Air Australia

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Air Australia Airways
Airaustralianewlogo.png
Air Australia Airbus A320-214 MEL Vabre.jpg
IATA code : VC
ICAO code : AGC
Call sign : STRATEGIC
Founding: 1993 (Strategic Aviation)

2008 (Strategic Airlines)
2011 (Air Australia)

Operation stopped: 2012
Seat: Brisbane , AustraliaAustraliaAustralia 
Home airport : Brisbane (BNE)
Melbourne (MEL)
Perth (PER)
Management: Michael James
Number of employees: 354
Alliance : no
Fleet size: 5 + 3 at Strategic Airlines
Aims: National and international
Air Australia Airways ceased operations in 2012. The information in italics refer to the last status before the end of operation.

Air Australia Airways was a low-cost Australian airline . From November 12, 2011 was Air Australia Airways is the trade name of until then as Strategic Airlines operating under the name, in Brisbane established Strategic Airlines Pty Ltd. The origins of the company go back to Air Charter Logistics and later Strategic Aviation Pty Ltd. founded in the early 1990s . back, who worked as a dealer in air freight and charter flights . When Michael James joined the company in 2002, the company expanded and began operating flights on behalf of the Australian armed forces in 2005 . In 2009 the company received its own flight operating license and started as a charter company . In addition, it established a second pillar by founding a European branch and stationing aircraft in France and later in Luxembourg.

Immediately after the start of operations, the Australian part ventured onto the market with the first scheduled flights and became a full-service company. Due to ongoing financial problems, Strategic Airlines changed the concept at the end of 2011 and reorganized itself as a low-cost airline. The company adopted the new name Air Australia . The parent, Strategic Aviation Group, as well as the European branch, which continues to be active in the charter business , retained the old appearance. The individual companies of the group did not have their own web presence, but used the Air Australia homepage.

17 February 2012 Air Australia put to flight operations at short notice and reported immediately along with the Air Australia Group of Companies - officially Strategic Aviation Group - insolvency of. In addition to the airline Air Australia, the Air Australia Group of Companies included its own suppliers, active in catering or maintenance, for example. Only the European branch, in which the Strategic Aviation Group held 49 percent of the shares, was not affected by the bankruptcy of the parent company, but also had to file for bankruptcy after the termination of an important charter contract in autumn 2012.

history

Early years as a broker and military charter

Strategic Airlines logo

Air Australia had its origin in the Hamilton in Brisbane -based broker for air freight and charter flights Strategic Aviation Pty Ltd . Air Australia was also based in Hamilton until bankruptcy in 2012. Strategic Aviation was founded in 1993 - previously Air Charter Logistics - by Shaun Aisen, who worked for the company until 2011. In 2002 Michael James became a shareholder in Strategic Aviation and by February 2011 he owned all shares in the company. James previously worked for Ansett Australia - until it went bankrupt - as a check-in clerk and had never graduated from college. The Queenslander, who was still very young at the time, began to expand the company steadily after joining Strategic Aviation. Under his leadership, Strategic applied for a contract for the transport of soldiers and cargo between Australia and the Middle East, which was put out to tender by the Australian armed forces. Strategic won the tender in 2005 and used an Airbus A330-300 operated by the Portuguese company HiFly and flown by Australian crews on the routes . The time-limited contract has been extended several times.

The Airbus A330-300 CS-TMT used by HiFly for Strategic in May 2007 in Canberra.

In the middle of 2007, former employees expressed serious doubts about the safety of flight operations at Strategic Aviation. Both the competent authorities and Strategic Aviation itself rejected the allegations.

Change to an airline

A330-200 aircraft in its original livery

In October 2008, Strategic Aviation announced that it would set up as a full charter company under the name Strategic Airlines and enter into charter traffic for long-haul aircraft . For this purpose, operations with Airbus A330-300 aircraft should begin at the end of 2009, creating around 100 new jobs in the first year. According to the then Executive Director Michael James, the aircraft should be equipped with seats in business class, economy plus class and economy class.

However, the planning was modified and so the smaller Airbus A320 was to be operated in addition to the Airbus A330. For this purpose, a letter of intent was signed in April 2009 for the purchase of two used Airbus A320-200s, with the aircraft being ready for use in June or July and thus forming the basis of the fleet at an early take-off date. Instead of the planned Airbus A330-300, a leasing contract was also signed in April for a smaller Airbus A330-200 from the inventory of Swiss International Air Lines . The aircraft was to join the fleet at the end of June, go into operation in October and initially replace the Airbus A330-300 leased from HiFly on the military charter routes to the Middle East.

Also in the spring of 2009, the plan was pursued to set up an offshoot in France alongside the Australian parent company. Strategic justified the step with the fact that the bankruptcy of some European airlines, above all the French charter company New Axis Airways , created a small market niche in the charter and wet lease sector, which Strategic Airlines France can now fill. To this end, a leasing contract was signed with the leasing company AerCap for two Airbus A320-200 aircraft, each with 174 seats in economy class. In addition, a flight operations license was applied for from the French authorities and plans were made to start flight operations with one aircraft in the middle of the year, with the second to expand the fleet shortly afterwards.

