plotting to dud all your creditors and existing staff? Not saying that this is Strategic's plan but it was Skyair's.

Tango9

17th Sep 2010, 06:39

Strategic Airlines' French arm frozen

Richard Baker

September 17, 2010
FRENCH authorities have refused to renew the operating certificate of the local arm of the company responsible for flying Australian troops to the Middle East.
This week's decision, by the Paris-based Directorate General of Civil Aviation, on Strategic Airlines' French charter business was based on recent incidents involving hydraulic problems, a cracked windshield, delays and cancellations, according to French reports.
The French action could raise perception problems for the airline group's Australian operations, which include a $30-million-a-year Defence Department contract to fly troops and equipment to Kuwait.

Strategic Airlines' French business involves two Airbus A-320 aircraft and is overseen by chief executive David Blake, who also heads its Australian operations.
Strategic Airlines has commercial passenger flights around Australia and yesterday announced a new service from Brisbane to Bali. These are performed under an Australian-issued air operation certificate.
Mr Blake yesterday said his company contested the French decision and was in talks with the aviation regulator.
''Strategic has not had one safety incident in Europe or Australia,'' he said.
''While Strategic Airlines' Australian and French businesses have a common CEO, they are separate and distinct operating entities and, as such, discussions taking place in Europe have no impact whatsoever on the Australian business.''
The Strategic group was at the centre of recent controversy when it emerged that two Defence officers, David Charlton and John Davies, involved in a 2005 Middle East troop flight tender process provided Strategic Aviation - Strategic Airlines' sister firm - with inside information and later assumed senior management roles at the company.
The Australian Federal Police is investigating whether criminal offences occurred in the awarding of the 2005 Defence tender to Strategic Aviation, which is contracted to perform the Middle East service until the end of next month, when an external review on the flight tender process will occur.
Asked about the French action on Strategic Airlines, opposition defence spokesman David Johnston yesterday said the safety and security of troops being deployed overseas was of the highest importance.
''The contract responsible for transporting our troops to the front line in Afghanistan has now become a total shambles and is quite frankly a national embarrassment,'' he said.

cyclone8888

17th Sep 2010, 07:50

Just because you have plans and/or aspirations for world domination that does not mean they will come to fruition.

Just ask DJC :E

Some would argue there are some frightening similarities between the 2 entities.

MIss Behaviour

17th Sep 2010, 10:56

Quote:
Strategic France loses its AOC. PResumably the 2 x 320's will come back to Australia

To do what?? Gather dust??

They got a charter DRW/DRB or DCN relocating the asylum seekers who protested outside the Defence Establishment at Berrimah because their residency visa or whatever it was that allowed them to stay was knocked back.

Very stealth like of immigration as the A320 departed from the RAAF Base side of the airport so as to avoid the mandatory objections of the 'rent a crowd' and Dudley Doright types.

They've also done a charter or two ex DRW to Xmas Island for non residents.

Strange irony of the one company who takes both our troops to Afghanistan then also transports their citizens in our country.

Taylor67

20th Sep 2010, 03:29

re the standard tactic pushing positive communication etc

I spoke with one of their crew members a couple of days ago and apparently they are getting emails from the company all the time re what a great job they are do blah blah blah, and they never sent these emails before.

tourismman

20th Sep 2010, 07:02

It shows they can be relied on to do charters correctly or they wouldn't be winning these charters.

Taylor67

20th Sep 2010, 07:30

I was on the charter they did with Air NZ a couple of years ago and the Operations Manager for Air NZ said he would never deal with Strategic again as is was a shambles. Perhaps they have got things together since then

doleque

20th Sep 2010, 09:21

Strategic Airlines' French business involves two Airbus A-320 aircraft and is overseen by chief executive David Blake, who also heads its Australian operations.

Wow, must be mega comforting to read that....considering Blakey's involvement with the various Ozjet's operation's (IE: Mk 1, 2, (3?) and now 4-Strategic).

Heavy Cargo

20th Sep 2010, 09:59

Smoking :ok:

Tango9

20th Sep 2010, 13:39

It shows they can be relied on to do charters correctly or they wouldn't be winning these charters.

Yes or it shows their aircraft arent doing anything else perhaps..??

flying-spike

20th Sep 2010, 21:21

"Yes or it shows their aircraft arent doing anything else perhaps..??"

God forbid they have an aircraft available to do charters! They are still doing their RPT and they have an aircraft available to do charter work.
Look elsewhere on this thread and you will see that they have been doing a lot of Immigration and election related charter and they are opening up the Brisbane-Townsville-Denpasar route soon (subject to regulatory approval).
From what you are insinuating they shouldn't use their spare capacity prior to the new service to make a bit more revenue.
Sounds like you would work operations like an Army quartermaster " That's the last one I've got, can't give you that one, somebody else might want it"

Friggit

21st Sep 2010, 00:05

FS and tourismman don't kid yourself. There is only one reason they are getting some immigration work and that is because they have aircraft doing nothing(e.g. available) while their competition is working and don't have the idle capacity. There aren't enough of these charters to survive with such a large workforce( a good proportion of whom are unproductive) once the ADF work dries up and the big government dollars stop coming in.Thanks to their leaders they have publicly soiled any good reputation they may have had and have lost the faith of those in the industry that may have supported them. Like others here I suspect they will play even dirtier games to try to postpone the inevitable but be assured it will be the workforce and crediters who will be shafted in the end and not the owners. SAW all over again !!!!!!!!!!

ringbinder

21st Sep 2010, 00:20

SAW all over again !!!!!!!!!!

yes, but probably more than the $93 million that DC lost ......................

Tango9

21st Sep 2010, 08:02

Thanks for your comments.
I think you are quite correct and yes it must be a good thing for Strategic to have so much capacity sitting around that they can operate numerous charters for everyone. Its good of them to offer this spare capacity before operating any RPT business. Especially as these aircraft were only brought in at the beginning of the year to launch flights in December.

I totally agree that operating lots of flights to Bali - infact by the end of October all flights will probably be going to Bali even on a spare A330. This is always a good idea to put all your plans on one route that isnt used by any other operator especially well established national carriers. As competition would not be good for a start up.
I also think its a good idea to critisice your only money making client by bashing them in the press even when your European sister company has been grounded for whatever reason by the local aviation authorities.

I especially like your use of brackets in your post.

and if you feel that I am 'insinuating' any sarcasm - you would be right:ok:

flying-spike

21st Sep 2010, 09:50

Clearly you don't know which aircraft were introduced when and to do what. You are also demonstrably incapable of reading a press release. I suggest you do a bit of research before jumping on the band wagon. Then you might be able to "Exersice" a little better judgement.

Golf Punk

21st Sep 2010, 13:04

The plot thickens...

From: Defence Media Centre [mailto:[email protected]]
Sent: Tuesday, 21 September 2010 8:21 PM
Subject: Short-term tender sought for aviation contract

MSPA 449/10 Tuesday, 21 September, 2010

Short-term tender sought for aviation contract

Defence is to seek short-term commercial arrangements in order to maintain the continuity of support to its airlift support requirements to the Middle East.

The short-term arrangements will remain focused on the delivery of safe aviation services to Defence people. Defence will use its standard processes for obtaining short-term services, and a number of companies will be approached today to ensure a value for money outcome.

Defence is continuing to finalise its longer-term contract arrangements for the delivery of aviation services to its Middle East operations and its personnel.

Trojan1981

22nd Sep 2010, 02:37

JMOVGP has a list of vetted brokers they can turn to in the event of both contracts falling over or being delayed. Operations will continue as normal.

d_concord

22nd Sep 2010, 03:30

Isn't it interesting that they continue to use brokers for these given the mess that this practice has got them in already.

The Adagold and Strategic mess is one thing and now just 3 weeks after using one during the election to provide transport for our senior politicians and the press that followed them, that the overseas operator brought in by the broker has had its AOC pulled. Another disgraceful situation.

megle2

22nd Sep 2010, 06:00

How do you "vet" a broker?
Whats to "vet" - no crew / no aircraft / no AOC ? no SMS ect ect

But granted they do have some impressive web sites

66biscuits

22nd Sep 2010, 08:56

Here's what they may do with those spare Airbuses

We'll go to Bali too - maybe- Local Cairns News | cairns.com.au (http://www.cairns.com.au/article/2010/09/21/127735_local-news.html)

Zedex

24th Sep 2010, 08:39

Been watching this; and previous thread long enough; and would like some input from others more for a general consensus rather than a text bashing.

Is anyone actually asking why in gods name an Australian Defence Force with the interests of its Australian troops and its own security let a tender out to third party and brokers? I will add some of which do fantastic jobs as GSA's and Charter brokers.

My view on this is that the tender should have been publically released to the market face asking for current Australian Operators of Aircraft, with their current fleet and potential additions and the current infrustructure to support that fleet and operations in the interest of the Australian People and Defence Force.
Instead we now have a situation of fourth party providers supplying hull and equipment for brokers yet to create the AOC, infrastructure and operations to carry Australian Troops over; lets face it difficult distances and regions.
(If any one wants to get specific on numbers 1st Party -End user PAX, 2nd Party Defence, 3rd Operator etc).
I would welcome some input as if i am missing something please tell me as i see the current scenario and solution completely unacceptable for the Defence, Australian tax payer and ultimately our troops that have to fly.:confused:

Golf Punk

24th Sep 2010, 23:28

Bloke down the pub told me that... Strategic was awarded the tender yesterday, to continue the MEAO service for another 1-3 months after their current contract expires 23rd October :mad:

I thought Strategic was under investigation by the AFP related to the original tender award? :oh:

Seems to be another shocking decision by ADF :ugh:

Trojan1981

25th Sep 2010, 00:42

Seems to be another shocking decision by ADF

Damned if you do, damned if you don't. They have to keep up the sustainment, so someone has to do it. The investigation has not been completed yet and no ruling has been made.

