Strategic Airlines.
Strategic Airlines. Brenda Strong

Strategic pulls out of Gladstone

STRATEGIC Airlines has announced it's withdrawal from the Gladstone to Brisbane route.

The Airline contacted The Observer today to announce its withdrawal, effective from August 12.

Strategic's group executive commercial Damien Vasta 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.

"While this is a difficult change to make and is dissapointing for out team, it has been a straight-forward commercial decision due to aggressive competitor activity," Mr Vasta said.

Mr Vasta did not mention Strategic's only competitor on the route, Qantas, but his reference of "aggressive competitor activity" appears to be connected with Strategic's previous request that the ACCC investigate whether Qantas was engaged in anti competitive behaviour.

"Brisbane-Gladstone was a monopoly route with high air fare pricing levels. We entered the market as a price challenger promting lower fares for the people of Gladstone and we achieved what we set out to do," he said.

As it is no longer economically viable to continue this service, we will withdraw from the route for the foreseeable future and will continue to monitor conditions and opportunities."

"We would like to take this chance to thank the Gladstone Regional Council, GAPDL, Gladstone Airport, the community and businesses who have supported us."   

Qantas declined to comment on the matter.



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