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Ozjet To Cease Operations  
User currently offlineZeke From Hong Kong, joined Dec 2006, 9101 posts, RR: 75
Posted (8 years 6 months 1 week 5 days 5 hours ago) and read 9456 times:

Apparently to be announced later today, Ozjet to cease operations at midnight tonight.

Another shorted lived airline.


We are addicted to our thoughts. We cannot change anything if we cannot change our thinking – Santosh Kalwar
70 replies: All unread, showing first 25:
 
User currently offlineBearcuban12 From Germany, joined Mar 2005, 89 posts, RR: 0
Reply 1, posted (8 years 6 months 1 week 5 days 5 hours ago) and read 9437 times:

Zeke - where did you get your info from?

User currently offlineNzrich From New Zealand, joined Dec 2005, 1522 posts, RR: 1
Reply 2, posted (8 years 6 months 1 week 5 days 4 hours ago) and read 9341 times:

Interesting considering OZjet have just introduced a new route and their loadings are now about 50% which is a big increase.. It doesnt sound like the news of a airline going under !!!


"Pride of the pacific"
User currently offlineFlykal From Australia, joined Sep 2003, 442 posts, RR: 3
Reply 3, posted (8 years 6 months 1 week 5 days 4 hours ago) and read 9301 times:

Quoting Zeke (Thread starter):
Apparently to be announced later today, Ozjet to cease operations at midnight tonight.

Another shorted lived airline.

Without any credible information or evidence, this will more than likely be a short lived post!



One doesn't discover new lands without consenting to lose sight of the shore for a very long time
User currently offline777ER From New Zealand, joined Dec 2003, 12162 posts, RR: 17
Reply 4, posted (8 years 6 months 1 week 5 days 4 hours ago) and read 9273 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Can't make claims like that without a source revealed.

User currently offlineJetset25j From New Zealand, joined Feb 2006, 156 posts, RR: 1
Reply 5, posted (8 years 6 months 1 week 5 days 4 hours ago) and read 9249 times:

It wouldnt suprise, on there website's online booking tool all flights I can find seem to be "sold" until the end of the year...


Air New Zealand-Airline of the world's greatest travellers.
User currently offlineBNE From Australia, joined Mar 2000, 3183 posts, RR: 12
Reply 6, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 9144 times:

Looks like its true.

http://finance.news.com.au/story/0,10166,18439291-31037,00.html

BUSINESS class airline OzJet, Australia's newest domestic passenger carrier, has suspended its scheduled flights between Melbourne and Sydney.

OzJet chairman Paul Stoddart said in a statement tonight the decision to immediately stop flying scheduled services was made with great regret.
"Unfortunately, for whatever reasons, we have not had the support we needed to operate in that environment against big, established carriers," Mr Stoddart said.

Never got a chance to fly with them.  Sad



Why fly non stop when you can connect
User currently offlineCKT789 From , joined Dec 1969, posts, RR:
Reply 7, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 9130 times:

Per the article, they are still going to operate charter operations.

Jamie.


User currently offlinePhilSquares From , joined Dec 1969, posts, RR:
Reply 8, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 9074 times:

http://www.smh.com.au/news/Business/...ghts/2006/03/12/1142098345455.html

Just to re-confirm. Looks as if Stoddard's track record is 100%. I'll give them 3 months in the charter business until they disappear completely!


User currently offlineAntares From Australia, joined Jun 2004, 1402 posts, RR: 38
Reply 9, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 9031 times:

Among the many golden rules of business is the one that forbids concocting a business plan based on a pile of fictitious assumptions that justify what you wanted it to say.

OzJet invented a class of business travellers that would put up with limited frequency for space, and had the ability to choose their own carrier.

Such people do exist, but not in the numbers that mattered.

Nothing was going to get them out of their Qantas Club rooms or Blue Rooms or frequent flyer schemes.

Most of the people OzJet needed were 'owned' by corporate accounts.

It will be interesting to see where he expects to get viable charter volume from, and whether it will support the serious regulatory requirements of adhering to the required investment in training and checking, or even minimum flying hours.

The most obvious source of charters in from the resource sector, and to say that is stitched up by the likes of National Jet, Alliance, Skywest and REX is an understatement.

Nor are there all that many resource sector strips that are especially 737-200 friendly.

The guy has a bunch of ancient fuel guzzling high cycle jets that are increasingly demanding of maintenance dollars and fiendishly uneconomic at USD 60-70 a barrel and with low utilisation.

After this cop out he also has zero credibility in the Oz market.

