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Phuket's New Aussie Airline 'Facing Pressure'

Phuket's New Aussie Airline 'Facing Pressure'

Sunday, March 13, 2011
Strategic Air, one of the most recent to connect between Phuket and the popular Australian market, is reported to be under financial pressure as its charter arm lost a $30 million-a-year contract amid a police investigation.

Just last month, Strategic launched new Phuket-Melbourne and Phuket-Brisbane routes as it arrived on the island offering full-service flights. Early reports have been positive.

The relatively new airline filled the breach when V Australia decided it could use its aircraft on the Phuket-Australia run more effectively on Australia-US routes.

Today the Sydney Morning Herald newspaper reported that Strategic is now reliant on making a profit from its commercial flights in Australia and south-east Asia after its charter arm, Strategic Aviation, lost its key contract with the Australian Defence Force to fly troops and military cargo to Kuwait and the United Arab Emirates.

The Australian Federal Police confirmed last week that an investigation is continuing into whether criminal offences occurred in the awarding of the Defence tender to Strategic Aviation in 2005.

Strategic, which gained its air operators certificate in September 2009, is owned by its 34-yearold chief executive, Michael James.

''We are quite happy to answer any questions because we believe there is no wrongdoing whatsoever,'' Mr James is reported as saying.
Phuket Gains Strategic Aussie Advantage
Latest The first flight from Melbourne to Phuket by Aussie owned airline Strategic arrives on Phuket today, and the celebrations start soon after. Brisbane Phuket follows soon.
Phuket Gains Strategic Aussie Advantage
Air Bagan to Fly Twice Weekly from Phuket to Burma
Latest As anticipated, Air Bagan announces twice weekly flights from Phuket to Yangon in Burma, with tour packages and deals on offer because the airline's owner is a friend of the ruling junta.
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Phuket Overseas Traffic Soars, Stresses Airport
Latest February brings new record highs in international air traffic to Phuket - and with it the prospect of more crowds and congestion unless action is taken to improve facilities.
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Phuket Crush as Delays Hamper Airport Expansion
Latest Doubts are rising about the capacity of Phuket airport to increase with tourism traffic as people inside and outside Airports of Thailand begin to wonder when an upgrade will start.
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Phuket 'Triple Tourism' Boom Needs Strategy, Says MP
Latest Phuket MP Tossaporn Thepabutr believes tourism to Phuket will triple in 10 years, and urgent attention needs to be paid to educating workers to deal with the island's growth boom.
Phuket 'Triple Tourism' Boom Needs Strategy, Says MP

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