Articles: MacAir placed in receivership

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From the Brisbanetimes click here!

MacAir placed in receivership

MacAir placed in receivership
Jessica Marszalek and Gabrielle Dunlevy | January 30, 2009 - 12:51PM

A Queensland airline has gone into administration, leaving a question mark over services to regional areas.

A spokeswoman for Townsville-based MacAir today confirmed the company had gone into voluntary administration.

It followed MacAir's securing last year of a five-year Queensland Transport contract to operate subsidised air services to communities across the northern, western and gulf regions.

Treasurer Andrew Fraser said the government was taking steps to ensure regional services remained but there would be no bailout package.

He said MacAir had systemic issues and the government would instead contract other providers to fill any gaps to services before a new tender process could occur.

"Our interest here is making sure flights are available for regional Queenslanders, not the interests of the MacAir business owners," he told reporters in Brisbane.

Over the past few months, Queensland Transport has received numerous complaints about delays, cancellations or the non-arrival of scheduled flights.

And MacAir itself expressed concerns over fulfilling all of its services.

The situation came to a head last week when the government announced MacAir would vary its contract with the government, meaning a new open tender for the air services would be called after two months.

MacAir asked the government for a $7 million one-off ex gratia payment, not linked to performance, which was refused.

MacAir has been sought for comment.

AAP

[ozbob]

I understand contingency arrangements will be outlined later today by the Minister for Transport following the appointment of receivers for MacAir.

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From the Courier Mail click here!

Airline passengers stranded

Airline passengers stranded
Article from: The Courier-Mail

James McCullough and Rosemary Odgers

January 30, 2009 12:21pm

REGIONAL carrier MacAir was this morning placed in receivership by its bankers Suncorp Metway, leaving passengers stranded around the state.
Suncorp is owed about $10 million with unsecured creditors such as BP and Shell owed an estimated $4 million.

Jonathan McLeod of McLeod Partners was appointed voluntary administrator on Thursday night by MacAir owner Terry Byrt and Justin Walsh of Ernst & Young was appointed receiver by the bank this morning.

It's understood the government was working on a crucial bailout package which may allow the airline to keep flying.

In the meantime Mr Walsh said he had no option but to ground all eight planes in the fleet although the total staff of about 200 would retain their jobs in the meantime.

His priority was to go through the company and line it up for a buyer, ideally another airline group.

"We have already had some good interest this morning from another aviation group,'' he told couriermail.com.au.

A spokesman for Transport Minister John Mickel said the Government had been working with the company over recent weeks after its financial difficulties came to light.

"The department has also been working on a contingency plan should the airline stop operating,'' the spokesman said.

Details of this plan are expected to be announced at a press conference later this afternoon.

Regional Queensland has previously been hit by the collapse of important regional  carriers, the largest of which was Flight West which ceased operations in 2001.

[ozbob]

From Brisbanetimes click here!

MacAir's subsidised routes
January 30, 2009 - 1:11PM

MacAir is subsidised by the Queensland government to operate six of the state's 10 regulated air services:

- Northern 1 - Longreach, Winton, Townsville

- Northern 2 - Mount Isa, Julia Creek, Richmond-Hughenden, Townsville

- Northern 3 - Mount Isa, Cloncurry, Townsville

- Gulf 1 - Mount Isa, Doomadgee, Burketown, Mornington Island, Normanton, Cairns

- Western 1 - Thargomindah, Cunnamulla, St George, Oakey, Brisbane

- Western 2 - Mount Isa, Boulia, Bedourie, Birdsville, Windorah, Quilpie, Charleville, Brisbane

(QantasLink operates the remaining four services)

AAP

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Minister for Transport, Trade, Employment and Industrial Relations
The Honourable John Mickel
30/01/2009

Charter flight organised for stranded MacAir passengers

The State Government has chartered a plane to transport passengers stranded in flooded parts of North West Queensland by today's grounding of regional carrier MacAir.

Transport Minister John Mickel said the plane will leave Townsville at approximately 3pm today and fly the MacAir route to Hughenden, Richmond, Julia Creek, Mount Isa and return to Townsville.

"Stranded MacAir passengers can check in for the flight at MacAir counters at those airports by showing their MacAir tickets," Mr Mickel said.

"I asked Queensland Transport to organise an urgent flight for that route because some people are cut off by floodwaters and the grounding of MacAir leaves them with no other travel option.