ZEDEX, it's all about money. How to sustain a long term deployment for the lowest possible cost. In a perfect world the RAAF ALG could do it, but they cant, so hear we are.

Exgolfer

25th Sep 2010, 01:02

Many great conversations come from the Pub and lots of theorys as to what is happening are discussed on a bar stool.

Thats what she said

25th Sep 2010, 01:57

Too true exgolfer

Golf Punk should not rely on ALL he hears in bars. Strategic nor anyone are under investigation for the original tender that created the current contract. The tender for the current contract was completed in 2008 and has never been called into question.

The antics of two defence force staff in 2005 and how Strategic dealt with them are what is under investigation, and a parlimentary review has been called for the antics of one of those same staff members and how Adagold dealt with him in 2010, but the 2008 tender has never been questioned from what I understand.

I can only guess that Defence have decided that to gain just 12 cubic metres of extra cargo space (the crux of the 2010 tender, I believe) through the use of a foreign aircraft and crew at circa 5M more per year, rather than using an A330 already registered in Oz and operating under this country's tight requlatory controls with all elements of the contract in place and a newly renewed 3 year AOC with zero restrictions, just aint value for money.

Have to say that I for one, as an Oz taxpayer, would have to agree. :ok:

hongkongfooey

25th Sep 2010, 03:59

ZEDEX, it's all about money. How to sustain a long term deployment for the lowest possible cost

Sorry if this has been mentioned already, but I have yet to see a case where you get anything more than you pay for ( believe me, especially in this part of the world )
I hope for the ADF guys sake that there is some sort of minimum standard in place for the leased A/C and it's crew, as previously mentioned, an outfit with an SMS system in place etc.
After all, what is to stop someone like Adagold using ( as an extreme example ) Garuda ? Would be a real shame to survive fighting in the middle east only to end up as another aviation statistic :sad:

rescue 1

25th Sep 2010, 20:03

Awarding of an ADF contracts seems to be world wide problem. Similar controversy has been seen in the USA.

ADF flyer

26th Sep 2010, 00:48

what is to stop someone like Adagold using ( as an extreme example ) Garuda ?

The brokers must ONLY supply aircraft and operators licenced and registered by JAA, FAA, NZ CAA or CASA. Anyone else they want to use would have to be approved specifically by Defence.

Is anyone actually asking why in gods name an Australian Defence Force with the interests of its Australian troops and its own security let a tender out to third party and brokers?

Defence have something called the Standing Air Panel. This is formed from a tender of interested parties who can provide Defence with charter aircraft as required - (the requirement could range from a Caravan to an AN225). Some of those who tendered to be on this panel were aircraft operators and some were brokers. About 8 were selected to be on the panel (can't remember the exact amount, but it is on the Austender website - it is not a secret).

When Defence need civilian airlift they go to the panel and ask for offers and then select what suits them best. For the MEAO sustainment, Strategic would have offered their A330 (although in previous years they offered the HiFly A330). Adagold apparently offered a HiFly A340 and other panel members no doubt have offered other solutions.

Interestingly, neither Qantas, Virgin, ANZ or Cobham are on the panel, so none of them are allowed to tender for any Defence work directly - it goes through panel members. However that doesn't mean that a broker couldn't offer their aircraft to Defence, but they can't do it directly. I have no idea if they didn't bother to bid to be on the panel or they weren't selected.

Thats what she said

26th Sep 2010, 02:14

Must say, it is very refreshing to see what appears to be actual facts in this forum, and delivered without the emotion of the usual vitriolic "childs play" that I have seen as an observer of this forum over the years - thank you ADF Flyer!

As you clearly have a good knowledge of the subject then I guess I would pose to you (more as a statement than a question) that the bulk of those who have observed the banter on this subject in this forum are confused with the fact that the latest tender process appeared to only add additional cargo space to the contract requirements. The cargo requirement selected by the ADF, from all I have read, was 150 cubic metres. This ostensibly wipes out the incumbant A330 (at 138 cubic metres) and requires an aircraft like the 777 or A340.

As you mentioned Virgin, et al, are not on the panel so anyone on the panel would need to source a 777 or A340. I would bet that the fuel consumption of the 777 would knock it out straight away, thus the A340 becomes the only real alternative. But nobody in Australia operates A340's (so for an Aussie AOC operator it would be a "first of type" introduction). Yet I also read that it was the politicians and the ADF themselves that pushed the current contractor to do the operation under an Aussie AOC. Very confusing.

The end result would therefore have to result in either increased contract prices for the incumbant operator (who would need to add the A340 to their Australian AOC and pass on such costs - including any additional operating costs) OR a change to a "foreign" solution brokered by the brokerage firms on the tender panel.

So my confusion is based on this.... why on earth would the ADF decision makers put themselves through so much angst to gain 12 cubic meters of cargo space in their troop transport solution when they must have military cargo operations around the world on a continuous basis?

I've got to say, from my viewpoint it certainly looks more "suspicious" than "stupid". I can see why the incumbant operator would be asking questions. Particularly when you add in the factor of the gentleman (featured in all the newspaper articles on the subject) who was working within the same department of ADF (and close to such decision makers) and who has been revealed as also working as an adviser for the broker who miraculously had an A340 at the ready.

3 Holer

26th Sep 2010, 04:17

Strike out Cobham at your own peril ;)

L1011 Nut

26th Sep 2010, 04:58

From what I have been told of some of the members of the Panel are:

1. Strategic (Current operator using A330 for operation and has used a Hifly A330 & A340 for the Middle East Operation and has also used a Air NZ 777, Malaysian 747 and Omni or something like that DC10-30 in prior years)

2. Adagold (Possibly new operator of Middle East operation with Hifly A340 and has sourced AN124 and other aircraft for the ADF and other government departments)

3. Toll (Often uses Our Airline 737 for its winning tenders)

4. Qantas (Prefers not to bid for this tender I am guessing for political reasons)

3 or 4 other tenderers that are brokers and not airlines/operating carriers.

I believe Cobham, Air NZ, Alliance and Virgin are not a Panel Members either.

So therefore even going back to the Standing Panel will only bring back Strategic or another broker which is either aligned to Adagold, Strategic or David Charlton as in previous tenders, DC has provided help to try and wrestle the tender from Strategic.

ADF flyer

26th Sep 2010, 11:05

4. Qantas (Prefers not to bid for this tender I am guessing for political reasons)

I am pretty sure QF are not on the panel. Skytraders and Corporate Air Canberra are the other operators, along with some brokers.

Strategic previously used HiFly A330-300 which would have had same cargo capacity of the A340-300. One would think that the change to the -200 and the lower capacity was done in agreement with Defence, so it does seem strange if this is the reason they lost the contract.

66biscuits

29th Sep 2010, 07:39

More and more RPT iso charter.

Strategic Air's application to the IASC for RPT seating capacity to Thailand (http://www.iasc.gov.au/applications/files/4583.pdf)

Cargo744

29th Sep 2010, 23:46

Seems like other brokers are getting in on the action...

Defence contract row widens

Richard Baker

September 30, 2010
A MULTIMILLION-DOLLAR Commonwealth aviation contracting scandal has widened, with a flight broker involved in an Australian Defence Force tender controversy enjoying a near monopoly on asylum-seeker transport contracts, prompting complaints from rival firms.
Brisbane's Adagold Aviation has won 52 of 56 Department of Immigration and Citizenship asylum-seeker flight contracts awarded between June last year and March 31, amassing $6.49 million of the $7.28 million spent by the federal government on such flights. In 2008-09, Adagold won 23 of 45 asylum seeker flights, worth $2.31 million. The next most successful company won 12 contracts worth $894,000.
Owners of some of the five other aviation brokers or charter airlines on the department's panel of providers have told The Age that they had occasionally submitted bids so cheap that it would have cost them thousands of dollars to fulfil the contract, only to still lose out.

''Immigration won't tell us why we did not get the contract or the price of the successful bid,'' said one firm's manager. '' It makes you wonder what is going on as we all pretty much operate on the same margins.''
A spokesman for the Immigration Department said its asylum-seeker aviation contracts were handled in accordance with public service guidelines.
The Defence Department recently decided to call in external auditors to review this year's $30 million Middle East troop-flight tender process - won by Adagold Aviation - amid conflict-of-interest allegations involving the firm and Army Reserve Captain David Charlton, who was working in the Defence unit running the tender. Mr Charlton has also worked as a consultant to Adagold Aviation.
Defence has also referred its 2005 Middle East flight tender to the federal police after The Age revealed two officers in the unit overseeing the contract gave inside information to the winning firm, Strategic Aviation, before joining it in senior management roles.
Officials from Defence and Immigration are expected to be questioned over the aviation contracts at Senate estimates hearings next month.
Despite referring the 2005 Strategic Aviation contract to the AFP, Defence this week awarded the firm a short-term contract to continue the Middle East flights while an external review into this year's tender process - won by Adagold Aviation - continues.
Fresh documents obtained by The Age reveal Adagold Aviation and Mr Charlton intended to establish a commercial relationship last year to help fulfil a Danish military contract won by Adagold.
Under the January 2009 ''letter of intent'', signed by Adagold Aviation director Mark Clark and Mr Charlton, SkyAirWorld was to provide a Boeing 737 aircraft to Adagold to allow use on its Danish troop flights to the Middle East.
Mr Charlton's SkyAirWorld collapsed with debts of $93 million weeks after the document was signed. By April 2009, he was back working in the Defence Department unit overseeing troop deployments to the Middle East.
Mr Charlton is also at the centre of the AFP probe into Defence's 2005 Middle East troop flight tender process, after it emerged that he and fellow army officer John Davies were in contact with Strategic Aviation directors during the tender process and then took management jobs at the firm after it was declared the contract winner.
Adagold Aviation has declined to answer questions. Strategic Aviation has denied wrongdoing in the 2005 tender process, saying it advised Defence of its intention to hire Mr Charlton and Mr Davies.
Mr Davies has denied playing any role in the 2005 tender. Mr Charlton could not be contacted.

dodgybrothers

30th Sep 2010, 00:10

Okay, so how this now works is that a couple of guys will now post who have only one or two previous prior posts, pretending to be concerned taxpayers or ADF personnel who travel to the ME all the time are really happy with the SA service and why should their lives be put in jeopardy by a third party operator and blah blah blah.

