ADMINISTRATORS APPOINTED TO MANAGE FLIGHT WEST AIRLINES AND AIRLINE FACILITIES

Voluntary Administrators have today been appointed to take control of the affairs of Queensland’s Flight West Airlines and its sister company Airline Facilities. The appointment was made by the Members Voluntary Liquidator of the companies, Mr Ian Hall, a partner in PricewaterhouseCoopers Corporate Finance and Recovery practice.

Mr Hall said the decision would not affect the ability of Flight West Airlines to continue operating scheduled flights on the Brisbane-Gladstone and Townsville-Brisbane routes, nor its ability to continue providing contract services between Townsville and Western Queensland on behalf of Western Mining Corporation and Pasminco.

Mr Max Donnelly and Mr Peter Geroff of Ferrier Hodgson have been appointed Voluntary Administrators of Flight West Airlines Pty Ltd, which operates the airline business.

Mr Paul Weston and Mr Neil Cussen of Horwath have been appointed as Voluntary Administrators of Airline Facilities Pty Ltd, which owns the majority of the jet and turboprop aircraft operated by Flight West.

Mr Hall, who has led the PricewaterhouseCoopers team at Flight West since the airline entered Members Voluntary Liquidation on 19 June 2001, said the events in the USA on 11 September and the failure of Ansett Australia – Flight West’s principal commercial partner - had both damaged plans to sell Flight West for an amount which would enable all creditors to be paid in full.

In circumstances where a Members Voluntary Liquidator believes he can no longer pay or provide for all creditors in full, the Corporations Act requires the appointment of a Voluntary Administrator or a Creditors Voluntary Liquidator.

“Voluntary Administration is the most appropriate step to take in these circumstances, as it will provide every opportunity for the airline to continue operating in its current form,” Mr Hall said.

“This course of action also will enable Flight West to build on the solid base of charter flights and contract maintenance work which it has been developing since its major commercial partner Ansett Australia ceased flying, and will provide in my view the best option to enable the sale of the company as a going concern.

“The company has now been restructured to a very cost-efficient operation, staff are ready and able to work and aircraft are available for service. Last week, Flight West’s maintenance centre in Brisbane completed a major check on a Fokker jet operated by another airline in the region, and it is actively seeking additional work from other operators. The company has also secured bookings for a significant number of charter flights, utilising both the airline’s jet and turboprop aircraft fleets. These opportunities are very promising sources of future business and profits.”

Mr Hall said he had met with the Voluntary Administrators of Flight West and Airline Facilities and they had advised that there was no intention to interfere with the current services between Brisbane and Gladstone or Townsville and Brisbane, or any current charter flights.

“Without the significant support and commitment of the Flight West staff, we would not have been able to rebuild the company to the position it is in today with limited air services operating and significant opportunities for further business,” Mr Hall said.

“I thank them for their continued dedication in very difficult circumstances and will work with the incoming administrators to make the transition as smooth as possible.”