Airlines of SA Cease Operations

Cost Pressures Force Closure Of Ansett Airlines of South Australia

Airlines of South Australia will phase out all its airline operations in the State by this July and arrange a transfer of its services to Kendell Airlines which already operates a three-state network with Pressurised aircraft.

The new and the old. (left) The first of Kendell’s SF340s and (right) one of three ASA F27-200s. The significantly more fuel-efficient and faster SF340s and Metro/liners will bring a level of cost efficiency to the ASA network not previously possible with the old technology Friendships. Additionally, ASA operations were saddled with many of the high-cost overheads built into the Ansett subsidiary via the Two Airline Policy environment that its master was forced to operate within. ASA desperately needed smaller aircraft for a considerable time and hopefully, Kendell’s with their new aircraft, leaner operation and enhanced frequency will be able to make money where ASA couldn’t.

In announcing the closure of the airline, the General Manager of Airlines of South Australia, Mr Mick Connelly said that this was primarily the result of the high weekly losses being sustained by the airline.

These losses would total $1.5 million this financial year at current fare levels despite persistent marketing efforts over a long period.

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