Strategic Bali link - Gone!

[Skystar320]

Strategic Airlines cancels Perth-Bali route | Latest Business & Australian Stock market News | Perth Now (http://www.perthnow.com.au/business/strategic-airlines-cancels-perth-bali-route/story-e6frg2qc-1226108255276)

Not viable? Wouldn't have thought it would have, high costs and the inability to compete with 'low' cost airlines

[Capt Basil Brush]

Interesting enough, yesterday I dropped into a Brisbane branch of one of Australia's largest travel agents to get some brochures on Bali, and was told that at the moment there is Pacific Blue and Strategic Airlines flying Brisbane to Bali, however "we dont recommend you fly on Strategic Airlines at the moment". I asked why is that, and was briefly told due to service unreliability and 'other reasons'.

I suggest the Strategic PR dept get their finger out, and speak to all the travel agents ASAP.

[witwiw]

Why is it that Strategic aparently arrived into Gladstone recently, and then departed without getting their passengers from Brisbane off?

[antheads]

apparently tsv-bali will be axed as well, announcement tommorow.

You would think townsville, with its sizable fifo population would be able to support a weekly bali service. I mean perth has what 5+ daily flights.

Hopefully strategic will be creative and try another route from tsv, perhaps auckland.

[1a sound asleep]

BNE-HNL is on their website in the bookings :sad::hmm:

[Busboy92]

I just called them after seeing the ad in todays Australian. They are gearing up for a big expansion and I'm getting an interview given I'm Airbus rated - I just gotta get out of where I am now. I can only stand watching so much daytime TV.

I asked about the cancelled flights and was told it is to free up capacity for the new routes that are about to be announced. Looks like they've found better routes to make money. Melbourne and Brisbane bases for A320 and A330, so I should be able to get home if all goes well - woohoo!

[Shinpow]

Heres the story in the local paper

http://www.townsvillebulletin.com.au/article/2011/08/05/254615_news.html[/URL]

[down3gr33ns]

Re GLA: Heard there was a conversation over the radio with credit card details given so as to get the ground handlers to attend. Card declined, no stairs made available - so aircraft departed back to BNE.

[porch monkey]

Ah well, at least they'd only have to explain it to 6 or 7 pax, given their loads on the route.

[BackdoorBandit]

Good luck Busboy, hope the legs don't fall off - all the signs are there.

[shakta]

I know the news is 6 days old, but Gladstone is gone too.....

From the Gladstone Observer

Strategic pulls out of Gladstone


David Sparkes | 29th July 2011

Tags airport, strategic

Strategic Airlines.

Brenda Strong




STRATEGIC Airlines has announced it's withdrawal from the Gladstone to Brisbane route.

The Airline contacted The Observer today to announce its withdrawal, effective from August 12.

Strategic's group executive commercial Damien Vasta said the decision was a sad one for the airline. The decision appears to be the result of commercial difficulties experienced by Strategic since it arrived at Gladstone Airport in April.

"While this is a difficult change to make and is dissapointing for out team, it has been a straight-forward commercial decision due to aggressive competitor activity," Mr Vasta said.

Mr Vasta did not mention Strategic's only competitor on the route, Qantas, but his reference of "aggressive competitor activity" appears to be connected with Strategic's previous request that the ACCC investigate whether Qantas was engaged in anti competitive behaviour.

"Brisbane-Gladstone was a monopoly route with high air fare pricing levels. We entered the market as a price challenger promting lower fares for the people of Gladstone and we achieved what we set out to do," he said.

As it is no longer economically viable to continue this service, we will withdraw from the route for the foreseeable future and will continue to monitor conditions and opportunities."

"We would like to take this chance to thank the Gladstone Regional Council, GAPDL, Gladstone Airport, the community and businesses who have supported us."

Qantas declined to comment on the matter.

Hmmmmmm....

I am not so sure of expanding, maybe the opposite and a preamble for something else....

I hope we don't have another Compass or Sky Air World as this may take more passengers and staff with it......

Good Luck Busboy92, I hope for you and others this doesn't happen....

[ozangel]

This doesn't make sense!? Surely running an A320 on BNE-GLT-BNE with no network was going to be a winner?! Maybe they should re-deploy them onto a BNK-LIS-OOL-ASP-DRW-TEF-TWB-BNE-MCY-NOU-NLK-BNK pattern to recoup some of the losses?!

Sure, i'm all for having a go, but that's not to say i'm going to audition for the Cleo centrefold, launch a one man interpretive dance show at the opera house, or release an international hit song about my love of 'Fridays'!?!

[Busboy92]

Thanks for the wishes of luck. Still gotta pass the interview though. I was told they are gunna have some Pilot Info Briefing meetings in Brisbane and Melbourne soon. Not sure when, but I can post it here I guess, if I ever find out.

