History

Strategic Airlines adopted the distinctive name Air Australia in August 2011, six months before its debts forced the airline into 'administration' on 16 February 2012.. The airline operated ‘wet leasing’ services in Europe and scheduled services in Australia. During the busy summer season the airline leased aircraft, ferrying budget holiday makers to Mediterranean destinations, then utilized the planes elsewhere during Europe’s quiet winter. Strategic Airlines/Air Australia dates back to 1991 when it started as a freight broker founded by Shaun Aisen. Its breakthrough came when it won the contract to transport Australian military personnel to Iraq following the US invasion in 2003. Its loss of that $30 million a year contract in 2010 sowed the seeds of the airline's ultimate demise. Strategic Airlines leased a Portuguese registered Airbus A330 for this task but received bad media publicity over the poor maintenance of the plane and temporariliy lost their European air operators certificate. Service levels improved rapidly and Air Australia became a full service airline focusing on both Australia’s remote mining sites and international tourism hotspots like Bali, Phuket and Honolulu. However in February 2012 rumours that the ANZ Bank was concerned about the airlines debt mountain proved correct when the airline grounded services on 16 February 2012.

On-Board Service

As a relatively new airline, staff noticeably try hard to impress their passengers. Crew are attractively attired in a formal uniform and flight attendants are nicely made up. Crew are a mixture of experienced flight attendants who have worked with other airlines or younger enthusiastic travel-lovers keen to make a good impression. Australian passengers who are becoming accustomed to Asian based staff employed on cheap contracts with Qantas and Jetstar may find it refreshing to discover all crew appear to be Australians. Air Australia’s staff smile warmly, answer call buttons swiftly and behave professionally.

Network

Air Australia has a limited fleet and its pockets are not deep, so the airline is progressing cautiously. The airline tends to service routes being neglected by Qantas and Jetstar. Air Australia is focusing on popular budget destinations like Bali, Phuket and Honolulu. The airline has been granted flying rights to China so is likely to extend services there in 2012. Domestically, Air Australia serve several booming mining towns and also fly between Brisbane and Melbourne. In 2011, Qantas flooded the market with cheap tickets to crush competition on the Brisbane – Gladstone route which Strategic Airlines served for six months. The airlines operates an all Airbus fleet made up of six A330’s and two A320’s.

Price

Air Australia is extremely competitive and offers travelers real value for money. All flights have both Business and Economy Classes, which typically match or beat Qantas, Jetstar or Virgin Australia. It pays to check the airlines website regularly as specials abound. Air Australia’s Brisbane – Melbourne service makes a refreshing change from the other airlines and can be very cheap.

Catering

Air Australia provides complementary catering in Business Class while Economy passengers will need to open their wallets if they wish to dine. While Air Australia provides a generally good service, catering is one area the airline could improve on. Economy passengers have a very limited selection of junk snacks and TV style dinners which are priced reasonably. The airline also stocks only a limited range of drinks and alcohol. Catering in Business Class is similar to Qantas, however cutlery and crockery could be upgraded.

Entertainment

Economy passengers will need to purchase a head set to access Air Australia’s modern seat-back Inflight Entertainment Service. The airline provides passengers with an adequate but limited selection of audio channels together with eight movie selections made up of both current cinema releases and classics. Movie choices are different on flights to Australia and flights from Australia. The airlines inflight magazine, titled Stratosphere is surprisingly professional considering the size of the airline.

Ground Service and baggage

Air Australia outsource their ground services and baggage services to relatively low paid ground handling companies who provide an indifferent but reliable service. Check in facilities are standard and waiting times are short. Checking in with a few extra kilo’s of baggage seems to be fine, but Economy passengers baggage entitlement is 23kg while Business passengers get 30kgs. Baggage loses are often out of the airline's control so Travel Insurance is advisable.

Premium Classes & Lounges

All Air Australia flights have Business Class. Larger seats, free entertainment units, comfort packs, meals and drinks are included together with access to Business Class lounges. As Air Australia do not have any lounges of their own, Business passengers use other airlines, such as Thai Airways Orchid Lounge in Phuket. The airlines Comfort packs are rudimentary and meal service is somewhere between Qantas’ and Jetstar’s. Air Australia clearly appreciates their premium passengers with crew being extra courteous.

Economy Class

Air Australia’s Economy Class is on a par with international standards but superior to those offered by other Australian airlines who have slipped below par. Baggage allowance is more generous than Tiger Airways or Jetstar; seats are more spacious and the overall flying experience is better. While Jetstar and Tiger Airways passengers can be expected to be treated rudely or ignored, Air Australia Economy passengers will be served attentively and can expect to enjoy their flight. Flight delays are rare and when they do occur they’re accompanied by sincere apologies.

Frequent Flyer Programme

Air Australia has no frequent flyer programme and is not partnered with any other airlines. There are no plans to join any air alliance on the horizon. Frequent flyer programmes do cost money to operate, so the savings made in not having one, are reflected in cheaper airfares.

Corporate Culture

Strategic Airlines/Air Australia was a small airline that expanding carefully. The airline's lack of resources compared to larger carriers meant it attempted only cautious expansion. From its European office in Luxembourg the airline competed against some very ruthless competitors who ultimately undercut the airline into bankruptcy. During 2011, Australia’s flag carrier, Qantas turned on both their staff and passengers and in so doing created an opportunity for others to pick up disillusioned passengers, which Air Australia sought to do. The name change to Air Australia together with the new livery was warmly received. Managers seemed to work well with staff rather than against staff. Strategic Airlines was accused of having inside information on how to get the lucrative Defence contract which gave the airline wings in 2003 while its loss of that contract meant the regular flow of cash flying military personnel to Kuwait was turned off. Many aircraft were practically empty but Strategic Airlines was paid anyway. Rebranding the airline in 2012 took its financial toll and in February the airline began denying rumours the company was in financial strife. When airline executives deny financial trouble, its time to worry. The axe fell on 16 February 2012.

Safety

Strategic Airlines’ European operations had a terrible reputation in the mid-2000’s and they lost their air operators certificate over substandard aircraft maintenance. However things have improved and the airline seems to have escaped any safety dramas. John Holland Engineering provide maintenance services to their aircraft fleet in Australia.

Air Australia - Rating

Australia’s newest airline, Air Australia provides genuine value for money and a pleasant flying experience.

www.airaustralia.com