skywest wins new contracts
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Lord,
Sorry, didn't realise the F-100 was the only twin jet around
Bloggs,
Doubt that the f-truk would have the ETOPS for that run, but who knows what can be approved these days
Direct that is
Sorry, didn't realise the F-100 was the only twin jet around
Bloggs,
Doubt that the f-truk would have the ETOPS for that run, but who knows what can be approved these days
Direct that is
Kim
I'm not familiar with Alliance's routings, but that would probably be it. What ETOPS (I should say EDTO) do they have?
QQ used to operate the F-100 to Norfolk. Is that what your referring to Bloggs?
F100 Etops
Alliance held a 75 minute etops to cover norfolk ops (holding either auckland or tontouta as alternate's depending on the route flown out to norfolk)
cheers
mustard
cheers
mustard
Media Release
The Board of Skywest Airlines Ltd ("Skywest") is thrilled to announce that the Company has today signed a significant scheduled charter supply contract with Rio Tinto Services Ltd (ASX: RIO, LSE: RTZ) for air charter services to and from Perth to mine sites in Western Australia.
The salient details of the contract are:
Fuel Pricing Policy
Skywest Airlines Ltd and all its subsidiaries have formally adopted a new policy concerning management of the impact of fuel prices. The policy involves the pricing of fuel being passed onto end user clients, which may be either the public or alternatively scheduled charter clients. The policy and process involves fuel price changes, in a totally transparent and honest manner, being passed on to clients with a rise and fall mechanism on a monthly basis. The scheduled charter contract with Rio Tinto contains provisions for the application of this Fuel Pricing Policy on a monthly basis.
Skywest Airlines Ltd Executive Chairman, Jeff Chatfield said: "The directors of the Company are humbled that Rio Tinto has chosen Skywest Airlines for such an important air travel supply contract. Skywest's management believes that this contract with Rio Tinto is the largest single air services contract in the Australian markets for services of this type. This contract further emphasizes the difference between Skywest and a number of other companies in our sector.
Providing services of this magnitude to one of the world's largest mining companies is proof positive that our strategy of focusing on the mining and resources sector is bearing fruit. Our scheduled charter contracts give us reliable estimates of work efforts. Skywest's additional contracted revenues, consequential to the last three scheduled charter service contracts signed, in aggregate, amounts to an additional AUD$111m over 3 years and subject to option exercise AUD$170m over 5 years. Applying an open and transparent fuel rise and fall policy is essential to provide consistent profits from those additional revenues."
regards
mustard
The salient details of the contract are:
- The contract is for the provision of at least 15 return jet services per week of scheduled jet charter services between Perth and West Angelas, and Barimunya for the iron ore production workers employed by Rio Tinto;
- The air services contract initial term extends for 3 years with a 2 year option extension;
- Monthly provisions allow for price adjustments to reflect increases and decreases in jet fuel prices. Therefore, the directors anticipate no impact on the profitability of this contract from rising fuel prices; and
- The Company will add an additional F100 aircraft to its fleet to meet the scope of requirements.
Fuel Pricing Policy
Skywest Airlines Ltd and all its subsidiaries have formally adopted a new policy concerning management of the impact of fuel prices. The policy involves the pricing of fuel being passed onto end user clients, which may be either the public or alternatively scheduled charter clients. The policy and process involves fuel price changes, in a totally transparent and honest manner, being passed on to clients with a rise and fall mechanism on a monthly basis. The scheduled charter contract with Rio Tinto contains provisions for the application of this Fuel Pricing Policy on a monthly basis.
Skywest Airlines Ltd Executive Chairman, Jeff Chatfield said: "The directors of the Company are humbled that Rio Tinto has chosen Skywest Airlines for such an important air travel supply contract. Skywest's management believes that this contract with Rio Tinto is the largest single air services contract in the Australian markets for services of this type. This contract further emphasizes the difference between Skywest and a number of other companies in our sector.
Providing services of this magnitude to one of the world's largest mining companies is proof positive that our strategy of focusing on the mining and resources sector is bearing fruit. Our scheduled charter contracts give us reliable estimates of work efforts. Skywest's additional contracted revenues, consequential to the last three scheduled charter service contracts signed, in aggregate, amounts to an additional AUD$111m over 3 years and subject to option exercise AUD$170m over 5 years. Applying an open and transparent fuel rise and fall policy is essential to provide consistent profits from those additional revenues."
regards
mustard
Skywest secures Rio Tinto contract
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Geoffrey Thomas, Airlines | July 04, 2008
PERTH-BASED Skywest Airlines has beaten off seven other airlines to snare a lucrative Rio Tinto contract from National Jet Systems to serve the West Angelas and Barimunya mines in the Pilbara.
The win continues the almost Emirates-like momentum of Skywest since it snared the former head of NJS in Western Australia, Hugh Davin, just over 18 months ago.
