Qantas announce more regional growth

[IanE]

I am very happy with the announced MGB -ADL Q service. Nearly every time i travel that route I get hit with excess baggage or with ridiculously high fares when I have no option to book maybe two days before flying. Last time in Nov it was $175 outbound and $430 inbound - and the flight was less than half full. Cannot wait for QLK service from MGB.

 

[farmboy]

Yes agreed, those various routes that their entering certainly didn't seem to have a lot of traffic. Wagga, Mt Gambier etc all seemed quite boutique
The question is who will quit first? Rex or QF? I suspect Rex.

And whilst it will be good for short term competition, and people moan about Rex and their monopoly fares .... if Rex do pull out on some routes, QF are not exactly known for generous pricing on their monopoly routes either.

Yes, I agree, Rex will certainly pull out if its uneconomic. They will not wear losses for long, after all they have not remained solvent for 18 years by taking losses.
They do not try for 100% occupancy. Generally, their published modus operandi is that once occupancy reaches 70%, they will put on another flight. That suits many of their destinations, who value frequency above everything. Their cost base is much cheaper than Qantas.
As for Qantas and monopoly fares. Qantas had a monopoly on Tamworth for years, then Virgin arrived and prices dropped by hundreds of dollars.
Also, local councils play a big part in fares. Many councils served by Rex have 'community' fares.
These have tight rules, but are much cheaper. Some councils don't offer the discounts, so fares are much dearer.
Qantas forced all fares up at Dubbo, in a complex bid to oust Rex. It was a devious very clever move. Too detailed to go in to here.

The bottom line of all this is that Rex services so many small towns that nobody else will. They are to be applauded for that.

Another point not often mentioned is that Qantas does not really compete with Rex for service.
Rex is a bit like Southwest in the US, no frills, basic transport. Qantas is more upmarket with bigger planes and attracts the suits and people who do not pay their own fares. Nothing wrong with that, but it is a bit sad to see Qantas try to force Rex out all the time, when many of Rex's passengers will not fly at all if Rex pulls out. Qantas is an arrogant bully no doubt, with no thought for the actual community residents.
I know one of Australia's top business men who supports Rex all the time, simply because he values their frequency.

 

[jakeseven7]

Qantas forced Rex out of the Port Lincoln route. And then abandoned it themselves. The South Australian government actually then came to Rex and asked them to resume service.

So strange I had the most vivid dream I flew Qantas to Port Lincoln last week I think you are a bit mixed up... they have two daily flights from Ads.

 

[jakeseven7]

I am very happy with the announced MGB -ADL Q service. Nearly every time i travel that route I get hit with excess baggage or with ridiculously high fares when I have no option to book maybe two days before flying. Last time in Nov it was $175 outbound and $430 inbound - and the flight was less than half full. Cannot wait for QLK service from MGB.

From a business point of view so are we, we've had issues with REX too on the routes where there is no competition and Mount Gambier is one of them.

We are really happy there is a MEL service being loaded too as we fly a few specialists in and out of there and will be switching to QF for these sectors too - they will be thrilled too with the easier connectivity.

 

[farmboy]

So strange I had the most vivid dream I flew Qantas to Port Lincoln last week I think you are a bit mixed up... they have two daily flights from Ads.

Yes, I knew Qantas had returned. But my story is true, it came from the horses mouth at the time.

I also heard today that Rex has not laid off one staff member during the pandemic.

 

[eric2011]

Increasing capacity up north as well. My BNE - HTI flights changed from Dash 8 to 737-800

 

[jase05]

I would think that Rex might pull out of ADL-MGB if things get tight. At the moment they are guaranteed freight from AP but once QF joins the fray that freight would have to be shifted over.
In times like this the freight was really a nice sweetener for Rex

 

[dajop]

I would think that Rex might pull out of ADL-MGB if things get tight.

Yes, I suspect that the competition on many of these routes might be short lived.

