IMPERIAL PALACE AIR: P. O. Box 97979, Las Vegas 89193, United States; Phone (702) 794-3394; Fax (702) 794-3392; Year Founded 1997. IPA is established at Las Vegas in 1997 to provide charter and inclusive tour services for gamblers visiting the city. Revenue flights commence with a single Boeing 727-200.
IMPULS AERO AIR TRANSPORT ASSOCIATION: Sovetskaya Str 26, Bykovo Town, Moscow, 140120, Russia; Phone 7 (095) 1662089; Fax 7 (095) 166-2100; Code IMR; Year Founded 1993. Established at Bykovo in the Moscow Region in 1993, General Director S. A. Popov’s executive charter carrier begins revenue services to ad hoc destinations in Europe, Asia, Africa, and the CIS with a single Yakovlev Yak-40. A second Yak-40 is acquired in 1994.
Charters continue to be offered.
IMPULSE AIRLINES (PTY.), LTD.: Australia (1982-2001). Gerry McGowan and his wife, Sue, establish Impulse Airlines at Sydney in 1982 as the dedicated cargo carrier of the John Fairfax newspaper group. For the next decade, the concern’s aircraft will transport issues of The Sydney Morning Herald, The Age, and The Australian Financial Review around the country. Even later, it will maintain its air freight distribution and warehousing contract with Fairfax.
When Oxley Airlines (Pty.), Ltd. goes into receivership in 1993, its assets are purchased by Impulse Transportation Group and is reorganized at Port Macquarie, Queensland. Orders are placed for 10 British Aerospace BAe Jetstream 41s to supplement Oxley’s 12 Piper PA-31350 Navajo Chieftains and w Beech King Air 100s. Four Beech 99s are purchased by Managing Director Gerry McGowan to replace the Chieftains and two BAe (HS) 748s are employed on night freight operations. Unprofitable routes to Lord Howe Island, Wee Waa, and Gunnedah are replaced by new services to Inverell and Glen Innes and from Newcastle to Brisbane.
Early in 1994, the regional transfers its headquarters from Port Macquarie to Sydney. A new corporate identity is taken on as Oxley and Impulse are finally integrated on March 1. Managing Director McGowan becomes executive chairman.
During the spring, the company becomes the Asia-Pacific launch customer for the British Aerospace BAe Jetstream 41 as a US$75-million order is placed for 10 aircraft.
The fleet is upgraded by the arrival of the first five Jetstream 41s in late fall, and the company begins to feed Ansett Australia (Pty.), Ltd. The route network grows to 14 stations, with services added to Canberra and Melbourne.
Enplanements total 240,000.
The company’s capacity plans are radically altered in 1995. Both BAe (HS) 748s are withdrawn, along with all five Jetstream 41s so far received. The outstanding order for J-41s is cancelled. Instead, the company acquires three Beech 1900Ds and a 1900C, which complement the four Beech 99s already in hand.
Passenger boardings climb 9.2% to 166,000.
Three more Beech 1900Ds enter service in 1996, replacing three withdrawn Beech 99s. The unit delivered in November is the 200th of its type built. The carrier completes painting of its aircraft in a new livery.
Highlights of 1997 include the inauguration of services from Newcastle to Melbourne and the opening of a new maintenance facility at the first-named location. Enplanements for the year total 148,000. Traffic figures are again unavailable.
When Tamair (Pty.), Ltd. ceases operations in July 1998, its assets are sought by Impulse. These are acquired in August, along with the defunct carrier’s Tamworth-Sydney route license. Three Beech 1900Ds join the fleet during the fall.
A controversy arises with the Federation of Australian Air Pilots on December 7 when Chief Pilot Quentin Flemming is terminated. Chairman McGowan has replaced his top flyer for allegedly speaking out against and refusing to train company pilots concerning the Civil Aviation Safety Authority’s radar trials in Class G airspace between Canberra and the northern New South Wales community of Ballina.
The fleet in 1999 includes nine Beech 1900Ds. Customer boardings through June jump 32.6% to 199,000. Impulse is served notice during the summer that it will be dropped as an Ansett regional affiliate, effective October 1. Revenues for the year total A$60.9 million ($32 million), with a pretax A$7.5-million profit.
Airline employment stands at 112 at the beginning of 2000. Service into Melbourne’s Essendon Airport begins on February 7. On March 22, it is revealed that the carrier is establishing a new national hub at Canberra; a new headquarters, maintenance facility, pilot training center, and call and reservation facility will be opened in time for the initiation of new services in June.
Arrangements are completed with the ACT Government on April 11 on an A$10-million assistance package that will allow Impulse to develop a southern regional hub at Canberra International Airport.
It is revealed on April 12 that three B-717-2K9s have been leased from Bavaria International Leasing Co. and two from Pembroke Capital, Ltd. The first is expected to arrive in Australia by the end of the month and when it enters service it will be the first of its type operated down under. Simultaneously, it is announced that Impulse will become Australia’s first low-cost airline when it begins budget services on routes linking Sydney, Melbourne, and Brisbane. Tickets are expected to be marked 50% cheaper than those sold by either Qantas Airways (Pty.), Ltd. or Ansett Australia (Pty.), Ltd.
At the same time, it is noted that a mix of local and overseas institutions have agreed to take up private placements of equity in the carrier, capitalizing it at A$100 million. Among those coming aboard are AMP, Arabian Gulf Investments (Far East), Ltd., GIC Special Investments, and CVC Asia Pacific, Ltd.
Wearing blue and yellow colors, the first B-717-2K9 arrives at Sydney on April 27; it has flown in from Long Beach, California, via Osaka (KIX). On May 22, an A$5-million National Reservation Centre is opened at Newcastle. Also, the daily Beech 1900D return service between Newcastle and Melbourne ends in May.