Then the same guys will the get on the Skywest thread that has been running for nearly as long pretending to give a sh!t about poor old twiggy forest who has a right to have an A320 and the crap management of Skywest and blah blah blah.

Is this the toilet for SA management or what? Can we click these threads? Boring......

Tango9

30th Sep 2010, 06:31

Totally agree with your comments....

I especially liked the justification for the current contract not being under suspicion therefore making it all OK. Despite that fact that the 2005 contract required AFP investigation for alleged corruption and fraud!!:ugh:

Tango9

3rd Oct 2010, 18:03

In todays The Age....

CASA manager took senior job with airline

Richard Baker

October 4, 2010
A SENIOR manager at Australia's aviation regulator took an executive job at an airline - now under police investigation over a $30 million Defence contract scandal - shortly after his office issued it with a new operator's certificate, prompting conflict-of-interest concerns.
Last year's departure of the Brisbane office director of the Civil Aviation Safety Authority, Clive Adams, to Strategic Airlines has led to a call for CASA to follow the rest of the public service and introduce a ''cooling off'' period to prevent its senior staff from immediately joining firms they had been regulating.
Both Mr Adams and CASA have denied any conflict of interest, saying the authority's former Brisbane manager played no role in approving Strategic Airlines's request for a new operating certificate - despite the matter being handled by his office.

The Strategic group has attracted recent controversy after The Age revealed how its directors discussed being ''fed'' information about a $30 million-a-year Defence Department 2005 tender to fly Australian troops to the Middle East by two Defence officers they later employed as senior managers.
The Australian Federal Police is investigating whether any criminal offences occurred during Defence's 2005 tender involving Strategic Aviation and the two Defence officers, David Charlton and John Davies.
Despite the police inquiry, Defence last week awarded a short-term contract to Strategic Aviation to continue the Middle East troop flights while an external audit of this year's tender process - won by rival firm Adagold Aviation - continues.
CASA last year received a formal complaint about Mr Adams's departure to Strategic Airlines after his office re-activated an air operating certificate belonging to failed airline Ozjet, which allowed new owner, Strategic Airlines, to add an Airbus A320 aircraft to it.
The complaint, which is believed to have come from a former owner of Ozjet frustrated by CASA's unwillingness to make changes to the airline's operating certificate, was lodged with the authority's then industry complaints commissioner, Michael Hart, before being passed to general aviation operations manager, Greg Hood. Despite the complaint reaching high levels in CASA, its director of aviation safety, John McCormick, told Senate estimates in May that he was not aware of any concerns about ''that particular scenario'' involving Mr Adams and Strategic Airlines.
CASA said in a statement that Mr Adams declared shortly after Strategic Airlines's application for an operating certificate that his involvement could be subject to a potential conflict of interest. It is believed Mr Adams had at that time been in discussions about taking an executive role with the company.
''CASA believes all appropriate steps were taken to avoid any conflict of interest between the manager and the application for an air operator's certificate by Strategic,'' it said.
Mr Adams said he played no role in Strategic Airlines's dealings with his Brisbane office and had disclosed to CASA's leadership the potential conflict of interest.

zanzibar

3rd Oct 2010, 21:18

Which would explain Evilc's recent absence - been a bit busy, I guess, dealing with matters.

Generally no smoke without fire ................................

CASAweary

4th Oct 2010, 06:41

The Skull has lost control of his silo. This is not new news,just the tip of the iceberg. CASA`s HR department also approved for staff to go on unpaid leave and work for specific AOC holder's. When questioned over the legality of this or whether this constituted a conflict of interest HR people at the highest level said that THEY make the rules and do and say or allow whatever they see fit. This is a government department out of control, no checks, no balances, and run by a bunch of misfits at the highest level who themselves have clouds of integrity hanging over their heads. Senator Nick ought to slice through the centre of this untouchable and unacountable empire as it has totally lost control, and at the hands of all things a Human Resouces star chamber.

A full senate inquiry is in order, and is justifiable. Dangerous waters or should I say skies indeed.

L1011 Nut

4th Oct 2010, 12:08

It must be asked why else did Strategic move its original dealings with CASA from the Melbourne Office to the Brisbane Office.

Just the usual answer about the CASA Manager's job from Strategic, "It was Advertised'

When will this :mad: stop.

Situation 1. David Charlton and John Davies joined Strategic from DOD after they won the 2005 tender for "Advertised Positions"... If Strategic didn't win the tender, Michael James would probably have stayed at Adagold and there would have been no Strategic and there was no positions. :hmm:

Situation 2. As stated in a previous article in the Australian, a partner of one of the high ranking positions on the tender board was given an "advertised job" by Strategic while her partner was on a rotation to the middle east.:hmm:

Situation 3. CASA Manager given an "advertised job" after Strategic moves it original AOC application from the Melbourne CASA Office to the Brisbane Office and then it is processed much quicker and with success. :hmm:

Situation 4. QLD transport official joins Strategic with the QLD internal Air Services tender on the horizon hmmm....:hmm:

Trojan1981

8th Oct 2010, 05:28

I am pretty sure QF are not on the panel

That's right, they are not. That doesn't stop a broker using them for ADF charter, however.

L1011 Nut

8th Oct 2010, 11:24

Look like Strategic just keep out of the news....

They lose their French AOC and they won't get it back so maybe go to a country that is easy to get an AOC, hey go to luxembourg....

In the Townsville News:

Strategic air charter grounded in Europe

TONY RAGGATT ([email protected]) | October 8th, 2010

THE French arm of the aviation group starting flights between Townsville and Bali, Strategic Airlines, is seeking to relaunch its grounded European charter business by obtaining a new air operator's certificate from Luxembourg.
Strategic Airlines France had its operator's certificate revoked by France's Directorate General of Civil Aviation earlier this year after a flight to Tenerife was grounded because of a hydraulic leak and a replacement flight was grounded by a cracked windshield.
French magazine Le Point reported the decision followed the mishandling of passengers from these delays.
Strategic's head of commercial Damian Vasta said the airline had an unblemished safety record in Europe and Australia.
He said the airline was in discussions with the French regulator over its preliminary decision not to renew its operator's certificate, but had also applied for a Luxembourg air operator's certificate because of changing business requirements in its European operation.
A decision is expected shortly.
"The granting of a Luxembourg AOC will satisfy our European business requirements and we would subsequently close our discussions with the French," Mr Vasta said.
"Suffice to say, we reject any suggestion of breach of safety protocol as correct process was followed at all times.
"Strategic has an unblemished safety record in both Europe and Australia."
Mr Vasta said the Australian regulator, the Civil Aviation Safety Authority, had just renewed its air operator's certificate for a further three years without restrictions.
He said in the past week the Australian Defence Force had awarded Strategic a short-term contract to continue passenger and cargo services to the Middle East.
Strategic has held a contract to provide the services since 2005.
Australian aviation broker Adagold Aviation, using aircraft provided by a Portuguese carrier, earlier this year won a tender to provide the defence services and was due to take over at the end of this month.
However, the tender process is under an external audit to examine how the broker using a foreign carrier was selected as preferred tenderer.
Strategic's French operations involve two Airbus A320s.
Strategic flies from Perth to Derby and Denpasar, and Brisbane to Port Hedland and Denpasar with A320s. It will start Brisbane-Townsville-Denpasar (http://www.townsvillebulletin.com.au/article/2010/09/16/170641_news.html) services from December 3 with A320s.

THRidle

8th Oct 2010, 11:28

Speaking of the "Australian Defence Force". What's the latest with the main contract ????

Strategic, Adagold or a new player ??

Tango9

8th Oct 2010, 11:35

French magazine Le Point reported the decision followed the mishandling of passengers from these delays.

The AOC was withdrawn due to the way they handled passengers......?
:hmm:

gas-chamber

9th Oct 2010, 01:26

Meybe the French government takes an interest in the welfare of their citizens? Quite right to pull an AOC if passengers are stranded. Should be more of it. Shows not fit and proper to be transporting the public. Surely they had an obligation to move pax by alternative means, or at least accommodate them pending repairs? If a school bus contractor left my kids stranded on the side of the road I would be after having their permit revoked. Similar thing.

ADF flyer

9th Oct 2010, 14:33

That doesn't stop a broker using them for ADF charter, however.

Which was exactly what I said in post #112 :ok:

66biscuits

13th Oct 2010, 02:16

From the Australian this morning:

BRISBANE-based Strategic Airlines is living up to its name.

It is pushing ahead with a targeted network expansion after the Australian regulator recently granted it a three-year unrestricted air operators certificate.