A first Strategic Airlines customer became Solomon Airlines in May . Strategic signed a contract with which from August 2009 a return flight with an Airbus A320 from Brisbane to Honiara in the Solomon Islands was carried out every Monday, Wednesday and Friday .

The three remaining OzJet Boeing 737-200s were decommissioned in Perth on the night of May 20, 2009 after flight operations ceased. The PSO route from Perth to Derby was then subcontracted to Alliance Airlines. The second OzJet-operated route to Bali was no longer served, which stranded hundreds of travelers.

On June 29, the takeover of the insolvent Australian low-cost carrier OzJet was announced. OzJet had once pioneered the low-cost airline industry in Australia, but ran into financial difficulties and had to cease operations with the remaining three obsolete Boeing 737-200s from Perth on the night of May 20, 2009 and file for bankruptcy. At the time, the airline only flew from Perth to Bali and Derby. While the first route was canceled due to bankruptcy, the route between Perth and Derby - advertised by the government - was operated by Alliance Airlines with a Fokker 100 as an alternative .
Strategic Airlines reached an agreement with the airline's creditors and employees, but took over only 20 to 30 of the last 60 employees at OzJet, but not the aircraft. However, the subsequently dismissed employees received their outstanding salaries from Strategic. The parties have agreed not to disclose the purchase price. The flight schedule at that time was initially retained on the only route from Perth to RAAF Curtin near Derby, although the wet-leased Fokker 100s operated by Alliance Airlines continued to be used. Strategic Airlines planned to replace these with their own Airbus A320 in September 2009, but the replacement was delayed until 2010. The route was interesting for Strategic because it had been awarded to OzJet in a tendering process. The decision made it possible to enrich the company's program with the first scheduled flight connection, but this meant a departure from the original model of the charter airline.

In July 2009 the first aircraft in Strategic livery was presented: the company's only Airbus A330-200 with the registration VH-SSA landed at Brisbane's home airport and was then presented. Some Airbus A320s should follow shortly, flight operations started in September.

A320-200 VH-YQA in Perth. The aircraft was given the name "The Kimberley". The other Airbus A320s in the fleet were not named.

On August 14th, the French offshoot received the Air Operators Certificate (AOC) from the French authorities and on the following day flight operations began with an Airbus A320. However, this was initially used on the opposite side of the globe, for Solomon Airlines between Brisbane and Honiara. In the case of the aircraft, the Strategic lettering on the fuselage was replaced by the simple name of the customer, and the wingtips were given the Solomon Islands flag. The rest of the aircraft retained its Strategic Airlines livery. The second aircraft was used in Europe after the start of flight operations.

The Australian authorities, in turn, granted Strategic Airlines approval on September 29, 2009, with the result that the Australian part was able to put its only aircraft so far, the Airbus A330-200 with the aircraft registration VH-SSA, into operation; the A320-200s were not yet operational as originally planned. The large-capacity jet was used for the military charter service between Australia and the Middle East until the end of the contract in 2010 and was only available for a few other charter purposes due to the associated load. By operating its own aircraft on the route, the Airbus previously operated by HiFly could be returned. The two planned Airbus A320s were to be used shortly afterwards to set up the planned wet lease and charter operations as well as the Derby-Perth route.

A Strategic A320 from the Christmas Islands approaching Darwin.

The commissioning of the Airbus A320 was delayed, however, and the first A320 with Australian registration did not take off until after an overhaul in Melbourne in February 2010; on the Perth-Derby route, which was originally intended to be flown in an A320 in September 2009. The aircraft with initially all-economy seating and later a cabin with two seat classes was not only used on the scheduled connection, but also in charter from Perth for mining companies.

The second A320-200 went into operation in April 2010. The Airbus A320-200 of the French Strategic Airlines SA - for Solomon Airlines - used by the Australian parent company due to the delays could be replaced, so that the European machine returned to Europe in time for the start of the summer season. The third and thus last Airbus A320-200 was put into operation at the beginning of May 2010 at the Australian Strategic Airlines. This was used in charter and liner business. Until the end of Air Australia, the three Airbus A320-200s with the registration numbers VH-YQA, VH-YQB and VH-YQC formed the core of the aircraft fleet.

Entry into scheduled air traffic

Strategic Airlines was originally supposed to function as an airline without its own seat sales, but with the takeover of OzJet it already operated the domestic route Perth-Derby on its own, and in spring 2010 Strategic announced further new flight connections for the Australian market; the French part should continue to operate only charter and wet lease flights. The first new route Perth-Bali was flown with an A320 from June 2010. The tariffs for the connection were more in the lower price segment, but at the same time the company was set up as a full-service company on the product side, with baggage allowance, free on-board meals and entertainment, which even included free headphones and other inclusive services. From August onwards, an Airbus A320 was used to fly once a week from Brisbane to Port Headland and from Port Hedland to Bali. A second weekly flight was being planned.

