Enerjet

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whipline
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Re: Enerjet

Post by whipline »

I had heard the 737's for Enerjet were paid for. No lease payments. Has to be expensive with all the overhead though. Good luck to all the guys/gals on finding a speedy replacement .
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canuckjetsetter
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Re: Enerjet

Post by canuckjetsetter »

I am not 100% certain but I do not believe EJ owns their a/c. Their startup capital may have covered the costs of purchasing 1 73G but definitely not 2.

They're for sure ex-Air Tran aircraft. Not sure if they're sub-leased by Air Tran to EJ or if the leasing company is doing business directly with EJ.

...Who knows, maybe we'll have an election sooner than later and they can persuade the Lib's to end their history of flying classic gas guzzlers.
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URC
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Re: Enerjet

Post by URC »

We regret to inform you that Morgan Air Services Flight School has closed as of September 30, 2010.
http://www.morganair.ca/

Was the Flight School a big revenue generator ?

How is Air Partners doing ?

http://www.airpartners.ca/
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blue-sky
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Re: Enerjet

Post by blue-sky »

In Calgary looking on the departures board I see Enerjet has a departure today at 10am to Jacksonville. Isn't that where their lessor is from. Is it a charter or are they returning a plane.
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Lowjack
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Re: Enerjet

Post by Lowjack »

blue-sky wrote:In Calgary looking on the departures board I see Enerjet has a departure today at 10am to Jacksonville. Isn't that where their lessor is from. Is it a charter or are they returning a plane.
It's on the way right now:

http://flightaware.com/live/flight/ENJ800
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mbav8r
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Re: Enerjet

Post by mbav8r »

Well, I don't know if this means anything but they haven't left yet.
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Re: Enerjet

Post by W5 »

From AEF:

Watch this space:
http://wwwapps2.tc.gc.ca/Saf-Sec-Sur/2/ ... 20&x_sort=

C-GBEJ is #20 on the list...
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URC
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Re: Enerjet

Post by URC »

Website updated, Gareth Davies and Bill Lamberton have been removed as consultants.

http://www.enerjet.ca/executiveteam.html
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champ
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Re: Enerjet

Post by champ »

anything new with Enerjet? what happened to that jet that went down to the states?
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Jastapilot
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Re: Enerjet

Post by Jastapilot »

It was repatriated. Not coming back.
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Re: Enerjet

Post by URC »

http://albertaventure.com/2010/12/launc ... recession/


Launched in 2008, Enerjet is trying to extricate itself from the turbulence of recession

Anthony A Davis, Alberta Venture, December 1, 2010

Don Brownie shakes his head in wonder at why they do it, those madmen who dare enter the commercial aviation business. After all, it’s a notoriously fragile industry that’s known for eating its fledglings soon after they’re airborne.

Brownie, a transportation consultant with Prolog Canada Inc., was thinking specifically of Tim Morgan, president and CEO of Enerjet. His new company was just beginning its ascent when it flew into a perfect storm of a global health crisis and a global financial meltdown that most observers expected would send it crashing back to Earth. While the aviation blogosphere is still rife with rumours that Enerjet is about to fold any day, somehow, as wobbly as it is, Morgan and his team have kept it airborne.

Morgan, 55, is that rare breed of flyboy who, as a co-founder of WestJet, launched an airline that not only didn’t fail but actually managed to exceed expectations. He often personally piloted WestJet airplanes and was in charge of flight operations and maintenance. More importantly, perhaps, Morgan was the low-profile lynchpin who propelled the airline’s low-cost model and pushed it to adopt new technologies such as fuel-efficient winglets and LiveTV in-flight entertainment. He left the company in 2005, pushed out, some say, by fellow co-founder and CEO Clive Beddoe, the brash and aggressive face of WestJet from the company’s launch in 1996 until his retirement in 2007.

Later that same year Morgan resurfaced, announcing that he was starting his own charter airline, New Air & Tours. But Morgan had not exactly disappeared. He’s long been a stalwart in Alberta aviation, and until last September when it folded, his Morgan Air Services had been a highly regarded flying school in Calgary for more than 25 years. He is also president and CEO of Air Partners Corp. Founded in 2006, the company boasts a fleet of nine luxury jets and one King Air turboprop for private and executive charters and manages fractional ownership programs and aircraft maintenance.

