AirNorth axes centre run
Thread Starter
AirNorth axes centre run
MEDIA RELEASE
Embargo until 10.00am CST, 15th November, 2004
AIRNORTH SUSPENDS FLIGHTS
between Darwin, Katherine, Tennant Creek
and Alice Springs
Airnorth announced today that from 5th January 2005 (incl), Airnorth flights operating between Darwin, Katherine, Tennant Creek and Alice Springs will be suspended indefinitely.
Airnorth have been negotiating with the Northern Territory Government for more than two years in an endeavour to arrive at a long-term solution for the route.“Losses for the past three years have exceeded $1M per annum on a fully costed basis and we see there being little opportunity for this result to be reversed without Government Support,” said Airnorth CEO, Michael Bridge.
Airnorth’s final submission to the Northern Territory Government two months ago involved the NT Government purchasing an additional 351 tickets over the next 12 months, an indirect subsidy of some $213,000.00. The NT Cabinet decided last week that they would not take up this offer and would look for other
operators to provide the service. After internally announcing services would be suspended from 1st December, the NT Government responded with a one-off offer of $52,000.00 to keep services going in December. The NT Government sought Expressions of Interest nationally earlier this year with Airnorth being the only respondent providing a priced response. “Other airline operators have reviewed our figures and passenger numbers and realise the problems in trying to make the service viable,” Mr Bridge said. He went on to say, “The $213,000.00 we asked for would have represented a contribution towards
budgeted losses of around $500,000.00 over the next twelve months, once overheads were removed, and we felt that it was an opportunity for the NT Government to share the burden and
deliver upon what we believe should be a community service obligation. Our decision to suspend services has not been taken lightly and with Airnorth’s landed revenue representing more than
90% of the revenue for Tennant Creek airport alone, we are mindful that there will be significant flow on effects for both communities.” “We will review the situation again in the first quarter of next year to see whether there is an
opportunity to reintroduce services during the Dry Season which historically fairs better than the Wet Season, although still not profitable,” Mr Bridge added.
The communities of Katherine and Tennant Creek are now added to a list of more than 100 regional communities in Australia that have lost air services in the last 15 years.
Airnorth has been the sole operator on the ‘Centre-run’ for more than 13 years, inheriting the service from Ansett NT after a NT Government tender in 1991. The service was originally daily
and has slowly reduced to three flights a week currently.
Capiteq Ltd, owners of Airnorth also own Airlines of South Australia (ASA) and Emu Airways (EMU) both based in South Australia. The three airlines have a significant geographical spread
throughout Australia as well as Indonesia and East Timor.
Together they employ more than 260 staff and are members of RegionalLink.
For further information please contact:
Andrew Dubyna
National Sales & Marketing Manager
Ph: 08 8234 3000
Mb: 0422 221037
E: [email protected]
Neil Shea
Chief Operating Officer
Ph: 08 8234 3000
Mb: 0422 221060
E: [email protected]
Embargo until 10.00am CST, 15th November, 2004
AIRNORTH SUSPENDS FLIGHTS
between Darwin, Katherine, Tennant Creek
and Alice Springs
Airnorth announced today that from 5th January 2005 (incl), Airnorth flights operating between Darwin, Katherine, Tennant Creek and Alice Springs will be suspended indefinitely.
Airnorth have been negotiating with the Northern Territory Government for more than two years in an endeavour to arrive at a long-term solution for the route.“Losses for the past three years have exceeded $1M per annum on a fully costed basis and we see there being little opportunity for this result to be reversed without Government Support,” said Airnorth CEO, Michael Bridge.