In the middle of 2010 a negative scenario emerged for the company, although it was already operating as a strategic airlines with its own aircraft under its own operating license. The military contract, which is economically very important for the company, with a volume of 30 million US dollars per year, was lost to the broker Adagold from South Africa. As before Strategic Airlines, Adagold used HiFly aircraft, but in this case the Airbus A340-300. This was preceded by a routine re-tendering of the short-term contract, for which Adagold and Strategic also applied. On July 9, the responsible Ministry of Defense announced the decision in favor of Adagold. In this context, Strategic went into revision and announced in the media that it would be impossible for Strategic to win the tender, as the specifications practically excluded the company. Strategic also raised allegations of corruption. After lengthy arguments, Strategic ultimately lost the contract; the first flight from Adagold to the Middle East took off on November 23, 2010. With the loss of the highly paid contract - with a profit margin of around 50 percent - the end of the young airline begins. As a result of the discontinuation, the company lacked the income and the passenger business was not able to bring the company into the profit zone, which ultimately led to later bankruptcy.

A Strategic Airbus A320

In the second half of the year, a flight connection was launched from Brisbane via Townsville to Bali, which was flown from December 3rd. In addition, it was announced from February, both from Melbourne and Brisbane, to fly directly to Phuket in Thailand with the Airbus A330-200, which has become vacant due to the termination of the military charter contract. Furthermore, from March Brisbane should be connected directly with Bali. However , the route Bali - Port Hedland was discontinued in March 2011 due to insufficient seat load factor and the associated low income.

In April 2011 a route from Brisbane to Gladstone was added to the flight plan. The connection flown with an A320 - with two daily flights - was by far the most frequented in the company's network at the time. At the same time, the wet lease contract with Solomon Airlines was terminated in March 2011. This had preceded the two companies drifting apart, as Strategic wanted to use the aircraft in their own business and did not renew the contract in September 2010.

At the end of April 2011, the company planned to fly to the United States from September. The plan was to fly to the west coast of the USA with their own aircraft, with a stopover in Hawaii. Alternatively, you should only fly to Hawaii and organize code- sharing flights with other airlines from there . In both cases, lower prices than the established companies on the route should ensure success. After receiving the necessary licenses in the middle of the year, scheduled connections from Melbourne and Brisbane to Honolulu were started in mid-December 2011, but without bookable flights from other companies to the states.

In the second quarter, Strategic Airlines began setting up its own maintenance facility at Brisbane Airport , where the main base of the Australian branch was also located. For this purpose, a former Boeing hangar was rented, which could accommodate up to two Airbus A320s. This meant that most of the maintenance work on this aircraft series could be carried out by yourself, while the A330 continued to be serviced outside the company. The facility was named Strategic Engineering . In retrospect, the costs of the building lease as well as the personnel and other costs were higher and lossy compared to the previously used external maintenance. When the airline was relaunched in November 2011, the officially independent maintenance operation under the umbrella of the group was later renamed Air Australia Engineering . It had 35 employees at the time of the mother's bankruptcy.

A small highlight for Strategic Airlines in June was the Dalai Lama's flight with an A330 to Brisbane. In July, however, Strategic Airlines came under fire again after a generator in the plane malfunctioned on a flight with the only Airbus A330 from Brisbane to Phuket, whereupon the flight was terminated prematurely in Kuala Lumpur and several hundred passengers were stranded. The damage to the machine was so great that a spare part had to be obtained from France. This took several days so that the aircraft was only ready to take off again after four days. The main criticism was that the airline was simply not prepared for such problems and that there were considerable difficulties in communication between Strategic and the customers. As an excuse, additional required hotel nights were paid and the tickets were fully reimbursed, and each of the stranded passengers was given a free flight. Strategic also promised to have learned from the chaos and to stay in contact with customers in the future in the event of similar incidents. The cost of the entire incident ran into the millions.

Airbus A320-200 VH-YQA in Perth

The flights from Brisbane to Gladstone did not last long. After Strategic Airlines, which is now burdened with high debts, had included the twice-daily route in its flight plan in April, the suspension for August 12 was announced on July 29th. Strategic had slipped deeply into the red because of the lost military contract and was gradually looking towards its own end due to the more difficult financing. The company was forced to reorganize the business, for which a consulting firm was brought in. It was also emphasized that the low airfares at least succeeded in breaking what they saw as an overpriced monopoly on the route.