Brownie admires Morgan. But, after walking away from WestJet with many millions in company stock, he wonders why Morgan went back to play the ridiculously low odds at the aviation industry’s gambling table. “For me,” says Brownie, “if I’d done so well with one carrier, I’d count my blessings and maybe invest somewhere else. But it’s interesting, because the airline industry is really infectious. People get into it and it gets into their blood and they just can’t leave it. There is a lot of sex appeal about the industry. It’s exciting. But you have to have all the stars aligned to make it work.”

This time, though, only dark clouds aligned for Morgan. New Air & Tours never got close to getting off the ground. The business plan called for a charter airline that would sell its own vacation packages, flying affluent boomers in smaller underserved western Canadian cities such as Red Deer, Alberta, or Brandon, Manitoba, to marquee vacation destinations while at the same time flying those from larger metropolises such as Calgary and Vancouver to boutique sun spots. It was slated to start operations in the fall of 2008.

“Everyone thought it was a good idea, but no one would write a cheque,” says Morgan, who tried to raise $75 million for New Air. At that time oil was staying well over US$100 a barrel, hitting a high of $145 in July 2008. The booming Alberta oil patch, meanwhile, was struggling to find skilled workers in its home province to meet their skyrocketing demand. Quickly rewriting the business plan, and changing its name to Enerjet, Morgan’s nascent company decided to focus on employee transportation for the oil and gas industry. It would fly workers in and out of the Fort McMurray region from as far away as Newfoundland.

“As soon as we changed our agenda from being a travel and tour business to an oil patch service business, out came the chequebooks,” says Morgan. Some 400 investors contributed $30 million to the private company. Five months after hitting its high, oil plummeted in December 2008 to $30.28, and with it sank Enerjet’s hopes. Though it had signed a multi-year contract with Suncor Energy Inc. to be its main provider of employee transport, Suncor didn’t need Newfoundlanders and other out-of-province workers anymore. Like every other big player in the patch, it was laying people off. An Enerjet bid to nab Imperial Oil’s air transport contract in the patch reportedly went to Canadian North.

It was all very bad news for Enerjet, which had locked in leases on two Boeing Next Generation 737-700s at the peak of the global boom. Planes were tough to get at the time, and so the lease prices were unusually high. At the time, Morgan thought that despite the high lease cost he paid for his two planes, they would prove to be a prescient investment.

Back then, he says now, oil companies “wanted to have newer-generation aircraft, fuel efficiencies, environmentally friendly airplanes.” Green looked good on oil companies, and the 737-700s boasted approximately 32 per cent more fuel efficiency per seat than the older 737-200s other flight providers were using to transport workers in the patch. That fuel efficiency also translates to an equivalent reduction in greenhouse gas emissions per flight.

As Tim Morgan’s brother Darcy, Enerjet’s vice-president of business performance and integration, puts it, if an oil company flies employees into a 6,000-person camp over the course of a year using Enerjet’s planes compared to the 737-200s, “It would be like taking 4,500 F150 pickups off the road.” For an industry constantly under attack for contributing to pollution and climate change, the small extra cost of Enerjet’s planes should have been worth it to Big Oil.

“That all went out the window the day the oil prices went down.” says Tim Morgan. “All they [oil companies] want is cheap now. So we are competing against $2-million airplanes with [Enerjet’s] $30-million airplanes. Very difficult.” Companies like First Air and Canadian North, with their low-capital 737-200s or Dash 8s, have what the oil and construction companies want now: cheap rates.

But their negative environmental impact, suggests Morgan, has been quietly kicked aside by the bottom line. “Those cheaper airplanes are 30 per cent less fuel efficient; the environmental impact from them is huge. They talk about all the oil sands environmental issues, yet everyone turns a blind eye to the 25- and 30-year-old airplanes flying up there.” Many of the planes currently flying oil workers to and from Calgary and Edmonton to Fort McMurray and northern oil camps, Morgan continues, wouldn’t even be permitted to fly in many European jurisdictions because of their greenhouse gas emissions.

He is sitting in his sparsely decorated office at Enerjet’s headquarters at Calgary International Airport. It’s October. The cubicles outside his office are mostly devoid of people even though it’s mid-afternoon. There’s only the quiet echo of a few voices somewhere down a hall. Some of Enerjet’s 15 pilots, many of them former WestJetters who followed Morgan when he left, are on leaves of absence until business picks up. Recent layoffs have reduced the number of employees from a high of 66 to 45 as of October 12.

