Ozjet Suspends Scheduled Services

12 March 2006

OzJet Airlines will concentrate on charter flights after deciding to suspend its scheduled flights between Melbourne and Sydney.

OzJet chairman Mr Paul Stoddart said that it was with very great regret that the decision had been made to stop flying scheduled services immediately.

“Unfortunately, for whatever reasons, we have not had the support we needed to operate in that environment against big, established carriers,” Mr Stoddart said.

“It’s very, very disappointing, particularly, I’m sure, for those people who had started travelling regularly with us between Melbourne and Sydney and many of our very diligent and loyal employees.

“Sad to say, there have not been enough of those regular customers.

“We will now concentrate, with a reduced workforce, on charter operations.

“No paying passenger booked on OzJet will be unduly disadvantaged – they can either receive a refund from OzJet or transfer without any additional cost to Qantas, which has kindly offered to assist in transporting people who have booked and paid for tickets with OzJet. (see fuller statement below re Refunds/Transfers to Qantas)

“We have given it a go in a very tough area of the Australian aviation industry and, as much as we would have hoped, it has become clear that we were not going to achieve in the immediate future the kind of revenues that were needed to keep OzJet in the air as the airline was envisaged.

“Charter operations may well be more rewarding.

“As a charter operation, OzJet will inevitably downsize, but any staff not retained will be paid their full entitlements.

“The scheduled services experience has been very costly to me personally, but my thoughts are more for those who have worked so tirelessly only to find that, as hard as we have tried, ultimately scheduled services were not successful.”

OzJet will retain its Air Operator’s Certificate, a minimum of two Boeing 737 aircraft for charter work and about 30 per cent of its staff.

“OzJet will focus its future flying around ad hoc and VIP charters, something there is clearly a demand for in Australia as little, if any, competition exists in that market,” Mr Stoddart said.