Antares


User currently offlineDelta777Jet From Germany, joined Jun 2000, 1264 posts, RR: 3
Reply 10, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 8973 times:

Poor OzJet, that was it for them ! I guess they burned off a lot of money. As long as they dont go bancruptcy and can refund all the monies their and their funders image will not loose too much. If they going on charters, I doubt that they have a real advantage with this kind of seating. Let see !!


Fly easyJet
User currently offlineJohnnybgoode From Germany, joined Jan 2001, 2187 posts, RR: 6
Reply 11, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 8958 times:

honestly, did anyone seriously believe they would be able to pull this off? flying against VirginBlue, Jetstar and Qantas, with a fleet of 732s in a low-density seating?

rgds
daniel



If only pure sweetness was offered, why's this bitter taste left in my mouth.
User currently offlineDelta777Jet From Germany, joined Jun 2000, 1264 posts, RR: 3
Reply 12, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 8946 times:

No !!! They would be still flying, if they would go on low-cost concept with full planes, simply because Jetstar is not flying to Melbourne main airport and Virgin Blue isnt that cheap anymore.


Fly easyJet
User currently offlineKiwiinOz From New Zealand, joined Oct 2005, 2165 posts, RR: 5
Reply 13, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 8930 times:

Quoting Johnnybgoode (Reply 11):
honestly, did anyone seriously believe they would be able to pull this off? flying against VirginBlue, Jetstar and Qantas, with a fleet of 732s in a low-density seating?

I agree, I could never understand the thinking behind this. The competitive environment was not ideal, the promotional strategy was bizarre, the distribution structure was non-existent....I thought they would hang on a bit longer than this but always believed this would be the outcome.


User currently offlineHKGKaiTak From Australia, joined Jun 2005, 1050 posts, RR: 0
Reply 14, posted (8 years 6 months 1 week 5 days 3 hours ago) and read 8930 times:

Oh well, I did give them six months, and they're now gone in four. Hardly surprising really.

Charter operation could be interesting, as mentioned lots of times on this board, there's plenty of leisure destinations that could well prosper with some sort of premium airline servicing.

Now how much did this venture cost Stoddy? Surely a fair chunk of those Red Bull millions? I find it rather funny that Red Bull is supposed to give you wings but they certainly didn't give Stoddy the "wings" with Ozjet ...

Quoting Johnnybgoode (Reply 11):
honestly, did anyone seriously believe they would be able to pull this off? flying against VirginBlue, Jetstar and Qantas, with a fleet of 732s in a low-density seating?

Their problem wasn't the 732s, it was the whole business case. No way could they ever get into the corporate market against QF and DJ.



4 Engines 4 LongHaul
User currently offlineFuffla From Australia, joined Feb 2004, 401 posts, RR: 0
Reply 15, posted (8 years 6 months 1 week 5 days 2 hours ago) and read 8887 times:

New Focus On Charter Flights as Ozjet Suspends Scheduled Services

12 March 2006

OzJet Airlines will concentrate on charter flights after deciding to suspend its scheduled flights between Melbourne and Sydney.

OzJet chairman Mr Paul Stoddart said that it was with very great regret that the decision had been made to stop flying scheduled services immediately.

"Unfortunately, for whatever reasons, we have not had the support we needed to operate in that environment against big, established carriers," Mr Stoddart said.

"It's very, very disappointing, particularly, I'm sure, for those people who had started travelling regularly with us between Melbourne and Sydney and many of our very diligent and loyal employees.

"Sad to say, there have not been enough of those regular customers.

"We will now concentrate, with a reduced workforce, on charter operations.

"No paying passenger booked on OzJet will be unduly disadvantaged - they can either receive a refund from OzJet or transfer without any additional cost to Qantas, which has kindly offered to assist in transporting people who have booked and paid for tickets with OzJet. (see fuller statement below re Refunds/Transfers to Qantas)

"The OzJet call centre will remain open on telephone 1300 737 000 for the time being to assist people booked with us.

"We have given it a go in a very tough area of the Australian aviation industry and, as much as we would have hoped, it has become clear that we were not going to achieve in the immediate future the kind of revenues that were needed to keep OzJet in the air as the airline was envisaged.

"Charter operations may well be more rewarding.

"As a charter operation, OzJet will inevitably downsize, but any staff not retained will be paid their full entitlements.

"The scheduled services experience has been very costly to me personally, but my thoughts are more for those who have worked so tirelessly only to find that, as hard as we have tried, ultimately scheduled services were not successful."

OzJet will retain its Air Operator's Certificate, a minimum of two Boeing 737 aircraft for charter work and about 30 per cent of its staff.

