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Backpackers Xpress In Talks With UK Airline.

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Old 13th May 2004, 06:20
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Post Backpackers Xpress In Talks With UK Airline.

Backpackers Xpress in Talks With U.K. Airline


May 13 (Bloomberg) --

Backpackers Xpress Pty, which is seeking funding for an all-economy-class airline to carry budget travelers between Australia, Asia and Europe, is in talks about a venture with a U.K. airline, Managing Director Glenn Millen said.

The airline, which will have a smiley-face logo and on-board bars, plans to fly between Manchester and Melbourne, with stopovers in New Delhi and Bangkok. If talks on the alliance today fail, the six founders will try to raise A$50 million ($35 million) to run the airline alone, Millen said in an interview.

Richard Branson's Virgin Atlantic Airways also plans to start flying between London and Sydney via Hong Kong later this year, as competition mounts on a route dominated by Qantas Airways Ltd. and British Airways Plc. The Brisbane-based airline may struggle to convince investors to fund it, said analysts including Peter Harbison

``People tend to be pretty wary about the aviation industry, particularly an individual operation like this where the guys don't have a track record,'' said Harbison, the managing director of the Centre for Asia-Pacific Aviation in Sydney. ``It will be hard for them to convince people to put up the money.''

Backpackers Xpress plans to start flying with two leased Boeing 747 planes, Millen, 45, said. His partners include former Qantas training captain Gordon Layton, 70, and Bevan Whittaker, 74, founder of regional carrier Sunstate Airlines, now owned by Qantas.

Singapore Airlines Ltd.'s Australian spokesman Stephen Forshaw said the carrier is in talks about selling or leasing planes to Backpackers Xpress. No discussions had been held about Singapore Air taking an equity stake in the budget carrier, he said.

Millen wouldn't name the U.K. airline he is in talks with. He will meet executives from the airline today.

Backpackers Xpress is yet to formally apply for the air operators certificate all Australian commercial aviation businesses must have, according to Civil Aviation Safety Authority spokesman Peter Gibson. ``The airline has asked for a pre-application meeting with us late this month,'' Gibson said.

About 459,000 so-called backpackers visited Australia last year, accounting for a tenth of all tourists to the country. They stayed for an average 64 days and spent A$2.2 billion, according to the Australian Tourist Commission. A quarter of all backpackers, who arrive without a set itinerary and use low-cost accommodation such as youth hostels, are from the U.K.

Depending on the type of aircraft leased, a return Manchester- Melbourne ticket will cost between 600 pounds ($1,144) to 650 pounds, for English tourists and A$1,800 to A$1,850 for Australians, Millen said. Flight dates can be changed without penalty and there's no time limit for the return journey.

``The long-haul market is difficult -- you can be picked off so easily because there's a lot of seats flying it at quite low prices,'' Harbison said.

`Kangaroo Route'

Qantas flies 21 times a week on the so-called ``Kangaroo Route'' from Sydney to London. It will start flights to Mumbai in September.

Backpackers Xpress also plans to fly from Melbourne to Munich twice a week and later offer services from Australia to Honolulu, Vancouver and Las Vegas, Millen said.

The airline, which has 14 employees, will hire about 400 people before its November start, Millen said. Former Goldman Sachs JBWere Ltd. transport analyst Anthony Srom has been hired as a consultant, said Don Norton, corporate communications manager at Backpackers Xpress. Srom hosted two briefings with Goldman Sach's institutional clients for Backpackers Xpress before he quit the bank on April 21, Goldman Sach's public relations manager Sue Palmer said in an e-mail response to questions.

Millen said he's targeting an initial public offer or trade sale in two to three years. ``We can clearly demonstrate we have a market that continued to travel post-SARS, post Sept. 11,'' he said. ``The backpacker market has slipped under everyone's radar -- it's become a far more sophisticated market, with 17- to 70-year-olds picking up this style.''
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Old 13th May 2004, 06:36
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Why does anybody bother quoting Harbison. He hasn't actually DONE anything in aviation except talk.

Comments like "It will be hard for them to convince people to put up the money,'' are destructive and unhelpful. (Incidentally, Bevan Whittaker, 74, founder of regional carrier Sunstate Airlines, now owned by Qantas hardly qualifies the operation for his smart-assed comment "the guys don't have a track record").

Aviation is the worse for fostering clingon bottom dwellers such as Harbison.

PS: No involvement on my part in BXpress - just unhappy that self-promoting pr1cks like this help to undermine what is still an exciting and dynamic industry for their own interests.
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Old 13th May 2004, 08:16
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Question

A little off-subject, but I too am interested in the background/qualifications of Peter Harbison, seeing that he is so often quoted in the media as an expert on the aviation scene.

A quick look at the Centre for Asia Pacific Aviation website (www.centreforaviation.com) failed to find out much about this outfit, except for the following:

"About us
The Centre for Asia Pacific Aviation is a specialist aviation and tourism consultancy, providing advisory services in aviation strategy, policy, development and management. The Centre’s Head Office is in Sydney, with Regional Offices in Singapore & New Delhi.