Airnorth’s final submission to the Northern Territory Government two months ago involved the NT Government purchasing an additional 351 tickets over the next 12 months, an indirect subsidy of some $213,000.00. The NT Cabinet decided last week that they would not take up this offer and would look for other
operators to provide the service. After internally announcing services would be suspended from 1st December, the NT Government responded with a one-off offer of $52,000.00 to keep services going in December. The NT Government sought Expressions of Interest nationally earlier this year with Airnorth being the only respondent providing a priced response. “Other airline operators have reviewed our figures and passenger numbers and realise the problems in trying to make the service viable,” Mr Bridge said. He went on to say, “The $213,000.00 we asked for would have represented a contribution towards
budgeted losses of around $500,000.00 over the next twelve months, once overheads were removed, and we felt that it was an opportunity for the NT Government to share the burden and
deliver upon what we believe should be a community service obligation. Our decision to suspend services has not been taken lightly and with Airnorth’s landed revenue representing more than
90% of the revenue for Tennant Creek airport alone, we are mindful that there will be significant flow on effects for both communities.” “We will review the situation again in the first quarter of next year to see whether there is an
opportunity to reintroduce services during the Dry Season which historically fairs better than the Wet Season, although still not profitable,” Mr Bridge added.
The communities of Katherine and Tennant Creek are now added to a list of more than 100 regional communities in Australia that have lost air services in the last 15 years.
Airnorth has been the sole operator on the ‘Centre-run’ for more than 13 years, inheriting the service from Ansett NT after a NT Government tender in 1991. The service was originally daily
and has slowly reduced to three flights a week currently.
Capiteq Ltd, owners of Airnorth also own Airlines of South Australia (ASA) and Emu Airways (EMU) both based in South Australia. The three airlines have a significant geographical spread
throughout Australia as well as Indonesia and East Timor.
Together they employ more than 260 staff and are members of RegionalLink.
For further information please contact:
Andrew Dubyna
National Sales & Marketing Manager
Ph: 08 8234 3000
Mb: 0422 221037
E: [email protected]
Neil Shea
Chief Operating Officer
Ph: 08 8234 3000
Mb: 0422 221060
E: [email protected]
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Centre Run
Bugger.
I know that government emplyees travelling to ASP would much rather hop of a jet and recieve a meal than get onto the Meatro.
However, this is no good for the poor folks living in TNK. They may get the train now, but a regular RPT service sure helped them out I am sure.
Probably gets the Meatro crews out of a bit of work (which is fine as long as they dont get retrenched - that has a habit of happening at Air North).
Hopefully the dry season trade will pick up.
I know that government emplyees travelling to ASP would much rather hop of a jet and recieve a meal than get onto the Meatro.
However, this is no good for the poor folks living in TNK. They may get the train now, but a regular RPT service sure helped them out I am sure.
Probably gets the Meatro crews out of a bit of work (which is fine as long as they dont get retrenched - that has a habit of happening at Air North).
Hopefully the dry season trade will pick up.
Thread Starter
State and Territory governments have had to adapt strategies to combat this sort of thing happening, and some have gone about it better than others.
the territory government has some way to go in this area i feel, and must realise that some sort of subsidy is going to have to be provided if these services are going to exist.
they should talk to the wa gov't who moved after the collapse of ansett to ensure that similar communities have continued to receive air services. airnorth shouldn't keep providing a service to a destination they lose money on, and i fear that the next operator on this route will suffer the same fate unless claire and her mates can work out some way to support this service.
the territory government has some way to go in this area i feel, and must realise that some sort of subsidy is going to have to be provided if these services are going to exist.
they should talk to the wa gov't who moved after the collapse of ansett to ensure that similar communities have continued to receive air services. airnorth shouldn't keep providing a service to a destination they lose money on, and i fear that the next operator on this route will suffer the same fate unless claire and her mates can work out some way to support this service.
Apparantly Aboriginal Air will take up the slack according to the ABC.
http://www.abc.net.au/news/australia...1/s1244218.htm
"But Dr Burns says Aboriginal Air Services can take up the route between Tennant Creek and Alice Springs as soon as Airnorth's flights finish in January.
"They've already got contracts with some of the mining companies there and they fly in and out of Tennant Creek on a regular basis so they're willing to take up that particular route in January," he said.
"And in terms of Katherine, they have a plane on the ground for six hours, three days a week so they're also interested in taking up that particular route between Katherine and Darwin."
