Media Release
4th August 2004

Skippers Reluctantly Introduce Fuel Levy

In the face of continuing increases in fuel prices, Skippers has announced today that it was left with no option but to introduce a temporary fuel levy.

Fuel prices hit yet another record high this week, forcing the regional airline to reconsider its position in relation to the levy. The industry has experienced an unprecedented increase in the price of its jet fuel with the average price increasing more than 10% since March this year.

Skippers Chief Executive Officer, Rob Swann, said that the business was unable to continue to fully absorb the increase and was now faced with having to offset some of the increased costs by this temporary adjustment.

“Fuel is a significant portion of the airfare component and these increases have put increasing pressure on our ability to maintain our low pricing structure.” Mr Swann explained.

“While most other Regional airlines were quick to introduce a fuel levy some months back, Skippers made a conscious effort to keep prices low in the hope that fuel prices may be reduced.

Even with the levy included (in our prices), we can still continue to offer more cost effective airfares than our competitors. Customers can be assured we will always strive to offer the best possible airfares and that we will be closely monitoring fuel pricing for any opportunity to reverse this change.”

Skippers will introduce a $6 surcharge on all airfares effective 4 th August 2004. The levy is expected to remain in place until the fuel price reduces and stabilises.

Skippers Aviation Pty Ltd is a wholly Western Australian owned airline servicing mining and regional communities throughout the state. Commencing its services in 1990, the company has grown to a fleet of 20 of the fastest and most modern turbo-prop aircraft and employs approximately 170 staff.

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For further information, please contact:
Rob Swann (08) 9478 3989