Air Australia / Strategic Aviation Ceases Operations

Air Australia, previously known as Strategic Aviation, went into voluntary administration in the early hours of Friday 17 February and subsequentially ceased operations. The airline had only a few days ago denied that it was entering into administration and was still taking bookings the day before the announcement was made. Thousands of passengers are affected by the shutdown, with many stranded overseas.


KordaMentha has been appointed as administrators, and are best known for handling the administration of Ansett Airlines when it shut down. KordaMentha has stated on the Air Australia website that "It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately. For clarity, it also appears highly unlikely there will be any flights in the short to medium term. The Administrators will decide on the strategy for the group during the following days and weeks."

Air Australia's troubles had possibly began much earlier. In 2010, when the airline was named Strategic Aviation, it lost a $30million contract with the Australian Defence Force (ADF) to transport troops to the Middle East. It then restructured as a full-service carrier operating scheduled flights with an Airbus A330, as well as operating Airbus A320 aircraft around Australia, including for a brief time, services between Gladstone and Brisbane. Sadly though, Strategic cancelled these services as it reportedly found the competition from QantasLink too great.


In early 2011, one of the two key shareholders pulled out, and by November 2011, Strategic Aviation restructured again as a lower-cost airline under the new brand name of Air Australia. CASA reportedly expressed concerns as to whether the airline could meet its safety requirements, and in December 2011, insolvency insurance coverage for Air Australia was withdrawn. Air Australia also claimed that it would make a profit in 2011/12, but said it was looking for "cornerstone" investors. It was rumoured that the airline had debts of $30 million, and that creditors had begun closing in. Earlier in the week, reports began circulating that administrators KordaMentha were being consulted.

Strategic Airlines Releases New Air Australia Livery

Strategic Airlines has released the first images of the airline’s new 'Air Australia' livery to be introduced later this year.



The new branding was designed for the airline by CumminsRoss.

Launched in 2009 and headquartered in Brisbane, Strategic Airlines - soon to morph into Air Australia - is the nation's newest domestic and international carrier.

The airline operates scheduled passenger services on routes including Melbourne-Phuket, Brisbane-Phuket, Brisbane-Bali, Brisbane-Port Hedland and Perth-Derby. Domestic flights between Melbourne to Brisbane and direct flights from Melbourne to Honolulu and Brisbane to Honolulu will commence from December, 2011.

It plans to move to seven leased A330s over the next three years, with the fleet growing to three by the first quarter of next year.

An additional A320 will come to Australia later this year to bolster the three narrow-body planes already here and a fifth could be added early next year. It has added an A320 base in Melbourne.

Gladstone Airport Information and Spotting Locations, as well as Terminal Redevelopment Pictures

Gladstone is a rapidly growing industrial city on the Central Queensland coast. The airport caters primarily for business and leisure travellers and freight activities associated with the region's developed and emerging industrial complexes. The Airport is located approximately 5km from the city centre and is well catered for by taxi services.

Regular public transport (RPT) services are currently provided by QantasLink (Sunstate Airlines) who provide approximately 50 Dash-8 operated flights per week between Gladstone and Brisbane, as well as 1-2 daily service along the coast connecting to Rockhampton, Mackay, Townsville and Cairns. From October 2011, Virgin Australia commenced almost daily flights between Gladstone and Brisbane, which are operated by Skywest Airlines using ATR 72-500 aircraft. There are 2-3 flights each weekday and on Sundays. Strategic Airlines operated to Gladstone from Brisbane with Airbus A320 aircraft, however they were forced to withdraw this service in August 2011.

Australian Helicopters is also a major operator at the Airport flying passengers to nearby Islands, as well as pilots and sailors to ships either moored or sailing off the coast. They have a major hangar and base near the General Aviation parking apron - which is East of the main Airport terminal as shown.


Spotting and photography is possible through the fences near the General Aviation apron - providing good views of visiting light aircraft and of the Australian Helicopters parking apron.

