New Domestic Player?

[codash1099]

Friday October 19, 09:01 AM US airline may be Australian player

Yet another player, this time from the US, is poised to enter Australia's domestic airline market.

Regional US airline Expressjet is hoping to strike a deal with an existing Australian carrier to operate regional flights by the end of 2008, according to the News Limited website.

Expressjet executive director Asia Ian Vanderbeek told the website discussions had taken place with a number of airlines and that the company hoped to introduce a similar business model to its US operations, flying Embraer jets on longer, thinner routes.

This would complement existing carriers' route networks, which are currently underdeveloped, he said.

If no existing carrier agrees to a deal, Expressjet would look to build a fleet of 20 aircraft in the local market and launch flights under its own brand, Mr Vanderbeek said.

The airline hopes to announce its plans within six months. - Travelpress travel news

 

[JohnK]

Is this all due to the mining boom?

How many domestic carriers can the Australian market sustain?

 

[Standby]

Is this all due to the mining boom?

How many domestic carriers can the Australian market sustain?

A quick look at the financials of all Aust carriers must make others ask why cant it be me.
The US has a number of these operators who provide wetlease type regional connectors to the majors . The have 100's of 50-70 seat early series CRJs.
When each major went into chapter 11 these guys were screwed around badly and are now trying to eek out their own existance.
Mesa has started in HNL ,I think its GO. They have major potential issues because due dill done on a local carrier was used to develop their own business case to start up...that sounds like a major law suit.They have also offered up CRJs to China. So they have the planes to take advantage where they see fit.but the risk here is the planes they offer have already proven not profitable (Ansett has CRJs)...like anything from outside it looks good but
with the competition here they would be brave to start up on their own. If they had newer aircraft and aligned to an existing carrier parhaps. National Jet Run the 717s for Qantaslink so being alify provider can help a carrier grow. It seems like the next 12months are going to be very interesing indeed.

 

[JohnK]

A quick look at the financials of all Aust carriers must make others ask why cant it be me.

I guess that is the major selling point. The Australian carriers are all making money and are not in Chapter 11.

 

[oz_mark]

Is this all due to the mining boom?

How many domestic carriers can the Australian market sustain?

There are a whole bunch of airlines around the country, some of them targeting various niche markets. I suspect that that there are a number of opportunities to fly from various capital cities to mining centres around the country, and perhaps there are some opportunities here.

 

[thadocta]

I guess that is the major selling point. The Australian carriers are all making money and are not in Chapter 11.

That's because there is no provision for Chapter 11 stule protection under Australian law, if there was I dare say that Ansett would still be around.

Dave

 

[Standby]

That's because there is no provision for Chapter 11 stule protection under Australian law, if there was I dare say that Ansett would still be around.

Dave

Absolutely, but DJ probably wouldnt be around or certainly as they are today...still confined as a true LCC.
ANs demise came when DJ were sailing close to the wind having all but used the initial capital investment...but this comes down to a 'Coulda,Woulda shoulda" type debate.