There are a couple of birthday cards on his desk. “What did you do on your birthday?” he’s asked. “I came to work! You gotta be hands-on with this thing. You can’t fool around.”

When a plane is in a nosedive, you can’t take your hands off the yoke, and it’s the same with a company. Morgan, who is believed to have put several million dollars of his own money into it, doesn’t deny Enerjet has lost lift. “It hasn’t been an easy two years. Especially when the oil business went upside down,” he says. “It’s at times exhausting, but I’ve got pretty good people around me.” But he’s been through this before and found a way to pull it out. “WestJet didn’t start overnight either,” he says, noting that it took WestJet five years to really get going.

Faced with the shrunken employee transport business, Enerjet again revised its business plan. “Nimbility,” says Morgan, is Enerjet’s mantra now. “We have to be nimble; we have to be willing to change.” In order to do that, the company quickly redirected its focus from the oil patch into the sunshine patch: the charter vacation market. It has been subleasing its aircraft – sometimes wet (with aircrew) and sometimes dry – to operators such as Thomas Cook’s tour operator Sunquest Vacations, Air Transat and Sunwing Airlines. But here again, Enerjet got sideswiped by an unexpected turn of events. Morgan remembers that the day of the first flight of vacationing Canadians Enerjet was taking to Mexico – for Air Transat – Canadian health authorities banned flights there because of an outbreak of H1N1. It took a long and costly month to redirect his aircraft to other destinations.

Hardly immune to the global financial crisis, the charter and scheduled airline industry has been pummelled by the recession. The International Air Transport Association expects the global airline industry to lose US$5.6 billion this year. In March, Skyservice Airlines, which provided 30 per cent of the “lift” to Sunquest, shut down operations. (Enerjet has filled in some of that vacuum). Mexicana Airlines ceased operations last August. “There has been some rationalization in the market with some of the operators going away,” says Morgan. “But that needed to be because the margins are extremely thin.”

To survive, Enerjet has been turning over every rock looking for opportunities to keep its aircraft in the skies. “You have to sweat the airplanes,” says Darcy Morgan. And if the planes aren’t flying 11 or 13 hours a day every day, they lose money. Fast. This past summer, until early October, Enerjet had one of its Boeings flying out of Rotterdam for the Danish airline Transavia.com.

Tim Morgan was down in Guyana recently, talking to the president of a South American company about using Enerjet to operate a quasi-national airline down there. Morgan sees Guyana, with its underdeveloped mining, oil and tourism sector, as an emerging destination for North American vacationers and business people. It has also been examining opportunities in the Middle East and Africa.

In other words, he’s not about to give up yet. He sees some positive signs for Enerjet. Business at his other company, Air Partners, is up 30 per cent. “We just added three jets this summer. There are things changing in the marketplace, things that are going in the right direction in the marketplace.” And, with oil hovering around the $80 a barrel mark, there’s been a noticeable uptick in the oil patch. Oil sands operators recently announced some $10 billion in projects over the next five years and a survey last May by the Oil Sands Developers Group indicated more than 25,000 people were living in camps, beating a previous peak two years earlier when Enerjet was launched.

Those factors, along with reinvigorated environmental scrutiny of the oil sands thanks in part to Avatar director James Cameron’s visit in October, might get the Suncors and Syncrudes thinking again about those green-friendly 737-700s adorned with Enerjet livery. Nevertheless, Joe D’Cruz, an airline analyst and professor of strategic management at the University of Toronto’s Rotman School of Management, says Enerjet’s current business plan “is a very high-risk business plan.”

Enerjet is “really operating on the fringes of the commercial airlines business. And for operating on the fringes, their aircraft are too expensive to operate.” In the end, he suspects, the costly lease arrangements Enerjet locked into, could be the company’s Achilles heel. “Enerjet’s base business is unsound. They’ve got those two big monsters on lease, and they have to feed those monsters." Despite that assessment, Morgan is not about to be counted out.


http://www.otc-cta.gc.ca/decision-rulin ... 9&lang=eng


Agency Rulings
Decision No. 500-A-2010
December 13, 2010

APPLICATION by 1263343 Alberta Inc. carrying on business as EnerJet pursuant to subsection 69(1) of the Canada Transportation Act, S.C., 1996, c. 10, as amended.