The full-service niche carrier had been operating on a restricted 12-month AOC issued when it started operations last year and sees the Civil Aviation Safety Authority as a seal of approval for its safety performance.

"We're really happy about that," head of commercial Damien Vasta said yesterday. "It gives our market a little bit more confidence that they're dealing with a more established Australian carrier that's got a clean bill of health from CASA."

The airline, which has three Airbus A320s and a wide-body A330 registered in Australia, currently flies from Perth to Derby and Denpasar as well as Brisbane-Port Hedland-Denpasar.

It plans to start a Brisbane-Townsville-Denpasar in December and is planning direct east coast-Bali flights after recently winning additional capacity to Indonesia from Australian gateway airports in a three-way tussle with Qantas and Virgin.

The International Air Services Commission gave Strategic 1514 seats -- the biggest share of the 4000 seats available to the three airlines -- on the grounds it would help promote competition.

Mr Vasta said Strategic had enjoyed a strong response to the its existing services and said passenger traffic to Bali had risen from 400,000 people a year two years to more than a million.

"It's not just Perth, the east coast has gone crazy for Bali again -- they seem to have fallen in love with it," he said. "We just thought that while the sun's shining we'll make hay and we'll put the A330 on some of those east coast direct services. And if we get the capacity to do it we'll be able to offer Melbourne and potentially Brisbane direct."

The new carrier is now looking at potentially acquiring a second A330 and has applied for capacity to Thailand with idea of filling the void left by V Australia when the Virgin Blue long-haul carrier redeploys its Boeing 777 aircraft.

Other potential destinations include Ho Chi Minh City and Honolulu.

Strategic also runs a charter operation using three A320s in Europe and has just successfully transferred its base from France to Luxembourg.

The IASC decision to allot more DPS capacity is still in draft.

As I said before, it looks like more and more RPT services instead of charter work.

Tango9

13th Oct 2010, 13:22

Strategic also runs a charter operation using three A320s in Europe and has just successfully transferred its base from France to Luxembourg.

Sorry why was it transferred to Luxembourg?

Is that cause for celebration?:ugh:

66biscuits

14th Oct 2010, 07:16

Strategic had their French AOC withdrawn.
Luxembourg is very central to much of Western Europe, is relatively quiet in terms of passenger movements, most of the locals speak at least 4 languages including English, has no income tax and is quite a nice city to live in imho. Not a bad choice I thought.

The IASC has granted the Thailand seat allocation (http://www.iasc.gov.au/determinations_decisions/files/2010/2010%20iasc111.pdf) 6 flights weekly.

Friggit

14th Oct 2010, 09:04

Mr Vasta you are the King of SPIN. "Suffice to say, we reject any suggestion of breach of safety protocol as correct process was followed at all times."Strategic has an unblemished safety record in both Europe and Australia." "Strategic also runs a charter operation using three A320s in Europe and has just successfully transferred its base from France to Luxembourg." I guess that's why the French pulled your AOC .You make it sound as though your move to Luxembourg is a reward for good performance instead of punihment for bad practice. You would not have left France if they hadn't pulled your AOC for bad performance
As for the 3 year AOC ,it is no great achievement. It simply means you are now where your competitors have been for ages and that you appear to meet CASA's requirements.
Unfortunately a "clean bill of health "from CASA doesn't excuse your questionable commercial practices which leave a lot to be desired and will hopefully return to bite you some day.

down3gr33ns

14th Oct 2010, 10:51

questionable commercial practices

After all the adverse publicity you don't think they still have people in places of influence that can determine the outcome of the tendering process to their advantage, do you?

YBSG .........

Friggit

15th Oct 2010, 01:00

Dand3gs I wasn't refering just to their military work but all their operations. They seem to always hire staff from any organisation that may be to their future commercial advantage. i.e. people with inside knowledge and at the risk of being challenged you see it in their recruitment from ADF,Charter brokers, Government departments both State and Federal etc. Then you have the litany of lies put about by SA in his visits to the region which so far have been found out but eventually if you tell lies long enough some mud sticks. Interestingly whenever someone accuses them of foul play they immediately threaten legal action. Talk about Pot calling Kettle black. Their commercial practices are questionable at best but due to the level of self interest in this industry and region their methods although immoral often work.

Mr Vertigo

15th Oct 2010, 01:38

Friggit, it’s quite apparent that you have very little experience in large scale commercial operations. As a result, you have no understanding of how the “real world” works. Please, just step aside and let the real players do their thing. Stop your yap, yap, yapping.. It’s annoying. Congratulations Strategic!.. “TOUCH-DOWN!!”.. I can’t wait to see your next move. :D

j3pipercub

15th Oct 2010, 01:55

^ Is that you evilC?

Friggit

15th Oct 2010, 02:02

Vertigo it's good to see you defend your employer but don't assume you know the qualifications of others when you obviously don't. This being your first post suggests your hiding something!! I know very well how the real world works but it doesn't mean I have to approve of some peoples less than ethical methods of operating in that world. So don't get personal as we are all entitled to an opinion even misguided folk like yourself.
BTW don't think of Strategic as a large commercial operation as the big boys will show you just how small you are if they find you an annoyance.

witwiw

15th Oct 2010, 09:22

It's incredible how many 1st-time posters pop up in defence of Strategic - it's all far too obvious and I think j3pipercub is possibly not too wide of the mark.

Vertigo, you would be well served to have a read of some of friggit's posts over the past and I'll think you'll find he has a greater understanding of airline matters than you give him credit for. Care to tell us what your status is in this regard? ................... No, I expect not.

As for the "real world" you speak of, do you think the legitimate airlines in Australia get up to the same skullduggery that SA has - I don't see QF, for example, needing to shift their AOC base ....................... I think SA are perceived to operate in the "unreal world" where ethics, honesty and scruples have been thrown out the window. Plenty of evidence to that extent so please don't go bleating on otherwise.

The "real players" ARE trying to do their thing, they unfortunately have to contend with the likes of SA, SAW etc that are a blight on the industry and do more harm than good.

zanzibar

15th Oct 2010, 12:33

large scale commercial operations

You are SO funny!! Strategic, large scale compared to whom??? Not Skywest, not Alliance, not Rex, not QF, not JQ, not DJ, not National, not Qantaslink, not Skytrans, not Cobhams, not anyone of repute.

Maybe compared to a GA outfit, which is what they really are, but with bigger aircraft.

feenix

16th Oct 2010, 04:36

Vertigo your silence is deafening

Mr Vertigo

16th Oct 2010, 05:22

This site is hilarious!!.. “Ethics, honesty and scruples”.. ARE YOU GUYS SERIOUS??

Gentlemen, this is aviation!. You’re either delusional or suffering the extreme effects of hypoxia!!.. Strategic is not doing anything that QF, Alliance, Rex, Skytrans, Virgin or Skywest have done in the past or are currently doing now. To believe otherwise, is to show an EXTRAORDINARY level of naivety. … I’ve never seen such an inept concentration of blah, blah, blah.

And Friggit, I’m not entirely interested in your opinion, but please tell me.. What exactly is “immoral” about hiring staff from organisations that may be of commercial advantage?. It’s the most BASIC of business principles… So much for your “credentials” hey?

Also, first post = something to hide. Is that even a rational comment?

Prune is obviously for self praising, ill-informed, armchair critics that have too much time on their hands…. Does anyone actually read this stuff?

For the record, I’m not employed by Strategic, I’ve never been employed by them and I’m not likely to be in the future.

Anyway, I’ve got more important things to do than waste my time here… but thank you for the laugh! :ok:

bizzybody

16th Oct 2010, 07:34

Baaaaaahahaha

Romulus

16th Oct 2010, 07:56

Strategic is not doing anything that QF, Alliance, Rex, Skytrans, Virgin or Skywest have done in the past or are currently doing now.

Um, I suspect this has a different meaning to that which you intended...

Are you implying/stating Strategic does not fly aircraft?

:)

R

Friggit

16th Oct 2010, 08:43

Vertigo it's not the fact they hire certain staff that I consider immoral ,it's the way they do it but then you wouldn't know because you don't work or have anything to do with SA which probably explains your unimformed opinions. It wasn't only their hiring practices I was critising but also some of their business practices but then again because by your own admission you are not at SA you therefore can't really comment. Re your first post comments,yes if you are trying to hide your real identity. You seem to spend a lot of time on PPrune and give its content much credance for a site you mock and critisise but if it entertains you I glad to keep you occupied. Better go I got all my How to succeed in business books to read .

witwiw

16th Oct 2010, 13:50

Prune is obviously for self praising, ill-informed, armchair critics that have too much time on their hands…. Does anyone actually read this stuff?

Oh, der, Mr. Vertigo ---- you do.

And post No. 140, question in second paragraph ---- still waiting for an answer!!!!

witwiw

16th Oct 2010, 13:57

Anyway, I’ve got more important things to do than waste my time here

great news, goodbye.

bizzybody

17th Oct 2010, 04:44

What's this mob doing with ozjet these days

listentome

17th Oct 2010, 06:43

Strategic=Ozjet...:}

bizzybody

17th Oct 2010, 07:31

I thought stategic had their own aoc plus the ozjet one

Mach E Avelli

17th Oct 2010, 07:39

For those that were not paying attention, they bought the OzJet AOC to gain access to Curtin and Denpasar, but OzJet was already broke, and had a 'show cause' from CASA that would have grounded them had not the aircraft all been impounded for various reasons anyway. Ozjet was r00ted, so the Strategic business plan was curious, to say the least. There was a certain amount of snivelling on promises to former OzJet staff. It is all documented here in other threads if you want to do a search.

dodo whirlygig

18th Oct 2010, 10:09

There was a certain amount of snivelling on promises to former OzJet staff

so, did you get out in time or did you suffer in the financial fall out??

so the Strategic business plan was curious, to say the least

and still is .........................

