Building a stronger Qantas

[ajw373]

3. Decentralisation - as many here point out, they havent really tacked the core issue that has cost them market share - Sydney-centricity. Why anyone flying out of BNE would go BNE-SYD-SIN-LHR-EU destination when they can go BNE-SIN-xx or BNE-SUH-xx or BNE-DXB-xx is really telling. Better options ex-BNE is vital and this is the market share being stolen - not ex-MEL or SYD. PER is another example of this - why go PER-SIN-LHR-EU when you could go PER-DXB-xx. Similarly PER-SYD-LAX-xx when you could go PER-HKG-xx directly. There's lots of examples, and the 788/789 is the right plane to decentralise this - if they can leverage their MH partenship, or better work with CX this might happen. Instead they've decided to keep funneling pax via transit points they dont want. The addition of a "hubbed" premium non-QF QF in Asia wont help this feeling. I'd like to have seen 380s out of SYD/BNE/MEL and 788s out of ADL/PER/CNS into say SIN allowing the 380s to continue to LHR/FRA and the 789s to other EU destinations. The "Premium" non-QF airline will also need to be class leading - pax in Asia will not choose QF just because it's QF - and this airline will still be seen as QF.

Having an offshore hub will actually allow Qantas to decentralise, by having multiple flights from decentralised cities flying to the hub location, just like SQ etc already do out of Australia. Of course to do this they do need aircraft smaller than A380's or 747's, in fact the 787's would be ideal.

 

[farmer]

With QF1/2 being SYD-BKK-SYD in the future will their flight nos become QF0.5 and QF1.0? :mrgreen:


Finally, I keep on hearing how QFi is losing $200m per annum and I don't seeing anyone challenging this, especially in the media. I've flown SYD-LAX-JFK, SYD-SIN-LHR, MEL-SIN, HKG-PER, etc a no of times in recent years and I just don't see spare seats. Perhaps it's SYD-EZE and HKG-LHR flying near empty that's draining the $$$. I've love to know load factors to help support the $200m figure, in the meantime I can't help wonder if the books are being "cooked" (in the nicest way), to give an outcome that justifies decisions being made.


Paddy

Paddy,
The assertion about Qantas International losing money is being seriously challenged. Suggest you look at Ben Sandilands at Crickey and the posts he has made since yesterday and the long list of questions about the lack of cross charging for services provided by Qantas to Jetstar.

There is a serious question as to wether Joyce is misleading the shareholders and the public. This part of the story has a way to go!

Farmer

 

[samh004]

I just remembered something I forgot to post earlier. With the re-align of the South American route to connect better with LAN, does this mean for certain that LAN’s merger with TAM won’t result in them leaving OneWorld? Because if they did, it’d really all be for nothing with no connections.

 

[medhead]

Paddy,
The assertion about Qantas International losing money is being seriously challenged. Suggest you look at Ben Sandilands at Crickey and the posts he has made since yesterday and the long list of questions about the lack of cross charging for services provided by Qantas to Jetstar.

There is a serious question as to wether Joyce is misleading the shareholders and the public. This part of the story has a way to go!

Farmer

But will the shareholders do anything? Class action or the like. I doubt it and the questions will go nowhere, IMO.

 

[Oneworldplus2]

Thank you for the reply Red Roo

 

[farmer]

But will the shareholders do anything? Class action or the like. I doubt it and the questions will go nowhere, IMO.

Medhead,
Your probably right but these things have a habit of reappearing at a later date from sources the company cannot totally control. If the truth is different it has a way of seaping out and further eroding customers confidence.

Australians are patient and will give the company a fair go but we are not mugs!

Farmer

 

[arrow]

Red Roo My real concern with the moving from QF metal to Codeshares is around the Any Seat Awards.

Currently QF Codeshares on BA metal are very expensive on J & F Any Seat Award bookings despite the fact there is availability (albeit under a BA flight number) for those same flights on a Classic Award basis.

If QF moves from QF metal to Codeshares (BKK to LHR and HK to LHR), they should allow you to purchase Any Seat Awards at discounted points level if there is Classic Award Availability (just as you are able to do I fit was a QF marketed and operated flight).

 

[RSD]

From RSD - Will QFF members get the full benefits of their status on this new Qwontarse based somewhere in Asia?

Yes, you will be able to earn frequent flyer points and status credits on the new airline and redeem these throughout the program.

Hi Red Roo, I was actually wondering about the full benefits of Platinum status such as the Platinum international baggage allowances (64kg) etc would be available on the new Asian carrier to WP's?

 

[connieguy]

But will the shareholders do anything? Class action or the like. I doubt it and the questions will go nowhere, IMO.

It does have the capability to erode public confidence in QF. To many flying friends I speak with, they questioned why I stayed with QF so long. As Farmer says, we are not mugs, well not for long.

 

[medhead]

Anyone who thinks qantasia won't fly to Australia I suggest you go to the business section of The Australian website and read Alan Joyce's opinion piece "With Qantas facing hard questions, Asia is the answer"

With a fleet of 11 Airbus A320 aircraft in a premium configuration, it will operate same-day services within Asia and between Asia and Australia.

Sorry I'm on iPhone and posting a link is too hard.

 

[AnonymousCoward]

If QF moves from QF metal to Codeshares (BKK to LHR and HK to LHR), they should allow you to purchase Any Seat Awards at discounted points level if there is Classic Award Availability (just as you are able to do I fit was a QF marketed and operated flight).

Why? you can't do this on any other QF code share flight...

 

[under the radar]

does red roo have any info on the 10x a330-300 (international) a/c?..it seems to be the forgotten a/c in the qantas fleet..still no mention of a cabin upgrade (especially in economy)..will an a380 style refit occur on the a330-300??