Townsville was also removed from the flight schedule on October 1, 2011. From here Brisbane and Bali were served, with the plane coming from Brisbane, landing in Townsville, and then taking off from there to Bali. The same route back then, which meant an overnight stay in Townsville was necessary for the entire circuit. The route was initially operated twice a week, but was later reduced to a weekly frequency. While the Townsville-Bali flights ran economically, the capacity utilization of the necessary scheduling flights Brisbane-Townsville was so poor that the overall result was negative. This led to the discontinuation of the route because of the necessary savings. Also for financial reasons, the Perth-Bali connection fell victim to the red pen in the same period.

Renaming to Air Australia and restart as a low-cost airline

On November 15, 2011, Air Australia Airways (mostly abbreviated to Air Australia ) was officially launched. However, the airline was still officially active as Strategic Airlines, but no longer used this name externally. As part of the new business model, many of the free services of the formerly classic liner company were canceled and were to be paid for immediately. Air Australia described itself as a boutique carrier, a low-cost airline with a higher quality level. The differences included the fact that Air Australia, as a relic of Strategic Airlines, had a business class in its aircraft, the seating and high-quality service offering of which corresponded to international standards and outperformed the competition in terms of quality; every passenger could also check in one piece of luggage free of charge. In the economy there were different booking groups with some services included and the prices were rather cheap. In addition, a frequent flyer program should be set up, but this no longer happened. In addition, the crews received new uniforms in the basic color black, with a green scarf or tie as a color accent. With the renaming, a stronger expansion in Australia and Asia was also considered. For example, destinations in Vietnam and China should be served next year, for which the permits had already been submitted or applied for.

An A320 in Air Australia's new livery on landing in Melbourne in December 2011

On December 14th, flights to the new US destination Honolulu in Hawaii began. Air Australia initially flew the route from Melbourne and Brisbane twice a week. The flights were carried out with an Airbus A330. The Melbourne - Brisbane route began the following day. This route, which is important and highly frequented in Australia, was served by Air Australia twice a day on weekdays and once a day on weekends with an Airbus A320 in each direction. The price for an economy ticket was available from 69  Australian dollars in the cheapest booking class, which meant that the offer was more appealing to price-conscious travelers. In business class, tickets were available from AU $ 499.

Air Australia had to organize a second Airbus A330 to commence flights to Hawaii. It was decided to lease an aircraft from the Turkish AtlasJet. The aircraft with the registration TC-ETK arrived in Brisbane in early December and kept its AtlasJet livery. AtlasJet had previously used the aircraft for Saudi Arabian Airlines.

At the turn of the year 2011/2012, Air Australia's fleet consisted of three Airbus A320-200s and two Airbus A330-200s; the two Australian destinations Melbourne and Brisbane were approached from Honolulu and Phuket. There were also routes between Brisbane and Bali, Brisbane and Melbourne, Brisbane and Port Hedland and Perth and Derby.
The European company, newly registered in Luxembourg after losing its license in France in 2010, was operating three A320-200s at the same time, the majority of which were now used for tourist charters from the United Kingdom .

Financial decline

Strategic Airlines, as well as the later Air Australia, never succeeded in bringing their passenger operations into the profit zone. With the start of charter and scheduled services at the end of 2009 and the beginning of 2010, the company's good balance sheet turned into the red. Strategic Airlines suffered a loss of AU $ 2.1 million for the 2009/2010 financial year. In the following year 2010/2011, the losses grew to a total of 9.3 million AU $, mainly due to the loss of the 30 million AU $ contract with the military. The parent company Strategic Aviation also made losses, since other corporate divisions also fell into the red and thus the losses of Strategic Airlines could not be compensated. In addition, numerous debts were also accumulated. Only the European charter subsidiary Strategic Airlines SA was the only company in the group to achieve a balanced result.

In February 2011, Michael James, who was around thirty - until then co-owner - took over the remaining shares in Strategic Aviation from company founder Shaun Aisen, who had apparently lost confidence in the future of the aviation company and could not come to an agreement with Michael James on the future of the company.

In the summer, the airline, which was already heavily indebted, ran out of financial resources and it became increasingly difficult to raise new capital. With the help of the management consulting firm KordaMentha , the restart as Air Australia was attempted. As a low-cost airline with a changed route network, it was hoped that it would establish itself on the market and thus have a chance of survival. This project subsequently received considerable criticism in the specialist press, as the financial possibilities at the time of the renaming would hardly have been sufficient to bring a new brand onto the market. In addition, new routes were added, which in all probability would have blown society's possibilities.

At the end of 2011, the financing began to falter. On November 28, 2011, it was publicly announced that Strategic's debts were no longer reinsurable . At the end of December there were tensions between the largest Australian flight booking agency Flight Center and insurance companies and Air Australia, as the travel insurance Cover-More did not cover the damage in the event of bankruptcy due to the tight financial situation, as with other airlines. Bookers at Flight Center therefore had to confirm that they would forego the usual insolvency insurance function of their travel insurance. Flight Center shifted the responsibility to Cover-More, which itself pointed out that the British insurer International Passenger Protection had already canceled bankruptcy protection for Air Australia a month ago. IPP in turn shifted responsibility to the Flight Center and Cover-More. Air Australia tried to remedy the situation as quickly as possible and organized a round table, but the insurance company could not be convinced and continued to suspend bankruptcy protection.

