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Skywest Pilbara deal

WESTERN Australian regional airline Skywest Ltd has announced the execution of an agreement with Macmahon Contractors Pty Ltd for the provision of air services between Perth and Newman, located in the Pilbara. The term of the agreement is for two years to March 2008, with expected annual revenue for Skywest of about $3 million. The agreement is for multiple flights per week and builds on an existing arrangement under which Skywest has been providing a once-weekly flight to Macmahon for the past two years. The provision of additional flights will occur as a staged ramp-up scheduled to commence in mid March 2006. The agreement, once fully implemented, adds approximately 780 flight hours a year to Skywest’s Fokker 50 fleet. In January, the company commenced providing a charter service to The Granites mine site, located in the Northern Territory, for Newmont Mining. A letter of intention was executed for the provision of the charter service for a four-year period, with expected annual revenue for Skywest of about $3.2 million.

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