Yes it is a bit scary for a young guy like me, but I'm currently grounded anyway after joining an airline that I figured had the strength to grow and be a career position, yet I hear we'll be smaller if we fly again :(

The flight ops guy I talked with on the phone indicated they are all hyped at Strategic 'cause they are actually making sure that the routes that are not making money are replaced with additional capacity over the routes that are (Phuket & Bali from east coast). Apparently there are something like 60 flights a week from Perth to Bali, that's gotta be a tough market. With Virgin starting Gladstone I guess they found better routes with more pax to use the 320.

Sounds like good decision making and good use of the aircraft to me. If they kept pushing on with crappy loads I'd be more worried. I did mention I was worried about the last few failures like Sky Air World etc, but they said the difference is that those who have recently failed didnt have the depth of business, such as the freight contracts with Virgin Atlantic and the Euopean A320 operation. Both of them are adding solid income apparently. Helps pay for the expansion he said.

I've been told I'll be getting lots of Bali overnights on the 320 based in the east, if I'm successful. Also Melbourne overnights, so I can visit my old mates and rellies. I'm hoping I can quickly transition to the A330 after proving myself. I was told that fleet is growing and I'd love Honolulu overnights. This is the carrot for me. They said they will have 3 A330 by early next year and more to come.

I guess its a risk, but everyone was saying they would die away after the Army contract ended last year, but that's almost a year ago and they are only growing from what I see. Worth the risk I reckon, cause things are only going backwards where I am now.

[tourismman]

Busboy will be fine.

[TBM-Legend]

park the aircraft and lose $1.5M pa. Fly it and lose $3.0m pa.

*A friend flew SA the other day GLD-BNE. 7 pax and a $79.00 air fare....!

[airdualbleedfault]

Big call tourismman, considering the track record of 90% of the other wannabe airlines in Australia's past, as much as the VB diehards will argue to the death, they were very close to failing 10 years ago.
The worrying thing for Strategic is the international routes they are planning have plenty of established operators on them that will probably do the same as QF did on Gladstone.
Having said that, with a few friends there, I hope you're right

[Rashid Bacon]

As much as it is bad news for the crews, I can not see how SA can survive with it's current charter and RPT routes.

There is just too much discounting by the "other two" to get a decent yield for a small operator, especally if the US economy heads south again. :{

[Eastwest Loco]

I was thinking I should contact Strategic to get an IATA plate facility but one does wonder whether that is wise.

As always I stand to be corrected.

EWL

[topend3]

wasn't hard to see this one coming...wonder how long before they start axing positions...

[topend3]

With Virgin starting Gladstone I guess they found better routes with more pax to use the 320.

interesting to see where they find these...

[B772]

Strategic or is it Air Australia may have their plans for services to HNL spoilt by Virgin who are planning a service possibly in conjunction with Hawaiian.

[apacau]

"Air Australia" to start BNE-MEL RPT in competition with TT, JQ, DJ and QF. A big call!

[TBM-Legend]

last throw of the dice!

[Busboy92]

I feel much less anxious about joining with this news

http://www.theaustralian.com.au/business/aviation/strategic-airlines-enters-the-low-cost-fray/story-e6frg95x-1226113384927 (http://www.theaustralian.com.au/business/aviation/strategic-airlines-enters-the-low-cost-fray/story-e6frg95x-1226113384927)

:D

[topend3]

Now they are flogging travel insurance on the website I see....maybe theres more money in this than flying empty aeroplanes...

[tourismman]

Busboy this mob have been saying that Strategic are gone nearly every day since they lost the ADF contract.

I sure am hearing things are quite rosy in the airline.

Cheers.

[jack diamond]

So its Air Australia LCC

[Busboy92]

Thanks Tourismman

Because I'm new hear my post I wrote before yours is late coming onto this thread as it has to be approved by the Moderator it seems. Not sure if it will be the same with this one??

But you are right, I'm hearing the same good things. I spent a lot of time trawling through all the old posts on Strategic to help my decision, and you are right. It seems to be the same small group of people bagging Strategic all the time.

But nothing those naysayers have said has come true. Including everything they were saying almost a year ago - that Strategic would be dead within weeks.

I hope I get an offer.

[topend3]

correct still around but many people have predicted other things correctly like all the failed routes...the demise will come eventually and it's getting closer with the LCC plans...

[TBM-Legend]

Wonder what Chuck in WA thinks about the new name - Air Australia???


Welcome to Air Australia
Think you have what it takes to rule the skies? Air Australia will have you up in the air in no time. If you’d rather take it slow, book a flight and get a feel for the plane.

Located at Jandakot Airport, Air Australia are proud to be one of the largest privately owned flying schools in Western Australia. We supply a broad range of exhilarating services, from aircraft hire and training to a variety of charter flights.

With nearly four decades above the clouds, Air Australia is respected for making pilots.

Owner and managing director Charles “Chuck” McElwee lives planes. Having flown fighter aircraft and held management positions in the U.S Navy, his aviation knowledge is rivalled only by his passion.

