Recruitment - Strategic Airlines Recruiting Again

[Olive61]

I have it on good (it is a rumour network!) authority that Strategic Airlines will be recruiting again in this coming week. The last flurry seems to have recruited about half a dozen - a couple into training positions. :):D

[Mr. Hat]

What is the latest on Strategic? How are they travelling?

[aussie027]

Strategic recruitment was discussed in a thread just a few mo ago.
They will only be looking for people with multi crew time on a 40tonne and above aircraft, preferably an A320.

[Roller Merlin]

Strategic feeling the pressure
Matt O'Sullivan
March 14, 2011
AUSTRALIA'S newest international and domestic airline Strategic - which has been trying to turn a buck flying tourists to Bali and troops to the Middle East - is under financial pressure after its charter arm lost a $30 million-a-year Defence Force contract amid a police investigation.

Strategic Airlines, which operates commercial flights, suffered widening losses last financial year, and was cash-flow positive only because it received a loan of more than $6 million from the charter business, accounts filed with the corporate regulator show.

The company is now reliant on making a profit from commercial flights in Australia and south-east Asia after its charter arm, Strategic Aviation, lost its key contract with the Australian Defence Force to fly troops and military cargo to Kuwait and the United Arab Emirates.

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The Australian Federal Police confirmed on Friday that an investigation is continuing into whether criminal offences occurred in the awarding of the Defence tender to Strategic Aviation in 2005.

One of its two shareholders, Melbourne businessman Shaun Aisen, severed his ties with both the commercial airline and charter business last month.

His departure leaves full ownership of Strategic in the hands of its chief executive, Michael James, a 34-year-old former Ansett employee. ''We haven't been contacted by the AFP. We are quite happy to answer any questions because we believe there is no wrongdoing whatsoever,'' Mr James said on Friday.

Strategic Aviation has warned in separate accounts lodged with the regulator that the loss of the ADF contract will ''impact significantly'' on its results this financial year.

It leaves the overall business reliant on Strategic's full-service airline, which has been rapidly expanding its domestic and international network - including flights to the tourist destinations of Bali and Phuket - since it gained its air operators certificate in September 2009.

The recently filed corporate accounts show that Strategic Airlines's losses widened to $9.3 million for the year to the end of June, from a $2.1 million loss a year earlier.

The Brisbane-based airline said in its accounts that its future viability depended on its operations and the ''continuing financial support'' of Strategic Aviation.

Even before it lost the ADF contract, Strategic Aviation's accounts show it had slumped to a loss of $16 million last financial year - from a $17 million profit a year earlier - after booking a $20 million impairment charge and increased charter costs. Total revenue fell 15 per cent to $79 million.

[zanzibar]

The Brisbane-based airline said in its accounts that its future viability depended on its operations and the ''continuing financial support'' of Strategic Aviation.


Even before it lost the ADF contract, Strategic Aviation's accounts show it had slumped to a loss of $16 million last financial year - from a $17 million profit a year earlier - after booking a $20 million impairment charge and increased charter costs. Total revenue fell 15 per cent to $79 million.

Can't see where " ''continuing financial support" of Strategic Aviation"
will come from if "Strategic Aviation's accounts show it had slumped to a loss of $16 million last financial year".

Smoke and mirrors, maybe?

[TBM-Legend]

SAW all over again.....

Peter pays Paul and Paul pays Peter and Peter's run out of $$$$$$$$

SAVED!!!!!


But Strategic's commercial boss, Damien Vasta, said the accounts for last financial year included one-off costs arising from establishing the commercial airline, and ''reflect inaccurately about the ongoing viability on the airline''.

''The airline now doesn't require any assistance from the aviation company - in fact, the aviation company is just taking ad hoc charter work,'' Mr Vasta said. He estimates the cost of gaining an air operator's certificate at more than $10 million.

Strategic Airlines, which has a fleet of six Airbus A320 and one A330 aircraft, won more rights to fly to Indonesia last year, and this month will begin additional flights between Brisbane and Bali. Three of its A320 aircraft are based in Europe where they are used for charter services, mostly over the summer months.

''I think the next financial year will still be a difficult year to achieve break-even but it sets us up very, very well for the 2011-12 financial year,'' Mr Vasta said.

''Those massive set-up costs … normally they would be done through debt - we have been able to do it through our retained earnings. Certainly it is sustainable. [But] there are no delusions of grandeur here.''

[doleque]

General Employee Entitlements and Redundancy Scheme - Overview (http://www.deewr.gov.au/WorkplaceRelations/Programs/EmployeeEntitlements/GEERS/Pages/default.aspx)

If (!!) it does slide down the tube, take the GEERS option (link above).

By the way, am wondering if any of the O7 management have stuck around this far.

Best of luck.

[Rashid Bacon]

I would be very surprised if there is enough cash flow to sustain this operation over the longer term.

The fleet is not fully utilised year round and I also wonder what the on going maintenance requirements will be with aircraft this old?

So, without external debt financing, how can SA continue ? :confused:

Financial musical chairs only works for so long.:mad:

[Mr. Hat]

Sounds a bit scary. Would be terrible if it went under. There are some very good people that work there. I feel for the staff.

[Thats what she said]

Looks like another case of lazy journalism to me. All based on accounts almost a year old??? WTF

If things are that bad, how come they survived the last 10 or so months since the figures the journo used. With their website spruking the "Happy-nackers" start up (in competition with QF - who should have a mask and a gun when they charge the fares for that run), maybe the fact that QF spends millions of dollars on adverts with the journos newspaper every year has screwed up his ability to gather all the facts?? Nah... surely not. These guys are professionals aren't they??

Gotta love those journos. Wish I could turn up to my next sim with last years scenario - certainly save me a shed load of study.

[TBM-Legend]

The AFP thing will be interesting I'd say.

DV's comments are also interesting about how he says what he says.

[TBM-Legend]

Friday's Australian article:

The plan is to move to seven leased A330s over the next three years and includes a rebranding, overseen by agency CumminsRoss, which should be unveiled mid-year.

Strategic Airlines will be given a new name that will reflect its Australian origins while the charter arm will stay as Strategic Aviation.

Longer-term plans included the introduction of sleeper seats and premium economy, Mr James said.