Tennant Creek Mayor Rod Swanson says the Government has ignored his town in making its decision not to support Airnorth.
He says unless government departments and local businesses stop driving and start buying tickets for the proposed new service, it will run into the same problems.
"Aboriginal Air Services will still require a number of seats to fill to make it feasible, so at some stage the Government will still be looking at some sort of a subsidy," he said."
http://www.abc.net.au/news/australia...1/s1244218.htm
"But Dr Burns says Aboriginal Air Services can take up the route between Tennant Creek and Alice Springs as soon as Airnorth's flights finish in January.
"They've already got contracts with some of the mining companies there and they fly in and out of Tennant Creek on a regular basis so they're willing to take up that particular route in January," he said.
"And in terms of Katherine, they have a plane on the ground for six hours, three days a week so they're also interested in taking up that particular route between Katherine and Darwin."
Tennant Creek Mayor Rod Swanson says the Government has ignored his town in making its decision not to support Airnorth.
He says unless government departments and local businesses stop driving and start buying tickets for the proposed new service, it will run into the same problems.
"Aboriginal Air Services will still require a number of seats to fill to make it feasible, so at some stage the Government will still be looking at some sort of a subsidy," he said."
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Funny how things were all going nicely and pax numbers building with the Bras. and then Timor / UN 'needed' the Bras and the Metro went back on the run.
Despite promises to the populus and the NT Govt about the Bras -Everyone was too busy counting the $ from the UN to notice that the centre run pax numbers kept falling - coz pax hate the Metro with a passion.
Despite promises to the populus and the NT Govt about the Bras -Everyone was too busy counting the $ from the UN to notice that the centre run pax numbers kept falling - coz pax hate the Metro with a passion.
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I am inclined to agree with Desert Duck's jaded view of AirNorth press releases.
The last time AirNorth withdrew the last/only RPT service to a community was when they cancelled the legally dubious single-engine piston RPT we called the 'mail runs' to the stations and communities all over the NT, these runs being a legacy of Eddie Connellan's pioneering communications links once considered essential to the development of the centre and north.
ANR made a decision to split their AOC in two, one for EMB120, M23, C208 and C402 RPT, mostly ex-Darwin, and the second to cover all piston singles and multi piston charter and airwork, mostly Alice plus the Katherine singles and the Tennant aeromed, rebirthed as Chartair.
The reasons behind this were quite cynical. Splitting the AOC resulted in quite significant cost savings for the group. It also meant that the lucrative turbine and top end RPT was not at risk should an inexperienced and poorly supervised boggie C210 night freighter or mail run pilot draw the attention of CASA next time their was a forced landing, failure (or gross navigation error leaving a pilot stranded on the WA/SA border instead of delivering papers to YTNK).
When it was discovered by the outback community that the charter only AOC held by chartair now meant that station and other outback folk could not hitch a ride on the weekly mail plane, there was a great hue and cry. AirNorth unashamedly put the blame on CASA - John Mitchell of Chartair made statements in the Centralian Advocate that placed the blame on tough regulations. No mention was made of the fact that AirNorth had made a commercial decision, and knew full well the effect of going to a charter only AOC would have on their mail runs. The CASA regs were the same as they had always been.
AirNorth management is very good at making up excuses and pointing fingers at other organisations and agencies when they don't want to take the heat for their own decisions.
It is a shame that AirNorth are dropping this on Dr Chris Burn's lap as Minister for Transport. The Member for Johnston is an excellent hardworking local member, and for a pollie he could teach the AirNorth management team a thing or two about personal integrity, and working smarter not harder.
Its also a shame to see TNK left high and dry. My memories of running into and out of TNK on TL154 and TL155 on some very long, hot days include a great deal of respect for Paul Ruger and his workmates, with excellent turnaround support and efficiency. We never had to wait for fuel, nothing was too much trouble, the place ran like clockwork. It was the best port in the network, because the people there valued their link with the other major territory towns.