In that time, Skywest has won a string of mining charter contracts, including the highly sought after Fortescue Metals Group, and its fleet of 100-seat F100 jets has essentially grown from two to seven.
Skywest executive chairman Jeff Chatfield, who masterminded the luring of Mr Davin to the airline, said yesterday that the board was delighted with the latest coup.
"Providing services of this magnitude to one of the world's largest mining companies is proof positive that our strategy of focusing on the mining and resources sector is bearing fruit," he said.
The contract is for the provision of 15 scheduled jet charter services for three years with an extension option.
Importantly, the contract provision allows for price adjustments to reflect fluctuations in jet fuel prices.
The relationship with Rio Tinto builds on the contract won by Skywest in 2002 for services to the Argyle Diamond mine in WA.
But the Skywest win is a blow for NJS, owned by British-based Cobham, although Cobham Flight Operations and Services chief executive Peter Nottage told The Australian that business moved around in the highly competitive aviation industry.
"Cobham manages the movement of any business very well because it has the good fortune to be the largest, most flexible and most reliable contract aviation firm in Australia," Mr Nottage said.
"Cobham has $1.3 billion worth of business under contract through its NJS and National Air Support businesses (Coast Watch) and will continue to build its business around our reliability, our excellent safety record and our business viability."
But the Rio Tinto switch, the latest in a string of losses to Skywest, must concern NJS management. "Skywest now has NJS on the ropes," said one Perth-based industry observer, who added the BAe 146 aircraft used by NJS needed replacement.
In January, QantasLink forged a new relationship with Brisbane-based Alliance Airlines to operate a Fokker 100 in QantasLink colours in WA.
However, Qantas general manager regional airlines Narendra Kumar at that time rejected any suggestion the Alliance decision reflected any deterioration of the relationship with NJS.
Nonetheless, NJS had spare BAe 146 capacity after losing a daily fly-in/fly-out contract with Newcrest Mining and QantasLink turned its back on the 70-seat BAe 146 after operating a sizeable fleet with the company throughout the 1990s.
Adding to the complexity of the competitive situation is a move by Jetstar to open a crew base in Perth and increase its presence.
Some observers suggest that in the longer term Qantas may opt to bring the operation of its 11 Perth-based 717s, under contract to NJS for QantasLink, back under the Qantas Group's operational umbrella.
But Cobham noted the 146 and the F100 were out of production, with F100 production ceasing in the 1990s compared to 146s ending in 2002.
"I am very comfortable with our fleet age and reliability when compared to others in the marketplace," Mr Nottage said.
"Our 146 fleets range and size meets the needs of customers across a broad range of requirements. We continually monitor our fleet requirements and will continue to do so."
NJS won a five-year extension to its 717 operational contract in March last year and according to Mr Nottage the contract is working well.
The BAe 146 has proved to be a competitive aircraft over the 15 years, in large part because of the work NJS has done on the aircraft in rectifying engine reliability issues.
The aircraft's major advantage of a short-field performance, due to its four engines and high wing, has recently been negated with a number of key resource companies extending runways to accommodate larger jets, such as the Boeing 737-800 and A320.
But the BAe 146 is an early 80s analog-technology aircraft and some of the NJS aircraft are early builds, although a few were manufactured in the 1990s.
Mr Nottage told The Australian that NJS would "align the three BAe 146s with our business needs and capacity over the next few months and the lease on the three 146s falls due this year".
NJS did look at the state-of-the-art Embraer 170s and 190s three years ago but could not make the business case at the time. But with a softening of the world airline market - and thus lowering of lease costs - the situation could well be different.
Font Size
ecreaseIncreasePrint Page:PrintGeoffrey Thomas, Airlines | July 04, 2008
PERTH-BASED Skywest Airlines has beaten off seven other airlines to snare a lucrative Rio Tinto contract from National Jet Systems to serve the West Angelas and Barimunya mines in the Pilbara.
The win continues the almost Emirates-like momentum of Skywest since it snared the former head of NJS in Western Australia, Hugh Davin, just over 18 months ago.
In that time, Skywest has won a string of mining charter contracts, including the highly sought after Fortescue Metals Group, and its fleet of 100-seat F100 jets has essentially grown from two to seven.
Skywest executive chairman Jeff Chatfield, who masterminded the luring of Mr Davin to the airline, said yesterday that the board was delighted with the latest coup.
"Providing services of this magnitude to one of the world's largest mining companies is proof positive that our strategy of focusing on the mining and resources sector is bearing fruit," he said.
The contract is for the provision of 15 scheduled jet charter services for three years with an extension option.
Importantly, the contract provision allows for price adjustments to reflect fluctuations in jet fuel prices.
The relationship with Rio Tinto builds on the contract won by Skywest in 2002 for services to the Argyle Diamond mine in WA.
But the Skywest win is a blow for NJS, owned by British-based Cobham, although Cobham Flight Operations and Services chief executive Peter Nottage told The Australian that business moved around in the highly competitive aviation industry.
