Lunch with Lesley – Attendees

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Have a great lunch everyone, make sure you get all the answers I want … its actually mostly about aQuire, not mASA's.
 
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Masa dead because of people ripping off the system. Wonder who that was...?
 
AFF Q: Why did you make the recent changes to Qantas loyalty, how will they foster loyalty?

QF A: It's been many years since they've made a change. Think its 20 years. Fare structure that has prevailed is discount fares have gone down. Because of this they have changed the balance. New earn proposition is based on fare. Discount economy proposition 10 years ago was much higher in value.

AFF Q: How could you describe the changes as simpler in any way?

QF A: It can be overwhelming at first. But when you get into details of the way you earn it can be more simple. They don't know how many miles there are between 2 points but from a consumer POV it's much simpler. The old list is taller than Justin.

AFF Q: Justin, do you test changes with members as they're being developed?

QF A: Depends on the commercial sensitivities of the changes.

AFF Q: Are the changes part of the $2 billion restructuring?

QF A: We are transforming the business, well in the way. But that's a separate scenario based on responding to competitive position. Working towards change to Qantas sale act. Separate to that is the review of fares. Not easy for consumers to understand. Time is never ideal for anything we want to do. Magnitude of the zone and earn change at same time felt like a big change but they are 2 very different things. Ability to earn more points on other fare levels are real.

AFF Q: Justin, will online MASA/JASA ever come back, why did they go?

QF A: No. Won't come back. Small number but they had people getting P1 status through it and that value costs Qantas as they give back to them.

AFF Q: How will Qantas Aquire work for my business?

QF A: All you need is an ABN. Number I partners. More to come. They thing the world leading feature is Aquire points transfer of 1:1. V excited. Long term loyalty strategy. Looked at most engaged members were small to medium businesses. High expectations.

AFF Q: Any corporate rebates available to drive business to Qantas?

QF A: Number if businesses will use points plus pay to put points back into bottom line.

AFF Q: Diminishing network on own metal?

QF A: Disagree. Restructured Asia and put more capacity into SIN & HKG. Where we don't have metal on routes we do have a partner than can take you there. We want to be into the hubs of our partner airlines to take our members into every part if the world.

AFF Q: Justin, is there a decreasing commitment to OneWorld based on recent changes?

QF A: No. Other carriers in OneWorld have something similar. It's about overlapping routes. We want you on Qantas in those cases. It's not about distancing ourself.
 
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AFF Q (Medhead): talks about ADL?

QF A: They are concerned about member base from ADL. Either East Coast route or partner airlines is the way forward. They have received a bit of feedback.

AFF Q (Hvr): asks about threat to LTG?

QF A: Short but sweet, no plan to change LTG.

AFF Q: (Ben_F?) would rather get in a canoe than fly JQ from DRW. TL;DR when will extra benefits/loyalty come to DRW? This is DRW to Asia.

QF A: They have looked into it. But at a point in time it didn't become economically viable. Traffic became leisure based. Which brand goes on which route. Purely economics. Points to OOL as reason to leave and use JQ, but over time needed to shift back to QF.

AFF Q (Keith): asks for insight to how you assess those economics?

QF A: Revenue management team make those assessments. No one here to answer that question. They don't enjoy taking a brand or route off. The broader a network he better it is.

Please excuse my poor paraphrasing.

AFF Q: (Greg, from MEL): asks about major SC reduction to Europe via Asia?

QF A: They'll have another closer look at things based on feedback. xONEx feedback has come in and they'll look into it.

AFF Q: Are the changes set in stone? Are you taking in feedback?

QF A: If there's anything about FF it's not set in stone. We so appreciate Ruth feedback. They are looking at SIN & ADL. What's feedback that will affect flying behaviour really significantly? They need to analyse it all. See how it operates to then review it. You guys have a great knowledge.

AFF Q: Why are points for partners different to Qantas especially wen you can hardly get a QF award so you're then sting more on a partner?

QF A: They're actively trying to get more seats. They pay partner airlines a certain amount if money so they can't afford to make a loss.

AFF Q (ALH): asks if they're random or targeted?

They are targeted. (ALH mentions she need one to requalify). They're always there for a reason.
 
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Good to see QFi ADL get a mention... but I'm not holding my breath, it seems others may have already taken the market... SQ

Edit: But, I'm happy to support QF if they have another shot...!
 
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