Kendell/Australiawide - "aviation experts"
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Kendell/Australiawide - "aviation experts"
THE AGE: "Australiawide, a NSW-based consortium of aviation experts, has been named as the preferred bidder for Kendell and has put down a $500,000 deposit to secure the deal.
But the sale is not definite yet, with another 14 days of discussions to be held between Australiawide and the administrators for Hazelton and Kendell.
Australiawide chief executive Michael Jones said the key sticking points were regulatory and operational issues and government assistance.
He has promised to maintain about 600-650 jobs in a merged airline.
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Without appearing to be negative......what's the story with this crowd?
The bid for Ansett appeared a little amateurish and this Kendell bid worries me. Is this the same team that used that repulsive relic of 80's corporate excess Graham McMahon?
I have a number of friends at Kendell (god bless 'em) and with the so called experts buying up Kendell I'm worried out-of-work ex AN pilots will bump the Kendalls guys out to get back flying.
They have suggested 600-650 jobs will be maintained but does that mean they will be maintained by the current staff? I guess it's better than no Kendell at all but what do they have planned?
And why does Kendell need Government Assistance. Great airline, great staff - must be able to survive by itself without help from the Government.
But the sale is not definite yet, with another 14 days of discussions to be held between Australiawide and the administrators for Hazelton and Kendell.
Australiawide chief executive Michael Jones said the key sticking points were regulatory and operational issues and government assistance.
He has promised to maintain about 600-650 jobs in a merged airline.
======================
Without appearing to be negative......what's the story with this crowd?
The bid for Ansett appeared a little amateurish and this Kendell bid worries me. Is this the same team that used that repulsive relic of 80's corporate excess Graham McMahon?
I have a number of friends at Kendell (god bless 'em) and with the so called experts buying up Kendell I'm worried out-of-work ex AN pilots will bump the Kendalls guys out to get back flying.
They have suggested 600-650 jobs will be maintained but does that mean they will be maintained by the current staff? I guess it's better than no Kendell at all but what do they have planned?
And why does Kendell need Government Assistance. Great airline, great staff - must be able to survive by itself without help from the Government.
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A condition of the sale of Hazo's and Kendell by their administrators, turns around the purchase being undertaken as a 'transferrance of business'.
As such, existing enterprise agreements (pilots, F/A's, engineers, etc.), are intended to be transferred 'intact', as was the case with the earlier sale of Skywest and Aeropelican, where virtually all existing staff (with a few disputed exceptions) went to work at the new 'entity' in their old positions.
The forecast reduction in total numbers (between Hazelton and Kendell) from 950 to 600/650, will involve those staff associated with the Kendell CRJ operation. EBA's and the parent SAL award provide for this under the clauses associated with the removal/retirement of an aircraft type from the company fleet.
The Oracle!!
As such, existing enterprise agreements (pilots, F/A's, engineers, etc.), are intended to be transferred 'intact', as was the case with the earlier sale of Skywest and Aeropelican, where virtually all existing staff (with a few disputed exceptions) went to work at the new 'entity' in their old positions.
The forecast reduction in total numbers (between Hazelton and Kendell) from 950 to 600/650, will involve those staff associated with the Kendell CRJ operation. EBA's and the parent SAL award provide for this under the clauses associated with the removal/retirement of an aircraft type from the company fleet.
The Oracle!!
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Did you stop to consider that perhaps AAL are not seeking handouts to run KD, but may be seeking concessions in a heavily regulated (operationally) airline environment? Thinking CASA, Airservices Australia etc.
If the Jones group can along the way pick up some funding to support small non-viable routes to allow the people in these small communities the ability to fly to a capital city - good luck to them. If others have not applied for funds to support such routes - stop whingeing and do something about it.
The $55 fare initiative is a cracker - has created a media storm and put KD in the face of a great many Australians.
guru
If the Jones group can along the way pick up some funding to support small non-viable routes to allow the people in these small communities the ability to fly to a capital city - good luck to them. If others have not applied for funds to support such routes - stop whingeing and do something about it.
The $55 fare initiative is a cracker - has created a media storm and put KD in the face of a great many Australians.
guru
Thread Starter
Why do they need concessions?
Why are they flying on non-viable routes?
Out of a sense of charity for hard-woking Aussie battlers? Sorry but I doubt it.
KD is a great outfit and was profitable before the Ansett management goofs meddled with it. Sincerely hope that Australiawide are not more goofs, but what has been released in the media so far would indicate that may well be the case.
Why are they flying on non-viable routes?