CASAweary

19th Oct 2010, 06:03

Of interest is the recent Strategic AOC audit conducted by CASA. The audit took 1 week to conduct and finished on a Friday. On the Saturday and Sunday following, not 12 hours later the members of the CASA audit team went sailing with the CEO of SA, all together on a CASA inspectors sloop. The involved CASA inspectors are also mates with the SA Chief Pilot. And, it gets worse, all this was done under the approval of the CASA Brisbane Field Office Manager.
So for those who do not think any links exist between CASA and SA, think again. The CASA Director and Board leave a lot to be desired when it comes to defining the line in the sand between operator and regulator.All this has taken place under the nose the government and is just the tip of the iceberg when it comes to activities of the regulator. I think it may be time for a royal commission into the deplorable and immoral activities of a government department completely out of control and above the law.

Mach E Avelli

19th Oct 2010, 08:58

Dodo,
As I said before, if you want the history and the dirt, search prune and ye shall find.

As for Auditee sailing with Auditor. A new version of Stockholm Syndrome, perhaps?

Watchdog

20th Oct 2010, 11:17

Whoopee do...they went out (if it's even true) AFTER the audit. Who gives a toss. You think the CASA staff aren't professionals and act accordingly.

The OZ Aviation scene is so small that the all the guys in both companies have probably known each other for 20 years. :ugh:

dodgybrothers

20th Oct 2010, 13:38

no they are not

Section28- BE

21st Oct 2010, 09:29

Ex the Business (City Beat) Section of The Courier Mail today:

Courier Mail- CITY BEAT: Thursday, 21 October 2010
with James McCullough

Air boss grilling

FAILED Brisbane businessman David Charlton is finally set to front a court today to face questions about the $93 million collapse of his SkyAirWorld airline last year.

Charlton is expected to turn over documents and could take the stand during the public examination in Brisbane Magistrates Court overseen by company liquidator Peter Lucas.

About five other key figures will also be grilled during the hearings, which continue on November 5 and December 1. Lucas has said he will be probing allegations of insolvent trading, intercompany transactions, unfair preference payments, uncommercial deals and the roles of shadow directors.

About 150 workers lost their jobs when Brisbane-based SkyAirWorld fell over in April 2009, leaving more than 420 unsecured creditors. Charlton, an army reservist, also remains at the centre of a Defence Department investigation into allegations he may have improperly influenced an $US80 million tender to fly troops to the Middle East.

Remember what he said to City Beat in October 2006 – he was confident his airline would not go down the path of other players such as OzJet, Compass, etc, predicting “we will be flying in 15 years’ time”.

SIUYA

21st Oct 2010, 20:45

Watchdog,

What dodgybrothers said: 'no they are not [professional].'

In fact, the reported conduct of the CASA personnel seems so far removed from the minimum standards of ethical conduct expected in such circumstances that it's a total disgrace.

Perhaps you don't understand that in any audit, ethical requirements are required to be met by auditors to provide a reasonable assurance of their independence, and to ensure that the conduct of auditors will not increase what's termed 'familiarity threat' to an unacceptable level where true independence is no longer assured?

The reported conduct of the CASA personnel in this case sounds like they completely failed to meet, understand, or possibly deliberately ignored, the relevant ethical requirements reasonably expected of them.

Whatever, and if what's reported to have happened is in fact true, then the senior management of CASA (oxymoron??) should take immediate and appropriate action to address the organisation's lack of policies or procedures that resulted in such a breach of ethics.

Past performance tells me that it won't though. :ugh:

Thats what she said

21st Oct 2010, 21:50

Action - I guess they would, if they needed to.

The 'report" coms from a bloke who shares a name with a blood sucking worm. He just changes the spelling a bit to hide his true intension in aviation, just like he changed his pprune handle from heavy cargo to his new one. He should become a jurno, he has all the skills.

Ever since casa found him flying an unairworthy DC3 while un-rated on the thing, which nearly killed a bunch of unsuspecting kids, he has had it in for casa. I reckon theyll be just laughing at him in Canberra. Most in aviation just laugh at him, except people like my ozjet mates who got sucked dry by him. Hope he doesn't suck dry those nice folk over at Air Naru.

I reckon he'd be better sitting in on his mates court case mentioned above to learn what his is gunna be like, as soon as Shell, some boys in New Ginnea and the tax man catch up with him. One posiive - they can both share the same soap. :eek:

ozangel

22nd Oct 2010, 08:43

News just in...

2010 Contract for Air Sustainment Services
to the Middle East Area of Operations

Defence has entered into a two year contract with Adagold Aviation Pty Ltd for the provision of air sustainment services to the Middle East Area of Operations (MEAO). The contract was signed on 22 October 2010 and will commence on 23 November 2010.

The contract represents a substantial improvement in value for money to the Commonwealth, with significant savings over the two year term of the contract.

Following a complaint about aspects of the tender, the Secretary of Defence commissioned a probity review on 15 July 2010 into the 2010 tender for the provision of MEAO air sustainment services. This review was undertaken by Defence’s Chief Audit Executive. Concurrently, Defence’s probity review process was independently validated by PricewaterhouseCoopers.

Deloitte Touche Tohmatsu and the Australian Government Solicitor were subsequently engaged in 02 September 2010 to conduct an additional independent assessment regarding the financial viability of the preferred tenderer and the overall selection process. Those aspects were beyond the scope of the Chief Audit Executive’s probity review.

That assessment did not identify any evidence of bias in the process, any outside influence that could have compromised the overall selection process or any reason that would suggest that the tenderer was not a fit and proper organisation. These findings were consistent with the outcome of the Defence probity review.

Heavy Cargo

22nd Oct 2010, 12:45

Hi, no name changes TWSS. I am not of who you speak.:cool:

DingoMuddy

22nd Oct 2010, 19:08

Looks like you, sounds like you, smells like you; oh! It must be you HC!:eek:

Heavy Cargo

22nd Oct 2010, 20:38

Where's Clive :cool:

SRM

23rd Oct 2010, 09:04

Oh Nicky please!!!!!!!!!!!!!!

apacau

24th Oct 2010, 06:28

OK, Adagold is the broker, who will fly the charters?

LeadSled

24th Oct 2010, 07:05

Folks,

Re. the ex-CASA person mentioned in several posts, this matter was raised in Senate RRAT Committee hearing on Thurday night, 21/10.

The statement by CASA CEO John McCormick put this issue of supposed conflict of interest in a quite different light, compared to the inferences of some posts on this thread.

The Hansard drafts should be available some time this week. See for yourselves.

Tootle pip!!

megle2

24th Oct 2010, 21:06

Senate Rural and Regional Affairs and Transport Committee

topend3

24th Oct 2010, 23:16

the appointments keep coming...from the website...

19 October, 2010
Strategic Airlines Strengthens Management Team
Strategic Aviation Group is pleased to announce the following management appointments as the airline prepares to expand its domestic and short haul scheduled passengers services.
Mr Marty Byrne is appointed to the newly created role of National Marketing and Communications Manager, Strategic Airlines. Mr Byrne was previously Royal Brunei Airlines Marketing/Sales Manager and Queensland Station Manager. He has over 20 years experience in aviation and tourism including previous roles as Business Development Manager for Warner Village Theme Parks and National Sales & Marketing Manager Norfolk Jet Express.
Mr Clive Adams has joined the Brisbane based airline group as Chief Operations Officer. Mr Adams was previously Eastern Region Manager Flight Operations for the Civil Aviation Safety Authority (CASA) and formerly CASA Acting Group General Manager of Air Transport Group. Mr Adams was previously a Boeing 747 Captain and Instructor for China Airlines based in Taipei; an Aerosafe Risk Management Consultant to companies in the US and Australia and a Boeing 737 Captain and Instructor with Ansett Airlines. He holds a Bachelor of Aviation degree from University of Western Sydney and a Master of Science (Air Transport Management), City University, London.
Mr Robert Kane joins Strategic Airlines as Chief Information Officer. For the past 12 years, Mr Kane was Dubai based IT Product Strategy Manager for Emirates Airlines overseeing IT solutions and applications development across functions including reservations, flight operations, frequent flyer program and financial accounting. He was previously Head of Information Technology for Air Niugini based in Port Moresby.
Mr Phil Warth has been appointed Head of Project and Change overseeing project management for the Strategic Aviation Group. He was previously Flight Operations Project Manager for V Australia Airlines and formerly Embraer E-Jet project manager for the Virgin Blue Airlines Group.
Mr Stewart Tully, previously Manager of Network Operations for V Australia Airlines joins the company to head Strategic Airline’s Network Operations. He has over 20 years experience in Australian aviation including five years as Manager of Operations Control for Virgin Blue and 11 years in network operations for Ansett Australia.
Mr Tony Morrison joins Strategic Airlines as Manager of Customer Services responsible for cross functional service standards and delivery including inflight standards, airport operations, ground handling and all aspects of Strategic Airlines’ customer experience. Mr Morrison spent over 20 years with the Qantas Group most recently as executive in charge of Airport Operations, Qantas Club and service standards within the Northern Territory. He was previously Jetstar Passenger Service and Crew Support Manager, Cairns, FNQ and held earlier roles with Express Ground Handling and Qantas Link.
Ms Alyson Sampson joins Strategic Aviation Group as Manager Aviation Contracts and Procurement following a 25 year career with the Royal Australian Air Force. A specialist in contract management, supply chain logistics and procurement, she was Australian Defence Travel Contract Manager, Melbourne Jet Base Contract Manager, she negotiated and executed the aviation contract for strategic airlift of ADF troops to Baidoa, Somalia. Ms Sampson supervised implementation of Quality Management Systems and aspects of Supply Chain Corporate Governance including a review of Army Aviation procurement policies and procedures across geographically dispersed aviation units. She holds a Bachelor of Arts (Economics and Management).
In September 2010, the Australian Civil Aviation Safety Authority (CASA) granted STRATEGIC Airlines Fly Strategic > Home (http://www.flystrategic.com) an unrestricted three year AOC. The new airline’s commercial operations will utilise Airbus A330-200 and Airbus A320-200 aircraft. Strategic currently flies from Perth to Derby and Denpasar and Brisbane to Port Hedland and Denpasar. Brisbane- Townsville-Denpasar services will commence from 3 December, 2010 and future potential routes are being assessed.
STRATEGIC Airlines is a division The Strategic Aviation Group which also includes ‘Strategic Aviation’ (aircraft brokerage, logistics and cargo solutions) and ‘Strategic Europe’ (charter and wet lease ACMI services within Europe).
For further enquiries: Damien Vasta – Head of Commercial, Strategic Airlines Ph: +61 (0) 403 600 266 Email: [email protected]

