A decision expected this week by Qantas on the future operator of a fleet of 106-seat twin-engine Boeing 717s will go a long way to determining the future direction of the state’s airline system.
A decision expected this week by Qantas on the future operator of a fleet of 106-seat twin-engine Boeing 717s will go a long way to determining the future direction of the state’s airline system.
These aircraft are to be transferred from current ultra-low cost subsidiary JetStar to Qantas’ regional arm QantasLink for operations between Perth and a variety of north-west towns to complement the Boeing 737 operations.
QantasLink flights in Western Australia are currently subcontracted to National Jet Systems (NJS), which provides the aircraft – 70-seat BAe 146s – and the cockpit and cabin crews.
NJS also operates a fleet of five BAe 146s plus two 36-seat Dash 8 turbo-props in its own right, providing the bulk of fly-in fly-out services for the mining community.
Both Jetstar and NJS are bidding for the 717 operation and the decision is down to the wire with an announcement due today (Thursday February 10).
NJS is pitching its vast local knowledge and lower cost base against JetStar’s argument that a 717 operation in WA would underpin its move to serve Perth from the eastern states.
However, many cite Virgin Blue’s withdrawal of one daily Perth-Sydney flight as evidence that low-cost airlines are battling to compete with Qantas on five-hour flights across the country.
The Boeing 717 has had an interesting history in Australia. Qantas inherited the aircraft when it bought Impulse Airlines in May 2001 and then transferred them and their flight crews to QantasLink operations in the eastern states.
When Qantas set up JetStar in 2004 it transferred the Boeing 717 operation to that low-cost airline as a temporary measure until a fleet of Airbus A320s arrived.
With the A320 fleet building in size, Qantas now wants to transfer the 717s back to QantasLink, this time in WA, which has been a major stronghold for NJS.
But there is a catch.
While the intention is for the 717s to replace the BAe146s, the 717 cannot take off with a commercial payload from many of the airfields used by mining communites throughout WA.
The BAe146 will be around for years and is considered by many as the workhorse of the mining industry with its ability to get out of short airfields in extremely hot conditions.
NJS has done an extraordinary job in fixing the engine problems in the aircraft to the point where it is now one of the most reliable aircraft in the Qantas fleet.
Complicating matters further, Qantas and NJS work together on some fly-in fly-out contracts where 737s (or 717s) cannot operate – such as Barrow Island – and any severing of the relationship may damage Qantas’ position in the marketplace, say industry observers.
If Qantas was to ditch NJS, it would leave the option open for a link-up with Virgin Blue or possibly NJS could become the basis of a Singapore Airlines entry into the Australian domestic market, with NJS providing feeder services into major capital cities.
In a not entirely unrelated development, airline sources say Qantas is also showing signs of interest in bidding to operate on WA’s turbo-prop routes.
The routes to centres such as Albany and Esperance are currently served by Skywest Airlines under a monopoly arrangement and the WA Government is opening the tendering process shortly for a decision by the middle of the year.
If Qantas is to tender it would most probably do so under the QantasLink brand and would almost certainly rely on NJS to provide capacity with 36-seat Dash 8s and 70-seat BAe146 for peak times, sources suggest.