Building a stronger Qantas

[rechoboam]

If China was an option, then Chengdu is as valid a city as Kunming. I would welcome it whole heartedly.


FYI Kunming is opening a new airport soon capable of handling 38 million a year. Surely this would interest someone...

Yes there is a whole world out there that most of us would never encounter with cities we have never heard of each with 5-10 million people. Presumably QF are paying more attention to these places than the rest of us are. There would have to be some value in the safety reputation of QF in the market?

 

[Oneworldplus2]

But he said "Qantas the last major airline to put in-flight entertainment systems into economy class." - has he flown with UA lately? They are still operating B744's transpac with mainscreen only in Y...
Sure QF is falling behind, but lets at least be accurate if we're going to put the boot in.

+1
LH Long haul still have 747's with mainscreen in Y.

 

[JohnPhelan]

all have already understood that Qantas international operations are being slowly wound up and will be replaced by JetStar, codeshares and the new Asian offspring - just say so, yes, QF International does not bring profit, we'll get rid of it and replace it with something that does even if it's Asia-based and not Australian

Actually, that's not what we understand at all, and today's announcement confirms that QF will continue to fly to its major international destinations, without the dramatic route cuts that many on this site were forecasting.

In your post, you continue to repeat the fear-mongering nonsense that QF international will be closed down altogether. Please stop fabricating this rubbish.

 

[RSD]

One other question for RedRoo -

I saw nothing mentioned in the various releases today about any QF codesharing with Royal Jordanian - is QF negotiating something with Royal Jordanian or have they forgotten about the Middle East again? QF direct to Amman 3 times a week (preferably out of Perth!) with onward codeshare flights to the rest of the Middle East would be awesome.

 

[dk4]

Incorrect, it's going to be a premium airline as AJ has stated.

So Qantas Group will operate a 3 brand strategy heading forward.

1. Asia-Pacific "mass-market, value brand" - Jetstar.
2. Asian "premium brand" - TBA.
3. Australia only "premium brand" - Qantas.


This is a significant deviation from its two brand strategy, and probably means that the likes of Senator Xenophon, the unions and the Qantas Sale Act have achieved exactly the opposite future outcome, than they were after.

One premium brand will be set up with a better cost base and enormous growth opportunities (from a humble start as an off-shore-hub, single-aisle-aircraft, feeder service), and the other, as an ageing 90 year old, in a mature market, will now be saddled with a vision of limited local growth prospects.

 

[RSD]

There is of course one option that hasn't been discussed about how Qantas can compete with overseas government owned airlines and keep shareholders happy -

Just have the bloody government buy Qantas back! It makes perfect sense when you think about it... no need to return a profit, just have to keep the voters (passengers) happy!

 

[djfuzz]

I want to underline again the fact that I'm glad that QF has some presence here. Having said that, I feel like they are missing the point of engaging with their customers over social media, which is a conversation, not a press conference - not unlike the issue many have had with a certain other airline's more vocal proponents lately.

To their credit, Red Roo has been trying, but not as hard when it comes to the tough questions. It's a shame because there actually is some good news in amongst everything else in today's announcement, and a lot of difficult news that is reasonable and commercially sensible.

Generally Platinum members fly in the premium cabins more than anyone else and therefore the May changes (PY 25-50%, J 50-75% and First 50-100%) were designed to be of benefit to our Platinum members.

With due respect, Red Roo, you came on here today promising nothing but the facts. This is a benefit for travelers in your premium cabins, not your Platinum members. Platinum members may or may not fly regularly in premium cabins - to say that the benefit was 'designed for them' is the very definition of spin. Sure, the extra F lounges are relevant, as would be the confirmed upgrades (whenever they materialise). But this simply is not.

The 'fact' is that in the last two rounds of announcements, Silver, Gold, Premium and 'Platinum One' members have all received (somewhat) tangible service improvements. While there hasn't been a significant derogation to Platinum benefits (unlike the last round that took away Anytime Access which some - though, granted, not all - members considered to be quite significant) the net effect of these improvements to the other tiers is to reduce the incentive for Platinum members to maintain their status. Very few will be in the position to leap from 1200 SCs to 3600 SCs, while in the meantime the benefits of sticking to 600 SCs are more attractive. And why wouldn't you, when you get improved benefits for a smaller total spend with QF so long as you fly premium? The rest of your travel spend would simply be better spent on similarly premium (or otherwise) services with QF's competitors.

Take it as you will, but as far as the 'facts' go, QF needs to acknowledge that they have not delivered any improvements for Platinum members as a whole (or better yet, do something about it), while having taken away significant benefits in the past year and improved the position of almost every other tier.

 

[simongr]

There is of course one option that hasn't been discussed about how Qantas can compete with overseas government owned airlines and keep shareholders happy -

Just have the bloody government buy Qantas back! It makes perfect sense when you think about it... no need to return a profit, just have to keep the voters (passengers) happy!