Capt Claret

25th Oct 2010, 00:53

Mr Tony Morrison joins Strategic Airlines as Manager of Customer Services

The Bundy Boys Reunite.

Tony Morrison was a Sunnies Checker-innerer in the mid to late 80's, whilst Michael James used to help his old man Check in and bag chuck up at the QPA/SPRA/Flight West end of the terminal.

Small world, innit. :8

FoxtrotAlpha18

25th Oct 2010, 05:28

OK, Adagold is the broker, who will fly the charters?

HiFly using A340-500s apparently!

scorcher

26th Oct 2010, 01:25

What will happen to Strategic if it gets sold

zanzibar

27th Oct 2010, 01:06

Can't seem to find evidence of SA being put on the market. Where did you hear or see that?

gobbledock

27th Oct 2010, 07:08

Zanzibar, check Ebay !!
Maybe Nick ( aka Heavy Cargo/thats what she said) is gearing up to buy the outfit ? Will he retain Clive ?

Thats what she said

27th Oct 2010, 21:42

Jusus, don't link me to that leech!!

dodgybrothers

31st Oct 2010, 13:53

can anyone confirm this:

Mate of mine works for a large accounting firm and says that the receivers are set to be called into this outfit.

320 grounded in Perth, contract to ME lost=nervous investors. Is this the case? because I have a few mates that fly for this mob and I think the owners need to be a little more upfront about what is about to come.

Thats what she said

31st Oct 2010, 19:39

Don't know nothing about the investors except that there are only 2 of em according to ASIC. Mates of mine fly there too and it looks like the bit about the A320 in perth is wrong at least, 'cause it was spewing out 150 or so of the "great unwashed" from Bali in the international terminal at around 6 last night.

Recon I wouldt be using your mate to do my taxes anytime soon. Not only will he get my tax return wrong but looks like he'd tell all me mates about my crappy investments too - should never have broght Metal Storm.

Worrals in the wilds

31st Oct 2010, 22:59

...320 grounded in Perth, contract to ME lost=nervous investors. Is this the case?

I wouldn't have a clue what's happening inside the hive, but Strategic were still operating in Brisbane yesterday with two departures and an arrival. Nothing's been grounded over here.

Heavy Cargo

2nd Nov 2010, 09:39

Is the last A330 flight for ADF in 3 weeks ? 23rd November.:eek:

Unn

5th Nov 2010, 22:52

The A330's last flight is the 20th and thats when it gets back into OZ. Then its hello Adagold/Hifly for the flight on the 23rd:D Happy Days I say

TBM-Legend

6th Nov 2010, 00:04

so we'd rather have a foreign registered/owned/crewed aircraft flying our troops to war.

What about the fine folk who work the line at SA?

Why is there a constant baying for company blood on here???????

ozbiggles

6th Nov 2010, 00:12

It usually comes from some gutless newbie probie poster who values some personal vendetta against one person over the feelings and future of many others.....

TBM-Legend

6th Nov 2010, 03:46

like the other whiners who complain about the company that pays their wages.

If they don't like it then they should use their democratic right to resign and go elsewhere....:confused:

Tango9

6th Nov 2010, 15:24

Isnt this thread done....?

SA have lost the ME contract. Adagold was cleared of the accusations made by SA management. So move on.

Lets just let them all get on with their jobs...including the staff at SA who will need to work especially hard now as their funding has stopped and they need to stand on their own. :eek: Good luck to them.

L1011 Nut

7th Nov 2010, 21:58

Strategic's 2 buildings in Melbourne are 4 Sale.

Maybe this is an indication that the end is near and the Fat Lady may be gearing up to sing....

http://www.grosswaddell.com.au/documents/GROS2114HighStBRO.pdf

http://www.grosswaddell.com.au/documents/GROS2115Wattletree.pdf

TBM-Legend

8th Nov 2010, 02:42

or moving to Brisbane

66biscuits

9th Nov 2010, 05:14

or that it's just a commercial property is changing hands and there are some tenants in the building. Nothing unusual.

In the past month, the IASC has allocated Strategic seat capacity to allow them 6 weekly services to Thailand (http://www.iasc.gov.au/determinations_decisions/files/2010/2010%20iasc111.pdf), and capacity to allow 13 weekly flights to Indonesia (http://www.iasc.gov.au/determinations_decisions/files/2010/2010iasc107.pdf), up from 3. The Bali allocation only counts from major capitals, TSV and PHE flights are unlimited seat cap.
Like I have said before, it's more and more RPT services over charter. They're about to start flying an additional 11 weekly services to S.E.A. from Aust. Clearly charter is becoming less important to Strategic. It's a major shift that seems to have been missed on this forum.

I make no apology for not commenting on their alleged misdealings and dodgy recruitment policies. I'm fairly cynical, I'm not surprised that a business would have tried to gain an advantage by any means. As long as safety is not compromised, I don't really care.

TBM-Legend

9th Nov 2010, 07:23

RPT relies on bums on seats. Charter gets paid the full rate no matter how many pax.

Are they carrying many pax at a good yield? Otherwise poking holes in the sky can be expensive....

tourismman

9th Nov 2010, 07:40

I remember some posts stating they had lost BNE-HIR however they are about to increase this route from 3 to 4 a week as well.
I believe the advance bookings on TSV-DPS are excellent.

dodgybrothers

9th Nov 2010, 08:25

so how do you do all this with 2 grounded airbuses?

TBM-Legend

9th Nov 2010, 10:52

where do they advertise? I see/hear nothing in the newspaper/tv or radio ..

ebt

10th Nov 2010, 00:23

I have seen some TV ads, albeit on Go so they probably got given it. In PER, they have occasionally done radio and they have a few billboard ads around the place. I understand that on DPS they tend to work a lot with the wholesalers which would keep the loads high.

flightfocus

10th Nov 2010, 05:20

Is it just me or is the Strategic mini bus conspicuous by its absence in PH?

ozangel

10th Nov 2010, 10:04

High wholesale loads is (from my experience) not a good indication of success though... At Alliance the loads on CNS and HTI (the 2004/5? 2x week services) were almost always full - but that stopped almost as quickly as it began (not sure why - can only assume there was not much $$ in it compared to the mines). That said, it was nice to have 'female' passengers under the age of 65 while it lasted (with the mines and norfolk the main ops back then - they were pretty rare!)

66biscuits

11th Nov 2010, 02:20

What grounded planes? No flights cancelled that I can see.
---

The PER-DPS Bali holiday market is booming at the moment but it's also brutal and will chew up and spit out airlines in a downturn. Look at Air Paradise and Ozjet. Obviously there's an Ozjet connection to Strategic, so they know what they're getting into.
Once all the airlines implement their new seat capacities, on PER-DPS there'll be 69 flights and nearly 13000 seats weekly between QZ, GA, JQ, DJ & VC. That's enough to send the entire population of Perth to Bali every 3 years. And there was talk of Batavia or Lion starting flights too. And that's just ex PER.

Falling Leaf

11th Nov 2010, 06:12

Fingers crossed that no fanatics try out their amateur chemistry experiments in the local clubs and restaurants then, otherwise there will be a lot of spare capacity in a heartbeat...

Jose Cuervo

13th Nov 2010, 03:21

where do they advertise? I see/hear nothing in the newspaper/tv or radio ..

Try the 5th hole at Kingston Heath today at the Masters

dodgybrothers

13th Nov 2010, 11:27

biscuits, 2 grounded for a week 1 is still grounded. Got skippers to do their RPT to Derby (Is that legal?) Imagine rocking up and having to get a metro or a dash all the way to derby!

Thats what she said

13th Nov 2010, 19:46

Shockin... truly shockin.... thank god Dodgy's on duty.....

.....an airline with machines that need maintinance and sometimes go AOG cause they need just a bit more.... unbelievable folks. This stuff never happens to other airlines!! But don't worry everyone, Dodgy's on the scene to tell us all how shockin it is..... and they even did one of them charter substitution thingies to keep their pax movin..... that's it - I'm callin the cops.

Hey Dodgy, ya better get over to that Skywest site, I heard those buggers might have a bit of extra maintinence on that big bird of theirs cause of hydralics or sumthin. Don't worry about Qantas but, cause I'm sure everythin's good over there. That sort of stuff never happens to them.

Please!!!