The Gladstone Airport terminal and runway and taxiways underwent a major redevelopment during 2010/2011. The main Airport runway (10/28) was lengthened and widened, and the exisiting Airport terminal was extensively overhauled with a new departure lounge and seating added, as well as the introduction of passenger security screening facilities. The opening of the Gladstone Airport's redeveloped runway and the renamed "Creed-Kanofski Airport Terminal Building" in April, marked a significant milestone in the growth and development of the Gladstone Region.

The Gladstone Airport terminal features two main aircraft parking aprons. An upper section which is predominately utilised by QantasLink, and a lower section which has been heavily overhauled and expanded for use by larger aircraft. Virgin Australia has been noted operating from this section of the Airport apron.



Strategic Airlines also parked their Airbus A320s at this part of the Airport - as shown below.


The Gladstone Airport Terminal is also effectively in two sections with the upper section featuring the check-in counters, car rental service desks, some general seating including a kiosk/bar, as well as the baggage collection carousel.





The Australian Helicopters check-in and lounge area is also in this section. From here passengers to the nearby Islands are walked to the Australian Helicopters hangar area which away from the terminal.



The lower section of the terminal features a new and improved and larger departure lounge which can only be accessed after passing a new security screening point. Spotting and photography is possible through the glass, giving nice views of the aircraft parked on the airport apron.





QantasLink is also currently constructing a QantasClub Lounge inside the terminal, with it expected to be open by October.


There are also views through the fencelines on the Eastern perimeter outside of the Airport terminal - although afternoon photos are backlit - as shown below.

Strategic Airlines Last Flight to Gladstone Airport Yesterday

As previously reported, Strategic Airlines' Airbus A320-200 VH-YQB operated the final VC520/521 and VC524/525 flights between Gladstone and Brisbane on Friday 12 August.

Reminder that Strategic Airlines Final Flight to Gladstone Airport is This Friday

A reminder that Strategic Airlines will end its services on the Gladstone to Brisbane route this coming Friday 12 August, when their Airbus A320 flys out as VC525.

It is a sad decision for the Strategic, but it appears to be the result of commercial difficulties experienced by the airline since it arrived at Gladstone Airport in April.

TRIP REPORT - Brisbane to Gladstone - Strategic Airlines - Airbus A320-200

With the recent news that Strategic Airlines is withdrawing from the Gladstone to Brisbane route, a friend of mine who lives in Gladstone, has kindly provided the following trip report from a flight he took a couple of months ago.

Strategic Airlines seem to offer a good product, for what seemed to be a good price. It is unfortunate that they have decided to pull out of the Central Queensland market. Time will tell if they are to return to Central Queensland in the future, either operating in the RPT market again, or operating fly-in fly-out charters. It will also be interesting to see how Virgin Australia goes on the Gladstone to Brisbane route now too!

TRIP REPORT – Brisbane to Gladstone – Friday 24 June – Strategic Airlines – VC524 – Airbus A320-200 – VH-YQB.

After the recent breakdown of their Airbus A330-200, Strategic Airlines had cancelled as many as four recent services between Brisbane and Gladstone without much notice to intended passengers. In some circles, Strategic Airlines had handled this whole episode very poorly which is disappointing as there is an increasing wave of support of their operations into Gladstone.

So up came Friday's afternoon service from Brisbane to Gladstone - fortunately it wasn't cancelled.

Check in was easy in the central part of the Brisbane Domestic Terminal - the "Common User Area" - before through security and out to the end of the newly redeveloped centre finger area.

Boarding and departure on time, and before too long, VH-YQB was airborne for the quick 44 minute hop up to Gladstone - this compares to a six hour drive made earlier in the day!!

This Strategic Airlines A320 - VH-YQB - has 152 seats in two classes, and has standard cloth seating in economy, with 144 seats in a 3x3 seating arrangement. Although the Strategic livery is uncreative, the cabin was impressive and well presented.

This compares to sistership VH-YQA, which flew to Gladstone earlier in the year on a promotional visit, and features a very nice and well presented two-tone leather seat design.

