KD to become Virgin Express????
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KD to become Virgin Express????
Well sportsfans - It seems to me that DJ has the perfect opportunity to grab a feeder network at a bargain price - complete with full infrastucture and a modern fleet of CRJs and SF3s - maybe lose the SWM equipment.
KD while run by the good gals and guys in WGA was performing well. It lost the plot only on the runs that AN (read NZ - The Shame of the Pacific) had yield control over.
The KD network could be switched on again in around 48 hours. CRJs would look good in red livery too!!!
What do you reckon punters??? It would be excellent to see the jewel in the crown of a fallen monarch back - in any form less a few dead loss runs however.
I know I will be applying for the DPO and WNY ground handling contracts. Oooooooooh yeah!!!!
This little black duck NEEDS an airline to hang his hat on.
Best to all
EWL
KD while run by the good gals and guys in WGA was performing well. It lost the plot only on the runs that AN (read NZ - The Shame of the Pacific) had yield control over.
The KD network could be switched on again in around 48 hours. CRJs would look good in red livery too!!!
What do you reckon punters??? It would be excellent to see the jewel in the crown of a fallen monarch back - in any form less a few dead loss runs however.
I know I will be applying for the DPO and WNY ground handling contracts. Oooooooooh yeah!!!!
This little black duck NEEDS an airline to hang his hat on.
Best to all
EWL
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If it means my mates at KD get a guernsey and can go back to doing what they do best - it cant be a bad thing Eagle.
Sad times indeed.
Our world has changed forever in so many ways.
EWL
Sad times indeed.
Our world has changed forever in so many ways.
EWL
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KD for VB is an interesting idea. It will remain, however, just that...an idea. VB currently is a little company of 450 staff with 10 aircraft, comprising a mix of old and cheap 737-400's and new 737-7/800's. Yes, with the likely ultimate demise of Ansett, it will grow by chasing business on the populous trunk routes.
Kendell in contrast is a regional airline with disproportionately huge debts. Kendell's true debts, because it's accounts are interwoven with it's parent, may not be known to the administrators for weeks. Lets take a guess though. There are 12 CRJ's, which are all new and were bought for around $20million USD each. With the current exchange rate those aircraft alone represent a debt of around $500million (AUD), then there are 15 Saab's and 6 or 7 Metro 23's. Conservatively, these aircraft (all with differing residual values) collectively are likely to be valued (by the administrator looking for top dollar),at around $70 to $75 million AUD.
Kendell currently employs around 1,200 staff and it's infrastructure costs (compared with VB) are vast and expensive. I wouldn't be surprised to see the administrator ultimately value the Kendell liability at $750 million (AUD). That is nearly a third of the total liability of the Ansett group as it currently stands!!
Australia's aviation servicing requirements are unique because of this country's sparse population. Kendell, is currently both over-engineered (in an organisational sense)and overcapitalised to the point where it's current cost structure would not return a profit to a new owner for a very...very long time.
Ansett tried the CRJ on secondary domestic routes and failed miserably. Where then would you use the CRJ? Below 300 to 500 miles in this country the turboprop is king because all regional markets are so very price sensitive, and Saab 340's because they don't have an APU do not do well operating in QLD during summer.
What could VB do with Kendell airlines in it's current form, bearing in mind the administrator would definitely want to sell it as a total entity in order to raise the most cash to pay the creditors???
Think before you write!!
The Oracle
Kendell in contrast is a regional airline with disproportionately huge debts. Kendell's true debts, because it's accounts are interwoven with it's parent, may not be known to the administrators for weeks. Lets take a guess though. There are 12 CRJ's, which are all new and were bought for around $20million USD each. With the current exchange rate those aircraft alone represent a debt of around $500million (AUD), then there are 15 Saab's and 6 or 7 Metro 23's. Conservatively, these aircraft (all with differing residual values) collectively are likely to be valued (by the administrator looking for top dollar),at around $70 to $75 million AUD.
Kendell currently employs around 1,200 staff and it's infrastructure costs (compared with VB) are vast and expensive. I wouldn't be surprised to see the administrator ultimately value the Kendell liability at $750 million (AUD). That is nearly a third of the total liability of the Ansett group as it currently stands!!
Australia's aviation servicing requirements are unique because of this country's sparse population. Kendell, is currently both over-engineered (in an organisational sense)and overcapitalised to the point where it's current cost structure would not return a profit to a new owner for a very...very long time.