"Queensland Transport is continuing to look at all options for restoring air services to other routes affected by the appointing of receivers today to MacAir," he said.

Mr Mickel said the government had been advised by receivers Ernst and Young that they had taken control of MacAir and grounded all services until further notice.

The government was urgently seeking clarification about the impact on MacAir's 200 employees and their future employment prospects in the region.

"The Director-General of Queensland Transport has met today with the receivers for the purpose of ascertaining the situation regarding the provision of scheduled MacAir flights. The receiver advised that it would seek to have flights resumed as soon as possible.

"With regard to the disruption of scheduled MacAir services, Queensland Transport wherever possible will provide alternative travel options. That may involve charter flights or coach travel in the short term.

"The government remains committed to providing reliable, regular air services for regional Queensland.

"The government will make information available regarding any temporary arrangements so that MacAir passengers can be informed of the contingency plans that are put in place.

"I have been in contact with the Members of Parliament whose electorates include the routes operated by MacAir - Ms Betty Kiernan, the Member for Mount Isa, and Mr Vaughan Johnson, the Member for Gregory - to keep them apprised of developments so their offices also can advise people as to what is happening.

"The Government will now move to re-tender the air service contracts to ensure that regional Queenslanders continue to be provided with the crucial air services they need and deserve," Mr Mickel said.

MacAir secured a competitive five-year contract with Queensland Transport in April last year, to operate regulated air services to communities across the Northern, Western and Gulf regions, but experienced difficulties in providing the contracted services.

A special hotline, 1800 139 869, has been established and will be activated later this afternoon. Passengers can also contact Queensland Transport on 13 23 80.

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From the Courier Mail click here!

Receivers called in as MacAir goes under

Receivers called in as MacAir goes under
Article from: The Courier-Mail

James McCullough and Rosemary Odgers

January 30, 2009 11:00pm

RURAL Queenslanders besieged by severe flooding have again been left completely stranded - with regional airline MacAir being placed in receivership.
The State Government was forced to charter a plane to deliver crucial medical supplies to Hughenden, Richmond, Julia Creek and Mount Isa, which have been cut off by floodwaters.

More than 20 passengers were also on the $4000 charter flight late yesterday, but another 100 who were relying on MacAir's services throughout the state were stranded.

The future of flights to 32 regional towns and the fate of MacAir's 200 staff remained uncertain last night.

Transport Minister John Mickel promised the Government would find alternative transport for passengers travelling on six of MacAir's regional routes subsidised by taxpayers.

But he ruled out a taxpayer-funded bailout and denied claims the government-owed MacAir $9million.

The airline's collapse is another blow to Queensland's mining sector.

Mine worker Peter Bosgra was one of many people stranded at a remote mine in north Queensland.

"MacAir flies all workers in and out of the mine. I don't know how I will get home next Wednesday. The real scary thing is without flights the mine could be closed immediately," he said last night.

MacAir, owned by Townsville businessman Terry Byrt, was placed in receivership yesterday morning by its bankers, Suncorp Metway, the latest victim of the global financial crisis.

The airline was battered by rising aviation fuel costs, compounded by the heavy fall in the Australian dollar against the US greenback and increased industry competition.

Suncorp is owed $10 million, while unsecured creditors such as BP and Shell are owed an estimated $4 million.

Jonathan McLeod of McLeod & Partners was appointed voluntary administrator on Thursday night by Mr Byrt, and Justin Walsh of Ernst & Young was appointed receiver by Suncorp yesterday.

Mr Walsh said he had no option but to ground all eight aircraft in the fleet, although the 200 staff would stay.

"I am hopeful of having the planes back in the air in a few days because I want to minimise disruption to the travelling public," he said.

His priority was to line the company up for a buyer, ideally another airline group, rumoured to be Qantas.

MacAir won a lucrative five-year contract with Queensland Transport last April to run six subsidised air services to communities across the northern, western and Gulf regions of the state, but there were numerous complaints about delays and cancellations of scheduled flights.

Before Christmas, the Government "substantially increased" the $4.7million annual subsidy paid to the airline, but refused a request for a one-off $7million injection.

MacAir claims it is owed about $9million by the Government, a claim that was "absolutely rejected" by Mr Mickel's office last night. "There is no way we owe them anything like $9million. I'm sure if that was the case we would have been invoiced for such an amount already," a spokesman said.

