Paul Phelan/CAIRNS

Australian regional Impulse Airlines has confirmed long-awaited plans to launch cut-price services in June with one-class Boeing 717 twinjets. The New South Wales-based airline will launch services on Australia's Brisbane-Melbourne-Sydney triangle route, which accounts for about 38% of the country's domestic market.

Impulse will lease three 717-200s from German leasing company Bavaria International and two from part Rolls-Royce-owned leasing firm Pembroke Capital (Flight International, 18-24 January). Deliveries will begin this month, with all five aircraft arriving before the end of the year.

Impulse managing director Jerry McGowan says the airline will operate the 717s in a single-class 117-seat configuration, offering no-conditions fares at half of Ansett's and Qantas' published economy rates. He says his airline is backed by major Australian investment house AMP, an agency of the Singapore Government, and the Hong Kong & Shanghai Bank.

Impulse has locked horns with the big carriers, complaining to the Australian Consumer Competition Commission over a Qantas move to introduce jet services to its Newcastle base. The first 717 will be used on regional trunk routes from its Mascot, New South Wales base, with services expected to begin in June.

The airline has also announced plans for a second hub at Canberra, backed by an A$10 million ($6 million) assistance package from the Australian Capital Territory government. Canberra's local government assembly has also promised Impulse strong support and financial assistance through an A$8 million capital injection and tax relief. McGowan says the airline would develop a new heavy jet maintenance facility, flight training centre and a reservations call centre at the capital, which would be the hub of a regional route network.

Qantas faces a two-pronged attack on its domestic market this year, with Virgin following Impulse with a low-cost operation in Australia. Qantas is eager to begin direct jet services from Newcastle, the industrial centre north of Sydney, where Impulse will establish an operating base.

<li> Aerolineas Baleares (previously called AB Bluestar) has confirmed its Boeing 717 order, with a firm deal for three twinjets, plus 17 options. The Spanish regional start-up, affiliated to Spanair, will take its first 717 in June.

Source: Flight International