Skywest airborne again!!!!!!!!!!!!!!
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Skywest airborne again!!!!!!!!!!!!!!
At approx. 1300 hrs Perth time it was announced to-day (21/9/01) that the Federal Liberal govt. was providing a $3.1 mill. line of credit (repayable at commercial interest rates in 1 year) in order to get Skywest flying again in W.A.
Gallop has really stuffed this one BIG TIME!!!
A Federal LIBERAL govt. has bailed out a state regional operator in a Labour run state.
The political kudos is invaluable for Johnnie and co. and all for a paltry 3.1 loan that will be repaid in 12 months!!!!!!!!
Whatever could the good Dr. Gallop have been thinking.
He has a large amount of egg on his face and will be lucky to survive the next two years in office, if he keeps this sort of crap up.
Gallop has really stuffed this one BIG TIME!!!
A Federal LIBERAL govt. has bailed out a state regional operator in a Labour run state.
The political kudos is invaluable for Johnnie and co. and all for a paltry 3.1 loan that will be repaid in 12 months!!!!!!!!
Whatever could the good Dr. Gallop have been thinking.
He has a large amount of egg on his face and will be lucky to survive the next two years in office, if he keeps this sort of crap up.
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just goes to prove a point then dont it, My refueler told me about this at 13:25.......so those refueler guys really do know whats going on in the place. 
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Its great to see that finally someone has come to their senses!
I am of the understanding that Skywest is a profitable string in Ansett's bow. So why wouldnt the Gallop Government give them a loan???? Especially considering they announced they would spend $5 mil on tourism advertising.
GEOFF.......NO POINT SPENDING MONEY ON ADVERTISING IF THE BLOODY PUBLIC CANT GET TO THE PLACES YOU ADVERTISE!!!!!!!!!!
Good to see some jobs have been saved and sanity has prevailed. Well done for this JH
I am of the understanding that Skywest is a profitable string in Ansett's bow. So why wouldnt the Gallop Government give them a loan???? Especially considering they announced they would spend $5 mil on tourism advertising.
GEOFF.......NO POINT SPENDING MONEY ON ADVERTISING IF THE BLOODY PUBLIC CANT GET TO THE PLACES YOU ADVERTISE!!!!!!!!!!
Good to see some jobs have been saved and sanity has prevailed. Well done for this JH
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I got a hundred dollars that says they don't make it to Christmas.
From what I hear and read 40 odd % of the trafic and a higher %age of the revenue business is now in other hands.
Young Geoffrey had better keep some of his tourist mobs $5 million for a subsidy on the routes that have always needed them.
Who's going to feed them without Ansett and the OS market isn't coming anytime soon.
There are some fundamental realities about the air services in this state that no amount of rallies and feel good revving up are going to change any time soon without continual Govt support.
From what I hear and read 40 odd % of the trafic and a higher %age of the revenue business is now in other hands.
Young Geoffrey had better keep some of his tourist mobs $5 million for a subsidy on the routes that have always needed them.
Who's going to feed them without Ansett and the OS market isn't coming anytime soon.
There are some fundamental realities about the air services in this state that no amount of rallies and feel good revving up are going to change any time soon without continual Govt support.
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CST
I sincerely hope you are.
Back in the long, long, long ago, I was one of the people who helped set up the organisation that ultimately became Skywest and I'm not talking about the 80's either.
As much as Skywest have good ones I stopped going to other peoples Christmas parties a long time ago. IMHO they really should be family affairs.
Hope you have a good one, just don't forget to invite Mr Howard and young Geoffrey.
I sincerely hope you are.
Back in the long, long, long ago, I was one of the people who helped set up the organisation that ultimately became Skywest and I'm not talking about the 80's either.
As much as Skywest have good ones I stopped going to other peoples Christmas parties a long time ago. IMHO they really should be family affairs.
Hope you have a good one, just don't forget to invite Mr Howard and young Geoffrey.
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Gaunty,
your negative comments are NOT welcome at this point in time.Basically the aviation industry the WORLD over needs positive spin at the moment.
