Forum Archive Index - May 2001

["mark walley" <mark_walley@hotmail.com>]

-    NEWS UPDATE


Qantas acts on Impulse: new flight deal


Qantas and domestic rival Impulse Airlines have formed a new commercial 
relationship under which Impulse will withdraw its brand from the Australian 
market.

Impulse executive chairman Gerry McGowan and Qantas chief executive Geoff 
Dixon said today the new relationship was a direct result of increasingly 
competitive market conditions in the Australian and world aviation markets.

Under the deal Impulse would withdraw from operating scheduled air services 
in Australia under its own brand and Qantas would launch its own domestic 
service in the New Zealand aviation market.

"This agreement will strengthen Impulse financially and protect its future," 
Mr McGowan said.

"Impulse will continue to be a major employer of skilled aviation personnel 
and continue to maintain its own aircraft."

Mr Dixon said the new Qantas service in New Zealand would feature Boeing 
737s flying 10 round trips each day between Auckland and Wellington and 
eight round trips per day between Auckland and Christchurch.

As a temporary measure Qantas would operate eight flights each day between 
Auckland and Christchurch, and Auckland and Wellington until the new service 
was launched.

Qantas expected to begin its full New Zealand service from June 1, 2001.

Under the new relationship, Impulse will contract out to Qantas its eight 
Boeing 717 and 13 Beechcraft 1900D aircraft, complete with pilots and crew.

Impulse also will operate, under the Qantas brand and livery, Boeing 717 
services to leisure ports, such as the Gold Coast, Maroochydore and Hamilton 
Island, and between Melbourne and Hobart.

Current Impulse Beechcraft services to Canberra and Newcastle will continue 
and Impulse will begin new services for Qantas to regional centres which it 
does not now service.

As well, Qantas will loan funds to Impulse to allow it to buy back shares 
held by institutional shareholders and provide working capital. The 
institutional stakes total about 65 per cent of the airline.

"Impulse and a number of its institutional shareholders had decided the 
major trunk route market was too difficult for Impulse to continue operating 
on its own," the two airlines said in a joint statement.

"As a result, Impulse would cease to operate services on the major trunk 
routes of Sydney-Melbourne and Sydney-Brisbane from 14 May.

"Qantas will honour all Impulse tickets from 14 May."

Mr McGowan said the two airlines would work together to deliver highly 
competitive air services to more Australian destinations.

Mr McGowan said Impulse intended to honour all agreements it had established 
with governments, including the positioning of its National Reservation 
Centre in Newcastle under a Federal Government grant and Tasmanian and ACT 
governments support packages.

The agreement between the two airlines is subject to the approval of the 
Australian Competition and Consumer Commission.

Afterwards, Impulse will be wholly owned by founders Mr McGowan and Sue 
McGowan.

Mr McGowan said no jobs were likely to be lost under the new arrangements.

"This agreement will secure over 1,000 jobs at Impulse," he said.

"While the new arrangements could involve some transfers for a small number 
of Qantas staff, these staff will be offered ongoing employment with 
Qantas."

AAP



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