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Qantas to Purchase and Grow WA Charter Operator
news now official...
Qantas to Purchase and Grow WA Charter OperatorSydney, 13 December 2010 Qantas will move into the Western Australian fly-in-fly-out (FIFO) resources air charter market, with agreement reached for the airline to purchase local operator Network Aviation. Qantas Chief Executive Officer, Mr Alan Joyce, said the acquisition would provide a strong growth opportunity, new revenue stream and further diversification for the Qantas Group. "The Qantas Group has a very strong presence in Western Australia, operating passenger services across metropolitan and regional centres and connecting the state to its broader domestic and international networks," Mr Joyce said. "Mining company demand for FIFO air services to transport employees to and from remote sites within the state, however, cannot be met solely by Regular Passenger Transport (RPT) services. "This is an important market, and a growth market, and Qantas will now become a key player in meeting the needs of the resources sector. This will significantly enhance the scope of what Qantas can offer the mining sector, bringing new competition to the marketplace. "We have reached agreement with the owners of Network Aviation to purchase the business. It presents strong growth opportunities and we will immediately look at significantly growing its fleet and its operations." Network Aviation operates a fleet of two 100-seat Fokker 100 aircraft and six 30-seat Embraer Brasilia EMB-120ER aircraft. Subject to finalisation of the acquisition, Network Aviation will become a wholly-owned subsidiary of the Qantas Group. Network Aviation will retain its current management, employees and operating structure, with the business to be aligned with Qantas' operations in terms of safety, regulatory, people, financial and commercial governance oversight, standards and processes. "This is very much a strategic acquisition and an exciting growth opportunity for Qantas," Mr Joyce said. Issued by Qantas Corporate Communication (5055) Email: [email protected] |
The writing is on the wall...
Skippers and Skywest are in more trouble than they can poke a stick at. The little operator that nobody paid attention to is now backed by the might of QF. (read they will crush anyone that gets in their way).
I suspect the NAA cost base would rival Alliances as well. If you thought J* conditions were bad go fly mining charter! Great move by QF and co. |
maybe this is where they may have to stick the Jetstar cadets for a year or two
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Skippers and Skywest are in more trouble than they can poke a stick at |
Geee, I sure hope that the Network guys and gals have passed the BS P&S crap to be able to fly an aircraft safely from A to B. Come to think of it, the Impulse guys didn't do that either. Did someone say minimum requirements?
What a load of bollocks :rolleyes: |
Smart move by QF, another seperate pilot group on board.:ugh: What's next for NAA? I bet C-Jets in the future to compete within/against the 'group' like Easterns & National Jet to name a few.:=
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Divide and Conquer!
I have heard rumours that Qantaslink is looking at putting a few Q400s over there. |
Wild prediction
The new hanger fits an A320 does it not? 320's will be the next type.
Good training ground for cadets or foreign pilots (cavok 24/7). Maintenance/spares/industrial back up/Jetstar Multiple reasons why it'll be 320. Maybe the Q400, who knows. Doesn't seem like anyone has piped up about the Geraldton route yet. Either way the WA previous "heavy weights" let NAA in and the rest is history. A pretty sweet revenge for a certain GM. I'd have to say that this would have to be the biggest news in the FIFO sector in 10 years. QF staff travel for the Network guys? Hmmm interesting times for Skippers I must say. Dare say NAA might be looking for a driver or three. When is the RIO contract up again? Cost base cost base cost base....Good luck! Lets see if GT will manage to avoid writing this one up! |
Latest QF Group Pilots Agreement
http://www.fwa.gov.au/documents/agre...N084663945.pdf
The rates of pay are blanked out. Anyone know what they are? |
Interesting stuff, both the Strategic A320s and the Skywest A320 are maintained out of the Network hangar.
Could be more strategic than you think... |
Interesting times ahead. Wonder what will happen to the B717 operation which is under contract to Cobham until 2012. If these aircraft were transferred to Network would the Tech and Cabin Crew likely to as well.