I assume you are joking - if not here are some serious points:

- Most govt owned corporations in Oz operate on a for profit basis then pay the Govt a dividend
- Wouldn't this be anti competitive?
- Instead of spending money on infrastructure you want them to buy an airline and not get any return on the capital consumed?

3. Australia only "premium brand" - Qantas.


This is a significant deviation from its two brand strategy, and probably means that the likes of Senator Xenophon, the unions and the Qantas Sale Act have achieved exactly the opposite future outcome, than they were after.

Which part of the press release was that in? I didnt see that anywhere...

 

[Leumas]

CX and BA are on the list! Frequent Flyer - Earning Points - Fly - Airline Partners

You may have to pay extra for them, especially CX, since the QF web site can't handle them...

 

[Kendall Roy]

Noticed this quote on another forum site.

"Brand Management 101: Install an Irish bloke to stuff it all up!"

Ouch!

 

[markis10]

Actually, that's not what we understand at all, and today's announcement confirms that QF will continue to fly to its major international destinations, without the dramatic route cuts that many on this site were forecasting.

In your post, you continue to repeat the fear-mongering nonsense that QF international will be closed down altogether. Please stop fabricating this rubbish.

I don't think we have heard the last of the news, and the cuts are still coming, as for fear mongering nonsense as you call it, how are QF going to keep servicing their routes despite announcing accelerated retirement of the 744 fleet and 767 fleet with deferred A380 deliveries? I don't think the dust has settled, it may on Aug 24.

 

[Leumas]

Yes, Red Roo, can you give some insights as to whether we can do points ugrade on these partner airlines? Earning points and redemptions (Any seats/classic) are one thing but using points for upgrades? Guess a lot of us are interested in this one!
Thanks.

I believe the original question was actually asking about upgrades, but Red Roo perhaps didn't understand it (I'm giving the benefit of the doubt here).

As Red Roo acknowledged, the QF international network is shrinking. Based on the current upgrade rules, this means the ability to upgrade on international flights will also reduce. Can Red Roo confirm that the current international flight upgrade rules will be relaxed? One word (yes or no) answer will suffice, thank you.

 

[straitman]

I used to always enjoy my trips on Qantas, but in recent years, they have just gone to the dogs. Joyce makes the point that 82 out of 100 people now DO NOT fly with Qantas. Well, hello, why do we think that is? Joyce is so bloody thick that he doesn't understand that people vote with their feet when they are not happy.

I have been watching this quietly all day and have to say that from my perspective the quote above is one of the most pertinent comments that have been made. Not quite the words that I would have used but true non the less.

IMHO Qantas needs to do what is needed to make the (long haul) business profitable again but they seem to fail to realise that one of the best ways of doing this is to keep the customer satisfied. They have to keep the customers they have and then attract new ones. From where I'm sitting they are not doing this.

 

[TheInsider]

From where I'm sitting they are not doing this.

But they will be under the new Asian base, not directly QF, but still QF in a way.

 

[The Rok]

The only reason Jetstar has grown so rapidly is that it virtually gifted the entire Qantas domestic network that was not CityFlyer routes.

I fly with Jetstar every now and again - only because I'm flying a route that used to be operated by Qantas and is now operated by Jetstar, so there's no choice.

It should also be noted that Ryanair operated from 1985 - 1991 as a basic operation with only a handful of planes. It was not until the early nineties that Ryanair became. Real LCC

From it's transformation into a LCC it actually grew rapidly despite the best efforts of Aer Lingus and the Irish Government who were determined to bury it.

 

[justinbrett]

Will this new Premium Asian airline be a full OW member? Seems a bit pointless if it isn't.

 

[wingspan]

Will this new Premium Asian airline be a full OW member? Seems a bit pointless if it isn't.

I'd imagine it would be an affiliate OW member.

 

[Leumas]

Will this new Premium Asian airline be a full OW member? Seems a bit pointless if it isn't.

I doubt it... Maybe pointless to you, but obviously from QF's perspective, it's worth it. (No offence, but I actually agree with you that it's kind of pointless if it isn't.)

I suspect it'll work in a way like Jetstar - it's part of the QF family when it suits them, but it's 'a separate airline' when it doesn't.

 

[Red Roo]

I believe the original question was actually asking about upgrades, but Red Roo perhaps didn't understand it (I'm giving the benefit of the doubt here).

As Red Roo acknowledged, the QF international network is shrinking. Based on the current upgrade rules, this means the ability to upgrade on international flights will also reduce. Can Red Roo confirm that the current international flight upgrade rules will be relaxed? One word (yes or no) answer will suffice, thank you.

Hi guys, just to be clear I'm answering the right question 'will the upgrade rules on partner airlines' be relaxed? If that's the question, then sadly the answer is no- you're still unable to use your points to upgrade on partner airlines

 

[kezsco]

Hi guys, just to be clear I'm answering the right question 'will the upgrade rules on partner airlines' be relaxed? If that's the question, then sadly the answer is no- you're still unable to use your points to upgrade on partner airlines

Red Roo, thanks for your continuing feedback today.

It's a very long way off, but will be able to use QFF points to upgrade on the new premium airline?