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Virgin to start Perth - Broome

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Old 4th Aug 2004, 07:01
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Virgin to start Perth - Broome

Virgin will start flying Perth - Broome Sept 7 Tues/Thur/Sat

Intro fare $149
Standard $199
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Old 4th Aug 2004, 07:17
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Gee, just in time to miss out on the high season! OOOPS!
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Old 4th Aug 2004, 07:45
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that should be the final nail in Skywests coffin. Wonder if they will contact TL for connections to KNX?
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Old 4th Aug 2004, 08:11
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Hmmm...not sure if the nail will be in Skywests coffin. They have most of the mining/contract work and seeing as virgin will be arriving Broome in the late arvo/night (can't transfer) they have little to fear.

Certainly shall be interesting though. Me thinks the pressure may be on the Q.
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Old 4th Aug 2004, 09:37
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virginblue.com.au

MEDIA RELEASE

LOW FARE FLIGHTS TAKE OFF BETWEEN PERTH AND BROOME

Virgin Blue has announced it will begin direct intra WA services with a brand new flight between Perth and Broome from 7 September 2004.

The low fare carrier already operates to both destinations from other ports but it will be the first time Virgin Blue will fly direct services within Western Australia.

The decision was made following intense lobbying by the WA community for an affordable option between the two key WA destinations as well as for more service to Broome from the east coast of Australia.

Virgin Blue has re-jigged its schedule to free up an aircraft to initially allow for three flights a week to judge support for the route. The carrier will monitor the route’s progress with a view to increasing the number of flights if there is sufficient demand.

The flights will operate on a Tuesday, Thursday and Saturday offering a convenient late afternoon departure from Perth with an early evening return, allowing travellers to make the most of their time in this WA holiday haven.

Virgin Blue spokesperson Amanda Bolger said, “The people of WA have really gone into bat for us from the first day we began flights to the west coast almost three years ago and that loyalty has been unwavering. We have always said we will back the regions that back us and these additional new services are a direct result of support and demand from the people of Western Australia.”

The low fare airline will continue its tradition of offering a special “wow” launch fare offer of $149* one-way on the net, on sale from now until 8 August for travel between 7 September and 30 September 2004. Everyday low fares will start from $199* one-way on the net, 23% cheaper than the competition.

Amanda Bolger continued, “For the people of Perth, this gives yet another fantastic direct Virgin Blue flight option to one of Australia’s key tourism destinations right in their own backyard. For those lucky enough to be based in Broome, it offers an affordable and convenient direct Virgin Blue flight to the state capital to do some business or to visit family and friends.”

Connections to Broome will also be available from Brisbane, Gold Coast, Hobart, Launceston, Melbourne and Sydney via Perth to compliment connections already available on Saturdays via Virgin Blue’s direct Adelaide-Broome flight.

The first Perth-Broome flight will launch one week after Virgin Blue’s fourth birthday celebrations, marking four years since the airline first took to Australian skies.

PERTH - BROOME – EFFECTIVE 7 SEPTEMBER 2004

==========================================
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Old 4th Aug 2004, 11:30
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I don't think "Q" will be shaking in their boots, 3 flights a day v 3 flights a week.
Amanda Bolger, any relation to the bolgers on the footy show ? makes about as much sense.
I would'nt go mistaking loyalty for ship jumping to find the cheapest flight.
Maybe with the 6 flights a week between VB and Skywest the holiday makers will actualy find something that will fit in with their holiday plans
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Old 4th Aug 2004, 17:28
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Virgin's new Broome sweeps Skywest aside

Thurs "The Australian"

Virgin's new Broome sweeps Skywest aside
By Geoffrey Thomas
August 05, 2004

PERTH-based Skywest Airlines' proposed stock market float has struck more turbulence after rival Virgin Blue yesterday announced it would introduce Perth-Broome flights in September.

Virgin fired the opening shot in what is expected to be a savage price war, with a launch fare that undercut existing offerings from Skywest and Qantas by $110.

The Brisbane-based carrier is expected to increase its Perth-Broome flights to daily within six months, and its standard internet fare of $199 one-way will be 23 per cent cheaper than the competition.