"OzJet will focus its future flying around ad hoc and VIP charters, something there is clearly a demand for in Australia as little, if any, competition exists in that market," Mr Stoddart said.

Refunds / Transfers To Qantas

Passengers who have already travelled one leg of a journey with OzJet and have a return leg booked to fly with OzJet before March 24 can transfer to Qantas free of charge by telephoning Qantas on 13 13 13 by March 17.

Other people booked with OzJet but yet to fly will be automatically refunded.

Anyone booked to fly with OzJet who has not yet begun their journey can call Qantas on 13 13 13 by March 17, quote their OzJet booking reference, and Qantas will book them an economy class ticket at the same price.

The OzJet call centre will remain open on telephone 1300 737 000 for the time being to assist people who have OzJet bookings.

www.ozjet.com.au

NOW OZJET CHARTERS


User currently offlineNzrich From New Zealand, joined Dec 2005, 1522 posts, RR: 1
Reply 16, posted (8 years 6 months 1 week 5 days 2 hours ago) and read 8877 times:

Well its interesting for sure .. I was surprised they went in as a full on business class airline when Qantas pretty much has the business class market signed up in its camp!!!! As for Virgin Blue being low cost well lets be honest the only true low cost carrier in Australia is Jetstar..Personally when i have had to book any domestic seats Virgin have never really been much cheaper than Qantas and for a little extra you get fed and entertained for free .. I think OZjet with newer aircraft could of given all 3 airlines a better run for it money as a low cost airline ,especially if it could of gotten some of the feeder work for Air NZ's flights...


"Pride of the pacific"
User currently offlineQANTASforever From , joined Dec 1969, posts, RR:
Reply 17, posted (8 years 6 months 1 week 5 days 2 hours ago) and read 8816 times:

I'm absolutely shocked! I did not see this coming at all!!




/sarcasm.

QFF


User currently offlineJmc757 From United Kingdom, joined Mar 2000, 1298 posts, RR: 7
Reply 18, posted (8 years 6 months 1 week 5 days 2 hours ago) and read 8785 times:

Quoting PhilSquares (Reply 8):
Just to re-confirm. Looks as if Stoddard's track record is 100%. I'll give them 3 months in the charter business until they disappear completely!

Agree, Stoddard striked again. Feel sorry for his staff, knowing how he treated the staff at EAF.

While were on the subject of Stoddard's airlines, does anyone know whats going on at European Aircharter? Last I heard is aother round of redundancies, closing their BHX and MAN bases and will operate solely from BOH, presumeably the Palmair flights?


User currently offlineJsqvl1 From Colombia, joined Mar 2005, 36 posts, RR: 0
Reply 19, posted (8 years 6 months 1 week 4 days 23 hours ago) and read 8337 times:

Well...first, The Minardi F1 Team....and now the airline.... poor sight!!


"SAM hace amigos volando", o al menos solía hacerlos...
User currently offlineDon81603 From Canada, joined Jul 2005, 1185 posts, RR: 0
Reply 20, posted (8 years 6 months 1 week 4 days 23 hours ago) and read 8337 times:

Quoting 7LBAC111 (Reply 19):
Now, how long before Simplicity posts "I told you so!".

I'm betting within 10 minutes of his reading this thread.
 box 



Eagles may soar, but weasels don't get sucked into jet engines.
User currently offlineHS748 From , joined Dec 1969, posts, RR:
Reply 21, posted (8 years 6 months 1 week 4 days 21 hours ago) and read 7797 times:

Quoting BNE (Reply 6):
OzJet chairman Paul Stoddart said in a statement tonight the decision to immediately stop flying scheduled services was made with great regret.
"Unfortunately, for whatever reasons, we have not had the support we needed to operate in that environment against big, established carriers," Mr Stoddart said.



Quoting Flykal (Reply 3):
Without any credible information or evidence, this will more than likely be a short lived post!

So looks like you owe him an apology - clearly he was spot on.

Quoting 777ER (Reply 4):
Can't make claims like that without a source revealed.

And you do too!


User currently offlineCyclonic From Australia, joined Jan 2005, 231 posts, RR: 2
Reply 22, posted (8 years 6 months 1 week 4 days 20 hours ago) and read 7599 times:

The majority of you have just lost a TON of respect points with me, for some of your childish and downright rude comments. Nice way to kick a new airline!

No matter what the outcomes or business plan, some of you need to learn to choose your words more carefully. Your "I told you so" attitude STINKS!

