Skywest Airlines Ltd today signed a scheduled charter contract with Fortescue Metals Group Ltd for air charter services from Perth to Cloudbreak and return.
Cloudbreak is the site of Fortescue Metals Group Ltd's world leading Iron Ore extraction project.
The salient information concerning the terms of the contract with Fortescue is as follows:
- The contract is for the provision of scheduled jet charter services between Perth and Fortescue's Iron Ore Mine for the production workers employed by Fortescue;
- The Air Services Contract's term extends from the 1st of June 2008, certain services have already commenced. The term of the contract is 3 years with a 2 year option extension possible;
- The contract provides for Skywest to operate regular fly-in fly-out return passenger services six or more times each week using F100 jets with 100 seat capacity;
- The revenues of the contract billed by Skywest will be significant but will vary depending upon the precise number of services flown over the three year term. The contract includes provision for price adjustments to reflect increases in fuel prices. The contract will virtually fully utilize one of the F100 aircraft recently leased by the Company.
Chairman, Jeff Chatfield said: "Fortescue's project at Cloudbreak represents one of the world's major Iron Ore developments. This contract is an excellent opportunity for Skywest to further develop its scheduled charter business. The Company is both pleased and humbled to be selected to service this major Iron Ore production project by Fortescue."