Mr Mickel defended the decision not to grant the airline the requested $7million capital injection.

"I don't believe that taxpayers, after the Government received a letter from the directors on Wednesday of this week saying they were solvent, should go back in and provide taxpayer funds," he said.

A MacAir flight scheduled for today to the Gulf will be replaced by a taxpayer-funded charter flight, as will a flight between Thargomindah and Brisbane tomorrow.

[ozbob]

From the Brisbanetimes click here!

Double blow for flood hit shires

Double blow for flood hit shires
Andrew Wight | January 31, 2009 - 10:25AM

A western Queensland shire council cut off by floodwaters and the shut-down of regional airline MacAir is calling for the state government to honour its commitment to the shire's subsidised air route and restore services as soon as possible.

A spokeswoman for Transport Minister John Mickell said the government was in negotiations with the MacAir receivers as to how Monday's scheduled MacAir flight to Boulia and Diamantina Shire will be serviced.

Passengers were left stranded across outback Queensland yesterday, when the scheduled flight that travels from Mt Isa to Brisbane, servicing Boulia, Bedourie, Birdsville, Windorah and Quilpie, failed to arrive.

Boulia and Diamantina Shires are both serviced by a subsidised route serviced by MacAir, twice a week, the only scheduled public transport in and out of the area for the flood stricken towns.

Diamantina Shire Deputy Mayor Barry Gaffney said both Birdsville and Bedourie had been totally cut-off by the floods.

"The roads in and out are cut by floodwaters and this flight is the only way to bring in perishables," Mr Gaffney said,

"If we don't get a plane here in the next week or two, we are going to have to have an emergency food drop."

Mr Gaffney said the shire's mail service was also affected.

Boulia Shire Mayor Rick Britton said the shut down of MacAir by its receivers yesterday had left Boulia without its only public transport and its scheduled flying doctor service.

"The MacAir flights usually take people who need to have medical procedures or other treatment outside the shire.

"Unlike Mt Isa, there aren't any other flights here."

A Queensland Government charter flight yesterday flew out of Townsville, servicing Julia Creek and other towns along the way to Mt Isa to retrieve those stranded there.

Mr Gaffney said he expected a simular charter flight on Monday, but did not yet have confirmation.

"From what the government has been saying through media releases (since the collapse), we expect there will be a flight," he said.

At one of the hubs for MacAir, the situation is less dire, but Mt Isa Mayor John Maloney has labelled it as a "massive inconvenience."

Mr Maloney said he did not fear for the jobs of those employed by MacAir in the city, because he expected whoever took over the services would probably employ the same personnel.

But he conceded the nature of the air routes serviced meant there would be problems, whoever was running the route.

"Its a tough route, tough, on planes and I think MacAir has had a history of problems because of that.

The Transport spokeswoman said the government charter flights would be operating on the Gulf Route today and the Western Route, servicing Cunnamulla, tomorrow.

Minister Mickell had said on Friday the government charter flights would run only over the weekend.

[ozbob]

From the Sunday Mail click here!

Flights replace MacAir on bush routes

Flights replace MacAir on bush routes
Article from: The Sunday Mail (Qld)

Sarah Vogler and Mitch Gaynor

January 31, 2009 11:00pm

CAIRNS-based regional airline Skytrans is coming to the rescue of those left stranded by failed operator MacAir.

Skytrans chief executive officer Simon Wild said his company was working with key stakeholders and State Government officials to fill the void left by MacAir, which was placed in receivership on Friday.

The move put the future of flights to 32 regional towns, including Hughenden, Richmond, Julia Creek, Burketown and Mount Isa, in doubt.

Mr Wild said he hoped to resume many of MacAir's flights this week.

Skytrans, which employs 250 staff, services regional North Queensland and charters flights throughout Australia and the South Pacific.

Flights expected to resume soon include areas such as Kowanyama and Edward River in the state's north.

"We will be doing our best to assist in whatever way we practically can to alleviate the situation for passengers and get them to their destinations," Mr Wild said.

Schedules will be updated on the Skytrans website.

Meanwhile, stranded MacAir passengers said they had to wait at the Townsville Airport for several hours before being told the company had collapsed along with their flight plans.

Julia Creek resident Chris Rae said she was due to fly out of Townsville at 7.15am on Friday morning after undergoing eye surgery.

