AWOPS closes doors.

[Sly'n Smiley]

Last night saw the last flight operated by AWOPS. In mid August, QF management gave notice that AWOPS would cease operations at the end of October. The AWOPS flight started in Novemember 2001 using 2X B767-300ERs (VH-BZI & NOA). During this period, over 500,000 pax were carried. The operation was set up to supplement QF domestic capacity after the shafting of Ansett last year by a coalition of Australian and NZ business people and politicians.The last flight was QF 566 PH-SY (VH-NOA) with 104 PoB. AWOPS employed 18 Pilots, 16 office people and about 12 engineers in the end. The contract FA's used initially were replaced by QF cabin crew who were assigned specifically to the operation. To all involved thanks very much, a great time has been had by all, but I did get a little sick of the limited choice of Beef, Chicken Polenta or Lamb Korma when it came to crew meals. ;) Now, onward ho!!....

[topend3]

Quote : The operation was set up to supplement QF domestic capacity after the shafting of Ansett last year by a coalition of Australian and NZ business people and politicians.

Well done, at least there are some two eyed people out there who can accept the role that the Ansett management and previous pre kiwi owners played in the airlines overall demise!!!

[Hugh Jarse]

So where do the crews go now? Centrelink, or was some kind of alternative offered.

A genuine question.

[Cynical MoFo]

Best of luck to all of the AWOPS crews. It's a bitter pill to swallow being cast out from The Evil Empire :rolleyes: but I genuinely hope you all move onto bigger and better things.

Allegedly.

[MoFo]

That lamb Korma ain't lamb.
Full of fat and gristle it would have to be aged mutton. Go for the chicken.

[Roadrunner]

Good luck to the AWOPS people. I trust something will come up soon.

Cheers

[AN2002]

What does AWOPS stand for?

[Pimp Daddy]

They could have stayed on another few months, had a **** of a time getting PER-MEL today on staff travel cos the the flights operated by AWOPS are now 737s and were full.

[invertedlandings]

Have to say good luck to all the AWOPS guys and girls too..had the PLEASURE to pax a few times with you guys a few times and also had a few of the cabin crew pax whilst operating, very professional, great service with a smile..
I'll repeat the Hugh Jarse question...where too??

[OzExpat]

And I'll repeat the AN2002 question... "What does AWOPS stand for?" :confused:

[Sly'n Smiley]

Australian Wetleasing OPerationS.:) Some of the tech. crew are going to Vietnam, some ginger beers to QF and the rest to Centerlink.....

[OzExpat]

Thanks S'nS ... couldn't they come up with a slightly "catchier" name for the air service? :D

[mistapproach]

Best of luck guy/gals from PH TWR.
Have been off for a few days and didn't notice your absence until a 742 (The Longreach Museum EBQ) and a BA 767 (ZX something) did your services today.
You have all been gentlemen and ladies of the air. Another page of OZ Avaition history turns.

[airsupport]

AWOPS closes forever on November 15. :(

Sadly it may be that AWAS is not far behind either. :(

(QUOTE)

Reuters

Morgan Stanley faces more charges at aircraft unit

Friday November 1, 3:44 pm ET


NEW YORK, Nov 1 (Reuters) - Unable to sell its aircraft leasing business after more than a year of trying, U.S. investment bank Morgan Stanley (NYSE:MWD - News) faces the prospect of writing down more than $1 billion in assets, according to industry observers and sources familiar with the situation.

The sources said Morgan Stanley has failed to strike a deal despite at least two preliminary offers for Ansett Worldwide, which has 177 aircraft with a book value of about $5 billion.

One potential buyer was a rival aircraft leasing company while another party was a group of investors based in Europe and Asia. These talks took place before the Sept. 11 attacks, which subsequently crippled much of the travel and airlines industry.

At that time the bank's asking price was close to $5.5 billion, according to one person close to one of the bidders. Talks between Ansett and the aircraft leasing firm resumed in the second quarter of 2002, but talks failed again on price.

Morgan Stanley declined to comment.

With the travel industry slammed by its worst-ever downturn that has brought some major carriers close to bankruptcy, airlines operators have reduced capacity globally, hitting the aircraft leasing business.

Sources familiar with Ansett, which Morgan Stanley bought from TNT Post Group (Amsterdam:TP.AS - News) and News Corp. Ltd. (Australia:NCP.AX - News; NYSE:NWS - News) in 2000, say the business would struggle to get more than $3.5 billion if one takes declining aircraft values into account. That means Morgan Stanley will have to take a charge of up to $1.5 billion if the business was sold today.

