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SKYWEST Airlines said yesterday...

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Old 4th May 2003, 22:42
  #61 (permalink)  

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MU2

As one of the founding fathers of the Skywest regional RPT empire and the FIFO business, I gotta tell you a cuppla truths.

Bill and I were hardly ever "buddies", but he did know how to "fight" when it was necessary.

Without the Ansett connection before (and without Big Bro Stowe before then) and after, it is a cold and bitter wind that now blows around their ankles.

NOTHING has changed the viability of ANY of the routes they now serve.

The routes to be dropped off were NEVER routes on their own in the first place, without subsidy, Commercial or Government.

They are holding by misguided Government support, the poisoned chalice which is the unique Western Australian aviation marketplace, and the graveyard of anyone who is unable to obtain either;

1. Government subsidy to support financially uneconomic but vital socially economic routes.

and/or

2. Federal and State legislation that taxes FIFO orgs or the miners that use it, if they are within an appropriate radius of an approved RPT serviced airport, located in an existing open community. EG Leonora to the point where there is NO difference in costs.

and/or

3. A BIG Brohter

I know how it should work but I choose not to reveal it here.

The FIFO business is directly in the Governments face.
What they save in NOT having to provide mining community infrastructure should be used to subsidise the affected local communities access to RPT as part of the social contract.
And I'm NOT talking 30 year old FAR23 Navajos here.
They have actually collected "license" money from miners in lieu for FIFO rights.
Where has that gone, as if we don't know.?

Big Brother AN, using Ansett WA and Skywest as a monopoly to feed their mainline and forgoing the subsidy, to the Governments delight, to gain this dubious privilege, is gone forever we are right back to where we started.

Giving back a "monopoly" to Skywest on some routes is interesting, BUT, it's subsidy or, no FIFO time, AGAIN and as usual.

Without that it's just the ususal mouthful of feathers.

Bill might not have been the easiest person with whom to get along with and I can't believe I'm saying this but, he was a quick learner and had a fairly good grip on the realities of how the WA market really works.

Transport State have the power, but seem to have forgotten how to use it, as they did to everybodies benefit in the past.

I'm sure Mr Henderson, whom I have not had the pleasure of meeting personally, may well be wondering what he has gotten himself into.
I don't doubt his "airline management credentials" but that is only a very very small part of the game here.
I'm sure the Board, notwithstanding Mr Ryans Chairmanship know either.
Perhaps its the blind talking to the deaf again.

I don't see anyone there who would have the faintest idea of where to start, now that the quick in and out "float" routine isn't going to play now or probably, ever.

Skippers might run a tight FIFO operation but that is several very tall mountains away from regional RPT.

Sorry Stan, but if your men are suggesting that RPT is just what you're doing on your FIFO charter except on a really regular basis, then start kissing whatever you may have made so far goodbye.

You gotta know when to hold em and know when to fold em.

If you missed the Coroners recommendations in the Central Air inquest, then go have another look, coz right in there is the answer to Skywests dilemma and the change agent you both need to survive.

The passing of AN and QF and DJs reaction to it, has fundamentally changed the dynamics of the National arena and the very foundations of this States market.

It's still not too late for either, it's just whether you pick up on it or not.

GT and I have a more than passing knowledge of the way it really is.

I certainly despair watching, as they all continue to reinvent the ways of losing money, enjoy seeing how close the "Press Release" I have written in my mind to "explain" an "adverse outcome", one of the euphemisms used in the medical profession to describe the death of a patient under their care, is, to that which is actually published.

I am rarely surprised.

Deja Vu.
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Old 5th May 2003, 18:22
  #62 (permalink)  
 
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Gaunty

Your post sums up the states aviation scene pretty well.

We have a small regional airlines squashed from above by QF and trapped below by Skippeers, both who compete in totally different markets.

Regional RPT is very different to main line RPT and even further away from charter ops.

The issue here seems to be can Skywest survive it's own mistakes or will it learn from other peoples?