In 1997/1998 the "Centre Run" was worth protecting, and even worth buying a couple of Brasilia's for it, well before Timor and Ansett subcontracts were on the horizon! Hell, the Conquest wasn't big enough in the early nineties, the Metros were not big enough for it in the late nineties, Embraer came to pitch the Jungle Jet 145 to ANR for the Centre Run in 1997.... Now its a loss maker.... the town has not changed THAT much. AirNorth has changed, not the towns. My guess is that AirNorth think they have bigger fish to fry.
Whichever operator takes up the gap left into and out of TNK, they can be assured of excellent local support.
The last time AirNorth withdrew the last/only RPT service to a community was when they cancelled the legally dubious single-engine piston RPT we called the 'mail runs' to the stations and communities all over the NT, these runs being a legacy of Eddie Connellan's pioneering communications links once considered essential to the development of the centre and north.
ANR made a decision to split their AOC in two, one for EMB120, M23, C208 and C402 RPT, mostly ex-Darwin, and the second to cover all piston singles and multi piston charter and airwork, mostly Alice plus the Katherine singles and the Tennant aeromed, rebirthed as Chartair.
The reasons behind this were quite cynical. Splitting the AOC resulted in quite significant cost savings for the group. It also meant that the lucrative turbine and top end RPT was not at risk should an inexperienced and poorly supervised boggie C210 night freighter or mail run pilot draw the attention of CASA next time their was a forced landing, failure (or gross navigation error leaving a pilot stranded on the WA/SA border instead of delivering papers to YTNK).
When it was discovered by the outback community that the charter only AOC held by chartair now meant that station and other outback folk could not hitch a ride on the weekly mail plane, there was a great hue and cry. AirNorth unashamedly put the blame on CASA - John Mitchell of Chartair made statements in the Centralian Advocate that placed the blame on tough regulations. No mention was made of the fact that AirNorth had made a commercial decision, and knew full well the effect of going to a charter only AOC would have on their mail runs. The CASA regs were the same as they had always been.
AirNorth management is very good at making up excuses and pointing fingers at other organisations and agencies when they don't want to take the heat for their own decisions.
It is a shame that AirNorth are dropping this on Dr Chris Burn's lap as Minister for Transport. The Member for Johnston is an excellent hardworking local member, and for a pollie he could teach the AirNorth management team a thing or two about personal integrity, and working smarter not harder.
Its also a shame to see TNK left high and dry. My memories of running into and out of TNK on TL154 and TL155 on some very long, hot days include a great deal of respect for Paul Ruger and his workmates, with excellent turnaround support and efficiency. We never had to wait for fuel, nothing was too much trouble, the place ran like clockwork. It was the best port in the network, because the people there valued their link with the other major territory towns.
In 1997/1998 the "Centre Run" was worth protecting, and even worth buying a couple of Brasilia's for it, well before Timor and Ansett subcontracts were on the horizon! Hell, the Conquest wasn't big enough in the early nineties, the Metros were not big enough for it in the late nineties, Embraer came to pitch the Jungle Jet 145 to ANR for the Centre Run in 1997.... Now its a loss maker.... the town has not changed THAT much. AirNorth has changed, not the towns. My guess is that AirNorth think they have bigger fish to fry.
Whichever operator takes up the gap left into and out of TNK, they can be assured of excellent local support.
Last edited by ITCZ; 18th Nov 2004 at 07:57.
Thread Starter
ITCZ,
I think that to suggest TL is walking away from the route because they have other "fish to fry" is a fairly shallow-based assumption. If the route were profitable they wouldn't be pulling out of it. The numbers don't add up and whether we like it or not, that isn't Airnorth's fault. The challenge here is for government, local businesses, councils and private enterprise to come to a solution to maintain a viable air service to these communities.
I think that to suggest TL is walking away from the route because they have other "fish to fry" is a fairly shallow-based assumption. If the route were profitable they wouldn't be pulling out of it. The numbers don't add up and whether we like it or not, that isn't Airnorth's fault. The challenge here is for government, local businesses, councils and private enterprise to come to a solution to maintain a viable air service to these communities.