Out of a sense of charity for hard-woking Aussie battlers? Sorry but I doubt it.
KD is a great outfit and was profitable before the Ansett management goofs meddled with it. Sincerely hope that Australiawide are not more goofs, but what has been released in the media so far would indicate that may well be the case.
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Kendell Airlines and Hazelton Airlines are to be sold to a consortium made up of former employees named as preferred bidders by Ansett administrators.
Australiawide Airlines will take over about 28 aircraft flying routes in the southeast of the country when the deal is completed. Administrator Mark Mentha said Australiawide was expected to retain most of the 950 staff and keep flying all routes.
Mentha said Australiawide beat the Inland Marketing Corporation, a consortium of NSW local councils, to win preferred bidder status as its bid had fewer conditions attached.
Australiawide is headed by chief executive Michael Jones, a former military test pilot, with two former Ansett staff on its four-member executive.
Australiawide has paid a $au500,000 deposit to secure its interests and has 14 days to make the final arrangements before moving to a contract of sale.
It plans to integrate the two airlines.
Australiawide Airlines will take over about 28 aircraft flying routes in the southeast of the country when the deal is completed. Administrator Mark Mentha said Australiawide was expected to retain most of the 950 staff and keep flying all routes.
Mentha said Australiawide beat the Inland Marketing Corporation, a consortium of NSW local councils, to win preferred bidder status as its bid had fewer conditions attached.
Australiawide is headed by chief executive Michael Jones, a former military test pilot, with two former Ansett staff on its four-member executive.
Australiawide has paid a $au500,000 deposit to secure its interests and has 14 days to make the final arrangements before moving to a contract of sale.
It plans to integrate the two airlines.
Mentha said Australiawide beat the Inland Marketing Corporation, a consortium of NSW local councils, to win preferred bidder status as its bid had fewer conditions attached.
who brought you the unmitigated fiasco of the Ansett "rescue".Australiawides bid had fewer conditions,??? BIG DEAL, dejvu here,
Is "fewer conditions" code for, they have no idea what they are getting themselves into, or is it simply a replay of the FLEW "sale agreement" where we make it up as we go along.
Someone needs to ask some very hard questions here.
I know nothing of the details of either bid beyond that published in the press, but my instinct tells me that Inland Marketing have more to gain/lose and broader access to capital and on the ground local experience in the running of the thing for the benefit of the communities. I would suggest also that their extra "conditions" probably reflect some kind of commercial reality.
The actual flying part of the operation is actually quite easy and is after all just process.
Dont' confuse the ability to fly an aircraft into unusual attitudes and configurations with the skill required to make money in a commercial operation. They are usually mutually exclusive.
As FLEW found out, runnning a succesful trucking operation is one thing airlines are another.
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KDguru
None of the above or any other connection, even remotely, whatsoever, just concerned that the KD/Hazos people get the right result and given the 2Ms record so far one needs to be circumspect about any of their decisions.
You see there has been a passing parade of "aviation experts" and "master of the universe" style owners especially Hazeltons, big on bluster and noise, one from the west even, but otherwise totally inept that have taken what were well and tightly run family operations to where they are today using those "modern management techniques".
Who apart from the press release info are Australiawide, at least we know from where the Inland Marketing Corp are coming.
If ex military test pilot and AN staff is the best they can come up with as descriptions of their experience and background then it just sounds a bit light on to me for them to be able to be classified as "experts".
On that basis I and many others around here could be classified as damn near genii. But we also know, that that is not so.
As I said, it's shades of FLEW, Ansett Groundhog day, the Last Remake of Beau Geste, etc etc.
Remember after all, these guys, the 2Ms, are supposed to be looking after the business for the creditors.
ASK QUESTIONS
None of the above or any other connection, even remotely, whatsoever, just concerned that the KD/Hazos people get the right result and given the 2Ms record so far one needs to be circumspect about any of their decisions.
You see there has been a passing parade of "aviation experts" and "master of the universe" style owners especially Hazeltons, big on bluster and noise, one from the west even, but otherwise totally inept that have taken what were well and tightly run family operations to where they are today using those "modern management techniques".
Who apart from the press release info are Australiawide, at least we know from where the Inland Marketing Corp are coming.
If ex military test pilot and AN staff is the best they can come up with as descriptions of their experience and background then it just sounds a bit light on to me for them to be able to be classified as "experts".
On that basis I and many others around here could be classified as damn near genii. But we also know, that that is not so.
As I said, it's shades of FLEW, Ansett Groundhog day, the Last Remake of Beau Geste, etc etc.
