Air Australia!
Join Date: Aug 2010
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As alluded to earlier, it was known in the industry that they were under financial pressure. What action did the regulator take and their justification for their actions or inaction as the case may be.....
This is not a first to happen in the industry in recent years, SAW and OzJet both went under with advanced purchase revenue spent leaving passengers seriously exposed. Taxpayers picked up the tab to a degree with SAW as the government contract awarded to them to fly to Christmas and Cocos Island stayed at Cobham and those passengers who held a SAW ticket were not charged again according to a couple of mates who had booked on SAW.
It is too easy for people with huge ambition's/ego's (cross out which one doesn't apply) to start in this business without the nessecary financial means, promise the world to the public or FIFO industry, provide competition which the public all want but then go broke. In the mean time existing profitable operators all take a hit as well in the mean time. There is a reason why existing operators charge what they charge..... And the same reason they remain flying year after year.
Not wanting to get of the tread to far but if it were Tiger in the same position as AA a month or so back when the regulator meet with them would they have taken a different course of action? The difference is of course that Tiger are well funded and pouring money into the operation to fix it at present.
Good luck to all the AA crew and staff on finding jobs quickly, events such as this are never pleasant.
This is not a first to happen in the industry in recent years, SAW and OzJet both went under with advanced purchase revenue spent leaving passengers seriously exposed. Taxpayers picked up the tab to a degree with SAW as the government contract awarded to them to fly to Christmas and Cocos Island stayed at Cobham and those passengers who held a SAW ticket were not charged again according to a couple of mates who had booked on SAW.
It is too easy for people with huge ambition's/ego's (cross out which one doesn't apply) to start in this business without the nessecary financial means, promise the world to the public or FIFO industry, provide competition which the public all want but then go broke. In the mean time existing profitable operators all take a hit as well in the mean time. There is a reason why existing operators charge what they charge..... And the same reason they remain flying year after year.
Not wanting to get of the tread to far but if it were Tiger in the same position as AA a month or so back when the regulator meet with them would they have taken a different course of action? The difference is of course that Tiger are well funded and pouring money into the operation to fix it at present.
Good luck to all the AA crew and staff on finding jobs quickly, events such as this are never pleasant.
"Skywest now do the RPT to Derby / Curtin announced on their website. Could not think of a better operator!"
Wow, that was quick. And probably the only thing of AA's that's worth anything.
Wow, that was quick. And probably the only thing of AA's that's worth anything.
Join Date: Apr 2011
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Would Skywest take on the Port Hedland to Brisbane run as well? It could be a stepping stone for them to grow eastwards. QF may grab it as they already do MEL-PHE so the BNE run could compliment it.
Thai could take on the HKT routes as long as it not canabilise the BKK flights too much. With their lower cost base it may be more viable for them.
Thai could take on the HKT routes as long as it not canabilise the BKK flights too much. With their lower cost base it may be more viable for them.
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What action did the regulator take and their justification for their actions or inaction as the case may be.....
If I owned an airline the last mob I would turn to for business acumen would be CASA!
Lock the bastard up. When will people learn? Compass I and II, Ozjet, Strategic, Ansett II etc. When the writing is on the wall it means its only a matter of time. Who's next to go? Tiger????
About 300 staff were left without jobs when the airline went into administration on Friday morning.
One member of a flight crew in Honolulu said the crew was stranded until an operations staff member worked in his own time to secure return flights home.
Read more: Jettisoned staff 'disgusted'
And where is Michael James now???
About 300 staff were left without jobs when the airline went into administration on Friday morning.
One member of a flight crew in Honolulu said the crew was stranded until an operations staff member worked in his own time to secure return flights home.
Read more: Jettisoned staff 'disgusted'
And where is Michael James now???
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Emirates wanting F /O s Decs and Airbus pilots
If you are at all interested take a look at EKPILOT.COM . Nothing good in an airline failing . Good luck to you all !
Skystar320,
I could think of one...with a large established Perth base and reliable equipment capable of doing the task. (i.e. equal to the size of the A320).
Skywest now do the RPT to Derby / Curtin announced on their website. Could not think of a better operator!
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From this morning's Business News...Tues 21/2/12...
Air Australia executive had no aviation sector experience | Latest Business & Australian Stock market News | Perth Now
Air Australia executive had no aviation sector experience | Latest Business & Australian Stock market News | Perth Now
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He got a bit of that practicing fooling staff when he (Strategic) purchased the Ozjet AOC by the Deed of Arrangement. Back then he only fooled the staff out of around $400,000 in entitlements.
As they say, leopards don't change their spots.
All the best to the guys and girls who's jobs are gone. But you will most likely move onto much better things.
As they say, leopards don't change their spots.
All the best to the guys and girls who's jobs are gone. But you will most likely move onto much better things.
Travel Insurance that DOES cover Insolvency?