However if you are referring to Mr G.T.'s
comments on mining contracts I would like to say this:
a) You would be one of the few people in aviation circles that take Mr T's comments seriously, as he is often wrong and his comments are only HIS opinion at the end of the day.
b) IF some of the mining contracts have been lost to other parties, the loss financially to YT has been made all the less by the actions of a certain CEO (who no longer works there)because over progressive years he pared the tenders and retenders down so close to the financial bone that at this point in time Skywest were NOT making a huge killing dollar wise. In these uncertain times it frees up aircraft and crews for other uses.
THESE ARE THE FACTS.
your negative comments are NOT welcome at this point in time.Basically the aviation industry the WORLD over needs positive spin at the moment.
However if you are referring to Mr G.T.'s
comments on mining contracts I would like to say this:
a) You would be one of the few people in aviation circles that take Mr T's comments seriously, as he is often wrong and his comments are only HIS opinion at the end of the day.
b) IF some of the mining contracts have been lost to other parties, the loss financially to YT has been made all the less by the actions of a certain CEO (who no longer works there)because over progressive years he pared the tenders and retenders down so close to the financial bone that at this point in time Skywest were NOT making a huge killing dollar wise. In these uncertain times it frees up aircraft and crews for other uses.
THESE ARE THE FACTS.
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Gaunty is exactly correct I'm afraid.
It doesnt matter what GT has written in the West Australian... the simple fact is all of the mining contracts who used to work through Skywest have simply signed on with other operators. All it takes is a trip to the airport to see how busy Skippers, Network and many smaller companies are.
How can Skywest be profitable flying only to places like Albany, Esperance, Exmouth... it is a well known fact that they were only profitable because of the mining contracts they had.
Many of the non-mining routes were relying heavily on tourism... have a look at the sad state WA tourism is in at the moment.
It looks like the funding came about 6 days too late. I've got no idea how Skywest expect to pay back $3 million in a year.
Outback Aviator, I don't think Gaunty is making an opinionated negative comment he is only stating fact. Sure, it would be nice to see Skywest flying again, but they will never be the same... I think the public have lost alot of confidence in handing money over to an operator flying an Ansett logo on their aircraft.
However, I do hope things work out for Skywest pilots and F/A's.
[ 22 September 2001: Message edited by: EMB Bras ]
It doesnt matter what GT has written in the West Australian... the simple fact is all of the mining contracts who used to work through Skywest have simply signed on with other operators. All it takes is a trip to the airport to see how busy Skippers, Network and many smaller companies are.
How can Skywest be profitable flying only to places like Albany, Esperance, Exmouth... it is a well known fact that they were only profitable because of the mining contracts they had.
Many of the non-mining routes were relying heavily on tourism... have a look at the sad state WA tourism is in at the moment.
It looks like the funding came about 6 days too late. I've got no idea how Skywest expect to pay back $3 million in a year.
Outback Aviator, I don't think Gaunty is making an opinionated negative comment he is only stating fact. Sure, it would be nice to see Skywest flying again, but they will never be the same... I think the public have lost alot of confidence in handing money over to an operator flying an Ansett logo on their aircraft.
However, I do hope things work out for Skywest pilots and F/A's.
[ 22 September 2001: Message edited by: EMB Bras ]
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EMBBras
Thank you. Been there done that and know exactly what the consequences are.
and
outback driver,
There is a bit of a difference between negative comment and reality, which has been in short supply in the state for some time.
AND
"spin" positive, negative or otherwise is exactly NOT what the world, especially the aviation part, needs now.
The "spin" to which you refer is exactly what spun Ansett into trouble in the first place until reality KOed them.
Being a non combatant with a tad of experience in these matters, I am not anti Skywest neither do I have any personal or business agenda to push, .
I am though concerned, that between the political, staff, local community groups, action group agendas and all the rhetoric and shouting that nobody seems to want to push the big red reality button.
The language that is being used by the pollies is worth studying in some detail and taking the Queens shilling just to try and stay employed and vowing to make it up as you go along will inevitably lead to tears.