.... and their closin Qantas threads cause a few fellas are worried about an air return of a 76 that's gettin a bit embarresing for 'em. Beats me!!

dodgybrothers

14th Nov 2010, 00:36

things getting a little touchy over there at strategic eh?

TWT

14th Nov 2010, 03:54

Try the 5th hole at Kingston Heath today at the Masters

Won't find anyone there !Masters is at the Victoria Golf Club :ok:

feenix

16th Nov 2010, 05:39

I guess SA will be tightening the belt after their last ADF charter next week. Risky strategy putting most eggs in one basket with RPT to Bali. Another terrorist attack and the place shuts down again and even without such an event the number of seats on the routes are way to excessive and it will be the big boys who will fare best in a price war

Tango9

16th Nov 2010, 14:26

Smith stands by Defence air contract

November 16, 2010 - 10:39PM

AAP
Defence Minister Stephen Smith has defended an air services contract questioned by the coalition.
Opposition defence spokesman David Johnston on Monday accused the department of allowing a company that didn't own any planes, employed only a very small number of Australians and used a charter operator without the appropriate transport licence to ferry Australian soldiers around the Middle East.
Mr Smith rejected the claims on Tuesday, saying he had been told there would not be a significant loss of Australian-based jobs in the transition from Strategic Aviation to Adagold, a broker which uses Portuguese-based company HiFly as its air operator.
Advertisement: Story continues below
"Tenders for provision of services to the Australian Government or the Department of Defence are determined on the basis of value to the taxpayers' dollars, not just on the basis of local employment," he added.
Mr Smith said HiFly had all the appropriate certification for carrying Defence Force personnel, before defending the final cost of a Deloitte review of the contract which totalled $597,000.
"Deloitte was cognisant of Defence's desire to complete their review as expeditiously as possible," he said.
"Deloitte deployed a large team, which included a significant number of partners and directors, to undertake the review.
"Their fee represented virtually 1,000 direct man hours of effort and significant on-costs."
Mr Smith said he felt the reviews were justified.

So are any pilots jumping ship from SA?Although, I would think SA will need its A330 guys for all their Thailand routes??

Thats what she said

16th Nov 2010, 22:31

Defence accused of covering up $90m contract row

Dan Oakes

November 17, 2010

THE Defence force has been accused of ordering an ''expensive whitewash'' to cover up allegations of impropriety in the awarding of a $90 million contract for transporting Australian troops overseas.
The accusation was made after it emerged that auditors hired by Defence to probe the contract were unable to interview any of the tenderers or the official at the centre of the row.

Auditors at Deloitte were paid $600,000 to review the contract to transport troops to the Middle East after unsuccessful bidders complained that a Defence official, David Charlton, had passed information to the preferred tenderer, aviation charter company Adagold.

Earlier audits by PricewaterhouseCoopers and Defence found no impropriety. But after opposition defence spokesman David Johnston raised more concerns, Defence asked Deloitte to conduct a third audit.
Senator Johnston yesterday called the Deloitte audit an ''incredibly expensive whitewash''. He said the firm had run ''what should have been a very important inquiry into a number of very serious allegations … effectively with one hand tied behind their back''.

''For close to $100,000 a day the auditor barely looked under his mouse pad. The result is as predictable as night follows day. Of course it didn't find any evidence of mismanagement or corruption because they weren't allowed to look for it, and the taxpayers who paid for this audit have a right to know why.''

The Deloitte report found Mr Charlton, who admitted advising Adagold on its bid for the contract, had no influence over the tender process.
However, the report, seen by The Age, makes it clear that the auditors were forced to rely on transcripts of interviews conducted by ''others'', did not interview Mr Charlton or any of the tenderers, and did not verify information obtained from interviews or tenderers.

''We believe that the statements made in this report are accurate, but no warranty of completeness, accuracy or reliability is given in relation to the statement and representations made by, and the information and documents provided by Defence personnel,'' the report says. ''We have not attempted to independently verify these sources.''

Defence has referred its 2005 Middle East flight tender to police after The Age revealed that Mr Charlton and another official gave inside information to the winning firm, Strategic Aviation, before joining it in senior management roles.

The Deloitte audit also dismissed concerns about a South African company founded by Adagold's owner, Mark Clark, involving Defence contracts in that country, noting South African courts found no evidence of corruption.

The Age has also reported complaints by rival firms about Adagold's near monopoly on asylum-seeker transport contracts. Adagold won 52 of 56 Immigration Department flight contracts, worth a total of $6.49 million, between June last year and March 31.

I hope they're not jumping 'cause they might be jumping out of the frying pan into the fire!

L1011 Nut

17th Nov 2010, 09:45

Well it's good to see the Strategic Marketing or policy machine or whatever you want to call it is still fighting....

Can't guess which side keeps feeding the media over all of this....

Unfortunately they just don't get how much damage all this would be doing to their relationship with Defence and other government departments...

Sorry to say it boys, the game is almost over.... Just start watching the rats abandon the sinking ship especially the CEO, he has done it twice already at European Aviation and then Ozjet.....

Also, it looks like the move to Brisbane is correct as all positions that were in the Strategic Melbourne Office are now being advertised on their website as Brisbane positions.

I wonder if the Melbourne Based Director has also left the business as he would never have let the entire Melbourne Operation Be Shut Down.

7mile

23rd Nov 2010, 07:24

I passed through Brisvegas this morning and noticed an "all white" A330 parked down the southern end of the airport where Strategic usually park.

7mile.

Friggit

23rd Nov 2010, 07:31

I saw an all white A340 there on the weekend

Wezza

23rd Nov 2010, 11:01

The A340 belongs to HiFly, it arrived recently to start the new ADF contract for Adagold.

ringbinder

30th Nov 2010, 15:05

Yet another breakdown on the Solomons service, this time with the aircraft stuck in Honiara. I guess I'll fly home (Brisbane) on Our Airline tomorrow like I did recently. This will be the third time, at least, in recent times where Strategic have failed - thank goodness for some competition out here, if it was totally reliant on Strategic to come and go from Honiara things would be pretty desperate.

down3gr33ns

1st Dec 2010, 21:28

Hope you caught the Our Airline flight, understand the A3230 is still on the ground. What is the unserviceability, anyone know?

dodo whirlygig

3rd Dec 2010, 07:09

Not a good time for Strategic, another a/c u/s and a dropped lucrative charter. Is their other a/c out of HIR yet?

Thats what she said

3rd Dec 2010, 07:23

Which one's U/S? I saw two of the 320's in Briz as I taxied today. One at international and one at domestic. Noticed both pushed within about 30 mins of eachother.

Sunstar320

3rd Dec 2010, 08:18

All three are out and about working aok.

witwiw

5th Dec 2010, 08:06

All three are out and about working aok.

Really??

So why was another operator called in with around 4 hours notice to operate a Christmas Island charter that Strategic couldn't - one that they had already been awarded?

cyclone8888

6th Dec 2010, 05:52

All three are out and about working aok.

According to the Courier Mail on saturday Strategic operates 6 - dont tell me this inaccurate??

Who would have thought...

Wezza

6th Dec 2010, 06:53

^^
They do, 3 are in Europe.

feenix

6th Dec 2010, 10:27

Our Airline asked again today to do Strategic's Solomons flying due to SA u/s. Couldn't help however as they were too busy doing their immigration charters so obviously they aren't all out and about working

Sunstar320

7th Dec 2010, 00:23

well as of 3rd dec 8.18pm all three a320s (yqa,b,c) were in service. Probaly a different story the next day.

witwiw

7th Dec 2010, 11:55

Probaly a different story the next day.

and the next, and the next, and the next ...................... the SA way.

Thats what she said

7th Dec 2010, 21:35

This could be the reason - too busy? ........

http://www.airliners.net/aviation-forums/trip_reports/read.main/181025/ (http://www.airliners.net/aviation-forums/trip_reports/read.main/181025/)

Checkin out the route map in this report it looks like a pretty full on network for just 3 machines. Doesnt even show the Honiara stuff.??

frigatebird

7th Dec 2010, 22:34

So what does all this mean then....?

Mr Kraus said the introduction of Sunday flight is part of their strategy plan towards getting new Air Bus Guadalcanal next year.

He said Solomon Airlines contract with Strategy will end February next year.

The Commercial and Operations Manager said he was impressed by the high booking which is expected to continue for a long term.

He added Solomon Airlines is pleased with the service because they have their own crew onboard.

from Solomon Star News..!

witwiw

8th Dec 2010, 13:10

From TWSS's link:

"Boarding was announced at 17:40 and was completed by 17:50 as there was probably a total of 30 people on this sector."

At $89/head, wow, almost $2700. Now, let's see:- almost two hours flying at a minimum operating cost of $6k/hr ...... a great way to make money, that is!!!!!

Wezza

8th Dec 2010, 20:35

Well it either ferries back to Brisbane completely empty or they sell seats on the flight...

ratpoison

8th Dec 2010, 20:51

At $89/head, wow, almost $2700. Now, let's see:- almost two hours flying at a minimum operating cost of $6k/hr ...... a great way to make money, that is!!!!!
Oh what a brilliant statement!! The national disgrace of Jokestar have ferried empty A330's from Japan, Honolulu, Phuket and Bali a min of 7 times this year.
Now, let's do the math,
At $0/head, wow, almost $0. Now, let's see:- almost nine hours flying at a minimum operating cost of $6k/hr ...... a great way to make money, that is!!!!! (and multiply that by SEVEN):ugh:

down3gr33ns

8th Dec 2010, 21:29

Well, Wezza, what is it, a ferry flight or a commercial service?

witwiw

8th Dec 2010, 23:02

This could be the reason - too busy?