Skywest downgraded its profit for 2003-04 from $2.4million to $750,000 because of a range of issues, including unexpectedly high costs for the introduction of its second Fokker 100 jet.

According to PricewaterhouseCoopers, Skywest's undisclosed 2005 profit is "heavily dependent" on the success of new services amid "considerable uncertainty over the level of passenger support".

Virgin Blue has been eyeing flights between Perth and several Western Australian destinations for some time. It now "overnights" up to four aircraft in Perth.

The Takeovers Panel last week grounded the takeover bid by Skywest's biggest shareholder, Singapore based Captive Vision Capital, amid disputed allegations Skywest chief financial officer Craig Lovelady had passed confidential information to CVC.

Mr Lovelady alleges that any information passed to CVC was done with the knowledge of Skywest chief executive Scott Henderson. Mr Henderson vigorously denies that charge.

Despite the Virgin Blue move, Skywest chairman Pat Ryan was yesterday upbeat on the public stock offering, saying it would be launched this year.

"It will be sooner than later and certainly this year."

Mr Ryan would not specify the amount of the float but dismissed media speculation of a $10 million raising.

Skywest's third Fokker 100 is due to arrive in Perth shortly and it is expected that it will replace the airline's first F100.

But Mr Henderson said the airline had an option to retain the first Fokker 100 "if we can find work for it". One option is work from Woodside Petroleum, which is expected to continue a policy of giving at least 30 per cent of its travel contract to Qantas competitors, although this work may go to Virgin Blue.

Skywest has launched innovative routes in Western Australia linking Perth, Exmouth and Broome with jet services, along with Darwin.

Virgin Blue spokesperson Amanda Bolger said the new services were the result of support and demand from Western Australians.

==========================================
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Old 4th Aug 2004, 23:04
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Judging by the severe financial pressure Virgin Blue is under, I wonder whether this route is prudent after all.

Share price crashing (yes - it crashed severly yesterday) and a number of endemic problems will put the management team at VB under the microscope as well as under severe pressure.

Introducing what will be a loss making route for a period of time is something VB simply does not need.
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Old 5th Aug 2004, 00:36
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Wink

Go North, you said:
(Skywest) They have most of the mining/contract work
Please explain?!
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Old 5th Aug 2004, 01:42
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Skywest is digging a lot of big holes for themselves but I don't recall them having too many contracts to fly to them....
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Old 5th Aug 2004, 02:22
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(Skywest) They have most of the mining/contract work
i think skywest have a small contract delivering crew to an offshore outfit out of bme, they transfer to a chopper, they also have atwood eagle contract into learmonth.
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Old 5th Aug 2004, 05:31
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Jee Bloggs, I thought you guys had a bit of mining work yourselves......telfer, barrimunya, murrin, leinster, mt.keith, newman, paraburdoo, and all in a 64+ seat jet, dont tell me you guys have lost al that to skywest

I guess when you get the DC9, QF will really be able to cut the guts out of places like BRM
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Old 5th Aug 2004, 07:13
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Angel

Sorry.....contract is a little misleading

Bloggs you don't really expect me to give Skywests client information out now do you No I don't work for Skywest. Think of what mines are in the Kimberley (Can you name any?). How do you think the workers get there??? Not everyone who travels to Broome sits on Cable Beach watching the sun set.

The chopper work finished a wee while ago.

QF cut the guts out of BME?? Qlink is the only one that has cut services to Broome since the competition has heated up. What's going to happen when Virgin start from Perth?
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Old 5th Aug 2004, 07:13
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"Virgin's new Broome sweeps Skywest aside"
By Geoffrey Thomas

A yes yet again we see the sound writing of Mr GT raise it's ugly head. Didn't realise that it doesn't seem include QF in the title....? Some sensationalist headline grabbing perhaps?

Also I seem to remember that the title of the story is suppose to reflect what written below the title? I believe that at least 11 of the lines (in the above article posted by Wirraway) are not related to the articles title... but wouldn't want that to get in the way of a good story to meet the word quota.

Cunning, believe that XR fly to Broome 6 times a week in their own right.