The 3 million dollar loan and the 5 million dollar tourist budget are not the answer.
Short term maybe, but unless someone has a carefully constructed business plan predicated on the NEW world reality and the lack of mining contracts, beyond getting the planes flying I fear we will be having this discussion again sooner than later.
I really do wish you luck, but luck isn't whats needed.
Cold hard, flinty eyed, bottom line number crunching is.
Thank you. Been there done that and know exactly what the consequences are.
and
outback driver,
There is a bit of a difference between negative comment and reality, which has been in short supply in the state for some time.
AND
"spin" positive, negative or otherwise is exactly NOT what the world, especially the aviation part, needs now.
The "spin" to which you refer is exactly what spun Ansett into trouble in the first place until reality KOed them.
Being a non combatant with a tad of experience in these matters, I am not anti Skywest neither do I have any personal or business agenda to push, .
I am though concerned, that between the political, staff, local community groups, action group agendas and all the rhetoric and shouting that nobody seems to want to push the big red reality button.
The language that is being used by the pollies is worth studying in some detail and taking the Queens shilling just to try and stay employed and vowing to make it up as you go along will inevitably lead to tears.
The 3 million dollar loan and the 5 million dollar tourist budget are not the answer.
Short term maybe, but unless someone has a carefully constructed business plan predicated on the NEW world reality and the lack of mining contracts, beyond getting the planes flying I fear we will be having this discussion again sooner than later.
I really do wish you luck, but luck isn't whats needed.
Cold hard, flinty eyed, bottom line number crunching is.
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I wasn't going to bother to reply to your version of the facts EB but for the sake of accuracy I feel that something should be said.
Let us take your points one at a time shall we?
1) The simple fact that the other operators carried the mining passengers for 1 week and it was an interim arrangement anyway until things were sorted out at Skywest.As already stated the profit made on the mining contracts was slim at the best of times, and the notion that the RPT services were being cross subsidised by the mining contracts is laughable to say the least.
2)Your second query is on the services provided to Albany,Esperance and Exmouth.
On the subject of Albany,in the bad old days of the J31,Skywest used to put 18 seats into Albany, now on some days eg.Friday they put 138 seats into the place, and its not done for fun, its because the traffic and passenger demand is there.
Esperance is a low demand route and therefore a low profit margin run, but I have often carried 30+ on non school holiday, week day flights.
Exmouth is a good steady provider of passenger and freight, to the extent that some days the Fokker is chokker and you can't squeeze another item on.
I notice that you don't mention Geraldton as one of Skywest's ports and the fact is that that single port alone somedays receives five services.
Other destinations such as Carnarvon and Kalgoorlie are in the same category as Exmouth.
The bottom line is that we don't go to these places for FUN, they make money.
3)Many of the non-mining routes rely on tourism and there are no tourists.
WRONG, the tourists are not travelling overseas because of apprehension and the unstable state of the globe.
Do you think that w.a. tourists are any different?
4)Finally you do say something that is accurate ie. "I've got no idea", but the administrator and Skywest accountants do and after inspection of the accounts have been satisfied that Skywest will repay the line of credit in one year.
Otherwise the administrator would not let Skywest recommence services.Remember it was he (the administrator) that approached the deputy P.M.
5)Do you really think that Skywest has the same operating costs of an Ansett operation,
pilots,f/a's engineers and all other employees salaries are all less than their counterparts in Ansett were and all other areas are similarly costed.
I actually think that you are correct when you say that they will never be the same,but I think that we differ on what the final form is they take.
By the way, long do you think that the Ansett logo will be on the tail????
Have a nice day.
Let us take your points one at a time shall we?
1) The simple fact that the other operators carried the mining passengers for 1 week and it was an interim arrangement anyway until things were sorted out at Skywest.As already stated the profit made on the mining contracts was slim at the best of times, and the notion that the RPT services were being cross subsidised by the mining contracts is laughable to say the least.
2)Your second query is on the services provided to Albany,Esperance and Exmouth.