May be now that all of Skywest's mistakes have been aired on these pages, the future can be left to prove who is correct.
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Old 6th May 2003, 22:03
  #63 (permalink)  
 
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Well!!! It must be time to add my two bobs worth. I read this thread with more than a passing interest. I have been around for long enough and know all the principle players that this thread refers, that is except GT.

No offence GT but I have noticed that you never seem to miss an opportunity to blow wind up BM’s arse, such, that I reckon it would be a fair guess that you two would have to be mates. If this is the case, then you need to ask yourself, are you able to write unbiasedly?

I have personally been in battle with BM and WS too, for comparible arguments sake (WS, one of the founding directors of NJS) I can tell you that both these individuals in their day were very dynamic, sharp businessmen. I would say WS had the edge by a good margin. He would have been the most dynamic, probably the best I had seen in that era and indeed it was a privilege to have been a part of it. I don’t want to take anything away from either of these individuals, they were good in their day but that was nearly 20 years ago and like all great fires, eventually burn out.

I’m sorry to have to say, but BM has been away too long, his style unchanged. I liken him to a 70’s rock star making a come back wearing the same outfit, singing the same songs. It was never going to work.

SH (new CEO of XR) however, is a good man and shows all the signs of being a great CEO, he’s sharp and can dance to the music in today’s market. Naturally, as in any business there may be weakness in some areas, but that’s to be expected, show me a company without them. I am confident he will be good for XR and will deliver.

Finally, lets not forget the staff, there are a lot of good people in there and they deserve some respect in this very demanding time.

While I’m on the topic of staff, my regards to those at REX, you guys appear to be doing well, my heartiest congratulations. Well done!!!
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Old 7th May 2003, 07:26
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Well said I completely agree with the last post, is it not about time, people gave XR a break, they deserve it !!!!

For all those bitter and twisted "let go" and "move on with your lives" no use wallawing in self pitty......it will get you no where..

ON YA SKYWEST HOPE YOU KEEP SOARING THRU THE SKY'S

and to SH and all the staff, I can only hope that when the S&^% hits the fan in my place we have as many dedicated and loyal people as you to try thir hardest to keep things a float a big pat on the back for you all
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Old 7th May 2003, 08:24
  #65 (permalink)  
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History is a funny thing,

Good old MMA, a real Airline, owned and operated in WA in the 1960s, was SUBSIDISED to the tune of $1000.00 A DAY in 1967 to operate DC-3s to the so called "Socially Neccessary" places in WA.
Laverton, Leonora, Esperance, Norseman, Cue, Wiluna, Sandstone, Mount Magnet, Yalgoo, Mullawa and a host of places further North.

Now we add Geraldton, Carnarvon, Albany and others.

Geraldton got two jets a day in 1989, ? today.

Times change, roads, cars and modern E-mail, tele conferencing have changed the social fabric, but the cross subsidy of the majors to the other places was a part of the past and seems to be still needed.
 
Old 7th May 2003, 22:14
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Couldn't agree more lets give Skywest a break and that is what I have done. The problem is MU2 keeps accusing me of bring up all the ins and outs of the airline BUT cannot cite on instance.
As you will see from earlier posts I have left out many front page stories. As for BM he may be a "70s rock star" in some eyes BUT he has forgotten more about the airline industry than most will ever know.
GT
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Old 7th May 2003, 22:59
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OK OK now we know how great you think BM is How much does he pay you...
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Old 8th May 2003, 11:43
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Come on aersoul you can do better than that, you're almost as bad as MU2...cheap shots and nothing to back it up.
Never had a flight on Skywest nor Virgin Blue for that matter and most flights on airlines are paid for.
Don't own shares in Qantas or any airline and with the inside track I have had could have done rather well...certainly better than Rivkin did.
Am I a saint? Hell no, just attempting to report the facts.
And the fact is that people like BM, Hugh Davin and Bob Mason are miles ahead of the pack when it comes to running airlines.
So are Rod Eddington and Geoff Dixon for that matter.
And Xeptu there is one fundamental in this industry that will NEVER change and that is if the board of an airline knows little or nothing about the industry or has another agenda--or worse both---then the airline is domed to failure.
Look at history Howard Hughes and TWA, Ichan with TWA, Lorenzo with Continental, Ramili with Malaysian, Tan with Philippine Airlines and who could forget Brierley with Air NZ/Ansett. Utter disaster!!
Eventually the real story of Skywest will come out and much of what BM stood for will be vindicated.
WMC thought so much of him it torn up the contract that was to be signed that would have been the savior of the airline when BM was dumped. That is a fact!
So lets stick to the facts and not the person.
GT
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Old 8th May 2003, 12:51
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WMC thought so much of him it torn up the contract that was to be signed that would have been the savior of the airline when BM was dumped. That is a fact!
So lets stick to the facts and not the person.
GT