"It was booked well in advance," she said. "I rang up the day before to confirm it was still the right time and I was told it had been changed to 10.15am and to get to the airport at 9.30am."

Ms Rae said she arrived at the airport at 8am and the MacAir counter was empty.

A staff member later told Ms Rae all flights had been cancelled and passengers would have another update at noon.

McKinlay Shire Mayor Cr Paul Woodhouse organised a charter flight for the group and they eventually left Townsville about 4.30pm.

The Skytrans web site is here --> http://www.skytrans.com.au/

[ozbob]

Minister for Transport, Trade, Employment and Industrial Relations
The Honourable John Mickel
01/02/2009

Doubt over MacAir's capacity to resume western and northern flights

Receivers for the grounded regional air services operator MacAir Airlines have advised they are doubtful whether flights on State Government-contracted western and northern routes will resume in the coming days.

Transport Minister John Mickel said today the capacity of MacAir to resume its scheduled air services was expected to become clearer over the coming days.

"Queensland Transport has been liaising closely over the weekend with the receivers who were appointed to MacAir on Friday," Mr Mickel said.

"At one stage it had looked like MacAir might be in a position to resume some of the Queensland Government-contracted services by the middle of the week. The latest advice today, however, is that this is now doubtful.

"As a result, Queensland Transport will move ahead with its contingency plans to put charter services into place on five of the Government-regulated routes MacAir operates to western and northern communities."

Mr Mickel said Queensland Transport had organised a charter flight for approximately 10 passengers today in place of MacAir's cancelled scheduled flight between Brisbane and Thargomindah.

Charter flights had also been organised to cover a number of scheduled MacAir flights on Government-subsidised routes in the coming days.

Queensland Transport will review the requirements for further charter flights once the position of the receiver is clearer. In the meantime, the following arrangements have been planned for the coming days:

Monday

Brisbane to Mount Isa (via Charleville, Quilpie, Windorah, Birdsville, Bedourie and Boulia). Operated as a charter flight with approximately 20 passengers booked - operating to MacAir schedule.

Mount Isa to Cairns return (via Gulf communities Doomadgee, Burketown, Mornington Island, Normanton). Operated as a charter flight with approximately 50 passengers each way - operating to MacAir schedule.

Townsville to Mount Isa return (via Hughenden, Richmond, Julia Creek). Operated as a charter flight with six passengers booked - operating to MacAir schedule.

Tuesday

Mount Isa to Brisbane (via Boulia, Bedourie, Birdsville, Windorah, Quilpie, Charleville). Operated as a charter flight - operating to MacAir schedule.

Townsville to Longreach (via Winton) return. Charter flight yet to be confirmed. However, it is planned to operate to the MacAir schedule.

Cairns to Mount Isa one way (via Gulf communities Normanton, Mornington Island, Burketown, Doomadgee). Charter flight yet to be confirmed.

Wednesday

Arrangements for services from Wednesday will be confirmed early in the week.

Mr Mickel said the State Government was not organising charter flights in place of cancelled services on MacAir's commercial routes. Passengers booked on these services are advised to contact MacAir or the receiver directly from Monday.

A special hotline (available 7 days from 8am to 6pm), 1800 139 869, has been established to provide information for MacAir passengers travelling on Queensland Government-contracted western and northern routes.

Sunday 1 February 2009

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[ozbob]

From Brisbanetimes click here!

MacAir back in the skies

MacAir back in the skies
Andrew Wight | February 2, 2009 - 12:11PM

Regional airline MacAir is flying again, with two planes now servicing the failed company's commercial routes.

"Two are in the air and we are working on the balance of the fleet," MacAir receiver Justin Walsh said.

The planes will not be servicing the subsided routes, however, which are currently being flown by a State Government charter plane.

Queensland Transport announced yesterday it would move ahead with a contingency plan to put charter services into place on five MacAir routes to western and northern communities, after receivers expressed doubt about the immediate future of the services.

Transport Minister John Mickel said the capacity of MacAir to resume its scheduled air services was expected to become clearer over coming days.

"At one stage it had looked like MacAir might be in a position to resume some of the Queensland Government-contracted services by the middle of the week. The latest advice today, however, is that this is now doubtful," Mr Mickel said.

The Minister said Queensland Transport had organised a charter flight for approximately 10 passengers yesterday in place of MacAir's cancelled scheduled flight between Brisbane and Thargomindah.