On the subject of Albany,in the bad old days of the J31,Skywest used to put 18 seats into Albany, now on some days eg.Friday they put 138 seats into the place, and its not done for fun, its because the traffic and passenger demand is there.
Esperance is a low demand route and therefore a low profit margin run, but I have often carried 30+ on non school holiday, week day flights.
Exmouth is a good steady provider of passenger and freight, to the extent that some days the Fokker is chokker and you can't squeeze another item on.
I notice that you don't mention Geraldton as one of Skywest's ports and the fact is that that single port alone somedays receives five services.
Other destinations such as Carnarvon and Kalgoorlie are in the same category as Exmouth.
The bottom line is that we don't go to these places for FUN, they make money.
3)Many of the non-mining routes rely on tourism and there are no tourists.
WRONG, the tourists are not travelling overseas because of apprehension and the unstable state of the globe.
Do you think that w.a. tourists are any different?
4)Finally you do say something that is accurate ie. "I've got no idea", but the administrator and Skywest accountants do and after inspection of the accounts have been satisfied that Skywest will repay the line of credit in one year.
Otherwise the administrator would not let Skywest recommence services.Remember it was he (the administrator) that approached the deputy P.M.
5)Do you really think that Skywest has the same operating costs of an Ansett operation,
pilots,f/a's engineers and all other employees salaries are all less than their counterparts in Ansett were and all other areas are similarly costed.
I actually think that you are correct when you say that they will never be the same,but I think that we differ on what the final form is they take.
By the way, long do you think that the Ansett logo will be on the tail????
Have a nice day.
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Well I see we have 2 experts in aviation finance and contracts. Anyone that belives in a contract in aviation probably belives in the tooth fairy as well. We all know that things change so quickly that todays deal is tomorrows chip paper. But I suppose when you quote some journo's you have to expect that. Nice to see that things have changed today.
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More optimistic news: Hazelton have been back in the air for the last few days.
Good luck to all who have been affected. There are no winners in this situation, but let's hope for an honourable draw.
Good luck to all who have been affected. There are no winners in this situation, but let's hope for an honourable draw.
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Hey Gaunty and co who knock YT . The beers have been running for cover since the announcement on Friday. 
And they will continue to run for cover as Skywest prospers once Qantas buy them in the next month or two. Of course as Outback Aviator has noted , you would have to be an expert on load factors and the like.
This is not borne out of subjective parochialism but the basic facts. Skywest have, do and will operate a succesful regional airline because they don't have the suffocating costs that Ansett have had. How on earth did Skywest net $600,000 profit in July/August this finyear???????????????????
Skywest management have succesfully cut the umbilical chord this week which had actually been tightening around the neck. And has probably already been stated the administrator would not have let them restart unless a sound business model was presented.
GAUNTYI'll take ya hundred now so I can put it towards the chrissie party **** fund and EMB BRAS your'e obviously a disgruntled recent UNSUCCESFUL interview candidate.
ps: if you thgink my spellings bad u should c my handriting.
LIVES ON AND ON...
And they will continue to run for cover as Skywest prospers once Qantas buy them in the next month or two. Of course as Outback Aviator has noted , you would have to be an expert on load factors and the like.
This is not borne out of subjective parochialism but the basic facts. Skywest have, do and will operate a succesful regional airline because they don't have the suffocating costs that Ansett have had. How on earth did Skywest net $600,000 profit in July/August this finyear???????????????????
Skywest management have succesfully cut the umbilical chord this week which had actually been tightening around the neck. And has probably already been stated the administrator would not have let them restart unless a sound business model was presented.
GAUNTYI'll take ya hundred now so I can put it towards the chrissie party **** fund and EMB BRAS your'e obviously a disgruntled recent UNSUCCESFUL interview candidate.
ps: if you thgink my spellings bad u should c my handriting.
LIVES ON AND ON...
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Nice one Keg!