Whether you are a basic or advanced flyer, our Chief Pilot/Flying Instructor’s knowledge of aircraft training ensures you receive comprehensive and quality instruction. With an enthusiastic team of pilots at our disposal, we offer skilled coaching in all areas of aviation.

[Busboy92]

I know I'm young, new to the industry and Pprune, but I hope I'm not completely silly.

If an airline trys a route then decides its not working, so pulls out, is that not wiser than continuing on regardless? And if they don't try the route to see how they go, then how do they know if it is a good route or not.

No one does MEL to Honolulu or BNE to Honolulu, so why wouldn't you try it? I went there with the wife for our honeymoon and had to go thru bluddy SYD. That meant a Qantas flight to Sydney, collect our bags, change terminals, then line up for hours to get through customs for the Jetstar flight.

I'm guessing the MEL - BNE and BNE - MEL stuff (that I spose I'd be flying if I get a start on the A320) is to feed Brisbane pax onto the Melboune to Honolulu flights (and vice versa) which would give each city more choices and flights - that seems to make sense to me? If you can't travel on the days of the direct flights you can go with the same airline via a friendlier experience than that god awful Sydney terminal setup. Especially great if your bags are checked through and stuff.

Mind you, I understand that to make a small fortune in aviation ya gotta start with a large one - so what would I know?

[grrowler]

I'm pretty sure the other carriers would have done a closer analysis of those routes than you just did, and decided it didn't make sense. Each time you try a route and find out it doesn't work, you lose a lot of money. There is only so many times you can do that.

If you get a gig, my advise would be to enjoy your time there (it can be great working for a smaller company), but always keep your resume up to date and keep your feelers out for other more secure gigs. I learnt the hard way that companies will keep spinning crap while the ship is sinking (even when the liquidator is in the room). Throw away the rose coloured glasses or you will get burnt.

[witwiw]

I'm left wondering then, if things are SO rosy over at Strategic, oops Air Oz, why is their price for the AFP charter from CB to DN this weekend at rock bottom hourly rates? Smells like a real need for cash flow to me .....................

[PoppaJo]

Jetstar once tried the big bus on MEL-HNL, didn't last too long!

[antheads]

strategic or air australia is not jetstar :hmm: good on em for having a go, if they have to maintain their future survival at some point i'm sure they can ally with virgin in much the same form skywest has.

[74world]

Just for info, does anyone knows what are the terms and conditions for Captains (320 & 330) in Strategic (Air OZ) ?
Everything seems a big mystery.... :eek:

Good luck to them ! :ok:

[Olive61]

Hi 74World

Have 3 mates there and 4 about to join. Seems they are in the process of doubling the pilot numbers with more 330s and 320s on the way. Fairly reliable information from my younger colleagues that the 330 guys are on the low 180s and the 320 guys on the low 170s as a base pay. The contracts seem to have all the ususal add ons. Seem to be a pretty happy bunch, although there was a lot of nervousness after the ADF contract. I hear from MEL that a number are leaving GoCat to move into Strategic - several ex Emirates joining. A mate who is ex Tiger is now based in Perth with Strategic and loves it. A bunch of Command upgrades have been called for apparently. If you try routes based on commercial predictions and they don't work, you dump them and move on - makes sense and all airlines do it. All the doom sayers have been saying the same thing for ages. Good luck to all those applying.

[74world]

Thank you for the good info Olive61, I have applied and now hoping for an interview.....cheers :cool:

[Olive61]

Hi 74

My understanding of the process - and it is current - I have mates reviewing their contracts at present is (generally)

They look at all applicants with an oz apl. They are after Airbus rated guys if they can get them. You fill in a form. If you meet the minimum requirements you get an interview (non technical). If you get the nod and your references check out they send you a contract for perusal. Have been told that all contracts are 'standard' for the various positions, and they don't do deals outside of the standard terms. I understand that if you talk directly to DG AP RB or BDR, that they are happy to give you a general brief on the process, but they don't waste time on tyre kickers. Good Luck !

[ReverseFlight]

Strategic Airlines to become Air Australia, start Hawaii flights (http://www.theage.com.au/travel/travel-news/airline-changes-direction-20110825-1jbsi.html)
This media article today basically confirms the discussions in recent posts. It is a fact of aviation that no airline can afford to ignore any more. It has changed the face of the industry in the last few years and become the norm. No turning back to the good ol' bad ol' days.

[TBM-Legend]

Looks like Air Oz is expanding again:

Michael James, 34-year-old Brisbane entrepreneur, bought into Strategic Airlines after his former employer, Ansett Airlines, collapsed in 2002. A decade later, James has become the sole owner of the airline and confirmed that by October 30, it will be rebranded Air Australia.''In the future, we're looking to fly into Europe via Phuket and Shanghai,'' he said.