"Skywest snares Fortescue deal"

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Skywest snares Fortescue deal
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Geoffrey Thomas | May 30, 2008

PERTH-BASED Skywest Airlines has landed the highly prized contract with Fortescue Metals Group for scheduled charter services from Perth to Cloud Break, in Western Australia's Pilbara region.

The contract is for six or more weekly 100-seat Fokker 100 flights for three years, with a two-year option. Skywest chairman Jeff Chatfield said yesterday he was delighted with the deal.

"Fortescue's project at Cloud Break represents one of the world's major iron ore developments," he said. "This contract is an excellent opportunity for Skywest to develop its scheduled charter business. The company is pleased and humbled to be selected to service this major iron ore production project by Fortescue."

Cloud Break is the site of Fortescue Metals' world-leading iron ore extraction project.

Mr Chatfield said revenue from the contract would vary depending upon the number of services flown during the three years.

The contract includes provision for price adjustments to reflect increases in fuel prices and will fully occupy one of the F100 aircraft recently leased by the company.

The contract continues the spectacular rise of Skywest, which only two years ago had three under-used Fokker 100s - operating just five hours a day - and five Fokker 50s. The airline last month took delivery of its sixth Fokker 100, with one more to arrive next month. It also now operates seven Fokker 50s.

Skywest is also in the process of completing its application to add an Airbus A320 to its air operator's certificate. It is expected that the A320 - the first in a potential fleet of four - will arrive in November.

The dramatic turnaround has been led by a new management team that includes managing director Hugh Davin, chief executive Paul Daff and chief operating officer Mike Hoar. Industry sources suggest Skywest is close to announcing another resource contract in the next month.
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[Mach E Avelli]

That's what you get when you have the right-sized aeroplane at the right price. NJS and Ozjet have dropped the ball by persisting with their stone-age equipment a year or two past its use-by date. Future looks rosey for Skywest.

[Tropospherical]

NJS and Ozjet have dropped the ball

Really? Maybe "that's what you get" when you have the money to afford a large fleet of whatever-sized aeroplanes. Good on Skywest, but is their good fortune a reason to bash other operators?

Still, I suppose this is just an online forum.

[Ferrett]

Skywest may have secured the deal, however NJS will operate a BAe 146 - 100 on behalf of Skywest from Perth to Cloud Break and return every Monday commencing 9, June and every Monday after that for at least 3 months.

Skywest might be great at getting the work but they can't support it without the help of others such as NJS. Wouldn't say that's dropping the ball. Anyone can promise the world but its clear they can't deliver! In the interim we are happy to do their work and take their money.

[Capn Bloggs]

Ferrett, knowing there are spare jets available at the opposition to take up slack/cater for USes makes it easy to bid for and get a big contract. Sure, Skypest may pay thru the nose a few times to cross-hire a 146, but in the long run, they will be the winners.

The mighty Fokker, king of the WA skies 30 years ago, is making a comeback.

[Mach E Avelli]

Tropo, all operators get 'bashed' in these forums at some stage. Part of the fun. NJS have had plenty of money since Cobham's took over, many moons ago. While the 146 still fills a niche, NJS should have taken a plunge with the Fokker 100 themselves when they were still at the top of the charter food-chain in W.A. and Fokkers were cheap and plentiful. Alliance, even without money, and a few others, have got under their radar. Sky Air World and Air North could still come and do damage with their E jets.
The guy who used to own Ozjet bragged about being in the top 100 (or maybe it was only 500, but whatever) wealthy people in the U.K. One year he claimed to have made 35 million so in theory money should not have been a problem there either. I venture that if Ozjet's new owners don't put something better in to their fleet very soon, they will be the only ones sitting on the ramp with the 'for rent' sign, while all the others are out there on contracts.
Success in the charter game has changed from the old days when you got the cheapest heap you could buy out of Africa and parked it on the ramp with a 'for rent' sign on it. Now the mining executives all want young airframes, fuel efficiency etc.

[441]

I can't help but wonder if Network are a little disappointed.

[Hoofharted]

NJS and Ozjet have dropped the ball by persisting with their stone-age equipment a year or two past its use-by date.

Gee whiz, and Fokker 100/50 are "modern" aircraft? You really need to get out more! Might be new for W.A. but they sure as hell ain't new outside "the boundary fence".

[spiderbat3008]

Time will tell......its a paper exercise at present. A long way to go yet. A lot of avtur to go yet.

[pilotdude09]

Good on Skywest!

Alot of Contracts have gone out to these guys over the last 12 months, and i assume once the A320's come (if they come) they will get more, aslong as they keep their excellent service and the legroom (which is a plus for companys as they dont have people winging and safety reps complaining) they will continue to do well.

[Icarus2001]

Now the mining executives all want young airframes, fuel efficiency etc.

I don't think they give a stuff about fuel efficiency. Whatever gives you that idea? All they care about is the contract cost to them, the unit cost to move X miners from A to B back to A.

So if the 146 is no good anymore, can someone tell me what will lift 98 pax off a 1900 metre airstrip at 42 degrees celsius? Then perhaps NJS should buy those airframes then ?

[Mach E Avelli]

I did say the 146 was a niche aeroplane. But how many niches left?

98 pax, 1900 metres, 42 degrees AND 1000nm? Have a look at B737-500 or 700. Then look at total fuel burn and flight time.

[yowie]

Drifting, but Bloggs even you would know that your old mate has a history of getting a contract at any cost and, subsequently, not being able to provide the capacity when it's required. Apparently the regular runs can't be sustained at the cost of the relentless run to FIFO, sound familiar? Good luck, hope they can cope

[hongkongfooey]

98 pax, 1900 metres, 42 degrees AND 1000nm? Have a look at B737-500 or 700. Then look at total fuel burn and flight time.

Then have a look at the lease costs