It is all very early days boys and girls. It's been just over a week and a half, but it seems like forever. Skywest is a very safe professional, and highly respected airline that has a very loyal and supportive passenger base throughout WA. With all the work that all employees of Skywest(and others from all AN related unions - Good on you all as well!) have done over the pass week, I think that the company will bounce back better than ever. There might be certain changes and maybe routes and schedules will alter, but I strongly belive that if the company, once back at full steam and them some, will do very well. It is hopefully a start for all the rest of the blue tails. If it can kick some goals in the coming weeks and put the points on the board, then I hope it will be a start for more to follow for the rest of the group. I wish that the governments both state and federal would do the same for any Ansett route, if it makes money, help it out to generate money and move people that need to move, rather than sitting on the ground and doing more harm than good. Now that Skywest is up and running the immediate pressure for a buyer is not as great, with the bussiness running, they, the prospective buyers, will be able to see how much more of a good thing most of the group is, rather than speculating on what-if's while Air NZ hide the books to try and paint a worse picture than it really is. (78% load factor for the AN group / 67% for NZ group? Aussie dollar 20% stronger? There's some simple maths right there.)
Keep it up guys, we all know it's worth saving for the country and the industry!
[ 23 September 2001: Message edited by: Stick Pusher ]
It is all very early days boys and girls. It's been just over a week and a half, but it seems like forever. Skywest is a very safe professional, and highly respected airline that has a very loyal and supportive passenger base throughout WA. With all the work that all employees of Skywest(and others from all AN related unions - Good on you all as well!) have done over the pass week, I think that the company will bounce back better than ever. There might be certain changes and maybe routes and schedules will alter, but I strongly belive that if the company, once back at full steam and them some, will do very well. It is hopefully a start for all the rest of the blue tails. If it can kick some goals in the coming weeks and put the points on the board, then I hope it will be a start for more to follow for the rest of the group. I wish that the governments both state and federal would do the same for any Ansett route, if it makes money, help it out to generate money and move people that need to move, rather than sitting on the ground and doing more harm than good. Now that Skywest is up and running the immediate pressure for a buyer is not as great, with the bussiness running, they, the prospective buyers, will be able to see how much more of a good thing most of the group is, rather than speculating on what-if's while Air NZ hide the books to try and paint a worse picture than it really is. (78% load factor for the AN group / 67% for NZ group? Aussie dollar 20% stronger? There's some simple maths right there.)
Keep it up guys, we all know it's worth saving for the country and the industry!
[ 23 September 2001: Message edited by: Stick Pusher ]
Some of you need to step onto the earth once in a while.
So Skywest made a profit - great!
But, more than a little of this has been as a result of regional airport operators waiving airport pax taxes at certain times of year. In one case this was $65,000 worth,
and it's more than debatable whether it received a quid pro quo!
We all hope the new Skywest can make it, but remember that the bottom line is not just due to load factors.
So Skywest made a profit - great!
But, more than a little of this has been as a result of regional airport operators waiving airport pax taxes at certain times of year. In one case this was $65,000 worth,
and it's more than debatable whether it received a quid pro quo!
We all hope the new Skywest can make it, but remember that the bottom line is not just due to load factors.
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As much as some of you would like to see Skywest go under its not! The work put in by the management and staff and the team spirit had to be seen to be believed. As for the "Aviation writer" who thrived on stating "facts" without even bothering to consult those who were supposedly affected, perhaps you should consider writing a fiction novel.
Once again I hope none of us forget the 10s of 1000's of people out of work.
Once again I hope none of us forget the 10s of 1000's of people out of work.
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The Keg
Love your gif.
I dont recall actually knocking Skywest. I do recall wishing them well.
I also recall trying to point out that for all the rah rah it's not going to be easy.
I have not been so much as amazed at the way the staff have rallied, as astonished that everybody seems to think that Ansett and I guess that includes Skywest has a special case for rescue.
In another part of my life the HIH debacle is causing a whole lot more angst but is much less visible.
Somebody drove then into the ground and AirNz didn't do it on their own. They simply took the sucker bet.
Profit is a very slippery thing and to separate Skywest out of the Ansett umbrella in "profit" terms would be a very interesting exercise indeed.