In order to counter the impending bankruptcy, attempts were made to get new money, and so at the beginning of January 2012 the investor Geoffrey Edelsten became interested in joining the company; However, he ultimately decided against it and other investors could no longer be won.

In the beginning of the fiscal year from July 1, 2011 to January 31, 2012, the airline generated a total of 60 million Australian dollars in revenue, but at the end of the year a loss of AU $ 28 million was posted. In addition to organizational reasons, the high price of kerosene was a major burden, but there were already improvements on the income side.

Fiscal year July 2011 - January 2012
month loss
July 2011 AU $ 2.6 million
August 2011 AU $ 4.8 million
September 2011 AU $ 3 million
October 2011 AU $ 5 million
November 2011 AU $ 7 million
December 2011 AU $ 1 million
January 2012 AU $ 3 million

In February 2012, the information about the catastrophic state and the likely imminent collapse of the airline, which until then was in debt between AU $ 80 and 90 million, condensed. On the day before the bankruptcy, an attempt was made to calm the company's creditors by denying all concerns.

The measures taken by the consulting firm KordaMentha, which has been involved in the restructuring for around six months, showed initial positive results, but the new Honolulu flights generated too high a loss; society had become financially excessive. After the bankruptcy, KordaMentha stated that Air Australia would most likely have made a profit as early as March 2012, but despite these prospects no new investors could be convinced to invest in the airline. This was mainly due to the high mountain of debt and the reports that have been circulating for months about a possible end of the low-cost society.

On the evening before bankruptcy, just a few hours before the airline's grounding, Michael James wrote an email to his employees - knowing that it was about to go bankrupt - asking them to ignore the rumors, as business was going without any problems run.

insolvency

On the night of February 16-17, 2012, Air Australia was unable to pay the fuel costs for a flight from Phuket , Thailand to Melbourne, Australia. The airline's management immediately met and around 1:30 a.m. local time appointed the business advisory firm KordaMentha to act as insolvency administrator for the parent company Strategic Aviation Group and its subsidiaries, including Air Australia as a major player, and applied for bankruptcy protection. Air Australia canceled all upcoming flights at short notice and grounded the entire fleet, staff for the flights planned for February 17 no longer came to work. Despite the imminent bankruptcy, Air Australia had unrestricted ticket sales until flight operations ceased and only shut down the booking system at 1:30 a.m. local time.

As a result of the bankruptcy, according to ABC News, a total of around 4,000 passengers were stranded in the holiday destinations of Bali, Phuket and Honolulu served by Air Australia, who had planned their return flight with Air Australia within the next two to three weeks. The airline Qantas guaranteed the passengers replacement tickets at the former prices of Air Australia and promised to carry out reinforcement flights. Virgin Australia also offered discounted tickets for the stranded passengers for the flights from Bali to Australia, and so the return flight from Denpasar / Bali to Australia could be started by March 2, 2012 for AU $ 199 plus luggage. In addition, non-Australian airlines took part in the return campaign. Hawaiian Airlines , for example, offered alternative flights from Hawaii to Sydney at a preferential price of AU $ 300, and the Asian Air Asia X offered the flights stranded in Phuket and Bali via Kuala Lumpur, for which only the applicable fees and taxes had to be paid.

Most of Air Australia's 300 or so employees were released immediately. 4000 ticket holders could not be served on the day of bankruptcy. The same number were abroad, and a total of around 100,000 tickets had been sold at the time of the cessation of operations, the departure of which was after February 17 and which could therefore no longer be redeemed.

Large parts of the group of companies were affected by the insolvency of the Strategic Aviation Group. In addition to the parent company Strategic Aviation Group, these included :

  • Air Australia Airways
  • Strategic Airlines
  • OzJet Airlines
  • Strategic Aviation
  • Strategic Engineering Australia
  • Strategic Global
The former VH-YQB of Air Australia at the beginning of April 2012 with the new interim registration number N549CL on a transfer flight of the lessor in Budapest

On the day of the bankruptcy, a Thai flight attendant stated that she was deployed on domestic routes and was paid a mere AU $ 90 per day  , including expenses and allowances. This was below the Australian minimum wage and the Labor Secretary announced investigations. On February 18, parts and the entire Strategic Aviation Group were put up for sale. The chances of finding someone interested in the company, which was in debt with around 85 million Australian dollars, were negligible.

The lessors' aircraft were returned in the following days, which meant that the minimal chances of a restart tended towards zero. The A330-200 of the Turkish AtlasJet, which was refused refueling in Phuket on the night of bankruptcy, was fetched back by the lessor over the weekend. Most of the routes were operated by Air Australia in direct competition with other airlines, some of which reacted by increasing the frequency of their flights after they were discontinued by Air Australia. Only the state tendered route from Perth to Derby, which Air Australia was the only company to operate, had to be re-tendered and could be resumed by Skywest Airlines on February 20, 2012 .

