Airline Nips Into Rival's Flight Path
Newcastle Herald
Thursday July 11, 2002
SMALL Lake Macquarie airline Aeropelican will take on the might of Qantas when it starts flights out of Newcastle Airport next week.
Belmont Airport-based Aeropelican has promised to undercut Qantas fares when it introduces 20 return flights a week between Williamtown and Sydney from Wednesday.
One 16-seat Twin Otter aircraft will service the new route and discount one-way fares of $70 will be offered.
The service will operate every day of the week, with four return flights on Sundays.
Flight time between Newcastle and Sydney airports will be 45 minutes.
Full-priced one-way fares will be set at $140.
Aeropelican's Sydney-based sister airline Horizon also plans to infiltrate the Newcastle market.
Horizon Airlines is expected to introduce flights between Newcastle and Sydney airports from September 1, using a 19-seat Metroline aircraft.
Aeropelican chief Gareth Brown said the new service was part of the company's program to spread its wings and expand as a Newcastle icon.
Mr Brown said Aeropelican would undercut Qantas by $17 per one-way fare because passengers would not pay the Ansett tax or an insurance levy.
The company's 16-seat aircraft is exempt from paying the Ansett tax and Aeropelican will absorb the insurance levy.
He said Aeropelican was starting flights out of Williamtown `in the spirit of competition' against Qantas.
`We are certainly starting up in competition with Qantas at Williamtown but, at the end of the day, we believe we have a better cost structure to be successful and offer cheaper fares to our new clientele,' Mr Brown said.
`We are confident it will be beneficial not only to Aeropelican but to the Newcastle community as well.'
The service would provide a vital business and tourist link to the Hunter.
`We believe Aeropelican represents Newcastle,' Mr Brown said.
Aeropelican will continue to fly between Belmont and Sydney airports.
Cheaper fares will be offered at Belmont Airport to encourage passengers to use the traditional service.
However, Mr Brown said the distance between Belmont Airport and Williamtown would ensure they were relatively separate markets.
A Qantas spokeswoman said the airline's policy was not to comment on a competitor's behaviour.
Aeropelican's new Williamtown
to Sydney service
n AIRCRAFT: 16-seat Twin Otter
n FLIGHTS: 20 return flights a week
n FARES: Ranging from $70 one-way (discount fare) to $140 one-way (full fare)
n DURATION: 45 minutes one-way
© 2002 Newcastle Herald