Any way the real underlying issue in my opinion is, that if the Governments, Federal and State, haven't worked out by now that they must reregulate the Australian aviation industry and support/subsidise rural and remote areas, then they are on a different planet than I am.
I was watching the boss of the Australian Hotels Assoc. suggesting that in this State alone they were facing losses of over $200,000,00 by Christmas as a result of Ansetts demise. That could only be the tip of the ice berg.
It is fairly obvious that the free market in this sense can only bring tears and the that pivotal position aviation holds in this country cannot be left to capital strippers and corporate rapists, without some form of supervision.
The bells were ringing at Christmas when the regulator had to step in to do their safety thing, but there was no financial oversight (unlike HIH where there was, but which for one reason or another failed) to protect the staff and other industries that rely on air transport.
This country is simply not big enough to support more than 2 max 3 interstate carriers and more than 1 carrier across any regional route.
I distinctly recall Skywest as being one of the more vocal on these and other matters in the past.
That there is always some bright starry eyed hopeful prepared to give it a go (usually with someone elses money) in these areas without subsidy or support and eagerly latched onto by Government like a drowning man, when others pull out, simply demonstrates the Pollyanna syndrome that pervades the industry.
That Govt had to stump up the money says a lot.
It seems that it was a golden opportunity for the staff to take some ownership of the problem, $3,000,000 should not have been too difficult to have found in cash or kind.
It would only require some real commitment.
In the matter of Qantas buying Skywest, well that remains to be seen, they simply don't need to and in any event might have a problem with that Fels character.
Oh and BTW I hope the "you can't believe how glad we are to have you on board" lasts a little bit longer than usual.
That is an everyday requirement nowadays for succesful companies.
Ah well here we go, back to the future again.
Love your gif.
I dont recall actually knocking Skywest. I do recall wishing them well.
I also recall trying to point out that for all the rah rah it's not going to be easy.
I have not been so much as amazed at the way the staff have rallied, as astonished that everybody seems to think that Ansett and I guess that includes Skywest has a special case for rescue.
In another part of my life the HIH debacle is causing a whole lot more angst but is much less visible.
Somebody drove then into the ground and AirNz didn't do it on their own. They simply took the sucker bet.
Profit is a very slippery thing and to separate Skywest out of the Ansett umbrella in "profit" terms would be a very interesting exercise indeed.
Any way the real underlying issue in my opinion is, that if the Governments, Federal and State, haven't worked out by now that they must reregulate the Australian aviation industry and support/subsidise rural and remote areas, then they are on a different planet than I am.
I was watching the boss of the Australian Hotels Assoc. suggesting that in this State alone they were facing losses of over $200,000,00 by Christmas as a result of Ansetts demise. That could only be the tip of the ice berg.
It is fairly obvious that the free market in this sense can only bring tears and the that pivotal position aviation holds in this country cannot be left to capital strippers and corporate rapists, without some form of supervision.
The bells were ringing at Christmas when the regulator had to step in to do their safety thing, but there was no financial oversight (unlike HIH where there was, but which for one reason or another failed) to protect the staff and other industries that rely on air transport.
This country is simply not big enough to support more than 2 max 3 interstate carriers and more than 1 carrier across any regional route.
I distinctly recall Skywest as being one of the more vocal on these and other matters in the past.
That there is always some bright starry eyed hopeful prepared to give it a go (usually with someone elses money) in these areas without subsidy or support and eagerly latched onto by Government like a drowning man, when others pull out, simply demonstrates the Pollyanna syndrome that pervades the industry.
That Govt had to stump up the money says a lot.
It seems that it was a golden opportunity for the staff to take some ownership of the problem, $3,000,000 should not have been too difficult to have found in cash or kind.
It would only require some real commitment.
In the matter of Qantas buying Skywest, well that remains to be seen, they simply don't need to and in any event might have a problem with that Fels character.
Oh and BTW I hope the "you can't believe how glad we are to have you on board" lasts a little bit longer than usual.
That is an everyday requirement nowadays for succesful companies.
Ah well here we go, back to the future again.