 

[Justchecking]

Anyone who thinks qantasia won't fly to Australia I suggest you go to the business section of The Australian website and read Alan Joyce's opinion piece "With Qantas facing hard questions, Asia is the answer"



Sorry I'm on iPhone and posting a link is too hard.

In which the choice of a320s seems even more puzzling. A330s are the better aircraft or flying between AUS and Asia, and probably would not be too difficult to fill up intra-Asia, given the size of the market there.

 

[connieguy]

Anyone who thinks qantasia won't fly to Australia I suggest you go to the business section of The Australian website and read Alan Joyce's opinion piece "With Qantas facing hard questions, Asia is the answer"...

That was said in the PR:
Qantas to launch premium Asian airline, but it's "not Qantas" - Flights | hotels | frequent flyer | business class - Australian Business Traveller

For sure Qantasia will fly into Australia. With a claimed lower cost base than Qantas, Qantasia will be able to offer Qantas level or better service at a lower price than Qantas on the Asia to Australia sectors. I suggest QFi, in say 5 years, will be no longer exist on the Asian to Australian sectors as it will not be able to compete with Qantasia for Asian route customers from and to Australia.

As for the hop across the Pacific pond, it there enough business there to support QFi by itself? If not then QFi may be totally gone in say 5 years.

 

[Captain Paul]

Thanks Edison.

For everyone else........

I am following the thread and answering as many questions as possible with as much information as I currently have. If you do have a direct question for me, post it as a question and I will answer it. But while I do have quite a bit of information from the annoucements yesterday, I do not have all the minute detail and rely on other areas of Qantas to get back to me. If this is the case, I will let you know and get back to you when I have more info.

While not all the comments are complimentary :shock:, this is an open forum and we are paying attention to what you are saying and I report back the good and the bad to relevant departments.

Thanks guys.

Cheers,
Red Roo

Hi Red Roo,
Thanks for offering to answer questions.
I am still awaiting an answer to my question yesterday as to when Qantas will be resuming PER-NRT flights, suspended when Japan was being hit by the earthquake.
It is midwinter and I want to plan my January ski trip!
Thanks
Captain Paul

 

[medhead]

In which the choice of a320s seems even more puzzling. A330s are the better aircraft or flying between AUS and Asia, and probably would not be too difficult to fill up intra-Asia, given the size of the market there.

I dare say they bring in the A320s to start in Asia and then other aircraft at a latter stage.

Another aspect I just realised was his flat out denial on 7:30 last night the Qantasia would replace australian jobs. Maybe it doesn't directly do so but this piece shows that QFi expansion is being sacrificed in favour of the new airline.

 

[connieguy]

I dare say they bring in the A320s to start in Asia and then other aircraft at a latter stage.

Exactly.

Another aspect I just realised was his flat out denial on 7:30 last night the Qantasia would replace australian jobs. Maybe it doesn't directly do so but this piece shows that QFi expansion is being sacrificed in favour of the new airline.

Qantasia is the thin end of the wedge to kill off QFi. Clear as can be. As QFi dies, the excuse will be probably be something like

"See we said QFi's overheads are too high. Lucky we started Qantasia or we would really be in the poo and have no premium Asian based airline to carry on the great Qantas brand and tradition."

QFi is history.

 

[cosi]

Red Roo,
When will QANTAS lift the suspension of PER-NRT and resume flying this route?

This will probably become a Jetstar Japan flight.

 

[harvyk]

That was said in the PR:
Qantas to launch premium Asian airline, but it's "not Qantas" - Flights | hotels | frequent flyer | business class - Australian Business Traveller

For sure Qantasia will fly into Australia. With a claimed lower cost base than Qantas, Qantasia will be able to offer Qantas level or better service at a lower price than Qantas on the Asia to Australia sectors. I suggest QFi, in say 5 years, will be no longer exist on the Asian to Australian sectors as it will not be able to compete with Qantasia for Asian route customers from and to Australia.

As for the hop across the Pacific pond, it there enough business there to support QFi by itself? If not then QFi may be totally gone in say 5 years.

I all of a sudden got visions of Australian Airlines (not TN) Australian Airlines - Wikipedia, the free encyclopedia - QF's last attempt at setting up a full service carrier to service AU to Asia flights...
I don't think this is the end of QFi. I expect AJ will be given a golden handshake sometime in the near future and they will appoint a customer service focused CEO. Hopefully it will be someone who understands the QF brand is their one and only real asset, and thus launches into damage control mode.

QF could survive this time as well, without completing on price if they leveraged their brand better. They feel that on the transpac market people are paying extra to fly on an A380 (ignoring that a good proportion of their flights are still B747 and even an A330 flight in there), how long until another carrier also has them on the transpac market, then what do they compete on?

Surprisingly leveraging the QF brand would be relatively easy as well, start taking media outlets to task when sensationalist stories are thrown out there, sort out the problems with the unions, hire a good presenter to make company announcements, actually listen to customer feedback (esp negative feedback as it tells you what you could do better) rather than simply giving lipservice, cut JQ completely loose (make QF a non controlling shareholder, revoke JQ's rights to use the QANTAS name anywhere) and let it fly on it's own terms and finally understand that the person who is doing so many BIS miles in QF Dom is probably looking forwards to flying QFi. QFd and QFi are interconnected. Kill off QFi and you will most likely hurt QFd big time.

 

[goldy]

If I wanted to fly MA or BA I would simply book with them

Just a minor point.. but MA is Malev and not Malaysian which is MH.

As a LTG, I am not concerned, especially if there a good options on an owned carrier in Asia (given my current geographic location I hope this is based in SIN!) and a broad range of alliance partners.

Talk to us again when Qantas enhance away your J lounge access as part of your LTG