Wirraway
11th Mar 2003, 05:53
AAP
Tuesday March 11, 2:23 PM
Skywest Airlines Cuts Loss-Making Routes in W. Australia
PERTH, March 11 Asia Pulse - Former Ansett subsidiary Skywest Airlines has cut its West Australian route network and aircraft fleet in a bid to improve profitability.
The regional carrier reported a $A975,000 ($US598,747) loss for the six months to December 31, 2002 after experiencing a slower than expected return of passengers following the Ansett collapse.
Skywest said today it will withdraw from services to Karratha and Laverton, both heavy loss-making routes, while its fleet of five Fokker 50 aircraft will be reduced to four.
It said it will reduce staffing levels to reflect its smaller route network.
It also flagged negotiations with staff for pay cuts and productivity improvements and an application to the West Australian Government for a seven per cent fare increase.
Chief executive Scott Henderson said the changes were necessary to ensure the airline's long-term profitability and to place it on a stable financial footing in a difficult operating environment.
He said that despite the difficult environment, there were indications of better trading conditions ahead, with passenger revenues for January and February the best since the new ownership of Skywest.
"Along with our recently announced affiliation with Qantas, the figures from these past two months indicate confidence in regional air travel in WA is returning," he said.
Skywest announced last month that from April 15, Qantas frequent flyer members could earn points and redeem award flights on its network.
Mr Henderson also said Skywest would seek a fresh capital raising from investors after it had settled terms for the long-term financing of its aircraft fleet.
(AAP)
Tuesday March 11, 2:23 PM
Skywest Airlines Cuts Loss-Making Routes in W. Australia
PERTH, March 11 Asia Pulse - Former Ansett subsidiary Skywest Airlines has cut its West Australian route network and aircraft fleet in a bid to improve profitability.
The regional carrier reported a $A975,000 ($US598,747) loss for the six months to December 31, 2002 after experiencing a slower than expected return of passengers following the Ansett collapse.
Skywest said today it will withdraw from services to Karratha and Laverton, both heavy loss-making routes, while its fleet of five Fokker 50 aircraft will be reduced to four.
It said it will reduce staffing levels to reflect its smaller route network.
It also flagged negotiations with staff for pay cuts and productivity improvements and an application to the West Australian Government for a seven per cent fare increase.
Chief executive Scott Henderson said the changes were necessary to ensure the airline's long-term profitability and to place it on a stable financial footing in a difficult operating environment.
He said that despite the difficult environment, there were indications of better trading conditions ahead, with passenger revenues for January and February the best since the new ownership of Skywest.
"Along with our recently announced affiliation with Qantas, the figures from these past two months indicate confidence in regional air travel in WA is returning," he said.
Skywest announced last month that from April 15, Qantas frequent flyer members could earn points and redeem award flights on its network.
Mr Henderson also said Skywest would seek a fresh capital raising from investors after it had settled terms for the long-term financing of its aircraft fleet.
(AAP)