On March 1, Air Australia's creditors and lenders met, including many employees. Creditors could hardly hope for money as Air Australia's debts had risen to a total of 80 to 90 million Australian dollars; only AU $ 440,000 remained in the accounts. There were hardly any assets either. The planes were leased and the company had hardly any other property. Only the sale of the flight operating license and the maintenance base as well as the shares in the still active and profitable European offshoot, in which the Strategic Aviation Group held 49 percent of the shares, could have brought in the 500 creditors money. The largest lender was ANZ Bank . Air Australia owed a total of AU $ 20 million here, making Air New Zealand's bank one of the biggest losers. The previous bankruptcy administrator KordaMentha was also confirmed at the meeting. In addition to the creditors and customers, the total of 350 employees were particularly affected by the collapse. However, many of the employees in flight operations, such as cabin crew, had good prospects of finding a new job quickly due to the expansion plans of Tiger Airways Australia , as the company announced shortly after the bankruptcy of Air Australia that it would offer many of those affected a new job . Furthermore, the employees' salaries had not been paid for long periods of time, as had bills for necessary hotel accommodation for flight attendants and pilots on long-haul flights. However, shortly after the bankruptcy, the Prime Minister Julia Gillard assured the employees that they would cover part of their claims to Air Australia from state funds.

On April 23, 2012, the liquidation of Air Australia and the other bankrupt companies of the group was finally confirmed and then implemented. As a result, 110 Air Australia assets were auctioned - from ground equipment such as passenger stairs to spittoon bags, model airplanes, life jackets, plastic cups and airplane seats. In some cases good, but often very bad prices were achieved. A passenger staircase went to a new owner for just AU $ 259, and AU $ 12,700 was achieved for a luggage tractor. Meanwhile Michael James was planning to found a new company together with former Air Australia employees, which should gain a foothold in the online travel segment.

The subsidiary Strategic Airlines SA in Luxembourg, in which Strategic Aviation Group held 49 percent and whose wholly owned owner Michael James held the remaining 51 percent, was not affected by the shutdown of Air Australia and the bankruptcy of the mother and continued to run its three Airbus A320- 200 charter services. Most of the aircraft were used for Olympic Holidays between Great Britain and Greece over the summer. The fixed-term contract was not extended after the end of the 2012 summer season. Strategic Airlines SA, which largely financed itself with this order, could not compensate for the loss and therefore had to cease flight operations on October 3rd and file for bankruptcy.

Sister companies

Since the start of flight operations of Strategic Airlines, later Air Australia, there has been a subsidiary of the same name under the umbrella of the Strategic Aviation Group, which was active in charter traffic in Europe as a sister company of Air Australia. The independent branch had its own AOC and was initially registered in France, but after the license was lost it moved to Luxembourg and re-registered there. The Australian Strategic Airlines or the later Air Australia and the European branch cooperated with each other and use synergies in administration. After the demise of Air Australia and with it the Strategic Aviation Group, the independent subsidiary in Luxembourg was spared the end and is therefore still active.

Strategic France SA (France)

The Strategic France A320 used for Solomons (recognizable by its French registration number and the Solomons logo) in May 2010.

Strategic France SA was the European division of Strategic Airlines based in France. She flew under a French operating license, which is why she operated with different codes than her mother, namely EF and STZ. Flight operations, which are limited to charter and ad hoc orders, began on August 13, 2009; The basis was the Parisian airport Charles-de-Gaulle . Initially, an Airbus A320-200, which Strategic had taken over from Aerolíneas Argentinas , was used. With the French operating license, it was wet leased to Solomon Airlines for several months until early summer 2010 before it was chartered in Europe. A second aircraft of the same type, also from the Aerolíneas Argentinas fleet, was used in Europe from the start. An Airbus A320 was also leased from SmartLynx Airlines for the 2010 summer season , with a total of three Airbus A320-200s being used by Strategic Airlines SA. Strategic Airlines France's flights were run across Europe, with the focus on flights from Paris (CDG) and London ( Gatwick Airport ).

However, the French authorities became increasingly skeptical about the safety of society. On a flight to Tenerife, for example, there was a leak in the hydraulic system, and a short time later a crack in the cockpit window of another aircraft. In addition, the authorities were suspicious of what they saw as a chaotic administration and criticized the poor handling of passengers and delays of up to 30 hours in some cases. The operating license, which routinely expired on September 15, 2011, was not extended and Strategic Airlines France ceased operations. The charter programs, for which the two aircraft were on the road for around 200 hours a month, had to be canceled and the organizers looked for a replacement. The charter airline Air Sweden then decided at short notice to station an Airbus A320 in Lyon in order to take over the charter flights flown by Strategic from there.

