PAUL PHELAN / CAIRNS
Queensland Airline Holdings (QAH), which acquired the assets of the collapsed Flight West Airlines, is rebranding the former Australian regional carrier as Alliance Airlines and is planning its expansion in a move which is being linked with Singapore Airlines (SIA).
The Asian carrier has had ambitions to gain an Australian domestic foothold by establishing a third national carrier since the collapse of its former Star Alliance partner Ansett last year.
Industry sources believe the quick recovery of the former Flight West, which was shut down by its previous owners in June last year, could only be achieved by major investment and the support of an international carrier.
SIA is declining to comment on any potential link with Alliance Airlines, saying: "We have made no secret of our interest in the Australian market. We have around 70 services a week to the five largest cities, so you would expect us to have a keen interest in developments in the aviation sector." The airline says it has not ruled out involvement in a domestic airline.
Alliance already has links with SIA through QAH director Steve Padgett, who is also chairman and managing director of Queensland-based Aeromil Group. Aeromil signed a deal last April to provide purpose-built training facilities and an operational base for Singapore Flying College-owned Advanced Jet-Training Facility's fleet of four Learjet 45s and the college's Learjet simulator, in a A$2 million ($1 million) deal. In addition to Padgett, QAH is owned by Stephen Bond, who owns Lloyd Helicopters, and Hugh Jones, chief executive of New Zealand-based Airwork.
The Australian airline operates scheduled flights on two key Queensland routes and will launch new domestic services from Brisbane and Sydney this month. The airline is planning to add more Fokker 100s to its fleet of two of the type and two Embraer EMB-120 Brasilias. It is also adding to its 140 staff and has set up a call centre capable of accommodating rapid growth.
Sources say Alliance would give SIA a ready-made base for expansion to Australian tourism routes.
Australiawide Airlines last week simultaneously completed the acquisition of former Ansett regional carriers Hazelton Airlines and Kendell Airlines from their separate administrators for a reported A$40 million (US$21 million). A combined fleet of 21 Saab 340 and seven Fairchild Dornier Metro 23 turboprops will fly under a new name and livery from September.Source: Flight International
