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- The country’s largest independent regional airline has closed a deal with New South Wales’ ambulance services
- The company, Regional Express, made the deal through its subsidiary Pel-Air
- Pel-Air is expected to supply five sets of its aircrafts, pilots, and engineering teams to New South Wales Ambulance for ten years — starting in 2022
- Pel-Air’s units will be used to transport not only medical personnel, but also patients through out the state’s regional communities
- Share prices in Regional Express on the Australian Securities Exchange have idled at $1.08
Independent Australian airline, Regional Express (REX), has rung in its first success of 2020 with a working contract under New South Wales Ambulance.
The deal was closed through Regional’s subsidiary, the Sydney-based airline Pel-Air.
The ten-year deal, slated to begin in January of 2022, will see Pel-Air supply five sets of aircrafts, pilots, and engineering support for NSW Ambulance’s operations.
Pel-Air’s personnel is expected to support NSW Ambulance in aerial transport of its medical personnel as well as its patients throughout the state’s regional communities.
“We are honoured to be supporting NSW Ambulance in providing this critical service to the NSW community,” Pel-Air Chairman John Sharp said.
John Sharp is a former politician of the Australian National Party and accomplished pilot.
“This award is a clear recognition of Pel-Air’s undisputed ability to provide safe, reliable and high-quality aeromedical services on fixed-wing aircraft at the most competitive prices.”
This deal rings similar to Pel-Air’s 2009 contract with Ambulance Victoria. This contract was recently extended to 2023.
“We solemnly commit to the NSW Government that we will spare no efforts in achieving the satisfaction levels which Ambulance Victoria has experienced for the last decade,” John added.
Regional Express is Australia’s largest independent regional airline — currently operating over 50 aircrafts that see 60 destinations throughout the country.
This is the first major announcement from the company to its shareholders since a negative profit guidance adjustment from last November.
August of 2019 saw the company forecast the 2020 Financial Year’s profit reductions at 15-20 per cent. This was later readjusted to 20-30 per cent.
Regional Express’ 2019 was a turbulent period of business in general, undergoing an audit by the Civil Aviation Safety Authority (CASA) following what the company called a “…response to a baseless and scurrilous complaint by a disgruntled engineer…”
According to Regional Express, the audit began after an anonymously shared video sent to the media allegedly showed ‘rust’ on the propeller shaft of one of its aircrafts.
“The audit report did not issue a single safety finding and did not even find any minor lapses that would warrant a safety observation, an outcome which is a ringing testament to the excellent Safety Management System and Culture within [Regional Express],” company management stated in July of 2019.
“The report accepted the evidence that the surface discolouration visible in the video was dirt and very minor surface corrosion.”
Share prices in Regional Express on the Australian Securities Exchange have idled at $1.08 in a $118.4 million company market cap.