He had a go at the market and it failed. Better him to get out now than years time ahead, (like most US airlines who get away with bankruptcy murder) costing more time, money and jobs.

Kudos to the bloke for pulling the pin early, when it looked like it wasn't gonna work.

Some of you really need to get a grip and pull your heads out of your arses - lounge chair GM's!



Keith Richards: The man that Death forgot...
User currently offlineTrekster From , joined Dec 1969, posts, RR:
Reply 23, posted (8 years 6 months 1 week 4 days 19 hours ago) and read 7178 times:

wow, was jsut reading about there new perth route in Airliner World

Wow, oh well. Was weird to use 732's fora business airline. But oh well


User currently offlineAntares From Australia, joined Jun 2004, 1402 posts, RR: 38
Reply 24, posted (8 years 6 months 1 week 4 days 17 hours ago) and read 6851 times:

The comments that Virgin Blue has become as expensive as Qantas don't fit with reality, but then neither did all the gushing over OzJets ability to survive with crappy old jets and the stampede of disaffected Qantas customers that were going to make it a success.

A quick look at the web fares for Melbourne to Sydney tomorrow show that Qantas is available for between $115 and $385, Virgin Blue for $105 to $265 and Jetstar from Avalon has only four flights of which $79 fares are available on two afternoon or evening departures and the highest fare on all is $199.

Virgin Blue has recently reported higher load factors than Qantas on the route and is certainly making more money from it that its top heavy established competitor. If we turn to the half yearly financials to December 31 you will see that Qantas is trying to blur the contributions made by the various domestic and international operations but that the actual claimed profits attributable to Jetstar are still derisory, especially if you attempt to work out how much by way of assets and other support was transferred into the operation.

Far from struggling against the giant, Virgin Blue is making its critics look like complete asses. It seems to have exactly the right product, and has for a long time claimed in its guidance to analysts (not that too many of them listened) to have over 40 per cent of the market on the prime inter-city 'golden triangle' routes.

Oz Jet had as much impact on the competing airlines as a bush fly on the windscreen of a speeding truck.

I notice that Stoddart in today Age newspaper says the failure of the $40 million investment cannot be blamed on the other carriers, nor the airports.

Good one Paul. I like honesty. But would love to hear you explain what you say is an eight figure loss to your hapless deluded business partners, and also how much of the $40 million is left.

Also, why did you waffle on about lifting the fleet to 10 jets in interviews in the new year, when you are now cutting it back to two? You have some serious explaining to do mate.