Outside was a perfect day for flying.  Inside, the cabin service was average, although with a flight time of only 44 minutes, the crew are hard pressed to spend too much time comforting people. They served a snack which included a chicken roll - very nice - a Kit-Kat chocolate, and drinks, which included a choice of water, orange juice, soft drink or beer.

Soon Gladstone Airport came into view, and with a series of turns from North of Gladstone, we were on approach to Gladstone over the nearby mud flats and Gladstone Harbour shortly before touching-down on Runway 10.

Disembarked and into the refurbished terminal. No bags - straight out to see VH-YQB at its parking position against the fence.

Thanks mate!

Strategic Airlines to Withdraw Flights to Gladstone Airport

Friday 29 July - Strategic Airlines has today announced it's withdrawal of services on the Gladstone to Brisbane route.

The Airline contacted media outlets today to announce its withdrawal, which is effective from Friday 12 August.

This news comes in the same week that Virgin Australia announced plans to start Brisbane to Gladstone services in October with ATR 72-500 turboprop aircraft - further details HERE.

A Strategic spokeeperson said the decision was a sad one for the airline. The decision appears to be the result of commercial difficulties experienced by Strategic since it arrived at Gladstone Airport in April.


Strategic did not mention their only competitor on the route, Qantas/QantasLink, but made reference to "aggressive competitor activity". This appears to be connected with Strategic's previous request that the ACCC investigate whether Qantas/QantasLink was engaged in anti-competitive behaviour.

Strategic thanked the Gladstone Regional Council, Gladstone Airport, and the Gladstone community and businesses for their support.

Strategic Airlines Cancels Flights to Gladstone Monday

Strategic Airlines has cancelled its two flights between Brisbane and Gladstone on Monday 20 June, and may be forced to cancel more.

The move comes as Strategic Airlines sole Airbus A330-200, VH-SSA, has broken down, causing the cancellation and rescheduling of Strategic's international flights to Phuket and Denpasar.

Strategic Airlines Claims Qantas / QantasLink Squeeze at Gladstone Airport

Competition is heating up between QantasLink and Gladstone Airport's latest arrival, Strategic Airlines.


Strategic has accused its rival of trying to squeeze it out of the market since Strategic’s first flight on the Brisbane to Gladstone route on Monday 11 April.

On that same day, QantasLink announced an additional eight flights per week on the same route, and shortly after, advertised tickets for $59.

Strategic has confirmed they had asked the ACCC to investigate whether anti-competitive behaviour is occurring. A spokesperson has said that "(Strategic has) no problem with fair competition. What we have raised an eyebrow about is the sudden introduction of hundreds of extra airline seats per week coinciding with Strategic Airlines entering the market".

The arrival of Strategic into Gladstone has been warmly received by the Gladstone community, who are obviously in favour of multiple airlines operating out of the region, and this can only occur if fair competition is maintained.

A QantasLink spokesperson said its recent moves were not caused by Strategic’s entry to the market, but that the increased capacity between Gladstone and Brisbane was merely to meet the growing demand in the region, which is being driven by a number of very large resource projects in the region.

At this stage, the ACCC has declined to comment.

New Fly-In Fly-Out Service Between Gold Coast and Gladstone Airports (??)

SOURCE: The Gladstone Observer Newspaper - Thursday 21 April 2011

Flights from Gladstone direct to the Gold Coast could be a reality if a Gold Coast airport chief has anything to say about it.

Paul Donovan, the Gold Coast Airport CEO told The Observer meetings between the airport company and airlines will be taking place soon to introduce flights to mining areas including Gladstone.

“You’ve got fly in fly out (FIFO) at Brisbane and what we are trying to do is kick start the Gold Coast economy,” Mr Donovan said.

“It will enable people to live on the Gold Coast and for people that already live here to work in Gladstone and come home.

"People will have direct access and enjoy what the Gold Coast has to offer."