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If these aircraft were transferred to Network... "If you don't take a pay cut we will lose the contract" |
QF Flightboy & Icarus
Not that I do this any-more, but:
I reckon this move is the smartest thing I've (in my limited experience) seen a Commercial/National RPT Operator do since about 01/02 (well maybe 98/9 or there about's)- they now have (yes) another more or less "Greenfield" site and the ability to offer/leverage/value-add (hate those MBA terms) their 'Commercial' contract clients a 'Cradle to Destination' solution- check a bag from SA/the Pilbra, to where ever in the World you may imagine..........., and with the cost base to back it up- well done and best wishes to Lindsay and the Network family. The stinking old Fokker at circa 10tns less MTOW than the 71 (the Circa- I'll leave to those that know...), in an ANC/Landing Charge sense - will lift 107 Y Class vrs 117Y for the Boeing (and I'm not disparaging of it, at all)- push him out over an hr and the fuel will come back to/or under 1.8tn/hr and it'll punch beyond 6.5nm/min, or better pending what you're doing and who's driving............ Well done all- reckon you will have some fun over the next couple of years, and I'll be looking forward to watching the action and your endeavours.... Best Rgds 28- BE |
Wonder what will happen to the B717 operation Sort of like russian roulette with your career and mortgage. |
G'Day Hat
Pends where the advantage line is (in my opinion)- and I reckon the big QF might have found where the action is/was for the last 10yrs/or better, (I think they've seen it, but not understood it for a long time) and I don't think there's too far to go wrong (as they obviously know) in what they're prosecuting here. Not that I'm saying it's blue sky dreaming for all employed in the operation, on-site/or related. The brass is in the whole............. Do agree though- See you on the other thread 28- BE |
Mining charter - contract one day, unemployment office next. Sort of like russian roulette with your career and mortgage. Now if only Ruddy can kiss and make up with China we may get a few more years worth of export revenue...... |
IF you are sitting as a passenger. On the other side of the bullet proof door are pitiful conditions Cactus. Perth ain't cheap either!..and some of the property has gone backwards.
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IF you are sitting as a passenger. On the other side of the bullet proof door are pitiful conditions Cactus. Perth ain't cheap either!..and some of the property has gone backwards. I know of a couple of GA drivers who threw in the towel and traded in their under 45k flying jobs for 110k - 135k truck driving jobs in NQ. They figure if the boom goes bust they still have a 'flying trade' to fall back on.. Then again a bank CEO is also a wise choice of profession..... |
Spot on Cactus.
I'm keen to see if the pollies in the Senate can join the dots on people up the front making maccas wages and quality of applicants. Suspect not. Anyway good move QF. Think they've pulled VB's (zero investment in mining) pants down on this one. |
Expect B717's to disappear from WA skies with Cobham now a competitor
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Doubt the B717 will disappear from WA skies untill replaced by a new type eg-C series as QF own the Aircraft. Only leased and Managed by Cobham.
May replace the Fokker at Network tho. Guess time will tell.;) |
717's
as QF own the Aircraft. Only leased and Managed by Cobham. |
Here's a few to be going on with, ex the Register;
Civil Aviation Safety Authority - B712 Allco, Bavaria and SHIRE AVIATION AUSTRALIA PTY LTD Level 9 South 161 Collins Street MELBOURNE VIC 3000 AUSTRALIA Is that QF ???? |
I expect this will mean more undercutting of charter prices and lower pays all round. Well done Qantas... such cunning strategy. If you want to be a pilot... give up now and go to the mines. Aviation is becomming a subsistance career!
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undercutting of charter prices Genuine question - is the 717 still in production? |
Originally Posted by Mr. Hat
Genuine question - is the 717 still in production?
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From Thew West this morning:
Qantas buys mine-flight network GEOFFREY THOMAS, The West Australian December 14, 2010, 5:18 am Qantas is about to enter the competitive fly-in, fly-out market after buying local operator Network Aviation. The deal, flagged three months ago and announced yesterday, will dramatically change competition at Perth Airport, with Qantas using Network's established FIFO operation to fast-track its drive for a bigger slice of the WA market. Network has two 100-seat Fokker 100 jets and six 30-seat Embraer Brasilias turboprops and the fleet will be expanded. Airport insiders said yesterday Qantas was eyeing at least three Fokker 100s to add to the fleet. The WA Government announced last month that Qantas would be allowed to operate on the Perth-Exmouth route. The airline will also enter the Perth-Geraldton route, which is being deregulated. Qantas will add planes to its WA QantasLink operation for those services. Qantas chief executive Alan Joyce said the acquisition would provide Qantas Group with a new revenue stream and room for further diversification. "This will significantly enhance the scope of what Qantas can offer the mining sector, bringing new competition to the marketplace," he said. However, Qantas will find it tough going. Many key resource contracts are tied up for years with operators such as Skywest. |
Come on GT, report the facts :
The WA Government announced last month that Qantas would be allowed to operate on the Perth-Exmouth route. |
Its a long shot but...