So, if they're "too busy", how come they bid for (and lost on this occasion) for 4 days of Xmas Is. charters???? That indicates spare capacity, does it not?

tourismman

9th Dec 2010, 02:05

This may help you understand

INTERNATIONAL carrier Strategic Airlines is looking at more overseas routes involving Townsville as well as the possibility of establishing aircraft maintenance in the city.

Speaking at a function in Bali to launch the new twice weekly Brisbane-Townsville-Denpasar service, Strategic Group CEO David Blake said the company was talking to Townsville airport representatives about other services from Townsville.

Townsville Deputy Mayor Cr David Crisafulli had also raised the prospect of using Townsville as a base for maintenance and the company was very keen to begin talking to authorities about that.

"We are investing in Townsville and we believe the service here will grow," Mr Blake said.

"We are already talking to the airport about other services from Townsville.

"I am not at liberty to say what we are considering but hopefully we can extend international air services out of Townsville to other destinations possibly (to the) east and north."

Centres in Thailand and New Zealand are being talked about as possibilities while there is also the prospect the current Bali service will be concentrated on Townsville rather than Brisbane.

Mr Blake said the airline would move to a direct Brisbane to Bali service shortly.

"The (Brisbane-Townsville-Denpasar) service then will be more just Townsville," he said.

About 50 VIPs from the travel industry, hotel properties and media danced the night away at the launch in Bali and watched performances of Balinese cultural dances and former Australian Idol star Lisa Mitchell.

Mr Blake said Strategic had been convinced to consider Townsville after the proactive response from the Townsville City Council and Townsville Airport.

Townsville's population catchment and existing traffic numbers were also better than Cairns which had been initially considered.

"We have been very encouraged," Mr Blake said.

"The bookings have gone very very well.

"The city and the area has got together and really taken it on board."

Holiday packages are being compiled by property owners and travel agencies, who are making bulk bookings with the airline.

Mr Blake said he had been very interested to talk to Cr Crisafulli about the prospect of using Townsville for aircraft maintenance.
http://www.townsvillebulletin.com.au...0071_news.html (http://www.townsvillebulletin.com.au/article/2010/12/06/190071_news.html)

As you can see from here the route is really TSV-DPS-TSV and as the aircraft has to come and go back to BNE then it is better to sell seats on the TSV-BNE sector.However BNE-DPS-BNE will go non stop soon by the looks of it.
http://www.skyscrapercity.com/images/buttons/quote.gif (http://www.skyscrapercity.com/newreply.php?do=newreply&p=68423037)

doleque

9th Dec 2010, 05:38

New Zealand, maybe Blakey is going to have another crack at Palmerston!!

Wezza

9th Dec 2010, 07:06

Well, Wezza, what is it, a ferry flight or a commercial service?
The aircraft had just returned from Bali, pretty much full. It has to get back from Townsville to Brisbane somehow. Now would it make sense to sell seats on the flight or return completely empty? It's not rocket science. It was only the second ever service they have operated on the route as well.

Time to drop the agenda methinks.......

feenix

12th Dec 2010, 22:48

Gee this all sounds a lot like the final days of SAW where they bragged about expansion and kept employing staff right up till the last hours before going under. Let's hope history doesn't repeat itself as it has a habit of doing. It must be hard to fund all this new work with no ADF contract to keep the creditors at bay. RPT flying is great but never makes a profit from day one unless creative accounting is employed. It usually takes a couple of years to really get out of the red and into the black and that is why the big boys can manage it with cross subsidisation, but bit players like SA (especially since the ADF work dried up) can't.

witwiw

13th Dec 2010, 21:22

The parallels between SA and SAW are remarkable and SA have gone very quiet of late (no evilc bragging etc.) much like SA did before the axe fell.

SAW got caught out making outrageous but unsustainable or, heaven forbid, even misleading promises - and certain authorities took a dim view of that.

TBM-Legend

14th Dec 2010, 01:26

heard NK from QF looking at the SA numbers now that Network's deal is done...

frigatebird

20th Dec 2010, 09:03

Solomon Airlines to lease airbus (http://www.solomonstarnews.com/news/business/9418-solomon-airlines-to-lease-airbus)

Tuesday, 14 December 2010 11:10
http://www.solomonstarnews.com/templates/ja_teline_iii/images/emailButton.png (http://www.solomonstarnews.com/component/mailto/?tmpl=component&link=aHR0cDovL3d3dy5zb2xvbW9uc3Rhcm5ld3MuY29tL25ld3MvYnVzaW5 lc3MvOTQxOC1zb2xvbW9uLWFpcmxpbmVzLXRvLWxlYXNlLWFpcmJ1cw%3D%3 D) http://www.solomonstarnews.com/templates/ja_teline_iii/images/printButton.png (http://www.solomonstarnews.com/news/business/9418-solomon-airlines-to-lease-airbus?tmpl=component&print=1&layout=default&page=)

http://www.solomonstarnews.com/images/resized/images/stories/airbus-a320-212_200_200.jpg Solomon Airlines will lease the Airbus A320-212 similar to this Strategic Airlines aircraft. (Photo: Jean Goubet, pictaero.com)

(http://www.solomonstarnews.com/images/stories/airbus-a320-212.jpg)

The Board of Solomon Airlines has announced approval of a proposal to try to lease an Airbus A320-212 aircraft for its international and regional operations.

The new lease has been arranged through a major capital management consortium and will be effective from the end of the current lease with Strategic Airlines between February and March next year.

This will also correspond with the normal change of schedules for the northern summer period as is the case with all international airlines.

The new arrangement gives Solomon Airlines far greater control over its future destiny and allows the airline to comply with recent amendments to IATA membership qualifications.

The move also coincides with the significant progress being made within the airline following Governments approval to implement the initial restructure plan put forward by the board in December 2008 and thereby has placed the airline in a far better financial position to take up the lease option.

The cabin will be exclusively manned by Solomon Airlines personnel who have already been trained on this aircraft type by Strategic Airlines.

Similarly attention is being given to the important customer service areas both in-flight and throughout the operation as a whole.

Solomon Airlines currently operates three services per week out of Brisbane, moving to a fourth service from last Sunday.

The move has been taken to meet the projected increase in passenger numbers.

Under the existing lease arrangements with Strategic, the airline will have to meet significantly higher additional service costs to cover the extra flight whereas operational costs reduce proportionately the more the airline utilises its own aircraft.

Seating arrangements for the new aircraft differ in providing for 20 business class seats, as opposed to 12 on the Strategic aircraft and provides cabin cupboard space forward of business class compartment.

The number of economy seats reduces from 144 to 120 to give greater leg room in this class. In-flight entertainment including movies, music and destination service information will also be available on the new service in addition to the high standard in-flight catering service.

ringbinder

20th Dec 2010, 11:14

Oh dear, poor old Solly.

As a looong time traveller to Honiara, I no longer am surprised at the deals Solomon Airlines enter into - SA, O7, Strategic, the Spanish etc etc.

None of these really have worked for anyone (unless you consider the hip pockets of certain influential people who have influence over the granting of certain rights and opportunities) and I am at a loss why the Solomonese don't band together with their island 'Bros and cooperate on a regional basis. No, then again, I am not at a loss - Island pride and jealousy has long been a major impediment to many a worthwhile collaborative project with offered mutual benefits.

Let's see how this new beaut arrangement lasts. I'd give it 2 years, at best.

66biscuits

24th Jan 2011, 03:57

From their website (http://www.flystrategic.com.au/LinkClick.aspx?fileticket=ENCM63A8VXw%3d&tabid=37)

21 January, 2011
Strategic Airlines announces ‘reluctant decision’ to cease Port Hedland to
Bali flights

International carrier STRATEGIC AIRLINES Fly Strategic > Home (http://www.flystrategic.com) said today it would reluctantly withdraw from operating Port Hedland to Bali direct flights from the end of Mach, 2011 due to constraints preventing the commercial viability of the services.

The airline’s last Port Hedland to Bali flight will operate on 22 March, 2011, returning 23 March 2011. Flights on the route are operated by an Airbus A320 equipped with 12 business class and 144 economy seats.

“This has been a difficult decision and one we have not taken lightly, especially as these flights had been popular with the local community taking advantage of a direct route to Bali,” said Head of Commercial Damien Vasta.
“Due to infrastructure constraints at the airport that impact on the efficiency of border control processing, we are prevented from selling any more than 100 seats per flight on our 156 seat aircraft.

“We were aware of this mandatory cap on capacity at the time we commenced flying the route but were confident infrastructure improvements could be made to accommodate greater international passengers numbers through the airport,” he said.

“Unfortunately after a six month review we understand this is not possible at this point in time, therefore regrettably it is no longer commercially viable to continue to dedicate the aircraft to this route, “ he said.

“This decision will not impact our Port Hedland to Brisbane domestic services. Those flights will continue to operate with improved arrival and departure times to suit the resources sector,” he said.

Strategic Airlines introduced its direct Port Hedland-Denpasar flights on 3 August, 2010. Pending a review of the services, the airline recently suspended taking web site bookings beyond 23 March, 2011 so as to minimise any inconvenience related to potential cancellation.

Strategic Airlines and its travel agency partners will contact any passengers whose bookings may be affected by the change. The airline will be offering a full refund on any fares booked on flights beyond 23 March, 2011.

Strategic Airlines is pleased to advise that SkyWest Airlines has agreed to offer all affected passengers the opportunity to book flights from Port Hedland to Denpasar for travel post 22/23 March 2011. For details relating to schedules and fares, passengers can contact SkyWest Airlines on 1300 66 00 88.