niche player Strategic has looked to deploy its A320s in niche markets serving WA and beyond. (Les Bushell)
Strategic stakes its claim in WA
Despite its intentions of focusing on the contract charter market, Strategic Airlines has recently made a significant expansion of its scheduled services utilising its growing fleet of Airbus A320s.
On June 12 the airline celebrated the launch of flights on the heavily contested Perth-Denpasar route.
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Utilising rights obtained from the OzJet administrator, the carrier currently operates three times a week on the route, with services departing on Saturdays, Sundays and Wednesdays utilising a two class, 156-seat A320.
The route was something of a surprise, particularly given the large growth in capacity that there has been over the last year. From the Australian side, Pacific Blue flies daily while Jetstar flies four times a week. On the Indonesian side, Garuda flies twice daily and Indonesia Air Asia flies three times a day, with fares during some sales starting from as low as $99 one way.
Strategic’s head of commercial, Damien Vasta, explained to AA that despite the capacity on the market, the airline was targeting a full service niche which has been underserved since Qantas made way for Jetstar’s services. “We believe that we really fit quite well into a market that is already well serviced, but not serviced by an airline with our particular qualities and features, namely being a wholly Australian owned company offering full service business class,” he said.
The company has also benefited from the experience on the route of some of the former OzJet staff who now work for Strategic. “We did understand how we needed to create those effective partnerships to make Bali work, including our relationships with key wholesalers and travel agents in WA,” said Vasta.
A few weeks after the launch of services, Vasta said that the route had been performing well, and that it planned to serve the route for the long term. “It’s been extremely well received to date, and we think that it’s going to be well received from hereon in because we aren’t low cost and we are an Australian carrier. ” In addition to the Perth-Bali services, from August 3 the carrier commences a weekly service between Brisbane and the mining centre of Port Hedland.
They will also be operated by a two class A320.
As Vasta explained, the new service has been driven by the needs of fly-in/fly-out workers.
“What we’re trying to do is make it easier for mining companies to get their workers home quickly and get back to work quickly so they are making the most of their holiday time and not spending too much of it in the air,” he said.
The carrier is expecting to launch a second weekly service on the route. It is also looking at further scheduled and charter opportunities to the Pilbara to meet the needs of the mining industry. However, the airline has deferred the start of a planned Melbourne-Port Hedland service, which was originally expected to start on the same date.
In early July, the carrier announced that the Port Hedland services would continue through to Denpasar, opening up a new service between Bali and the Pilbara. Passengers flying from Brisbane are also able to book from Brisbane to Denpasar via Port Hedland.
Vasta explained that the Bali service was added to meet some of the leisure demands of mining workers, and the local community. “For many of the fly-in/fly-out workers, when they have those weeks off in their rosters, they don’t necessarily want to go back to Perth every time, and they’re looking for an alternative destination,” he said.
In addition to the new services from Port Hedland, Strategic has also announced that its Perth-Derby (Curtin) route will be expanded to operate four times a week from August 4.
This will meet increased needs from the local community and the mining industry.
Overall, Vasta said that the carrier’s approach to operating scheduled services is to target underserved niche routes.
“What we’re trying to do in terms of RPT is not necessarily compete along the well worn paths of the major carriers.
What we’re trying to do is find opportunities where a particular community need or industry need is underserviced, or may respond well to the introduction of a service that doesn’t already exist. ” Despite the airline’s rapid growth over the last few months, Strategic is planning to be around for the long haul.
“We do not want to be an airline that people talk about as growing too fast, too quickly and disappearing,” said Vasta.
“We want to be an airline that is considered and measured in its decision making and proceeds along a sound business development strategy. Essentially, we want to be able to sustain the growth that we are putting in place. ”
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