"Cobham manages the movement of any business very well because it has the good fortune to be the largest, most flexible and most reliable contract aviation firm in Australia," Mr Nottage said.
"Cobham has $1.3 billion worth of business under contract through its NJS and National Air Support businesses (Coast Watch) and will continue to build its business around our reliability, our excellent safety record and our business viability."
But the Rio Tinto switch, the latest in a string of losses to Skywest, must concern NJS management. "Skywest now has NJS on the ropes," said one Perth-based industry observer, who added the BAe 146 aircraft used by NJS needed replacement.
In January, QantasLink forged a new relationship with Brisbane-based Alliance Airlines to operate a Fokker 100 in QantasLink colours in WA.
However, Qantas general manager regional airlines Narendra Kumar at that time rejected any suggestion the Alliance decision reflected any deterioration of the relationship with NJS.
Nonetheless, NJS had spare BAe 146 capacity after losing a daily fly-in/fly-out contract with Newcrest Mining and QantasLink turned its back on the 70-seat BAe 146 after operating a sizeable fleet with the company throughout the 1990s.
Adding to the complexity of the competitive situation is a move by Jetstar to open a crew base in Perth and increase its presence.
Some observers suggest that in the longer term Qantas may opt to bring the operation of its 11 Perth-based 717s, under contract to NJS for QantasLink, back under the Qantas Group's operational umbrella.
But Cobham noted the 146 and the F100 were out of production, with F100 production ceasing in the 1990s compared to 146s ending in 2002.
"I am very comfortable with our fleet age and reliability when compared to others in the marketplace," Mr Nottage said.
"Our 146 fleets range and size meets the needs of customers across a broad range of requirements. We continually monitor our fleet requirements and will continue to do so."
NJS won a five-year extension to its 717 operational contract in March last year and according to Mr Nottage the contract is working well.
The BAe 146 has proved to be a competitive aircraft over the 15 years, in large part because of the work NJS has done on the aircraft in rectifying engine reliability issues.
The aircraft's major advantage of a short-field performance, due to its four engines and high wing, has recently been negated with a number of key resource companies extending runways to accommodate larger jets, such as the Boeing 737-800 and A320.
But the BAe 146 is an early 80s analog-technology aircraft and some of the NJS aircraft are early builds, although a few were manufactured in the 1990s.
Mr Nottage told The Australian that NJS would "align the three BAe 146s with our business needs and capacity over the next few months and the lease on the three 146s falls due this year".
NJS did look at the state-of-the-art Embraer 170s and 190s three years ago but could not make the business case at the time. But with a softening of the world airline market - and thus lowering of lease costs - the situation could well be different.
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Great news for XR, BUT, sources close to action tell me that NJS WA / NT ("blue tail") had major profitability issues, under past management, and that past management would secure business at any costs - get the business and try to increase charges later to get it to a point that was profitable.
And in the interim swallow losses.....interesting. Suggest it is easy to win business if you buy it. And that same management is now at XR - is there a pattern emerging?
Crewing some of these new jobs will be interesting also: as XR crew do not have the same flexibillity in their agreement to do augmented / extended shifts that NJS crew do - is this why Telfer flights include a dead leg between Telfer and Broome?? for crew change? - must cost a small fortune.
I don't believe all is as rosy as led to suggest by the gushing press releases - for example, I happen to know that MEL flights are a dead loss (as they were for QF also so no surprises there)
And in the interim swallow losses.....interesting. Suggest it is easy to win business if you buy it. And that same management is now at XR - is there a pattern emerging?
Crewing some of these new jobs will be interesting also: as XR crew do not have the same flexibillity in their agreement to do augmented / extended shifts that NJS crew do - is this why Telfer flights include a dead leg between Telfer and Broome?? for crew change? - must cost a small fortune.
I don't believe all is as rosy as led to suggest by the gushing press releases - for example, I happen to know that MEL flights are a dead loss (as they were for QF also so no surprises there)
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Crewing some of these new jobs will be interesting also: as XR crew do not have the same flexibillity in their agreement to do augmented / extended shifts that NJS crew do - is this why Telfer flights include a dead leg between Telfer and Broome?? for crew change?
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Atlantic - yes that is the issue - this shift pattern via BME gets them back to PER faster and in a shorter duty period than if they did the layover at TEF as the NJS crew did. I think it was about a 12 or 14 day all up with most of the day on crew accom at TEF
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skywest contracts.
Rumours floating around NJ at the moment are the Cocos and Christmas Island contracts will soon be operated by a F100? Would like to see the mess if one goes tech over there!
Joe, if you are rumouring that Skypest will get Cocos/XCH with one of their F@kkers, since the ad for the contract renewal tender only appeared in the paper last week, I hardly think that NJ would be capitulating just yet.
Of course, NJ could be considering putting some F100s into service...
Of course, NJ could be considering putting some F100s into service...