Mr Donovan’s comments come after the Queensland Treasurer Andrew Fraser suggested the Gold Coast should capitalise on FIFO workers to boost jobs.

“It’s a double edged sword from our view,” Mr Donovan said.

“There are a lot of people out of work on the Gold Coast and this will give them options of getting into the mines.

“Our people will be in discussions with all the airlines that do the fly in fly outs. We are already working with Strategic Airlines for flights to Gladstone,” he said.

RAAF F/A-18F Super Hornett ANZAC Day Rockhampton Fly-over and other Movements at CQ Airports - MORE PICTURES!!

Monday 25 April - ANZAC Day 2011 - and noted at Rockhampton's commemoration ceremony was an overfly of a Royal Australian Air Force (RAAF) Boeing F/A-18F Super Hornet Fighter. It was one of three that flew from RAAF Base Amberley where the Nos 1 and 6 Squadrons are based.

Ben O was on hand to take a few pictures - unfortunately the aircraft's serial number could not be noted...




Also noted today, but this time at Gladstone Airport was Strategic Airlines' Airbus A320 VH-YQC making what is believed to be its first visit when it operated the VC520/521 service from and back to Brisbane.

Lastly at Clermont Aerodrome in the evening, Skytrans Airlines last two delivered Dash-8-100 aircraft, VH-QQK and VH-QQL were noted operating the evening FIFO flight from Brisbane. This is one of VH-QQK's first ever visits to Clermont. At this stage, these aircraft should be overnighting. Some photos below were taken early on Tuesday 26 April as they prepared for depature.



There is also a picture of how apron repairs take place in Clermont!!

Strategic Airlines Hosts Open Afternoon at Gladstone Airport

Strategic Airlines touched down in Gladstone this week and passengers gave the first days service a big thumbs up.


And to further enhance their arrival into Gladstone, Strategic Airlines hosted an "open afternoon" on Tuesday 19 April. The gates at Gladstone Airport and the doors of Airbus A320 VH-YQA were thrown open, and Strategic believe that about 400 people came along to make the afternoon a great success.



People got dressed up, a local radio station broadcasted live, and prizes were given out.

Meanwhile, as Strategic celebrated, Qantas went on the front foot, announcing an extra eight flights a week between Gladstone and Brisbane.

Strategic Airlines Touches Down at Gladstone Airport

Strategic Airlines has commenced twice daily flights (Monday to Friday) between Brisbane and Gladstone on Monday 18 April.

The first flight touched down at Gladstone Airport this morning from Brisbane as VC520, and was operated by Airbus A320 VH-YQA.

The aircraft features 8 business class seats and 144 economy seats, and the Strategic Airlines' in-flight services will include complimentary meals and refreshments for all passengers.

The Brisbane to Gladstone flights will depart Brisbane Airport at 6.10am (VC520) and 2.45pm (VC524) arriving in Gladstone at 7.15am and 3.40pm.

Gladstone to Brisbane flights will depart Gladstone Airport at 8.25am (VC521) and 4.35pm (VC525) arriving in Brisbane 9.30am and 5.40pm respectively.

You can read more in our previous blog post HERE. We hope wish Strategic Airlines all the best with this new venture!!

Strategic Airlines to Start Flying to Gladstone Airport Next Monday

A reminder that Strategic Airlines will introduce two daily return flights - Monday to Friday - linking Gladstone and Brisbane, on Monday 18 April. The flights will be operated by an Airbus A320 jet aircraft. The aircraft will feature 8 business class seats and 144 economy seats.

The Brisbane to Gladstone flights will depart Brisbane Airport at 6.10am (VC520) and 2.45pm (VC524) arriving in Gladstone at 7.15am and 3.40pm.

Gladstone to Brisbane flights will depart Gladstone Airport at 8.25am (VC521) and 4.35pm (VC525) arriving in Brisbane 9.30am and 5.40pm respectively.

In-flight services will include complimentary meals and refreshments for all passengers.

You can read more in our previous blog post HERE. We hope wish Strategic Airlines all the best with this new venture!!

