IASC web site - OZ Jet application

[Flying Monk]

Found this on the IASC web site:

http://www.iasc.gov.au/iasccurr.aspx

Nauru

OzJet have applied for an allocation of one B737 service per week on the Nauru route. Other applications for the capacity are invited. OzJet Application (269KB), advertised on the 11 June 2008. Notifications of intention to apply are to be received by 18 June 2008, with applications due by 25 June 2008.

Update 10 June 2008
OzJet have revised their application. The revised application may be viewed here ( 263KB).

[Mach E Avelli]

The kindest thing the Aussie government could do for the Nauruans is say: 'right, Ozjet you have the route, you MUST now deliver and if you don't,there is a huge penalty which will then go to Nauru as compensation because they have lost their air service. Because if they had a service funded 100% by someone else to that tiny island they would be so much better off. Of course the Aussie Government can not do that.
Reality: the Nauruan people have a lot of pride and regard 'Our Airline as 'Their Airline' (which it still is). Nauruans would only travel by an alternative operator if that operator gave them a free ride, and even then some of those that can still afford to fly would not, because of their pride in the only business the poor buggers still have. 6000 people live out there, give or take a few. What remote country town in Australia would support one B737 service a week, let alone what is now being proposed?
This is probably an Ozjet bluff to scare the Nauruans off Norfolk. No one in their right mind could believe it would do anything other than convert fossil fuel into noise.

[Timber]

Protect Our Airline

Seems to me that Australia should turn down OzJets application for Nauru, as clearly the market can barely support one operator (or probably not even that). How is Our Airline going to protect itself from predatory tactics?

Completely agree with Mach E Avelli.

[witwiw]

'right, Ozjet you have the route, you MUST now deliver and if you don't,there is a huge penalty which will then go to Nauru as compensation because they have lost their air service.

So, hypothetically, the Nauruans will somehow benefit from this compensation after potentially having lost their own operation and, next, the Ozjet operation. Ah yes, of course, they could start up yet another operation from what is bound to be huge compensation - after all Ozjet must have bucket loads of money to be pursuing this idiotic idea in the first place.

if they had a service funded 100% by someone else to that tiny island they would be so much better off.

Defies comprehension, that statement. At present the current operation is providing a regular and essential service to the island on the back of their successful and viable charter operations elsewhere. The national carrier provides a link that can't be met by other means and is always going to be battling to turn a profit on this route alone. Can't imagine why anyone other than the national carrier would want to use success elsewhere to subsidise such a service because, to otherwise turn a profit, the fares would be prohibitive and beyond the means of the average Nauruan.

as clearly the market can barely support one operator

Timber, right on the money.

[Heavy Cargo]

I think you will find OZ Jet will be competing with OA everywhere OA turns. Notice OA have not won any Defence charters since HVY bought OZ. I think they only have 3 ADF charters for Dili left to fly. OZ Jet will turn a profit June ? First time for everything.
If OA can chase the Australian operators high yield charters they can now work hard for those charters and bleed a little more in the Pacific.
APNG are getting their own B737 following the float, work is getting less for OA?

[gas-chamber]

Heavy Cargo are you admitting that Ozjet is engaged in predatory activity against OA ? Your post appears to convey the threat.

[Chocks Away]

Noted they also applied for New Caledonia also.

[feenix]

Hey Heavy you remind me of an old footballer friend of mine, He wasn't very smart but he could lift heavy things and he had an anger problem also. What have you got against poor old Nauru just trying to have a viable air service that makes you so angry. It can't be the fact they are getting Norfolk BACK after it was unfairly taken from them by a Company (OZJET)they had chartered to fulfill their obligations while they procured another aircraft. Thats just Karma. Interesting times ahead

[Tee Emm]

Considering planning a one week stay at Tarawa (Kiribati) based upon the Our Airline once a week scheduled service. Does anyone have accurate information about the past reliability of that weekly service given that Our Airline has charter committments during each week. Put another way which has the priority - the weekly TRW service or regular or ad hoc charters, given they only have one aircraft to do the lot. Given the latter how long could I be stuck on Tarawa (TRW) if Our Airline gets a charter and leaves the TRW service in the lurch. This is a genuine query - not a wind up.

[witwiw]

HC, your business plan must have been conjured up by Merlin the Magician given the logic it lacks.

OzJet have applied for an allocation of one B737 service per week on the Nauru route

I think you will find OZ Jet will be competing with OA everywhere OA turns

If OA ........ and bleed a little more in the Pacific.

If OA are losing money in the Pacific, presumably because of the minimal traffic to Nauru, and OJ is now going to compete on an unviable route ............. wow, even a kindergarten kid playing with numbered blocks could see that that doesn't stack up!!!!


If I were you, I'd be a bit concerned with any alliances being formed in your pursuit of a Nauru connection. KC and LK do not have the necessary authority to do deals, plain and simple, and if you believe they do then you'll rue the day you didn't tell them to Nick off. They, of course, will tell you otherwise.

[feenix]

WITWIW True words which become even more concerning when you consider fuel prices way in excess of $2 a litre in the Pacific, when you can get it ,along with a wasted fuel stop at Honiara both ways. Defies business logic and must be ego driven

[Flying Monk]

IASC determination

On 18 June 2008, the Delegate of the Commission issued Determination [2008] IASC 106 allocating one frequency per week on the route to OzJet.

Would be interesting to see the business plan for this operation. Could it be the same business plan used for the Palmerston North operation?

[feenix]

10 hours flying at fuel costs of around $2 a litre, no pax rights to Hir and not much load as they must carry round trip fuel ex Hir (if possible as no fuel available in Nauru). Even if they achieved 100% of the available market they should only lose about $50,000 per trip. Great business plan.

[sayallafter]

feenix

Would similar figures apply to Our Airline flights ....(even with the CFM being imore efficient), or do all the Nauru flights stage though a port where they have pax rights.

[feenix]

OA have pax rights through Hir and onward ports

[Flying Monk]

From the OA website

June 18,2008
Capacity share arrangement between Our Airline and Solomon Airlines

Effective 13 July 2008 Our Airline services between Brisbane and Honiara will be operated in conjunction with Solomon Airlines. Solomon Airlines will be responsible for all marketing activity between Brisbane and Honiara.

For information about bookings on Solomon Airlines see: Solomon Airlines - Solomon Islands National Airline, Honiara, Guadalcanal

Our Airline will be responsible for all marketing activity between Brisbane and Nauru.

Our Airline Boeing 737-300 VH-INU will be the operating aircraft for these services.

[blackbandit]

Oz Jet will have a hard time competing with OA when you look at Oa's hourly rates. They just cant compete on routes like Norfolk.

The only reason OZ JET would bother applying to run through to Nauru, is to send OA down the chute. OA is unvieable. It always has been. If OA falls over again, it will be for the last time. With OA out of the way, OZ JEt is free to control the Norfolk route. There are no other operators in the area that have the time to risk or waste on the route. Pac Blue is looking at it at the moment, and will probably end up operating it to lower their hourly lease rates on their main line routes.

SAW on the HIR route is useless. Even with new aircraft, the service is inadequate. As far as them operating domestically in the Solomons, this is simply ridiculous. They have no infrastructure in place. No maintenance, no one even to take the money for tickets. F..king ridiculous.

[Mach E Avelli]

If Ozjet runs true to form it will announce a schedule to Nauru and maybe take some money from any mugs stupid enough to buy a ticket. When they take a look at the bookings and realise it's a no-brainer, they will quietly refund the money (only because they must for the Directors to avoid going to jail). Meantime they will have had short term use of other people's money. Good business plan. The tax office does it all the time, so it must be legal?