Airport insiders said yesterday Qantas was eyeing at least three Fokker 100s to add to the fleet. DUXNUTS you there? Mention of 3 F100's in both.. Uncanny. Pretty quick fleet expansion if its true!! Might be a few F100 jobs going over at NAA...with QF staff travel? Prediction: NAA F100 jobs will become highly sort after. Quick commands for people with time on type to.. Next prediction is the ad in Fridays Australian/AFAP jobs. However, Qantas will find it tough going. Many key resource contracts are tied up for years with operators such as Skywest. Somehow I suspect QF won't be finding it tough going. Being Australia's largest airline and having bought a company with one of the lowest cost bases. Pretty obvious outcome here! |
After current contracts are completed, new entitiy kept ticking over for "a rainy day."
It doesn't rain, it pours. Jetstar WA blooms. |
Very interesting development this, as it appears that Qantas still have some buying to do. Alliance Airlines have been doing Qantas flying for some time now and has also been looking for a new partner, or total sale for the right price. They are the largest Fokker operator in the southern hemisphere, with a fleet of 21 F100's and 6 F50's. The new boss of Qantas understands very well how lucrative FIFO contracts can be, as the on carriage travel requirements are huge. My source in Perth, tells me that Alliance is on the verge of becoming a wholly owned subsidiary of Qantas. Between Alliance, Cobham, and now Network, Qantas would have an almost untouchable majority chunk of the Australian FIFO work, and for a relatively small outlay!
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:= not entirely true as cobham's fifo operations (murrin, barrow etc) with the blue tail fleet operate independently of QF and separate to the crew and operating arrangements for the red-tail B717 fleet...
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I believe Cobham are more interested in the Dash 8 and 146 operation than the RPT. They inherited the RPT from NJS when they bought the surveillance contract, which is in reality, what they were after.
Just quietly I think they would be happy to offload it and break the contract if given the opportunity. They can then devote the resources to the money making flying with guaranteed yield (why do you think QF are chasing the FIFO!). Expect more Fokkers! (Personally I much prefer flying in them to the 170/190 and 717) GG |
guaranteed yield |
Norm' and Cactis...would you entertain the thought that these blokes get paid more than the Eastern state blokes already?
Well bend over ****knuckles, 'cause this market is a whole new ballgame, and in no way similar to the Impulse buy-out/sell-out of earlier Mr Hat....yeah....you have been too right before, and again on the money, me thinks ( Paino, I'm still not smiling tho ) |
Yes indeedy and VB caught napping on that one... Fokkers and 717's are the perfect size workhorse for WA, QF Group know the benefits of the 717 particularly. DJ are out of the loop unless they shore up a synergy or buy somebody out like Alliance or Cobham, but as Mr Hat said, too late. |
Cheers TAC just seems to fit the bill for QF doesn't it? I find the whole thing quite interesting. It could be a significant move for QF that could potentially monopolise the FIFO sector altogether.
Oleo, how VB has just sat and watched the mining boom come go and now come again makes me scratch my head. In the mean time the Q400 rakes massive coin in on the east coast left unchallenged by any competitor... truly amazing. The golden cash cows (Alliance/Network/Cobham) are gone. Very interesting. |
Cheers TAC just seems to fit the bill for QF doesn't it? I find the whole thing quite interesting. It could be a significant move for QF that could potentially monopolise the FIFO sector altogether. |
Hat,
Garbage!!!!!!!!!! For Cobham Gorgon project is worth @ 150 Mill and committed until 2017. HWE committed for another 4 years Murrin Rio @ Brockman/Bulgeeda Kambalda etc etc. To say that the "cash cows" are gone is utter crap. Esp WRT Cobham. You will not find a more diversified, cost efficient and tightly run outfit. Don't believe all the propaganda out there. |
Yep meant to say
You will not find a more diversified, cost efficient and tightly run outfit. Called spot on and garbage in one thread. My work is done:ok: Off to bed! |
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