Meanwhile, the Gladstone Airport redevelopment will be complete with new security screening facilities to become fully operational by the time of the arrival of the first Strategic Airlines' flight next week.

A Gladstone Regional Council spokesperson recently stated that 13 screening staff have been in the process of being trained by Council in preparation for passenger screening.

The Gladstone Regional Council was required to install the security measures as a result of new Federal Government regulations, which require the installation to occur before July 1, 2012.

There will be two different screening points for passengers and checked baggage. The passenger screening point is situated at the start of the western entry to the departure lounges. This facility will check all hand luggage and passengers. The checked baggage screening point will be situated 'back of house' in the area behind the check-in counters.

Council hopes that the Gladstone Airport terminal would be one of the most modern terminals in regional Australia.

QantasLink Bites Back with Discount Flights and a Lounge at Gladstone Airport

QantasLink has released reduced airfares between Gladstone and Brisbane. One-way fares are now on sale until Monday 21 February for $65 per person. They are valid for travel from 26 March 2011 to 8 May 2011. This comes after QantasLink also announced plans to build a new 'Regional Lounge' at Gladstone Airport.

The lounge will reflect the same style as Qantas Club lounges across Australia and offer Qantas Club members and Platinum and Gold Frequent Flyers a range of services including wireless internet, pay TV, and a selection of food and drinks.

Two Qantas Regional Lounges are already available in Queensland at Mackay and Rockhampton, with a new lounge also planned for Emerald in the coming months.

These announcements appear to be a direct response by QantasLink to the news this week that Strategic Airlines will commence services between Brisbane and Gladstone. Stategic is offering introductory fares from $59 per person for travel from April 18 2011.

Strategic Airlines Announces Flights to Gladstone Airport

From http://www.flystrategic.com.au/


On Tuesday 15 February Strategic Airlines, Australia’s newest full service airline, has announced Gladstone as its latest destination, with plans for 20 jet flights weekly between Gladstone and Brisbane commencing from Monday 18 April 2011.

Fares for the new flights went on sale from today starting from $59 one-way, with Business Class seats from $399, one-way inclusive of taxes.

Strategic Airlines will introduce two daily return flights Monday to Friday linking Gladstone and Brisbane with flights operated by an Airbus A320 jet aircraft. The aircraft will feature 8 business class seats and 144 economy seats.

Brisbane-Gladstone flights will depart Brisbane Airport from Monday to Friday at 6.10am and 2.45pm arriving in Gladstone at 7.15am and 3.50pm.

Gladstone to Brisbane flights will depart Gladstone Airport at 8.25am and 4.35pm arriving in Brisbane 9.30am and 5.40pm respectively.

In-flight services will include complimentary meals and refreshments for all passengers.

Of this attempt to break the QantasLink monopoly on the Brisbane to Gladstone run, Strategic Airlines said that is was pleased to not only offer the people of Gladstone a jet service, but to also offer a greater availability of seats, affordable fares and competition to the Gladstone market.

Strategic Airlines is also impressed with the development of the Gladstone area and the future growth projections expected. Following discussions and consultation with the Gladstone Area Promotion and Development Limited, Gladstone Regional Council, local businesses, tourism and the mining industry it was Strategic Airlines' obvious next new destination.

Strategic Airlines' Airbus A320-200 VH-YQB flew a promotional flight into Gladstone from Brisbane Tuesday afternoon and is pictured below receiving the traditional welcome from the Gladstone Airport firefighters.


Bookings for this new service are available through the Strategic Airlines website or through participating travel agents.

Strategic Charters to Mackay Airport

Strategic have recently started flying charters into Mackay from Brisbane. Due to the unavailability of its aircraft, Skytraders A319 VH-VHD operated MEL-BNE-MKY-MEL on Monday 3 May. The plane arrived around 8pm and is pictured parked at Mackay - in a very poor spot for photos!!

Strategic's A320 VH-YQA operated BNE-MKY-BNE on Thursday 13 May in the late afternoon.