Ansett tried the CRJ on secondary domestic routes and failed miserably. Where then would you use the CRJ? Below 300 to 500 miles in this country the turboprop is king because all regional markets are so very price sensitive, and Saab 340's because they don't have an APU do not do well operating in QLD during summer.
What could VB do with Kendell airlines in it's current form, bearing in mind the administrator would definitely want to sell it as a total entity in order to raise the most cash to pay the creditors???
Think before you write!!
The Oracle
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THE ORACLE, VB has 850 employees and with the exeption of two aircraft the -400's are not as old as most of KD's Saabs. There seems to be this idea running around that VB's low fares must mean old aircraft ( -400's anyway ). As for the rest I agree, I doubt we would be interested in buying KD, doesn't fit the business plan as we know it. Might be room for a marketing agreement between us though.
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Oracle - all taken onboard and wise words.
However - a feederline IS needed for DJ - and with some hard bargaining a good price could be reached - alternative for AN administrators is sell off the assetts at bargain basement prices.
KD have the bonus of few directly employed staff and Route Agents handling their aircraft. This will mean minimal liability for DJ if they do take them on. The Tasmanian market alone is 25% oncarriage to other ports on average - and small as it is - would not hurt the overall figures. Many of their other ports would be the same.
We live in interesting times Oracle.
Looks like NZ has bought the farm too.
****** - They own Jetset.
Regards
EWL
However - a feederline IS needed for DJ - and with some hard bargaining a good price could be reached - alternative for AN administrators is sell off the assetts at bargain basement prices.
KD have the bonus of few directly employed staff and Route Agents handling their aircraft. This will mean minimal liability for DJ if they do take them on. The Tasmanian market alone is 25% oncarriage to other ports on average - and small as it is - would not hurt the overall figures. Many of their other ports would be the same.
We live in interesting times Oracle.
Looks like NZ has bought the farm too.
****** - They own Jetset.
Regards
EWL
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IMHO, Any buyer considering KD would need to know precisely which routes he would be buying.
KD Services or KD and AN Services on which the crj's and other aircraft operate the services under the AN Flight No. This info is critical to an offer.
If the situation was such that all of the flights that existed immediatly before administration were assured to a new buyer then my sums suggest a capital of $1 ,ooo,ooo,ooo.oo, to buy outright the crj's, look at obtaining some SF 340a/b and Metro replacemnts and buy Hazelton and Aeropelican all together in the one package.
I am sure this will provide some food for thought. I have not examined or do I know enough about Skywest and in particular the F50's which were originally bought fo operations in NSW.
However it could well be worth uping the anti and include a bid for Skywest as well.
[ 24 September 2001: Message edited by: rpt2 ]
KD Services or KD and AN Services on which the crj's and other aircraft operate the services under the AN Flight No. This info is critical to an offer.
If the situation was such that all of the flights that existed immediatly before administration were assured to a new buyer then my sums suggest a capital of $1 ,ooo,ooo,ooo.oo, to buy outright the crj's, look at obtaining some SF 340a/b and Metro replacemnts and buy Hazelton and Aeropelican all together in the one package.
I am sure this will provide some food for thought. I have not examined or do I know enough about Skywest and in particular the F50's which were originally bought fo operations in NSW.
However it could well be worth uping the anti and include a bid for Skywest as well.
[ 24 September 2001: Message edited by: rpt2 ]
KD is basically stuffed on the East Coast, simply because they compete directly with QF on most routes they operate. This has been proven already by the way in which Hazo's, Pelican and Skywest have all gotten up and running, while KD is still in limbo. The links between AN and KD were stronger than at any other regional, and as such, they will have to go together.
Take KD's Sydney operations for example - their largest Saab base. They operated the Saab to Canberra, Coffs, Wagga, Albury and to a lesser extent Ballina. All of these routes are now operated by QantasLink, and the Canberra run is just a shuttle for AN. The CBR run was without doubt their biggest money spinner, and without the support of AN and the associated oncarriage, it would be worthless. Passengers (except business travellers) do not tend to fly CBR-SYD. It just isn't worth it, they may as well drive. But pax do fly CBR-SYD-PER or CBR-SYD-HKG, so without the links to AN, KD would be nothing.
I believe that KD will have to go with AN, whichever way that may be. If AN was to start-up again, then they would love to have a regional such as KD providing the oncarriage.