Bottums Up
The centre run used to support F27/F28 with the odd B727 bypassing TFC & KTR. All stand up cabin and cabin service. Perhaps there's a bit to be said about being crammed in a cigar being a large factor in the poor patronage.
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I'm not so sure the centre run actually supported the F27/F28 operation.
Sure, a 1900D operated by bare bones outfit might make it, until CASA gets hold and insists it put in place the necessary systems that any regional airline requires.
K
Sure, a 1900D operated by bare bones outfit might make it, until CASA gets hold and insists it put in place the necessary systems that any regional airline requires.
K
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Back in the seventies I dead headed from Tennant to Alice in a TAA F27. Remembered that there were plenty of spare seats. I would think that loads have been falling steadly over the years, hence the reason AN pulled the F28 off the run. I understand that TL picked the run up with C441's and provided the only service. This was upgraded to a Metro III and then finally the 23. People in the know tell me that the load factors have been continously falling for a number of years, due basically to the decline in mining, and people are leaving for good. Hence the number of empty houses in TNK. Lets face it - bums on seats are needed. No operator can afford to lose money and remain in business. If the loads are not there, then its up to the government, either Federal or State to support the route, if it is necessary.
TL may be a bad operator - but they are still in business and employing quite a large workforce.
If the customers don't like Metro's, then they certainly won't like the 1900 either.
The route is one of those that you can please some of the people some of the time, but you can't please all of the people all of the time.
I understand that the government offered the route to Vincent's and Vincent's wisely declined it.
TL may be a bad operator - but they are still in business and employing quite a large workforce.
If the customers don't like Metro's, then they certainly won't like the 1900 either.
The route is one of those that you can please some of the people some of the time, but you can't please all of the people all of the time.
I understand that the government offered the route to Vincent's and Vincent's wisely declined it.
Dog, ITCZ, DD and T3 you've all summed the whole thing up very very well. While I've only ever seen the Metro actually empty of SLF once in the past two years, I've only ever seen it absolutely chokkas a couple of times as well in that time frame.
The average load I would peg at around 6-7 bods out of Alice, muchly the same inbound.
For a service like this to once again flourish will take many factors to drop into place together.
Maybe QF needs to be persuaded that one of their daily 146 runs needs to drop in via TNK and KTR.... all pie in the sky stuff, even if the aircraft was capable of it.
Unfortunately it would appear that the days of TL (now Regional)154/5 are well and trully numbered.
Regards,
OpsN.
The average load I would peg at around 6-7 bods out of Alice, muchly the same inbound.
For a service like this to once again flourish will take many factors to drop into place together.
Maybe QF needs to be persuaded that one of their daily 146 runs needs to drop in via TNK and KTR.... all pie in the sky stuff, even if the aircraft was capable of it.
Unfortunately it would appear that the days of TL (now Regional)154/5 are well and trully numbered.
Regards,
OpsN.
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Having operated both types, I would suggest comebychance has rose tinted glasses. There pros and cions for both aircraft, but they lack the things that the punters want, ie a Cabin Attendant and a toilet!
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Dogone, I have operated both types and there is a very big differnce between a Metro and a 1900D.
The Metro was the only aircrart that I have flowen that just about all pax hated and that wasnt in the tropics where you didnt have a hot sticky cabin on the ground.
I thought the 1900C was bad until I hopped in a Metro the other day!!!
I think in this time people are expecting something a little better.
great 20 years ago but times have changed.
The Metro is good for freight and pax when they dont have any choice.
The Metro was the only aircrart that I have flowen that just about all pax hated and that wasnt in the tropics where you didnt have a hot sticky cabin on the ground.
I thought the 1900C was bad until I hopped in a Metro the other day!!!
I think in this time people are expecting something a little better.
great 20 years ago but times have changed.
The Metro is good for freight and pax when they dont have any choice.