The Centre also provides a comprehensive aviation information service, with a range of daily, weekly, fortnightly, monthly and annual reports. The Centre provides executive education services to industry and government personnel and holds regular Conferences, Symposiums and Aviation Leaders’ Forums.

We bring unparalleled knowledge of the Asia Pacific region through our consultant team, research analysts, and our international network of associate consultants and affiliates."

Fairly vague on what qualifications and experience allow them to bring forth this "unparalleled knowledge" to the aviation scene. As someone who is interested in the workings of the media, would be keen to hear from anyone else who knows more.

Altocu
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Old 13th May 2004, 14:10
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A1 E Vator

I couldn’t have summed up the situation with regards to the foresaid ‘bottom dwellers’ more eloquently!

You are spot on.
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Old 13th May 2004, 14:11
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Richard Branson's Virgin Atlantic Airways .......The Brisbane-based airline
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Old 13th May 2004, 15:23
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Actually, if you read it again Buster, he meant that this Backpacker crowd was Brisbane based.
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Old 14th May 2004, 00:00
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Question UK tie up.

Wouldn't mind betting that it's this mob:
www.antipodeanaircharter.com

Would make sense to me?

Seriously though, hope it gets up and running. Having moved from my home in Melbourne to Manchester 6 months ago for the purpose of getting some good quality flying, anything that's going to make it easier to temporarily get out of this sh!thole and back to the sanity that is Oz- is a godsend!
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Old 14th May 2004, 01:23
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Sorry Wiz. I refuse to read it again!
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Old 15th May 2004, 10:52
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Red face

Seriously though, hope it gets up and running. Having moved from my home in Melbourne to Manchester 6 months ago for the purpose of getting some good quality flying, anything that's going to make it easier to temporarily get out of this sh!thole and back to the sanity that is Oz- is a godsend!
And make it a one way ticket.... no one made you come here, maybe you should remember that.....
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Old 15th May 2004, 11:50
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You're in Aviation and you call what's happening in Aus sanity???

I miss the sun, my friends and a cold Crown Lager, but not walking around with a knot in my guts wondering if I'd have a job next week/month/year!!
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Old 15th May 2004, 11:57
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Red face Sorry Meeb- don't mean to offend!

Hi Meeb-
Sorry mate, not meaning to offend the Brits. My comments are purely out of frustration, as a result of a particularly bad month over here trying to set ourselves up properly.

If you were not born here, you would not believe how frustrating it is trying to sort out the things that you take for granted. Trying to deal with Banks, the Inland Revenue and the NHS is a nightmare for us. For example, little things like having to run into a Service Station to ask if they take Solo card prior to filling up, because the Banks will not issue us with a Switch Card for at least a year!!?? Or trying to set up a Bank account with one of the High Street Banks, and requiring 12 months worth of Utility Bills confirming our UK address just to qualify for a simple transaction account.

So, not trying to offend, just venting off some steam. I miss simple things like the old 100 point Bank check, and not being taxed on every thing under the Sun.

Still though- nice to meet a Brit who has some national pride- as the majority that I've met here seem to be different in this regard.

Cheers (and relax)!,
Gearup.
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Old 15th May 2004, 12:04
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Just to get back to the topic for a minute, sorry............


Backpackers Xpress gets backers

17:41 AEST Thu May 13 2004


Backpackers Xpress, the economy class airline planning to fly between Australia, Asia and Europe, met with a potential UK backer and is now considering its options.

"The meeting ... was held today. It was positive and we are reviewing it as a number of possible options," Backpackers Xpress corporate communications manager Don Norton said.

He would not specify the other options being considered but said the Backpackers Xpress board would consider the outcome of Thursday's meeting over the next week.

"It's really in the board's hands now," he said.

He would not identify which company Backpackers Xpress managing director Glenn Millen had met but said: "It is a UK company. It is involved in the airline business."

Singapore Airlines has been touted as one possible funding option for Backpackers Xpress, which wants to operate with two 747s initially.

But the Singapore government-backed carrier has previously said no funding-related discussions have taken place between the two carriers.

Using a smiley face logo, Backpackers Xpress plans to launch later this year, offering flights from Melbourne to Manchester and Munich, stopping in either Delhi or Bangkok.

It also plans to offer flights to North America "with stops at a range of interesting ports still to be confirmed", according to the company's website.

The airline also has said it will offer karaoke, dance-offs, beer and pizza on flights.

Mr Millen has also been quoted as saying he wants to target an initial public offer or trade sale in the next few years.
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Old 15th May 2004, 12:28
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Talking

Gear up... apology accepted!

I can also assure you that its the same for someone setting up in Australia who was not born there!

On the subject of banks... grrr...
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Old 16th May 2004, 04:44
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I think I can understand Gears logic considering there’s only one nation left on the planet that is more expensive and more bureaucratic than Oz; being the UK!
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