SORRY TO DISAPPOINT YOU GT BUT YOU HAVE GOT IT WRONG AGAIN.

THE FACT IS THE THAT QF HAD THE WMC CONTRACT AUST WIDE AND WHEN AN/YT WENT DOWN, WA CAME UNDER THE SAME OPERATION AS THE OTHER STATES.
THE CONTRACT STILL WENT TO TENDER THOUGH, TO KEEP NJ/QF'S PRICE DOWN, BUT IT WAS NEVER GOING TO ANYONE BUT QF, AND THATS FROM WMC HO, AND THEY ARE THE FACTS.
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Old 8th May 2003, 17:57
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MU2:

The contract was in the last stages of sign off, with only insurance left to be finalised, when Meeke was dumped.
Like Rio Tinto, WMC wanted to see several viable operators in this state and on the short sectors for WMC jet speed was not really a factor. I have spoken to representatives of WMC had they have confirmed to me that Meeke leaving was the end of the deal as far as they were concerned.
One person in Skywest was told about this BUT my understanding is he chose not to tell his fellow executives--wonder why?

By the way MU2 I am still waiting for you to BACK UP your last attack against me alleging that I print "all the ins and outs" of the airline.
If you can't perhaps an apology might be in order, although I will not hold my breath.
GT
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Old 8th May 2003, 18:33
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Geoffrey,

Hate to tell you old chap, but the second name you mentioned in your post couldn't, in my humble opinion, manage a root in a brothel.

If you have a look at the history of the deals that this bloke has done, you wonder how NJS is still in business. mmm lets see - the century zinc deal where he quoted for one way of a return trip. The J41 "the most profitable aeroplane in the fleet!" to name a few.

NJs had the cheapest Dash-8 in town for quite a while "to get into the market".....

If he is in front of the pack, I'd rather be at the back!
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Old 8th May 2003, 18:57
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GT
I am sorry but i have to stand by my information from wmc {i maybe a little closer than you} and that is, what i know and have been told is 100% correct.
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Old 8th May 2003, 20:40
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Captain Laptop

Well NJS are in business and doing damm well all over Australia and HD is a large part of that success so I guess that you can stay at back of the pack then...your choice!

MU2
You and many others are told a variety of things, many of which may not be true. The shareholders of Skywest could bail the company out of its problems in an instant BUT they so far choose not to. Ever wonder why?
By the way I hear that SH is to be a director of Skywest...now that is a good move.
GT
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Old 8th May 2003, 21:05
  #74 (permalink)  
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Quote.
You and many others are told a variety of things, many of which may not be true

GT, i just cant see why it's always you get told the truth and others not, or maybe you just can't face the fact that you maybe wrong.

YES YOUR RIGHT SH to director will be a good move.
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Old 8th May 2003, 21:39
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fish

MU2

Give it a rest, you have been totally and utterly embarrassed by your own omission to respond to G.T’s challenge previously to “put up or shut up”. You have attacked him and ridiculed him without anything but empty platitudes to back it up. If you are a member of Skywest then you only serve to prove GT’s point.
I can support GT in his assertion regarding the WMC deal, he is unequivocally correct. Along with companies like North (wholly owned by Rio Tinto), WMC was keen for XR to survive to provide some competition and what did XR do dump the person who held the key to prosperity. I believe it was no secret that BM wanted jets and fast, equally the board didn’t want jets and frustrated and filibustered BM every step of the way. Why ? because the board and major shareholders are not interested in spending money to make money, they are interested in hidden agendas which revolved around get in float and pi$$ off with a profit. XR will end up paying BM, you can bank on it….