[ozbob]

From Brisbanetimes click here!

MacAir folds with the loss of 180 jobs

MacAir folds with the loss of 180 jobs
Jessica Marszalek | February 7, 2009 - 7:37AM

Failed regional airline MacAir has been wound up and its 180 staff sacked.

The Townsville-based company, which serviced much of outback Queensland, went into voluntary administration and receivership last week.

It was wound up by receivers Ernst and Young on yesterday.

Justin Walsh, from Ernst and Young, said all services had ceased from noon (AEST) and the airline's fleet would be returned to financiers.

"Unfortunately the staff have been told that the company is no longer in a position to employ them anymore," Mr Walsh said.

"... financially, it doesn't have the capacity to continue trading and in an operational sense it was not in a position to continue trading either."

MacAir provided commercial and fly-in, fly-out services to Queensland mining communities.

It also entered into the five-year contract with the government in April last year to provide subsidised remote north, west and gulf services but soon had trouble fulfilling its terms.

The government is currently providing charter flights to cover the services.

Transport Minister John Mickel said the winding up of the airline meant an emergency contract could now be drafted before an open tender process.

He said he believed other airlines would take over MacAir's commercial and fly-in, fly-out routes.

The government would contact sacked workers to offer training and employment advice.

"This is a tragedy for those 200 families who face unemployment," the minister said.

[ozbob]

From the Brisbanetimes click here!

Commercial airline services return to state's north

Commercial airline services return to state's north
February 16, 2009 - 5:00PM

Commercial air services have resumed in the Gulf of Carpentaria following the collapse of Queensland's regional airline MacAir.

SkyTrans today took over Gulf services, formerly operated by MacAir, under one of three emergency contracts awarded by the state government.

QantasLink and WestWing will commence services to other areas early in March.

Transport Minister John Mickel said the three airlines would fly some of the routes for about six months, until tenders for a long-term contract could be finalised.

MacAir, which serviced much of outback Queensland, went into voluntary administration and receivership last month and was wound up on February 6 with the loss of 180 jobs.

AAP

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Minister for Transport, Trade, Employment and Industrial Relations
The Honourable John Mickel
16/02/2009

Smooth restart to scheduled flights on outback routes

The reintroduction of scheduled outback air services went smoothly today, with services operating on the western Queensland and Gulf region routes by air services provider SkyTrans.

Transport Minister John Mickel said the services provided by SkyTrans under a temporary contract commenced on schedule today and flew without incident.

"It is satisfying to see scheduled air services resuming into some of the more remote centres of Queensland," Mr Mickel said.

SkyTrans services are operating on the Gulf route (Cairns-Normanton-Mornington Island-Burketown-Doomadgee-Mount Isa) and the Western 2 route (Brisbane-Charleville-Quilpie-Windorah-Birdsville-Bedourie-Boulia-Mount Isa).

"Passengers may experience some initial delays while trying to book a flight, but I urge passengers to please be patient," Mr Mickel said.

"The SkyTrans call centre at 1300 759 872 is gearing up for the anticipated volume of bookings and enquiries, or people may book online on the SkyTrans website: www.skytrans.com.au."

"We will have full services restored on all the government-subsidised routes previously operated by MacAir by March 9.

"Until the other service providers are ready to commence full operations, chartered flights will continue on the remaining routes

Mr Mickel said booking on other routes still serviced by chartered flights could be made through the relevant local councils, or for passengers in Mount Isa only, through Harvey World Travel.

Further information on how to book is on the Queensland Transport website at www.transport.qld.gov.au.

West Wing would commence regular scheduled flights from March 2 to Northern 1 route (Longreach-Winton-Townsville) and Northern 2 route (Mount Isa-Julia Creek-Richmond-Hughenden-Townsville).

Bookings for services on and beyond March 2 can be made with West Wing on 4743 2144 or visit www.westwing.com.au.

QantasLink will commence services on the remaining Northern 3 route (Mount Isa-Cloncurry-Townsville) on March 9.

Passengers should contact QantasLink on 13 13 13 or visit www.qantas.com.au for bookings on those flights.

The Queensland Government implemented the temporary contracts following the recent closure of MacAir, which was the contracted service provider.

The temporary contracts will remain in place for about six months while the government undertakes the full tender process for new five-year contracts.

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