14/10/2003 - 22:00

Skywest profit

14/10/2003 - 22:00


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Skywest profit

A FINANCIAL restructure has led to WA regional airline Skywest Limited announcing a $546,000 profit for the 2002-03 financial year.

After a struggle to re-establish itself as an independent operator following the collapse of former owner Ansett Airlines in 2001, Skywest has begun trading profitably again, and managing director Scott Henderson said the airline was now in a position to grow.

He said key aspects to the restructure included staff taking pay cuts, downsizing the company by 15 per cent and the renegotiation of all key contracts.

Since the end of the financial year, Skywest has raised $4.2 million through the issue of a convertible note, with an eye to re-financing its aircraft.

Mr Henderson said the stronger performance meant the company’s aircraft were re-financed out of operating cash flow, allowing the capital raised to go towards paying debts, leaving the airline with virtually zero debt.

The profit announcement is further good news for Skywest, following the launch of the airline’s Perth-Broome service earlier this month.



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