File No. M4210/E222-4-1


--------------------------------------------------------------------------------

1263343 Alberta Inc. carrying on business as EnerJet (applicant) has applied to the Canadian Transportation Agency (Agency) for a licence to operate a scheduled international service, large aircraft, between Canada and Guyana, in accordance with the Agreement between the Government of Canada and the Government of the Co‑operative Republic of Guyana on Air Transport (Agreement).

The Minister of Transport designated the applicant as eligible to hold the scheduled international licence pursuant to subsection 69(2) of the Canada Transportation Act (CTA).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Agreement have been complied with.

Further, with respect to this application, the applicant has undertaken that it will not contravene section 59 of the CTA prior to the issuance of the applied for licence.

Accordingly, the Agency approves the application for a licence to operate a scheduled international service, large aircraft, between Canada and Guyana.

Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88‑58, as amended, and the following conditions:

1. The Licensee is authorized to operate a scheduled international service on the route(s) set out in the Agreement.

2. The scheduled international service is to be conducted in accordance with the Agreement and any applicable arrangements agreed to between Canada and Guyana.

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•John Scott
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tincanflyer
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Re: Enerjet

Post by tincanflyer »

someone please put a fork in them!
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canuckjetsetter
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Re: Enerjet

Post by canuckjetsetter »

Good for the Morgan's to keep fighting the battle but I'm curious how efficient any operation is going to be with only 1 aircraft now.

Don't get me wrong, I'm sure they had to dump their 2nd a/c as fast as possible but it seems now they're limiting themselves when it comes to being awarded contracts.

Thanks for posting the article!
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El Duderino
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Re: Enerjet

Post by El Duderino »

@tincanflyer

Nice. Good to see there's still no shortage of immaturity in aviation.
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jjj
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Re: Enerjet

Post by jjj »

Slight smell of BS in that article when it mentioned that Canadian Health authorities banned flights to Mexico because of the H1N1.

JJJ
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Say Altitude
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Re: Enerjet

Post by Say Altitude »

From the article below, it would seem that Enerjet has backed out of competing for the "Maple Fun Tours" work - which would mean that a) their rumoured B767 application is now meaningless and b) unless they have something else lined up (highly unlikely considering they are down to one airplane) that their ability to gain work of any variety is very, very limited.


http://www.nationalpost.com/related/top ... story.html
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aviator2010
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Re: Enerjet

Post by aviator2010 »

what would be awsume is if they went bankrupt and then the maket got a few more pilts on it cause that's what it needs, it would really suck if they found their nich and became the success that anyone who put's this type of time and paitents in deserves. I hope they go bankrupt
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Panama Jack wrote:I'm afraid I will have to agree with aviator2010
canuckjetsetter
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Re: Enerjet

Post by canuckjetsetter »

http://www.guyanesenews.com/news/new-ai ... -to-guyana

So my question is what happens to the limited Suncor flying they've been doing?

Curious to know if they're going to be marketed as Enerjet?
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Intentional Left Bank
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Re: Enerjet

Post by Intentional Left Bank »

aviator2010 wrote:what would be awsume is if they went bankrupt and then the maket got a few more pilts on it cause that's what it needs, it would really suck if they found their nich and became the success that anyone who put's this type of time and paitents in deserves. I hope they go bankrupt
Strength 5, Readability 1. You're coming in child-like, over.
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short bus
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Re: Enerjet

Post by short bus »

I've always preferred "say again, you're coming in stupid"
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aviator2010
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Re: Enerjet

Post by aviator2010 »

short bus wrote:I've always preferred "say again, you're coming in stupid"
that's the point but once again they don't have a sarcasme button
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Panama Jack wrote:I'm afraid I will have to agree with aviator2010
canuckjetsetter
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Re: Enerjet

Post by canuckjetsetter »

Nor do they appear to have a spell and grammar check :roll:

I just assumed you had been drinking and posting.. If you were trying to be sarcastic, your inability to use the English language lost me :rolleyes:
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wee_in_yyc
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Re: Enerjet

Post by wee_in_yyc »

Interesting, I got this from a contact today. Enerjet has leased a 737-800 PH-HZX from Transavia. It arrived in YYC today via BIKF.

http://flightaware.com/live/flight/ENJ950
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Flightlevels
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Re: Enerjet

Post by Flightlevels »

The 700 is going back and they are going to use the 800 for their contract.
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Say Altitude
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Re: Enerjet

Post by Say Altitude »

What contract? I thought everything they were doing was ad hoc?
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