Sydney Seaplanes fleet grows as Jerry Schwartz joins as partner

Sydney Seaplanes has found a new partner in hotelier Jerry Schwarz, with a welcome injection of funds and aircraft.

Sydney Seaplanes’ fleet capacity will rise with the addition of two new aircraft supplied by new partner Jerry Schwartz.

What began as a school gate discussion has blossomed into a major business partnership between Sydney Seaplanes’ managing director Aaron Shaw and hotelier Jerry Schwartz.

With sons going to the same school at Rose Bay, the men found themselves talking shop while “hanging off trees and building forts” during a father-son weekend at Richmond.

“That was a great chance for us to talk about this business opportunity,” said Mr Shaw.

“With Jerry we have a man that puts his money where his mouth is, and that’s one of the reasons why we’re thrilled to have him as a partner in Sydney Seaplanes.”

As well as his business acumen, Dr Schwartz will bring two of his own aircraft to the deal, boosting Sydney Seaplanes’ fleet to six and increasing capacity by a third.

The amphibious Cessna Caravan and DHC-2 Beaver floatplane can accommodate 12 and six passengers respectively, enabling expanded services from the Rose Bay seaplane terminal, as well as new flights to the Hunter Valley.

“Seaplanes have been such a fundamental part of Sydney’s transport heritage, and given how many idyllic locations along the east coast are located on waterfront, there is a natural advantage of growing the network,” said Dr Schwartz who owns eleven hotels in Sydney and the Hunter Valley.

“There is considerable demand for point to point air services between Sydney and the Hunter, and with six aeroplanes available, it will mean we can fly larger groups with greater flexibility.”

Dr Schwartz said he had great confidence in the company, which was rocked by the horror crash of a DHC-2 Beaver in the Hawkesbury River at Cowan on December 31, 2017.

All six people on board were killed including experienced pilot Gareth Morgan and five members of the one family from Britain. Investigations into the cause of the crash are continuing but Dr Schwartz said it was his opinion that Sydney Seaplanes’ safety record and standard of pilots were excellent.

Aaron Shaw, Jerry Shwartz and Ken Gaunt celebrate their Sydney Seaplanes partnership.

“It’s a really unfortunate thing they had this accident, of course it is, and that’s been a drain on their cash flow,” he said.

“That’s where the opportunity arose for being able to inject cash flow and enhance the service they provide.”

Mr Shaw said the business would have survived without Dr Schwartz’s involvement. But he and fellow partner Ken Gaunt were grateful to have him on board.

“Not to underplay the significance of how difficult it’s been, but Jerry’s investment, both financial and also with the fleet growth, they really help us speed up that recovery significantly, so that’s a great thing for us,” said Mr Shaw.

Land owned by Dr Schwartz at Cessnock Airport would provide a second hub for Sydney Seaplanes, and service the Hunter Region, pending local council approval.

“There is so much demand for high-end groups to go and play golf (in the Hunter Valley), visit wineries or take part in one of the many musical or gourmet events held there,” he said.

Although he would not reveal the size of his investment, Dr Schwartz said it amounted to ten per cent of the business, which prior to last year’s crash had an annual turnover of $8 million.

“It’s always difficult for people to take on an extra partner,” he said.

“If you’re going to do that, you’ve got to be pretty confident they’re going to add to the business and I believe I have got a lot to add from the tourism point of view.”

Mr Shaw shared those sentiments.

“Seaplanes have been operating out of Sydney Harbour since the 1930s so we really feel the weight of history in that business,” said Mr Shaw.

“For us to be able to continue that, to grow it to ensure its continued longevity is incredibly important and it’s an honour for us to do that.”

Dr Schwartz also owns a helicopter, purchased after he began a push to have a helipad on the roof of his Softel Hotel at Darling Harbour.

“I thought I better put my mouth where my wallet is, and ended up getting a helicopter and leasing that out,” Dr Schwartz said.

“Hopefully once I succeed in getting a helipad, we can run a helicopter service for guests of the hotel.”