Strategic Airlines Applies for US Traffic Rights

Richard Maslen April 28, 2011

Australian carrier Strategic Airlines has made a formal application to the International Air Services Commission (IASC) for permission to launch flights across the Pacific, potentially becoming the seventh carrier to offer flights between Australia and the United States. The carrier is understood to be looking to rebrand as Air Australia and has set September 2011 as the likely launch date. Although there is an open skies agreement between the two countries, airlines still need to apply for written consent to operate scheduled flights so the necessary ‘fit for purpose’ checks can be made on proposed operators.

The Brisbane-based carrier launched operations in 2009 and is part of the diverse Strategic Aviation Group, which provides regular airline services, as well as contract and ad hoc charter services, aircraft brokering, and logistics and cargo handling. It currently operates a fleet of Airbus A320s, some of which are operated under a Luxembourg Air Operator’s Certificate (AOC) on flights from Europe, as well as a single A330-200.

Strategic Airlines not yet made any public comment about its operational plans but based on its current fleet, Honolulu in Hawaii is the most likely first US destination for the carrier as the range of the A330-200 will mean other US destinations will be outside of its flight envelope without a significant load penalty or intermediate stop. However, the airline’s Chief Operating Officer, Damien Vasta has suggested that Strategic might look to open up new niche routes. ''We're not in the business of trying to compete [head-to-head],'' he told a local newspaper.

MARKET ANALYSIS: AUSTRALIA TO UNITED STATES (weekly non-stop flights)
Carrier	Origin	Destination	Flights	Seats
Continental Airlines	Cairns	Guam	2	332
Delta Air Lines	Sydney	Los Angeles	7	1,932
Hawaiian Airlines	Sydney	Honolulu	7	1,848
Jetstar Airways	Sydney	Honolulu	4	1,212
Qantas	Brisbane	Los Angeles	6	2,238
	Melbourne	Los Angeles	7	2,919
	Sydney	Dallas Fort Worth	3	1,119
		Honolulu	4	968
		Los Angeles	14	5,761
		San Francisco	1	373
United Airlines	Sydney	Los Angeles	7	2,541
United Airlines	Sydney	San Francisco	7	2,541
V Australia	Brisbane	Los Angeles	4	1,396
	Melbourne	Los Angeles	3	1,047
	Sydney	Los Angeles	7	2,443
TOTAL			76	26,129

There are already seven airlines offering flights between Australia and the US, with Los Angeles being the main terminus on the other side of the Pacific. Qantas and V Australia offer flights from Brisbane, Melbourne and Sydney, with the national carrier also flying to Dallas Ft Worth, San Francisco and Honolulu. The Hawaiian market is also served by Hawaiian Airlines, Jetstar Airways.

Strategic Airlines has developed its network based around predominantly leisure markets. It currently offers domestic flights from Brisbane to Gladstone, Port Hedland and Townsville and between Perth and Derby. International flights are offered to Denpasar, Indonesia from Brisbane, Perth and Townsville and to Phuket, Thailand from Brisbane and Melbourne.