Remember after all, these guys, the 2Ms, are supposed to be looking after the business for the creditors.
ASK QUESTIONS
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Michael Jones is the CEO.
John Hindmarsh is a major shareholder and a property developer in CB.
Pawl Cubbin is a major shareholder. He is a businessman in CB and the MD of an internet company called Zoo.
Apparently there are more in the consortium but they haven't as yet agreed on terms and thus the names cannot be released. Mr Cubbin has spoken with Mr Terry Snow, the chairman of Canberra airport regarding the matter.
Me thinks theres something going on as Snow is one of the biggest property developers in the ACT. There seems to be some big names in the region being thrown around. It wouldn't be a good idea for Snow to own his own airline and run it at his own airport in direct competition with QF and DJ.
The big picture in my opinion is who cares, as long as the finance is there and the punters back them then the guys and gals get to keep there jobs. Lets get onside with this one a little bit more and nurse it with some good positivity as opposed to all the doubtful negetive crap that seems to be floating around. It is understandable to be so weary (spelling??) due to the last load of rubbish that everyone was fed and the subsequent doubt placed on the apparent lack of ability for the 2m's to do the business.
John Hindmarsh is a major shareholder and a property developer in CB.
Pawl Cubbin is a major shareholder. He is a businessman in CB and the MD of an internet company called Zoo.
Apparently there are more in the consortium but they haven't as yet agreed on terms and thus the names cannot be released. Mr Cubbin has spoken with Mr Terry Snow, the chairman of Canberra airport regarding the matter.
Me thinks theres something going on as Snow is one of the biggest property developers in the ACT. There seems to be some big names in the region being thrown around. It wouldn't be a good idea for Snow to own his own airline and run it at his own airport in direct competition with QF and DJ.
The big picture in my opinion is who cares, as long as the finance is there and the punters back them then the guys and gals get to keep there jobs. Lets get onside with this one a little bit more and nurse it with some good positivity as opposed to all the doubtful negetive crap that seems to be floating around. It is understandable to be so weary (spelling??) due to the last load of rubbish that everyone was fed and the subsequent doubt placed on the apparent lack of ability for the 2m's to do the business.
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shaablaam
I remain unimpressed.
Mr Jones is also doing same "spooking the horses" routine with the politicians as did FLEW and their mates.
So we have a different bunch of mainchancers, but where is the commitment for the long term.
So what if Mr Cubbin has spoken with Mr Terry Snow.
I live not far around the corner from Mr Kerry Stokes and occasionally sit next to him at the lights.
And if the Emperor was actually wearing clothes we would have no trouble whatsoever in seeing them.
I'm not negative about the idea at all, just realistic as there is just precious little more than motherhood statements the like of.
straight out of Economics 101.
The financial quantum might be different but they are going to have to jump through the same hoops with the aircraft owners and bankers that FLEW did.
FLEW squibbed when they saw that they were going to have to actually risk a significant proportion of their wealth.
I dont think that these guys are even in the same financial ballpark and it is certain that there bankers will not have a different view than FLEWS.
Nah IMHO if this is going to work at all, apart from serious money, it's going to need heavyweight political and community clout and a realisation from the Fed and the States that they need to be in there with gaurantees and subsidy in some form or other.
The Council and community based and I suspect politically backed Inland Marketing mob seem the more logical candidate in the long term.
Anyone.??
I remain unimpressed.
Mr Jones is also doing same "spooking the horses" routine with the politicians as did FLEW and their mates.
Warning on Aust regional airlines
One of the bidders for Australian regional airlines Kendell and Hazelton, is warning of a disaster for regional Australia if the two airlines are forced into liquidation.
Federal Government support for the two airlines, anounced in the aftermath of the Ansett collapse, is due to finish at the end of this month.
The Chief Executive Officer of Australiawide Airlines, Michael Jones, says the two airlines are the only air links for hundreds of rural communities across South Australia, Victoria and New South Wales.
If we are not successful for any reason, we can't satify the condition precedent or the shareholders of our syndicate are not happy with the way that we're proceeding, there is a very real and very high probability that the airlines would be liquidated in whch case that would be an absolute catastrophe for regional Australia.
09/04/2002 13:47:31 | ABC Radio Australia News
One of the bidders for Australian regional airlines Kendell and Hazelton, is warning of a disaster for regional Australia if the two airlines are forced into liquidation.
Federal Government support for the two airlines, anounced in the aftermath of the Ansett collapse, is due to finish at the end of this month.