Cheers,
TL
Take KD's Sydney operations for example - their largest Saab base. They operated the Saab to Canberra, Coffs, Wagga, Albury and to a lesser extent Ballina. All of these routes are now operated by QantasLink, and the Canberra run is just a shuttle for AN. The CBR run was without doubt their biggest money spinner, and without the support of AN and the associated oncarriage, it would be worthless. Passengers (except business travellers) do not tend to fly CBR-SYD. It just isn't worth it, they may as well drive. But pax do fly CBR-SYD-PER or CBR-SYD-HKG, so without the links to AN, KD would be nothing.
I believe that KD will have to go with AN, whichever way that may be. If AN was to start-up again, then they would love to have a regional such as KD providing the oncarriage.
Cheers,
TL
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rpt2
The F50s were actually bought to go up against the EW F27-500s on BWT (then WNY) and DPO as well as for the WX fleet and were an unqualified disaster with tech problems ranging from airframe within the tail breaking to the 20 tonne glider incident over Warragamba dam when both engine air intakes iced up and the noise stopped both sides. Poorly executed aeroplane that was pumped out in a hurry in an attempt to save a failing Fokker by extrapolating F27 results onto an turboprop that cruised at FL290.
They were then duly palmed off on YT when it was glommed by Abels and co.
Unravelling the KD route structure is quite complex, as some routes were operated by KD on AN flight numbers, and others came under AN control. DPO - BWT - MIM - OLP - KNS - WGA - ABX - CFS and BNK were KD controlled - the others flown by KD under AN control and yield management.
A prospective buyer would probably not even want to consider any of the Tas routes - Maybe just maybe LST and HBA also BNK - CFS - and CBR but with some of the routes in the AN camp formerly operated with KD aeroplanes - how do you unravel it?
I do not envy the administrator his job one little bit.
EWL
The F50s were actually bought to go up against the EW F27-500s on BWT (then WNY) and DPO as well as for the WX fleet and were an unqualified disaster with tech problems ranging from airframe within the tail breaking to the 20 tonne glider incident over Warragamba dam when both engine air intakes iced up and the noise stopped both sides. Poorly executed aeroplane that was pumped out in a hurry in an attempt to save a failing Fokker by extrapolating F27 results onto an turboprop that cruised at FL290.
They were then duly palmed off on YT when it was glommed by Abels and co.
Unravelling the KD route structure is quite complex, as some routes were operated by KD on AN flight numbers, and others came under AN control. DPO - BWT - MIM - OLP - KNS - WGA - ABX - CFS and BNK were KD controlled - the others flown by KD under AN control and yield management.
A prospective buyer would probably not even want to consider any of the Tas routes - Maybe just maybe LST and HBA also BNK - CFS - and CBR but with some of the routes in the AN camp formerly operated with KD aeroplanes - how do you unravel it?
I do not envy the administrator his job one little bit.
EWL
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My understanding is that the bulk of KD's fleet is leased and it was Ansett who purchased the CRJ's.
I don't think DJ or anyone else will take on hte CRJ's. As aready stated the CRJ's need to operate on routes over 300nm. That distance is further than most regional routes in the Eastern States. There are some that are longer ie (SYD-BHI) but there is no way that run good support a CRJ.
Whoever takes over KD they will only operate the Saab's and Metro's, that way they have a good chance of making money.
I don't think DJ or anyone else will take on hte CRJ's. As aready stated the CRJ's need to operate on routes over 300nm. That distance is further than most regional routes in the Eastern States. There are some that are longer ie (SYD-BHI) but there is no way that run good support a CRJ.
Whoever takes over KD they will only operate the Saab's and Metro's, that way they have a good chance of making money.
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Interesting whogivesa. Even though the passenger appeal of the CRJ seems low compared to the 146s and for that matter the F28s and F100s that were palmed off on Flight West - I thought they would be relatively successful against the DH8s on CFS and BNK maybe CBR - even with a sacrifice of frequency.I do agree they arent viable on LST and HBA against 146 and 717 equipment.
It will be interesting to see if DPO and BWT are returned to the "what - if" Airline along with a few other ports.
All blue sky mining at the moment.
Time will tell.
And the sooner the better - while there is something to salvage.
EWL
It will be interesting to see if DPO and BWT are returned to the "what - if" Airline along with a few other ports.
All blue sky mining at the moment.
Time will tell.
And the sooner the better - while there is something to salvage.
EWL
