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National Jet Named Prefered Bidder For QF 717s

Fri Feb 11, 2005 12:17 pm

Qantas have put out the following Press Release:
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SYDNEY, 11 February 2005

Qantas said today that Adelaide-based National Jet Systems had been selected as the preferred bidder to operate and maintain QantasLink's new Boeing 717 regional flying operations.

The Chief Executive Officer of Qantas, Geoff Dixon, said QantasLink announced in October last year that it would progressively replace its fleet of BAe146 aircraft with newer Boeing 717 aircraft from July 2005.

The Boeing 717 aircraft will move from Jetstar to QantasLink as Jetstar continues to grow its fleet of new Airbus A320s.

Mr Dixon said the bidding process had been very competitive, with proposals submitted by National Jet Systems, which currently operates QantasLink's BAe146 fleet, and Jetstar, which currently operates the Boeing 717 fleet.

"In the end the strength of the relationship and the fact that a decision against National Jet Systems could have resulted in significant job losses in several States were the deciding factors," Mr Dixon said.

"National Jet Systems is a highly respected provider of aviation services to Australian corporate and government organisations.

"They have provided aircraft, pilots and cabin crew to the Qantas Group for fourteen years and we look forward to continuing this excellent partnership."

Mr Dixon said confirmation of the selection of National Jet Systems was subject to satisfactory negotiation of the operating agreement.

"The Boeing 717s will allow QantasLink to increase capacity on a range of routes in Western Australia, the Northern Territory and Queensland," Mr Dixon said.

Eight Boeing 717s, operating in a 115 seat configuration with a 32 inch seat pitch, will gradually replace eight 65 to 76 seat BAe146s in the QantasLink fleet over the 12 months beginning July 2005.

QantasLink will continue to fly its remaining two BAe146 aircraft, which are leased until December 2006.

The routes on which the Boeing 717s will operate include:

Perth-Broome
Perth-Kalgoorlie
Perth-Karratha
Perth-Paraburdoo
Perth-Port Hedland
Perth-Newman
Paraburdoo-Newman
Alice Springs-Ayers Rock
Alice Springs-Broome
Alice Springs-Cairns
Alice Springs-Darwin
Alice Springs-Perth
Ayers Rock-Cairns
Ayers Rock-Perth
Cairns-Gove-Darwin

Issued by Qantas Corporate Communication (3211)
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There had been a lot of speculation as to whether the contract would go to NJS, who currently operate the BAe146s for QantasLink, or JetStar, who currently operarate the 717s. Earlier today, it had been speculated there might be a split deal, with NJS operating the aircraft, and JetStar maintaining them, but it looks like NJS have taken the whole deal.

It will certainly be good to keep the 717s in Australian skies for the forseable future, even if it is mostly over in the West...

V/F
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RE: National Jet Named Prefered Bidder For QF 717s

Fri Feb 11, 2005 3:16 pm

That is excellent news!

I was hoping NJS would get the contract, as they've done so well with the QantasLink BAe 146s.

A question though... are the Boeing 717s still on their original leases, or have Qantas extended them? It's good to see that Qantas/Jetstar have been very happy with the 717! A shame it hasn't sold better.

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RE: National Jet Named Prefered Bidder For QF 717s

Fri Feb 11, 2005 4:29 pm

It is best that NJA operate the B717s as JQ will be operating A320s and JQ maintaining the B717s will be extra costs to the LCC concept.
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RE: National Jet Named Prefered Bidder For QF 717s

Fri Feb 11, 2005 4:29 pm

Now if only we could get them to order MORE of them and reverse the "end of production" bit...

Good job, QF. I suspect the 717 will be cheaper to operate (fuel and maintenance) than the Avro/BAe 146.
 
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RE: National Jet Named Prefered Bidder For QF 717s

Fri Feb 11, 2005 4:47 pm

The B717s would be perfect for QFs New Zealand operation.
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RE: National Jet Named Prefered Bidder For QF 717s

Fri Feb 11, 2005 5:19 pm

JQ maintaining the B717s will be extra costs to the LCC concept.

Well, they already do maintain them, so there wouldn't be much in the way of set up costs. Really as long as JetStar were bringing in more money from the contract than they were spending on it, it would be good for them.

Given the intended routes for the 717s, I wonder how much NationalJet having a sizable operation in the West, and JetStar having nothing out there came into play?

V/F
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TSV
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RE: National Jet Named Prefered Bidder For QF 717s

Fri Feb 11, 2005 11:10 pm

"Given the intended routes for the 717s, I wonder how much NationalJet having a sizable operation in the West, and JetStar having nothing out there came into play?"

Yep you certainly hit that nail on the head. Also not to forget the NJS base in Cairns for the hubbing out of there to Gove and Darwin, Alice, and Uluru. Don't know what if anything Jester has in Cairns yet apart from people. Perhaps someone can enlighten us.

Another one was this bit :

"They have provided aircraft, pilots and cabin crew to the Qantas Group for fourteen years and we look forward to continuing this excellent partnership."

Plan B I think it's called.
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miami1
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RE: National Jet Named Prefered Bidder For QF 717s

Sat Feb 12, 2005 12:02 am

TSV -
JQ opens a crew base in CNS from 27 March. There is 1 x 320 based there from that date. Another from June I believe.

NJS also have a DRW crew base. The QFLink/Airlink side of it has been open since the mid 90's.

There was a compelling business case from both sides. It was always going to be close. Teh costs being beared by NJS to get the 717 on their AOC and for all the staff training must be simply astronomical. Obviously not a concern to QF but it is not going to be easy for NJS to accomplish this in any short space of time.

I know that if JQ got the contract the first QF 717s would have began operatiosn ex-CNS in April. Still July is not that far away.

Another benefit to QF by awarding NJS the contract is they have a external contracter to use as a weapon when subsidiary staff are negotiating wages and conditions. Sad but true...
 
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RE: National Jet Named Prefered Bidder For QF 717s

Mon Feb 14, 2005 11:25 am

Also, JQ Newcastle getting the A320 heavey maintenance, also announced on Friday, means Newcastle will only have to support the A320, which will be cheaper than supporting both types, if NJS takes over the 717s.

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