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SkyAirWorld Airplanes Seized

Collapse of Queensland Carrier Scrubs Plans for a Darwin-Dili-Denpasar Service.

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The Sydney Morning Herald reports that Queensland carrier SkyAirWorld has ceased operation following the repossession of all its aircraft after defaulting on debts said to number in the tens of millions of dollars.

The collapse of the airline follows just weeks SkyAirWord's announcement of plans to connect Darwin and Bali via an intermediate stop in Timor Leste using 94-sear Embraer aircraft.

The airline once employed 140 people and operated 5 aircraft.

Australian regional carriers are said to be in a state of turmoil with the latest regional carrier closure. Just two months ago another Queensland carrier MacAir closed with the loss of 200 jobs. Air Link, which provided air links to rural communities in New South Wales, stopped those flights insisting they did not "make economic sense." Another Australian regional carrier Rex has told the press that they are suffered a 20% loss in passenger downturn in January 2009.

The presumption that Indonesian Lion Air would obtain a foothold in the Australian domestic airline market via a business alliance with SkyAirWorld has been rendered moot by the failure of the Queensland airline.

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