The former Ansett partner becomes Australia’s first low-cost airline when it receives government authority on June 1 for its deep-discount route from Sydney to Melbourne. Employing the first two of five leased B-717-2K9s, Impulse begins the seven-times-a-day return service on June 5 and the inaugural flight is sold out. Simultaneously, 17 daily Beech 1900D roundtrips are offered between Sydney and Canberra.
Market capitalization of Impulse reaches the A$100-million level on June 9 as National Australia Asset Management (Pty.), Ltd. assumes a large, undisclosed equity stake. In making the announcement, Chairman McGowan notes that he and his wife, Sue, will continue to maintain their 40% position.
Impulse will cease its own operations on May 14, 2001, and be merged into the super regional Qantas Link.
Arrival of the third B-717-2K9 allows return service to be boosted to 11 daily roundtrips on June 19. On July 17, the Motor Trades Association of Australia Superannuation Fund agrees to invest A$20 million in Impulse in the form of converting debt. The facility will strengthen the airline’s available working capital as it expands.
Delivery of a new Beech 1900D is taken on August 1, bringing the number in the company’s fleet to 13.
An exclusive, two-year partnership agreement is signed with the leading travel retailer, Flight Centre (Pty.), Ltd., on August 4; the pact is expected to generate A$50 million annually for Impulse. On August 6, the company initiates Australia’s first deep-discount fares exclusively for Internet customers. The Web Hot airfare deal offers reductions of up to 79% for travel on the company’s upcoming trunk services. Fares are reduced to just A$66 (US$38) on the routes from Sydney to Melbourne and Sydney to Canberra.
In response to deep-discount fares by the low-cost start-up, Qantas Airways (Pty.), Ltd. in early August, begins to offer its own cut-rate tickets over the routes from Sydney to Brisbane, Melbourne, and Newcastle. Protesting that the major is engaged in predatory pricing, Impulse objects to this obvious expansion into its potential core markets and protests to the Australian Competition and Consumer Commission. After reviewing the situation, the ACCC, in the person of Allan Fels, its chairman, informs Impulse, Qantas, and the media that there is no basis for legal proceedings because Impulse has not been harmed economically and Qantas has not breached accepted trade practices.
To gain a foothold in the market before competing Virgin Blue (Pty.), Ltd. starts flying in September, Impulse, on August 13, offers 10,500 Web Hot Internet-purchased seats on its upcoming four-times-a-week roundtrip service from Brisbane to Sydney for A$33. The entire ticket batch is sold out within hours, with demand so heavy that the company’s website slows to a crawl.
Chairman McGowan and ACT Chief Minister Kate Carnell preside over ceremonies on August 17 for the beginning of construction on a A$9-million project to build a state-of-the-art aircraft heavy maintenance and engineering training facility at Canberra International Airport. B-717-23S is simultaneously received.
The inauguration of B-717-2K9 service from Brisbane to Sydney is delayed on August 28 until Australian Protective Services can remove four members of the rock group The Screaming Jets, who are being abusive to fellow passengers and crew members. The same day, a revamped Web Hot fare structure is introduced. Four pricing tiers on a range of interstate and regional services for the period through October 7 are offered.
Four-times-weekday Beech 1900D roundtrips are launched on September 11 between Taree and Sydney. Arrival of the second B-717-23S allows Impulse, beginning on September 13, to double to eight the number of daily return services offered between Sydney and Brisbane.
Due to external cost pressures (read: fuel prices), the company announces on October 10 that, effective October 23, it must raise airfares by 9.5%. This despite the fact that Impulse earned its first profit— A$200,000—in September.
The easy Impulse Freebies loyalty program is started on October 23; one free flight may be earned for every ten direct flights flown at the carrier’s flexible economy fare rate. The same day, a multimillion-dollar corporate makeover and advertising campaign is launched. The sulfur-crested cockatoo is the centerpiece of the carrier’s new market image.
A bold new Web Hot Internet sales campaign is unveiled on October 30. Impulse will offer over 130,000 seats under A$100 between January 1 and March 31 for services from Sydney to Melbourne, Brisbane, and Canberra services.
A new color scheme is introduced in November, initially on a Beech 1900D. The entire rear and tail of the aircraft are given over to the image of a Cacatusgalerita or sulfur-crested cockatoo.
On December 4, Impulse Chairman McGowan and Virgin Blue (Pty), Ltd. CEO Brett Godfrey join Christopher Barlow, CEO of Melbourne Airport, for the joint opening of the new A$8.4-million “Domestic Express” terminal the two competitors will share.
An earlier order for three B-717-200s is cancelled by Wuhan Airlines Company, Ltd. on December 11; two of the aircraft will, instead, be taken by Impulse. The new aircraft will enter service on February 12, allowing the number of daily frequencies between Sydney and Melbourne to grow from 12 to 19 and rise to 10 on the Sydney to Melbourne route.
On December 13, Impulse and Virgin Blue (Pty.), Ltd. come under renewed competitive pricing from Qantas Airways (Pty.), Ltd. and Ansett Australia (Pty.), Ltd. The majors both slash their summer domestic fares by 75% for the normally quiet booking period between Christmas and April.
Negotiations with the Motor Trades Association for an A$20-million loan fail on December 18. Still, Impulse plans to continue its rapid low-cost expansion. Once the B-717-2BD and B-217-2CMs have joined the fleet in January, it will begin to operate 19 daily roundtrips between Sydney and Melbourne and 10 from Sydney to Brisbane on February 12. Also on February 12, daily B-717-2K9 return flights will start from Melbourne, via Sydney, to Newcastle. Unhappily, because of a mandatory structural maintenance program on the Beech 1900Ds, daily service on the direct Armidale to Sydney will be suspended a day earlier.
World History