P.S believe the route is been well supported for XR - good stuff!
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Old 5th Aug 2004, 07:50
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Hmmm...not sure if the nail will be in Skywests coffin. They have most of the mining/contract work and seeing as virgin will be arriving Broome in the late arvo/night (can't transfer) they have little to fear.
Go North

You obviously have no idea and very poor knowledge of the West. You will find that NJS and Skippers have most of the mining contracts. Skywest must be on the bones of their asses trying find a reasonable amount of work.

I very much doubt Qantas are shaking and in fact probably looking forward to the confrontation.
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Old 5th Aug 2004, 08:38
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GoNorth

Not only can Bloggs name some, he probably flies to many, regularly. I know he took me to one once.
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Old 5th Aug 2004, 09:00
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commander adama

Ditto... you have absolutely no idea what you are talking about. What mining contracts do Skippers and NJS have in the Kimberley? NJS have nothing. Skippers have a couple using one conquest out of Broome (with one pilot based there). Skippers do not serve any mines in the Kimberley from Perth. The topic is about Broome not elsewhere.

Not saying qantas main are shaking but I certainly wouldn't bet against seeing several Qlink services go with the introduction of Virgin. Not all but some.

Not only can Bloggs name some, he probably flies to many, regularly. I know he took me to one once.
Sorry...I doubt that very much. These strips are a little too short for his aircraft

The Kimberley gents is a little further north of the Goldfields and Pilbara
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Old 6th Aug 2004, 02:44
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Hmmm... I would say that VB are not intent on operating PH-BRM in order to make money; they probably wont. This will make 3 Jet carriers servicing a town of, what, 8,000 people.

The real intent here is to discourage investors from the Skywest float. That fact that Skywest has a High Capacity jet AOC means that this company has the potential to evolve as a long term rival on other routes. It is this potential for Skywests' growth that VB intends to nip in the bud. QF must be overjoyed to look on and see VB spend their own money to do the dirty work.

To the people and businesses of Broome this move by VB is hardly cause for celebration. It is impossible that the market can sustain 3 jet carriers on this thin route characterised by low yeilds. It would be sad if the small, regional carrier withdraws from the route and the current VB woes cause them to do likewise. This senario would leave 1 operator on PH-BRM and would be a significant blow to the 'cowboy' tourism operators in the Kimberly( I had a holiday in the area some years ago and John Cleese could do a 'Fawlty Towers' on Broome, believe me!). Some of these clowns probably think that 3 operators is a good idea!

Such action by VB is what chararterises a pathalogical company; they move into a market knowing that they wont make money just to stuff the plans of a potential rival, then pull out to stop the loss that they are making, thus leaving the residents of BRM with a monopoly carrier and higher costs.


( I went on an 'Honest Sam's' 4 wheel drive tour and we got bogged in a dune. The owner/driver didn't even have a shovel to dig us out, his radio didn't work if we needed to call for help.. When I suggested that he let some of the air out of the tires to about 10psi, he said to me "What good will that do?" What a F$%g idiot..)

Last edited by Ralph the Bong; 6th Aug 2004 at 02:59.
 
Old 6th Aug 2004, 06:12
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ABC Northwest Australia

Airline welcomes Virgin service
Friday, 6 August 2004

There has been an upbeat response from other airlines to Virgin Blue's new service linking Broome to Perth.

The airline will bring an extra 430 passengers to the resort town each week from September with a new service operating three-days-a-week.

There have been concerns about the possible effect of the increased pressure on Qantas and Skywest, which already operate on the route.

But Skywest's chief executive officer, Scott Henderson, says there is enough demand to support three carriers.

"When Virgin enters the market - we've seen historically they help grow the market - and we note that one of the things holding Broome back at the moment is the number of beds," he said.

"We think that having another carrier will help investors make that decision to put more money into growing the number of beds into Broome, so we think it's a pretty positive move actually."

==========================================
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Old 6th Aug 2004, 06:12
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ralph...your observations are highly presumptuous, virgin has started services to all manner of places that the experts said wouldn't work, coffs harbour, now ballina, mackay, rockhampton, now broome, the only route they have pulled out of since starting services in oz has been mt isa.

i am not sure that virgin are threatened by skywest nationally, that is drawing a bit of a long bow i feel.
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