After months of speculation Qantas has confirmed it has taken over regional airline Network Aviation to move into the fly-in-fly-out air charter market in a deal believed to be valued at more than $30 million.
After months of speculation, Qantas has confirmed it has taken over regional airline Network Aviation to move into the fly-in-fly-out air charter market in a deal believed to be valued at more than $30 million.
In a move first mooted in October, Qantas chief executive officer Alan Joyce confirmed the acquisition and said it would provide a strong growth opportunity, new revenue stream and further diversification for the Qantas Group.
Mr Joyce said that Qantas already has a very strong presence in WA through its regular passenger services.
"Mining company demand for FIFO air services to transport employees to and from remote sites within the state, however, cannot be met solely by Regular Passenger Transport services.
"This is an important market, and a growth market, and Qantas will now become a key player in meeting the needs of the resources sector.
"This will significantly enhance the scope of what Qantas can offer the mining sector, bringing new competition to the marketplace.
"We have reached agreement with the owners of Network Aviation to purchase the business."
"It presents strong growth opportunities and we will immediately look at significantly growing its fleet and its operations."
A Qantas spokesman said the terms of the acquisition were confidential and it was a complex transaction making it difficult to put a cash figure on the deal.
Network Aviation operates a fleet of two 100-seat Fokker 100 aircraft and six 30-seat Embraer Brasilia EMB-120ER aircraft.
Subject to finalisation of the acquisition, Network Aviation will become a wholly-owned subsidiary of the Qantas Group.
Qantas said Network Aviation will retain its current management, employees and operating structure, with the business to be aligned with Qantas' operations in terms of safety, regulatory, people, financial and commercial governance oversight, standards and processes.
"This is very much a strategic acquisition and an exciting growth opportunity for Qantas," Mr Joyce said.
Qantas will move into the Western Australian fly-in-fly-out (FIFO)
resources air charter market, with agreement reached for the airline to purchase local operator Network Aviation.
Qantas Chief Executive Officer, Mr Alan Joyce, said the acquisition would provide a strong growth opportunity, new revenue stream and further diversification for the Qantas Group.
"The Qantas Group has a very strong presence in Western Australia, operating passenger services across metropolitan and regional centres and connecting the state to its broader domestic and international networks," Mr Joyce said.
"Mining company demand for FIFO air services to transport employees to and from remote sites within the state, however, cannot be met solely by Regular Passenger Transport services.
"This is an important market, and a growth market, and Qantas will now become a key player in meeting the needs of the resources sector. This will significantly enhance the scope of what Qantas can offer the mining sector, bringing new competition to the marketplace.
"We have reached agreement with the owners of Network Aviation to purchase the business. It presents strong growth opportunities and we will immediately look at significantly growing its fleet and its operations."
Network Aviation operates a fleet of two 100-seat Fokker 100 aircraft and six 30-seat Embraer Brasilia EMB-120ER aircraft.
Subject to finalisation of the acquisition, Network Aviation will become a wholly-owned subsidiary of the Qantas Group.
Network Aviation will retain its current management, employees and operating structure, with the business to be aligned with Qantas' operations in terms of safety, regulatory, people, financial and commercial governance oversight, standards and processes.
"This is very much a strategic acquisition and an exciting growth opportunity for Qantas," Mr Joyce said.