Antares


25 Morvious : The problem these days is that people don't trust eachother on words. People think they look smart if they ask for a source! ---Back on topic--- We a
26 KiwiinOz : Now THAT'S concerning, given that the main reason that most of us are here is to build up our respect points!!! THere is no way that we should sit ba
27 Post contains images B787 : Sorry, Ozjet who? One of the biggest flaws was their marketing. They had a defined target customer and should have been able to market straight to the
28 Zeke : Maybe some good news for the crews, apparently Jetstar will be advertising for 150 pilots this week in Flight International.
29 TBCITDG : Simplicity; Where are you? On previous posts you where one of the ones that raved on about the "tactics" that Ozjet used to gain market share ! WHAT M
30 Diesel1 : Is there an opportunity for charter flights in Australia for OzJet, or is this just clutching at straws? Also, wonder whether the OzJet situation will
31 Simpilicity : Perhaps QF have been working overtime throwing QF ff points around & giving away QF club memberships if corporate accounts singed up for a certain pe
32 Galapagapop : Ozjet did something similar to what DH did in terms of launching way to quickly and without any PR. The LF rose as some became aware of this airline's
33 Antares : Simpilicity, An AOC for the heap of rubbish that is a 737-200 in the world of hi tech efficiency and USD 70 per barrell oil isn't worth the paper it i
34 Simpilicity : I gather a AOC for 732's could very easily be changed to other 737 variants.
35 Zeke : Said person is alledged to be in the transport business, "taking people for a ride". EAAC should have been an MCG sized red flag.
36 Halophila : I see a trend here... first, OzJet was advertised on the Minardi F1 cars - which was sold to Red Bull before the airline took to the air. Now the airl
37 Nzrich : Hey good to hear DJ are doing well ..But lets be honest with the prices you have quoted me i would either pay the $79 and fly JQ from Avalon or pay a
38 Antares : Simpilicity, I don't know anything about the transferrability or variability of AOCs, but what I do know is that the value of an Australian domestic A
39 Antares : Nzrich, Tip. Don't eat the food on QF, or DJ unless you are really, truly desperate. If you study the applicability or practicabilility of the fares p
40 Nzrich : Totally understand the peak flights with DJ being cheaper..But im not a business traveller so i go on value for money and only once in my experience
41 Simpilicity : Of course an Australian AOC has value. If cost OzJet a lot of time & money, some of which can be regained. There are plenty of opportunities around.
42 Pilotdude09 : How much would this cost someone to buy? with a few people wanting to start airlines around aussie they could be interested, not that it will happen
43 Antares : I just made a quick call to someone who would know about AOCs and the news is all bad. AOCs don't exist on a shelf with a price tag. They require cont
44 Simpilicity : R u ex AN staff because u seem to have an axe to grind. Anyway, they won't be asking CASA anything, as CASA r not there for safety reason, but just t
45 Antares : Simpilicity, If Ansett was flying today I'd be five years older than the airline. But I never flew on it until it became Ansett ANA although I flew wi
46 Monteycarlos : Well $10mil in the hole and an AOC that is worthless... Ozjet did get themselves into quite a predicament in a very short amount of time. I think we a
47 Monteycarlos : Ok here is something constructive for you. Instead of preaching your knowledge of deluded theory to a.net members why don't you get out there and lea
48 Cyclonic : Wow, is it me, or do most of you have it in for deal old Paul Stoddart? You know what? I'll applaud the guy for having a go at the market and trying t
49 Cyclonic : Isn't that the A.net way though? Don't most of us get into that bad habit? Something to ponder.....
50 KiwiinOz : No it's not. How much do you really think the collapse of this airline is going to affect his lifestyle? It wasn't all his money, and it wasn't all h
51 Post contains images UK_Dispatcher : I agree with you that people just love bashing new airlines and just generally being cynical on these forums. Can you imagine the slamming OzJet woul
52 Post contains links Antskip : That's all very romantic, but I think but from here in Australia from the word go Ozjet never looked like succeeding. There was no need of it. No pla
53 777ER : Jetstar is flying to both melbourne airports (AVV and MEL) I found some of DJs food nice as morning tea in october
54 Fuffla : Their marketing really sucked. They were aiming too low. Their advertisments targeted economy passengers who could buy tickets on QF for a fraction of
55 Monteycarlos : Granted, but my point is simply that he didn't need to try to bring me down by preaching his "greater" knowledge. Its not a case of an "I told you so
56 Cyclonic : Well put indeed! No I don't go here to gather respect points, but what really did and still ticks me off is the attitude some people have. Lighten up
57 Simpilicity : What do u mean here, u seem to contradict yourself in a few words? The old f.f. point/mile has surely had it's day. AA started f.f. programmes off &
58 Cornish : Well yes, except for the fact he already had a poor reputation over in Europe for his last attempt at an airline - and big questions were raised over
59 Cornish : And I take it you know about Stoddart's background of running airlines in The Uk then ? Ask some of his disgruntled employees or stranded passengers
60 Delta777Jet : At least it was a try for him and if somebody give him the money to invest in OzJet, then this somebody will also collect his informations before inve
61 KiwiinOz : Incredibly offensive......why?? Are you Paul Stoddart?? I drink Red Bull!! From the article, Paul's statements are interesting: So he knew it was hig
62 DeskPilot : I'll give Stoddart credit for having a go, but I couldn't see how he would survive (choice of market, aircraft, etc.). Can Australia support another d
63 Simpilicity : Yeh at least he had a go !!! If fuel prices were at 2003 levels ??? Who knows if OPEC will see sense & control prices, as oil alternatives are now be
64 Delta777Jet : If they just offered single economy, no drinks, no food they would be still in the air and would have earned more revenue for sure, just because the a
65 Bennett123 : "I think Australia's traditionally been, domestically anyway, a two-airline operation," he told ABC radio Well this sounds like an excuse. If it is se
66 Simpilicity : The safety angle may have played against him. QF makes out they never have any safety issues & pay to kill stories about safety problems. Can anyone
67 TBCITDG : Simple . . . Any reason to bag out on QF eh? Any reason whatsoever!! I mean what evidence do you have that the media are been paid off to keep hush re
68 Simpilicity : The best marketing philsophy if you can't sell them is to give them away (when purchasing something else) rather than discount. Discount is dead in r
69 Simpilicity : Did & found zippo !!! R u serious ??? Media can easily be bought with FREE tickets here & there !!!
70 Post contains links and images QantasPilot : So I guess these don't count: http://www.abc.net.au/am/stories/s120660.htm http://www.abc.net.au/7.30/stories/s120777.htm http://www.allbusiness.com/
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