Strategic Airlines SA (Luxembourg)

As a reaction to the loss of the French operating license, the Australian parent decided to re-establish the European branch in Luxembourg and apply for a certificate for aircraft operations there. The Airbus A320 planes would then fly under Luxembourg registration and be stationed at Luxembourg Airport. The operating license had already been applied for a few months earlier, as it was apparently suspected that the French one would not be renewed. After the Luxembourg operating license was granted, the airline flew as Strategic Airlines from October 2010 . Like its French predecessor, the airline operated flights for various customers, the ICAO code was STU, the IATA code SH. With the restart, the Airbus A320 rented by SmartLynx was integrated into the fleet.

A320 operated by Luxembourg based Strategic Airlines SA at Manchester Airport in December 2011. The aircraft shown here was previously used by its French predecessor for Solomons and came back to Europe in early / mid-2010.

Initially two of the three aircraft remained stationed in Paris CDG and flight operations from Luxembourg were resumed with only one Airbus A320 - new registration number LX-STA. In summer 2011 the two other Airbus A320s of the French predecessor were reactivated (LX-STB and LX-STC) and integrated into the fleet. Due to some charter contracts, flight operations were relocated to Great Britain in the summer of 2011. Despite its official headquarters in Luxembourg, the company operated all flights from the base in London-Gatwick, mainly to destinations in Greece, in the summer of 2011.

Restrictions due to the loss of a license, missing flight plans, canceled flights and other incidents at the Luxembourg company led to considerable problems again immediately after the start of flight operations. In the summer of 2011, speculation continued that some employees were employed without employment contracts, but Strategic denied this. The fact that an airline that had lost its operating license due to safety concerns was able to take off again with a new one from Luxembourg just a few weeks later led to criticism of the Luxembourg air traffic control authority. The latter defended itself by stating that the application was made before the French certificate was lost and that the Strategic Airlines authority had subjected it to an examination that did not result in any objections.

At the end of 2011, Strategic Airlines Luxembourg once again made negative local headlines. The reason for this was the military transports that began on November 15 on behalf of NATO to Erbil in Iraq and Kabul in Afghanistan. The crews were not asked whether they were available for such missions, but simply assigned to the flights; it had not been discussed with the unions either. The flights were carried out from Paris via Turkey to the crisis areas. Since the company only had 40 employees at the time, most of the crew members were affected.

Strategic Airlines, in which Air Australia / Strategic Aviation held a 49 percent stake and ex-boss David Blake 51 percent, had charter contracts for the summer of 2012. 200,000 passengers were transported to holiday areas from London and Manchester for Olympic Holidays; the company was economically profitable and did not have to cease operations after the Air Australia bankruptcy. However, the contract with Olympic Holidays was not extended after the end of the 2012 summer season and Strategic Airlines SA , which largely financed itself with this contract, was unable to compensate for the loss. She then had to cease flight operations on October 3rd and file for bankruptcy.

Route network

Air Australia route map. Green : routes when flight operations are discontinued , black : routes previously set.

National

In Air Australia's last flight plan, the Brisbane to Melbourne route - one of the most important routes in the Australian market - was the most frequented route on Air Australia. It was flown twice on weekdays and once in each direction on the weekend. The share of the flight volume on this route was small but constant.
However, Air Australia held a monopoly on the route from Perth to Derby, where it was the only operator during its lifetime. Most recently there were daily flights here on weekdays, but no flights on weekends.
A third domestic route ran from Brisbane to Port Hedland, which was on the flight schedule on Tuesdays when operations were closed.

International

Until recently, all of Air Australia's international flight connections were intended for the tourist outbound market in Australia. The routes were carried out with the company's two Airbus A330-200s until flight operations were discontinued. A320s were used on the decentralized connections previously discontinued, such as from Port Hedland or Townsville to Bali, as there was less demand here.

As of February 2012, Air Australia flew internationally from Brisbane to Bali, from Phuket to Brisbane and Melbourne and from Melbourne and Brisbane across the Pacific to Hawaii.

fleet

An A330 in Strategic livery at Kingsford Smith International Airport

The following table shows the Air Australia fleet at the time of bankruptcy, in the lower part the fleet of the Luxembourg subsidiary Strategic Airlines SA at the same time.

Aircraft type active Aircraft registration Lessor Seats ( C / Y )
Air Australia (VC / AGC)
Airbus A320-200 03 VH-YQA
VH-YQB
VH-YQC
Macquarie Aviation Capital

AWAS
AeroTurbine Inc

0152 (8/144)
Airbus A330-200 02 TC-ETK
VH-SSA
TC-ETK leased from AtlasJet

VH-SSA leased from Swiss / Aircastle

0286 (26/260)

0273 (30/243)

Total Air Australia 05
Strategic Airlines SA , Luxembourg (SH / STU)
Airbus A320-200 03 LX-STA

LX-STB
LX-STC


LX-STB leased from Aeroturbine

0174 (0/174)
Overall Strategic Airlines SA 03
total 08th Status: February 2012

Since Air Australia's planes were relatively little in the air due to the business model, it was more profitable for the airline to fly with older planes. As of December 2011, the age of the Air Australia fleet was around 18 years, and that of the subsidiary in Luxembourg around 18.5 years.

