Contrails

All the signs were there that FIFO was a growing business, although the then Qantas management was possibly too Sydney centric to read the tea leaves on the vast potential.

Perhaps it is not surprising that Qantas missed what was happening in WA as for instance it was only photos taken by this writer of the massive congestion at the Qantas Terminal, requested by local Perth management that prompted its Sydney team to come over to Perth to see first hand the expansion that was needed in late 2007.

Today at Perth Airport Skywest Airlines, Cobham, Alliance, Network Aviation, Skippers Aviation, Strategic Airlines and Maroomba Airlines have combined fleets of almost 50 jets and turboprops above 36-seats, which is the lowest seat count aircraft operated by QantasLink.

Network Aviation however accounts for just two of those –flyable – aircraft, although its does have a small fleet of 30-seat Brasilias.

If Qantas is make any real impact on the FIFO market it will need to acquire many more aircraft or another FIFO airline such as Alliance and thus commit vast sums.

The problem for Qantas is that in WA, success in FIFO is all about close – read very close – relationships with Skywest the biggest winner in recent years with a close knit team that is in tune with the specialised needs of the resource sector.

Since 2007 Skywest has added seven Fokker 100s, three Fokker 50s and a A320 and more aircraft are planned in Skywest colours for 2011.
Skywest’s strength in the market is also being bolstered by its much closer relationship with Virgin Blue and that airline’s makeover as a business airline under new CEO John Borghetti.

There will also be economy of scale spin-offs from the recently announced JV with up to 18 turboprop aircraft for regional routes around Australia, which will see Skywest operate the Virgin branded turboprops, probably ATR 72s.

These aircraft will also replace Skywest’s Fokker 50s.

If Qantas thinks it can easily buy into the FIFO market, it ought to think again.

It will take a lot more that dollars to buy the loyalty of the resource industry at the grass roots level.

The reality is simple – it is about understanding of needs, trust to deliver and pure and simple friendship.

And Skywest is just one competitor.

Alliance, Skippers and Cobham are also formidable operations – lean and savvy when it comes to pitching the right product at the right price.
Their management teams are veterans at this game with skills honed over 30 plus years.

By contrast Qantas’s mainline operations within WA continue go from strength to strength with the airline committing more 737-800 aircraft to be based in the state.

The airline has won the right to start services to Exmouth and will also fly to Geraldton after the State Government deregulated the route.

From March 31 Qantas will operate a three-times weekly 717 service between Perth and Exmouth.

With the addition of Exmouth, and Geraldton the Qantas Group’s Western Australia network will comprise nine destinations.

There is little doubt that the next two to three years in WA will be defining for the FIFO market as well as the RPT market which appears headed for further de-regulation.