Aero soul

Rsole I too have a good word for BM not for the personality but for the contributions that he has made towards keeping the likes of us in the air when we were still wet behind the ears. East-West was a great help to my career. If you choose to hold a counter view to that of GT then that is your right, however I would like to hear you counter GT’s view with an intelligent debate devoid of ridicule, sarcastic malice and platitudes. If not give it away, give it away now!

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Old 10th May 2003, 15:17
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Geoffrey,

you need to get out more.

if you had an objective view at NJS and how they are going you would see that all is not well.

5 aeroplanes are going back to the lessor this year. The FIFO work is steady but not growing and is not a particularly profitable area.

The person to which we refer has been responsible for some monumental stuff ups that cost a LOT of money. Ask him about the Century Zinc contract some time....
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Old 10th May 2003, 17:08
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I don't know, Captain Laptop, MU2 thinks I have been in the sun too long. Of course HD, BM and Bob M would never suggest they are perfect--thankfully none of us is.

But let’s get down to facts shall we.

The five aircraft you refer to are of course the magic dragons whose leases come up this year. It is up to Qantas if they are retained---nothing really to do with Hugh...unless you think he is responsible for SARS??
Factors that are to be taken into consideration are....general state of the economy and Qantas' longer term regional aircraft replacement plans that are in limbo at the moment.
Don't forget that QF has a small fleet of 717s that have replaced BAe 146s on some routes.
My guess is that some of those five BAe 146s will go.
As for Century Zinc in QLD, HD went in with what was a viable bid for NJS to make money but Alliance came in with a lower figure. That happens as it did in WA with Argyle and Skywest. I think the jury is out on both those contracts. Let’s see who’s right in 12-months?
As far as QLD is concerned there may well have also been some political pressure applied to support the local airline. Would make sense to me.
You mention there have been several "stuff ups"...what are the others?
Perhaps I can run one by you.
HD put together NJS's Coastwatch contract and that is nothing short of a spectacular success.
He has also beaten Skywest off with Anaconda and Telfer in the past few months so that is not bad going I guess.
Over to you!!
GT
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Old 10th May 2003, 18:31
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Geoffrey

A thought for you to ponder on......................

As you are aware both Murrin Murrin and Telfer have been NJS customers for many years. Murrin since it was started and NJS since they topled Questair.

With the shift patterns of this type of minning operation set up around a 70 seat service did you expect Skywest to beat them with a 100 seat jet?

Even if it is up against a 146?

Or could it be that these mines used the threat of competiton to keep the NJS price down for fear of losing more work. After all what are they going to do with 5 spare 146's and all of those crews if they had to park the RJ as well?
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Old 10th May 2003, 20:58
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Jetpipe: Good post but the point I was trying to make is that HD is winning or retaining contracts NOT losing them.
For Skywest a low ball price on the F100 may have made sense to try and up the utilization to offset the basic costs which are to a large extent fixed.
The other point is that the five BAe146s being returned to lessors relate to QantasLink's requirements and if they do go back then HD can hardly be blamed for that!
GT
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Old 11th May 2003, 15:47
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You have to wonder what the point is of winning contrct that either break even or cost money.

if you look into the history of NJS FIFO contrcts you will see that the hourly rate charged is not enough to cover the true cost of providing the service.

with the Airlink cash cow dieing the days of having engineering provided by Airlink (at QF expense) and working on the Dash's are gone

the FIFO contracts will need to standon their own feet. And it is my belief that they won't because they are written at a cost that gets the work, not that pays the bills.

Again have a look at Century inc and find out why the contract ended abruptly - it wasn't because Alliance came in with a cheaper quote. It was because the contract price only covered ONE way of a TWO way flight

Your loyalty is admirable if some what misguided.
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