DECLINING AIRCRAFT VALUES

Unlike a write-down for a loan or trading portfolio, Morgan Stanley would not be obliged to immediately take a one-time charge as the aircraft business is subject to a more lenient, "less volatile" treatment, according to U.S. accounting rules.

But Morgan Stanley would have to write down the assets if there is a catalyst, such as the industry's current downturn.

"The triggering event (for a write-down) is if industry conditions deteriorate and the estimated future cash flows from the use of the asset and its eventual sale are less than the book value of the asset," said Alfred King, vice chairman of Valuation Research, an independent asset valuation firm.

Aviation experts say that given the current economic climate the value of aircraft is unlikely to rise any time soon. Values of aircraft have fallen an average 15 percent to 20 percent over the past 18 months, said Terry Moulton, an executive with consultancy Airline Capital Associates.

"At some point they (Morgan Stanley) will have to take a hard look at their portfolio and make adjustments," said Moulton.

Boeing Co. (NYSE:BA - News) has slashed 30,000 workers and projects its jetliner deliveries will fall to about 280 in 2003 from 380 this year and 527 in 2001. In addition, airlines have deferred more than 500 Boeing jets on order and parked hundreds more at desert airstrips as they struggle to survive the travel slump.

Morgan Stanley has acknowledged the adverse affects of a poor airlines industry and has taken pre-tax charges of about $160 million in the past year, including $74 million in the third quarter.

But it needs to write down Ansett's value by much more as it is unlikely to get anywhere near its $5 billion book value, Wall Street bankers said.

OLD AIRCRAFT

Another factor going against Ansett is that it is laden with old versions of aircraft that are losing demand. Its fleet has 54 Boeing 737-300 and 21 MD-80 aircraft, which are no longer in production.

Out of Ansett's 177 aircraft, 165 are currently on lease. But analysts say once the airlines industry regains strength it would ask for new generation planes and use less out-of-production aircraft.

An Ansett spokesman in Sydney said: "It is our belief that these aircraft will return to service once demand returns to the airline industry."

While some argue that Morgan Stanley should take a one-off charge and start afresh, some say the bank could instead spread out the impairment in higher installments over coming years.

Guy Moszkowski, an analyst with Salomon Smith Barney, said Morgan Stanley could start by taking charges of about $300 million annually over the next three years.

The charges would amount to about 15 cents to 17 cents per share on earnings through 2005, he said. Analysts' average earnings per share consensus next year for Morgan Stanley is $3.19, according to research firm Thomson First Call.

[international hog driver]

AWAS

Ansett Worldwide Aviation Services

AWOPS

Australian Wetlease Operations.


My understanding of the deal is that QF bought AWAS flight ops from MS. Then changed the name to AWOPS and flight ops in OZ & NZ were status quo.

[airsupport]

Correct.

However now AWOPS as a Company closes on November 15. :(

[ironbutt57]

Bummer, a few nice blokes there...beep-beep to you too road runner:D

[mainwheel]

A bit confused.Why would Qantas buy it some 6 months ago and now shut it down.Is there a bigger picture?.
Reminds me of Australian buying Air Queensland.

[airsupport]

Fairly simple, and nothing sinister.

Morgan Stanley (who own AWAS) were determined to get out of WET leasing, and after that time they did not enter into any new wet leases.

However at that time, they had both B767s and B737s on wet lease to Qantas, and Qantas wanted to keep it that way until now, so Qantas "bought" AWOPS and the AWOPS AOC.

Now no longer required by Qantas, the AWOPS AOC has lapsed and AWOPS closes forever on the 15th.

AWAS, for now anyway, will continue with dry leasing, but NOT wet leasing.

[training wheels]

AWAS, for now anyway, will continue with dry leasing, but NOT wet leasing.

Please excuse the newbie question but does this mean AWAS will now not employ pilots? What's the difference between a wet lease and a dry lease?

[Tinstaafl]

Dry lease: You rent the a/c. How you crew it, fuel it, insure it & maintain it is your problem.

Wet lease: You rent the a/c as a complete, ready-to-go package.

[rambone]

Had a great time working for AWOPS in Sydney.We were a small team with great management able to work alongside the qantas
monster.
The operation worked because of the team work of a regional airline type of mentality and money for spares when required!
Gee not to much to ask for.