MinRes Air
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4th May 2024, 07:19
Joined: Feb 2024
Posts: 47
Likes: 225
From: Australia
It’s not an airline which is the mistake everyone is making thinking about this venture. It’s the transportation arm of a multi-billion dollar ASX listed mining company. They are not there to run a profitable airline they are there to ensure the 24/7 operation of mining assets that make millions every day.
Dunnunda Fleet Manager
Joined: Jan 1996
Posts: 8,204
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From: Utopia
One would think they don't employ pilots. According to their web site they are chartering Sky Traders A319.
https://www.mineralresources.com.au/...from-brisbane/
https://www.mineralresources.com.au/...from-brisbane/
"MinRes has contracted Australian-owned airline Skytraders to operate weekly return flights between the AvCair terminal at Brisbane Airport and MinRes’ Ken’s Bore and Wodgina mine sites.
Joined: Jun 2004
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From: Egoli
Joined: Jul 2012
Posts: 63
Likes: 79
From: Australia
Joined: Feb 2024
Posts: 47
Likes: 225
From: Australia
It’s not an airline which is the mistake everyone is making thinking about this venture. It’s the transportation arm of a multi-billion dollar ASX listed mining company. They are not there to run a profitable airline they are there to ensure the 24/7 operation of mining assets that make millions every day.
Joined: Jun 2001
Aviation Qualifications: ATPL
Posts: 4,576
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From: FNQ ... It's Permanent!
Joined: Jun 2021
Aviation Qualifications: Spotter
Posts: 1
Likes: 430
From: DEMOCRATIC PEOPLES REPUBLIC OF WESTERN AUSTRALIA (DPRWA)
Mentioned this before in the Network forum. I think all of you guys forget that a 1 hour delay is costing the likes of Minres, BHP, Rio, Fmg and Roy hill up to $1million per hour. Some argue but not enough pax... well Minres will be transporting 5000+ workers per week. It is far more cost effective to have 4 or 5 a319s sitting around than constant delays hours on end. I would not recommend this for smaller miners, but the larger producers will be watching Minres closely, hoping to get away from the Cluster f**k that is Network and Qantas in general. Qantas had their chance and they squandered it, as per f**king usual!
Joined: Mar 1999
Posts: 1,038
Likes: 23
From: Someday I will find a place to stop
In any way related to the 3 x A319 that are going to Network for Qantaslink use, or just coincidence?
With all the activity for the mining FIFO at Perth of late, is the airport big enough? lol
With all the activity for the mining FIFO at Perth of late, is the airport big enough? lol
Joined: Mar 1999
Posts: 1,038
Likes: 23
From: Someday I will find a place to stop
Excerpt from the half year results speech 22/2/24 from Chris Ellison, Managing Director of Mineral Resources Ltd.
And we’re creating a better FIFO experience in our Mining Services for all of the industry. Right now we operate three airports of our own. By the time we get towards the back end of this year, we’re going to have airports in pretty much every site,so we can get our own people to site. We are starting our own airline. We’ve already started bringing charters in. We’ll end up earning about four A319 jets by the end of this year. But basically we’re the only mining company that are flying right now. We’re direct out of Brisbane straight into Kens Bore, Wodgina, Onslow. Shortly we’ll be coming into Kambalda down at Kalgoorlie. So, typically, a FIFO worker on the east coast has to pay their own fares to Perth overnight, at their own cost, and then they go up the Pilbara the next day. So a day and a half each way, and they’ve got to write money out of their own pocket. We’re five and a half hours from Brisbane direct onto our mine sites, at our cost. We’re tapping a whole brand new workforce. We’ll encourage more people to live on the east coast, because we’ve got these services. But We are the go-to place for that whole labour pool coming off the east coast right now. By the end of this year, as I said, all of our FIFO will be run by MinRes Air. And we’re doing that, because we’re going to save tens, if not hundreds of millions of dollars, where we can put our people – typically what happens, we fly someone up to a Wodgina or a Kens Bore, they get up there tonight. They all overnight, then the next morning, the night shift comes off and they will go on R&R. We’re going to reduce our camp sizes. We’re going to be able to land our people on site at 5:30 in the morning, and they do a shift change at six. And the night shift hops on the plane and goes home. S we’re going to be the go-to place. I mean, but this thing is going to save us millions of dollars. And I could see you smile when I said we’re starting our own airline. You go, of course, why wouldn’t you? I mean, everyone needs an airline. And it’s not going to be called Virgin. I mean, we’re not that good.
Joined: Nov 2012
Posts: 449
Likes: 202
From: 3rd Rock
No idea what MIN are like as an employer, but they are a well regarded business.
I wouldn't be surprised if the flight operations expands over time to contract to some of the other resourse players - ironically become quite a competitive force in FIFO transport, after all they made a decent chuck of change in the first place contracting out thier crushing services to other iron ore players.
I wouldn't be surprised if the flight operations expands over time to contract to some of the other resourse players - ironically become quite a competitive force in FIFO transport, after all they made a decent chuck of change in the first place contracting out thier crushing services to other iron ore players.
Joined: Sep 2023
Posts: 2
Likes: 2
From: Darwin
I think these guys will find that running an airline isn’t quite so simplistic. Why would they be immune to the issues other operators face - AOGs, ground handling, CA’s calling in sick with no notice.
2nd hand A319s will be no more or less reliable then any others
2nd hand A319s will be no more or less reliable then any others
Joined: Nov 2012
Posts: 449
Likes: 202
From: 3rd Rock
I think these guys will find that running an airline isn’t quite so simplistic. Why would they be immune to the issues other operators face - AOGs, ground handling, CA’s calling in sick with no notice.
2nd hand A319s will be no more or less reliable then any others
2nd hand A319s will be no more or less reliable then any others
I doubt they think they will be immune to these disrupts, but I dare say they believe they can manage any disrupts (and normal ops) better than what they have been paying someone else for - and probably at a better price.
They may find themselves already better off just getting the basics right... adequate crewing/resourcing and a bit of employee engagement would probably go a long way to solving the more predictable problems, a fact that seems to be lost on at least one large player in the FIFO arena.
They will at the very least have direct control over the operation which is lost when it has been contracted out.
Minres are not mugs, and aviation isn't rocket science.