The Chief Executive Officer of Australiawide Airlines, Michael Jones, says the two airlines are the only air links for hundreds of rural communities across South Australia, Victoria and New South Wales.
If we are not successful for any reason, we can't satify the condition precedent or the shareholders of our syndicate are not happy with the way that we're proceeding, there is a very real and very high probability that the airlines would be liquidated in whch case that would be an absolute catastrophe for regional Australia.
09/04/2002 13:47:31 | ABC Radio Australia News
So what if Mr Cubbin has spoken with Mr Terry Snow.
I live not far around the corner from Mr Kerry Stokes and occasionally sit next to him at the lights.
Apparently there are more in the consortium but they haven't as yet agreed on terms and thus the names cannot be released.
I'm not negative about the idea at all, just realistic as there is just precious little more than motherhood statements the like of.
Michael Jones: Effectively they've been operated in the past as two separate airlines so we could save some overhead and make some synergies by combining the two airlines. And then that's the intention, to cover the routes that were originally servicing both regional New South Wales, Victoria, Tasmania and South Australia by Kendell and Hazelton and merging the two entities into one.
The financial quantum might be different but they are going to have to jump through the same hoops with the aircraft owners and bankers that FLEW did.
FLEW squibbed when they saw that they were going to have to actually risk a significant proportion of their wealth.
I dont think that these guys are even in the same financial ballpark and it is certain that there bankers will not have a different view than FLEWS.
Nah IMHO if this is going to work at all, apart from serious money, it's going to need heavyweight political and community clout and a realisation from the Fed and the States that they need to be in there with gaurantees and subsidy in some form or other.
The Council and community based and I suspect politically backed Inland Marketing mob seem the more logical candidate in the long term.
Anyone.??
Yes, Gaunty.......... I understand the cynicism........ If indeed the following statement was made....:
"If we are not successful for any reason, we can't satify the condition precedent or the shareholders of our syndicate are not happy with the way that we're proceeding, there is a very real and very high probability that the airlines would be liquidated in whch case that would be an absolute catastrophe for regional Australia."
It's a very negative attitude to hold before the race even starts!
The reality is that up to Aus$20 mill in equity (not debt "equity") may be required if the combined airlines are to have any chance of success.
I suspect Australiawide may be a long way shy of that mark!
"If we are not successful for any reason, we can't satify the condition precedent or the shareholders of our syndicate are not happy with the way that we're proceeding, there is a very real and very high probability that the airlines would be liquidated in whch case that would be an absolute catastrophe for regional Australia."
It's a very negative attitude to hold before the race even starts!
The reality is that up to Aus$20 mill in equity (not debt "equity") may be required if the combined airlines are to have any chance of success.
I suspect Australiawide may be a long way shy of that mark!
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Attention.
Can anyone give me an example of the "hundreds" of rural communities that will be effected. I cannot think of one in Victoria. All of KD's ports are serviced by other company's and I can bet that those company's will not sit back whilst the Fed's fund the competition.
I have to agree with Gaunty and to quote Rex Hunt "I think that fat lady is walking in right now"
Cheers,
Ice.
The Chief Executive Officer of Australiawide Airlines, Michael Jones, says the two airlines are the only air links for hundreds of rural communities across South Australia, Victoria and New South Wales.
I have to agree with Gaunty and to quote Rex Hunt "I think that fat lady is walking in right now"
Cheers,
Ice.
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Mr Wright
Nup wrong as well, not even close, in fact, not allied, employed or even remotely connected with anything or anybody to do with this situation.
You see there is what passes for objective thought out there you know.
Rodents there may be, but they are not red.
Nup wrong as well, not even close, in fact, not allied, employed or even remotely connected with anything or anybody to do with this situation.
You see there is what passes for objective thought out there you know.
Rodents there may be, but they are not red.
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A little rat advises the bid is based upon:
So far Aesop hasn't claimed credit for writing the bid. Indeed, he is probably taking a well earned rest after authoring the Tesna bid.
So far Aesop hasn't claimed credit for writing the bid. Indeed, he is probably taking a well earned rest after authoring the Tesna bid.
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Ice
I suggest you have a bit of think about your post.
What about all the small satellite communities that may have to drive for 30 or 40 minutes to get to a city/town before they get on a plane?
These small communities feed into the larger cities and so on. They are all part of the link.
You should get out of the city.
guru
I suggest you have a bit of think about your post.
What about all the small satellite communities that may have to drive for 30 or 40 minutes to get to a city/town before they get on a plane?
These small communities feed into the larger cities and so on. They are all part of the link.
You should get out of the city.
guru