So... Does anyone know of a travel insurer that DOES provide insolvency cover.
I'm off to the USA/China on Sunday, and checking my Travel Insurance (a big company, one I used to work for...) and whadda ya know, it doesn't cover insolvency.
I rang them and they cheerfully told me "No, we don't sell such cover, the risk is too high." And "no" they couldn't tell me who does offer such cover...
Many thanks for any help
I'm off to the USA/China on Sunday, and checking my Travel Insurance (a big company, one I used to work for...) and whadda ya know, it doesn't cover insolvency.
I rang them and they cheerfully told me "No, we don't sell such cover, the risk is too high." And "no" they couldn't tell me who does offer such cover...
Many thanks for any help
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@ JohnMcGhie
I have heard that there are one or two insurers which still offer this ( which really surprises me) , though off the top of my head I couldn't give you a name.
The reason I am surprised that anyone still offers it is that most travel insurers re-wrote their policies to exclude financial collapse in the wake of the 11 September attacks as a large number of airlines went bung in quick succession, so it is not as if it is a recent development.
The risks were just too great to keep offering that sort of cover and given the current state of the industry I can't see most insurers bringing it back any time soon... unless of course people are prepared to trade the extra cover for significant additional premiums.
Good luck... and if you find a company which offers it please post... I would be very interested to know ( and I am sure that a lot of others would be too) .
I have heard that there are one or two insurers which still offer this ( which really surprises me) , though off the top of my head I couldn't give you a name.
The reason I am surprised that anyone still offers it is that most travel insurers re-wrote their policies to exclude financial collapse in the wake of the 11 September attacks as a large number of airlines went bung in quick succession, so it is not as if it is a recent development.
The risks were just too great to keep offering that sort of cover and given the current state of the industry I can't see most insurers bringing it back any time soon... unless of course people are prepared to trade the extra cover for significant additional premiums.
Good luck... and if you find a company which offers it please post... I would be very interested to know ( and I am sure that a lot of others would be too) .
Inserers who claim to cover Insolvency
Thanks Kiwiandrew:
I found these three:
http://www.suresave.net.au/holiday.php
http://www.aussietravelcover.com.au/
http://www.covermore.com.au/compare-our-plans
Cost appears "reasonable" (about $300.00).
I can't be sure whether this is effectively the same policy "rebadged" by three providers.
Each of these policies includes an "exclusion list" of airlines they won't cover. Interestingly, there are some very big players on there: and of interest (to me) is that two airlines whose initials are "AA" are not covered.
One is of course the subject of this thread. But the other came as a surprise to me!
Cheers
I found these three:
http://www.suresave.net.au/holiday.php
http://www.aussietravelcover.com.au/
http://www.covermore.com.au/compare-our-plans
Cost appears "reasonable" (about $300.00).
I can't be sure whether this is effectively the same policy "rebadged" by three providers.
Each of these policies includes an "exclusion list" of airlines they won't cover. Interestingly, there are some very big players on there: and of interest (to me) is that two airlines whose initials are "AA" are not covered.
One is of course the subject of this thread. But the other came as a surprise to me!
Cheers
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Air Australia continued selling tickets despite desperate effort to raise cash | Latest Business & Australian Stock market News | The Courier-Mail
This is interesting. While mates were leaving good jobs to join AA it looks like AA new that they were desperate for money. Should this have been shared with the new troops to help them make a better choice before leaving good jobs?
Also, it looks like they were desperate for cash but still spent a motsa on the well reported party in Honolulu. This all smells very ugly to me.
This is interesting. While mates were leaving good jobs to join AA it looks like AA new that they were desperate for money. Should this have been shared with the new troops to help them make a better choice before leaving good jobs?
Also, it looks like they were desperate for cash but still spent a motsa on the well reported party in Honolulu. This all smells very ugly to me.
This is interesting. While mates were leaving good jobs to join AA it looks like AA new that they were desperate for money. Should this have been shared with the new troops to help them make a better choice before leaving good jobs?
Also, it looks like they were desperate for cash but still spent a motsa on the well reported party in Honolulu. This all smells very ugly to me.
Also, it looks like they were desperate for cash but still spent a motsa on the well reported party in Honolulu. This all smells very ugly to me.
Anybody can get a full Dun and Bradstreet Report that will give you the full picture Dun and Bradstreet - D&B Report
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Some people just don't listen, there were plenty of us on here saying that the move to 'air australia' was a crazy move. You need very, very, very deep pockets to move into such a saturated market and survive. I feel really sorry for the guys and girls who got sucked into this mess and are now out of work.
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Some people just don't listen, there were plenty of us on here saying that the move to 'air australia' was a crazy move.
Wanting something to fail and observing that it looks like it will fail are two different things.
I feel really sorry for the guys and girls who got sucked into this mess and are now out of work.