FLIGHTWEST AIRLINES of Australia is to slash its fleet capacity by diposing of more than half of its aircraft after expansion plans were thwarted by Government regulations and a lack of support from its partner, Ansett.

The Queensland-based regional airline will dispose of its ten Embraer Bandeirantes, six de Havilland Twin Otters and two de Havilland Dash 8-100s, and will operate just its eight Embraer Brasilias. It says that its four launch orders for the Embraer EMB-145 regional jet have been "-rolled over until the future is clearer".

According to Flightwest managing director Sir Dennis Buchanan, the airline's attempt to expand from Queensland into New South Wales was defeated by state government regulation and what he describes as "a lack of support from Ansett", with which the airline has codeshare and marketing agreements. Buchanan shut down his former Papua New Guinea (PNG)-based airline Talair five years ago, claiming that PNG fare and employment policy had strangled his business.

Flightwest's North Queensland operations and six of its Bandeirantes, will be taken over by night freight and contract charter operator Jetcraft, which is associated with Paspaley Pearls, which has recently taken over the assets and operations of the former Ansett-owned Skywest Aviation in Western Ausralia, leading to speculation that it could be planning to expand into charter operations.

Jetcraft will operate these new services using the name Transtate Airlines. Flightwest will continue to operate the services until licences and certificates are in place.

Source: Flight International