With the renaming to Air Australia and the restart as a low-cost airline, one of the three Airbus A320-200s in Luxembourg should go to Australia in October 2011 and a second in early 2012. In addition, Air Australia planned to expand the route network and fleet in the first three years of operation. Especially in the long-haul area, where routes to Vietnam and China were specifically planned. There was talk of six more Airbus A330s within three years, while the number of Airbus A320s should remain at five with the transfer of the two aircraft from the European sister company. The plans for the transfer of the Luxembourg aircraft silted up and of the planned A330 only one aircraft - in December 2011 - joined the fleet.

Since the former Australian Strategic Airlines was a full-service company, Air Australia's aircraft had a business class on board, which with its spacious seats was one of the better offers. The Airbus A320-200 had eight business seats and a further 144 seats in economy . The business class had the seat spacing of classic high-quality companies and the economy had a full 86 centimeters. In one-class seating, a maximum of 180 seats are otherwise possible in this type of aircraft. The larger long-haul aircraft Airbus A330-200 with the registration VH-SSA, which had been in the fleet from the beginning, was equipped with 30 business and 243 economy seats and the seat layout also corresponded to the configuration of a classic quality airline.
The French and later Luxembourg subsidiary had their Airbus A320-200 equipped with 174 seats in normal one-class seating and was therefore 6 seats - or a row of seats - below the maximum seating for this type of aircraft.

design

Design draft (photo montage or collage) for Air Australia on an A330. However, only two A320s received this livery until the company went bankrupt.

In the course of the establishment of low-cost flight connections under the new brand name Air Australia , a new design for the aircraft was introduced in addition to new uniforms for the crew. The new corporate identity ( corporate image ) was designed by the Australian agency CumminsRoss from Melbourne.

The design of the exterior painting of the aircraft took up design elements of the company logo. This had a stylized boomerang , which on the one hand was supposed to associate the element "flying" and on the other hand embodies a symbol associated with Australia today. In addition, there was a stylized sun on the vertical stabilizer , which was taken in view of the history of the company in the military charter (the sun can be found in the emblem of the Australian armed forces) and to symbolize the sun's connection with Australia.

A light green was chosen as the basic color (lettering: C 42, M 7, Y 94, K 0), the one in the boomerang and sun symbols , as well as above the engine cowlings, of a lighter green (C 42, M 7, Y 94, K 0) turned into a darker green (C 65, M 29, Y 98, K 2). These shades of green should stand for the eucalyptus tree , also a symbol for Australia. In addition, the silver-gray of the aircraft body should symbolize the national animals koala and kangaroo. The designers wanted to create an appearance that should look fresh and natural.

Due to the short existence of Air Australia, only two aircraft had this new design, the two aircraft of the type Airbus A320 with the registration number VH-YQB and VH-YGC. Two other aircraft, an Airbus A320 with the registration VH-YQC and an Airbus A330-200 with the registration VH-SSA, still wore the Strategic livery at the time of the cessation of operations. The leased A330-200 TC-ETK was painted in mixed colors from the lessor AtlasJet and the previous operator, Saudi Arabian Airlines, for the entire duration of just over two months.

See also

Web links

Commons : Air Australia  - Collection of pictures, videos and audio files

Individual evidence

  1. ^ Anthony Marx: Air Australia had just $ 442,000 in the bank and up to $ 90 million in debts when it collapsed. In: The Courier-Mail . March 1, 2012, last accessed February 23, 2013.
  2. a b Hamza Bendemra: Heading off an aviation tailspin. In: BusinessSpectator. February 20, 2012, last accessed March 2, 2013.
  3. a b The Senate (Parliament of Australia): Foreign Affairs, Defense and Trade References Committee: Defense's request for tender for aviation contracts. Commonwealth of Australia, Canberra 2011, ISBN 978-1-74229-472-8 ( PDF ), see Chapter 2, pp. 9-17: Background to the 2010 tender process. ( PDF , last accessed on March 2, 2013)
  4. Short portrait of Michael James on CNN Go ( December 20, 2011 memento in the Internet Archive ), accessed on May 3, 2012
  5. Nonee Walsh: Troop transport company failing aviation safety standards, former staff say. ABC online , The 7.30 Report, December 7, 2007, last accessed February 26, 2013.
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  129. Picture VH-YQC in new livery ( Memento from October 31, 2013 in the Internet Archive ) (last accessed: May 3, 2012)
This article was added to the list of articles worth reading on March 9, 2013 in this version .