Virgin Australia Regional Airlines: A History of Evolution and Growth
The story of Virgin Australia Regional Airlines is one of constant transformation, evolving from a small-town charter service into a critical component of one of Australia's largest aviation networks. Spanning several decades, the airline has navigated mergers, ownership shifts, and significant fleet modernizations to maintain its presence in the regional skies.
Early Years and the Rise of Skywest
The airline's origins date back to 1963, when it began operations as Carnarvon Air Taxis. Based in Carnarvon, Western Australia, the company initially focused on charter flights using small general aviation aircraft. By 1979, the business rebranded as Skywest Aviation and relocated its base to Perth's Jandakot Airport.
A pivotal moment occurred in 1980 with the formation of Skywest Airlines (ICAO code OZW) at Perth Airport. Through the acquisition of Stillwell Airlines and its existing routes, the company rapidly expanded its fleet to 39 aircraft, establishing itself as the second-largest commuter airline in Australia at the time. The fleet was diverse, featuring GAF N-24 Nomads, Embraer EMB 110 Bandeirantes, Beechcraft King Air 200s, Fairchild SA-227 Metro IIIs, and smaller utility planes like the Cessna 182 Skylane and Piper Aztec.
In 1982, the company merged with Transwest Airlines, combining Skywest's 16 aircraft with Transwest's 25. While a proposed merger with East-West Airlines in 1983 did not materialize, the two companies maintained a relationship where East-West operated flights in Western Australia on behalf of Skywest.
The late 1980s brought instability. After losing a Government Coastwatch contract in 1987, the business was weakened and subsequently sold to the Perron Group, and then to TNT / News Limited. Under this new ownership, the airline began operating under the Ansett banner, primarily utilizing five BAe Jetstream 31 aircraft.
Transition and Private Ownership
Throughout the 1990s, the airline continued its growth under Ansett Australia, introducing Fokker 50s to the fleet in 1998. Following the collapse of Ansett in 2002, Skywest was purchased by private investors. In 2004, the Singapore-based investment firm CaptiveVision Capital successfully launched a hostile takeover, eventually gaining a majority stake.
Under the ownership of CaptiveVision Capital (a subsidiary of the ASX and London Stock Exchange listed Skywest Airlines), the fleet grew from seven to 18 aircraft between 2004 and 2012. The airline also expanded its capabilities by introducing its first Airbus A320 in April 2010, which was used for charter services between Perth and Cloudbreak for the Fortescue Metals Group.
Integration into Virgin Australia
The path toward becoming part of the Virgin brand began on January 10, 2011, with a 10-year alliance. This agreement allowed Skywest to operate up to 18 turboprops in Virgin Australia's livery, facilitating a codeshare agreement and allowing passengers to earn and redeem frequent flyer points across both networks. These aircraft were leased from Avation plc.
Virgin Australia Holdings began acquiring equity in the company in April 2012 with a 10% purchase, followed by a full takeover bid in October 2012. The acquisition was completed on April 11, 2013. By May 7, 2013, the Skywest brand was retired, and the airline was fully integrated into the Virgin Australia brand, though it retained its own management team and Air Operator's Certificate (AOC)—the legal document allowing an aircraft operator to conduct business.
Modern Fleet Updates
In April 2022, Virgin Australia announced a strategic shift in its regional fleet. The airline began phasing out the Fokker 100 aircraft, replacing them with ten-year-old Boeing 737-700s leased from KLM Royal Dutch Airlines. This transition, which began in the first quarter of 2023, ensures that the Boeing 737-700s and the Airbus A320 fleet are operated under the Virgin Australia Regional Airlines AOC.
Key Facts
- Founded: 1963 as Carnarvon Air Taxis.
- Major Rebrand: Became Skywest Aviation in 1979 and Skywest Airlines in 1980.
- Virgin Acquisition: Fully acquired by Virgin Australia Holdings in April 2013.
- Fleet Evolution: Transitioned from small general aviation aircraft to Fokker 50s, Airbus A320s, and Boeing 737-700s.
- Strategic Hub: Historically centered around Perth Airport and Jandakot Airport.
| Period | Entity Name | Primary Owner/Affiliation |
|---|---|---|
| 1963 - 1979 | Carnarvon Air Taxis | Independent |
| 1979 - 1980 | Skywest Aviation | Independent |
| 1980 - 1987 | Skywest Airlines | Independent / Merged with Transwest |
| 1987 - 2002 | Skywest (Ansett banner) | TNT / News Limited (Ansett) |
| 2002 - 2013 | Skywest Airlines | Private Investors / CaptiveVision Capital |
| 2013 - Present | Virgin Australia Regional | Virgin Australia Holdings |
Frequently Asked Questions
What was the original name of Virgin Australia Regional Airlines?
The airline was originally founded in 1963 as Carnarvon Air Taxis, operating charter flights in Western Australia.
When did Skywest become part of Virgin Australia?
Virgin Australia Holdings completed a 100% acquisition of Skywest Airlines on April 11, 2013, and the Skywest brand was discontinued on May 7, 2013.
Which aircraft are replacing the Fokker 100s in the regional fleet?
The Fokker 100 aircraft are being phased out and replaced by Boeing 737-700s leased from KLM Royal Dutch Airlines.
Who owned Skywest before the Virgin Australia takeover?
Between 2004 and 2012, Skywest Airlines was owned by CaptiveVision Capital, a Singapore-based investment company.
What is an Air Operator's Certificate (AOC)?
An AOC is the official certification that allows an airline to legally operate commercial flights. Virgin Australia Regional continues to operate under its own AOC and management team.