 

[docjames]

Qantas forced all fares up at Dubbo, in a complex bid to oust Rex. It was a devious very clever move. Too detailed to go in to here.

I have to bite on that one - how does QF forcing UP fares push Rex out?

 

[muppet]

It forced Rex's fares up. For no benefit to them. The council pocketed the extra costs that Rex was forced to pay. Why did they have to pay extra costs?
As I said its complex, and its a few years ago now, but I will try;
Legally, Rex lighter planes were not required to have full security for their pax. But Qantas thought up a cunning plan. They decided to very occasionally fly a larger plane on the route, that did legally require screening. Pax numbers did not warrant the bigger plane. The Council obliged by installing full security for all RPT planes at Dubbo. So Rex had no choice but to charge for the security, - that they did not legally require.

At most of its other ports, Rex did not, and still does not have to pay for security, it was only Dubbo where Qantas effectively forced the extra cost on to Rex. Its worth mentioning that the two airlines do not compete for the same market, broadly speaking. The Qantas Dubbbo service caters mostly for professionals who do not pay their own fares. Rex focuses on frequency and has always had more daily flights than Qantas. Which is highly valued. It was a bold move by Qantas that resulted in a court case that Rex lost. The argument lost its way a bit and concentrated on the desirability of full security, not the legal requirements.
In effect, the Dubbo Council usurped the role of CASA and other regulators. CASA says full security not needed, Dubbo Council says it is at Dubbo.
The bottom line is that if Qantas had continued to fly five times a day to Dubbo in the usual Dash 8, which was rarely full, none of this would have happend. It was a devious and clever move.

There is more to it of course, but that's the gist of it.

But this doesn’t make sense. Qantas has to pay the fee too.

Both airlines pass the fee onto passengers .... and the council didn’t “pocket the fees” ... it installed and operated security!

I don’t deny there is a case to be made on the need for security for small aircraft, but Rex is at no disadvantage to any other airline using the airport.

This kind of logic reminds me of Rex’s bizzarre press releases.

 

[eastwest101]

But this doesn’t make sense. Qantas has to pay the fee too.

Both airlines pass the fee onto passengers .... and the council didn’t “pocket the fees” ... it installed and operated security!

I don’t deny there is a case to be made on the need for security for small aircraft, but Rex is at no disadvantage to any other airline using the airport.

This kind of logic reminds me of Rex’s bizzarre press releases.

Installation of equipment and re configuring the interior of an airport (even if small) isn't cheap, especially for small councils. Not just the running costs of the staff to run security screening.

 

[Le Clair]

I just read the funniest thing in Matt Graham's Segway into this thread. He said the the ACCC "will have to make a judgement on airline regulation at some point".
This actually suggests that the ACCC might be responsible for doing something.
Better not post that kind of scandalous material on Twitter Matt, your account will be suspended.

 

[ausfox]

Any word on Qantas competing with the specials announced by J*?

 

[jakeseven7]

Mt Gambier getting very excited for the arrival of QFLink. From a flyer nerd perspective I’m planning a Mel - Mt Gambier - Adelaide tour and visit to try these new routes out. Will be really scenic flight.

Thinking the Mel - Syd via Sapphire coast could be a great one to try too.

Regions set to benefit from domestic tourism push by passenger airlines

The long-awaited arrival of a second passenger airline in Mount Gambier is expected to provide a welcome boost to regional tourism with more destinations for travellers on the horizon.

www.google.com.au

 

[dajop]

Mt Gambier getting very excited for the arrival of QFLink. From a flyer nerd perspective I’m planning a Mel - Mt Gambier - Adelaide tour and visit to try these new routes out. Will be really scenic flight.

Thinking the Mel - Syd via Sapphire coast could be a great one to try too.

Regions set to benefit from domestic tourism push by passenger airlines

The long-awaited arrival of a second passenger airline in Mount Gambier is expected to provide a welcome boost to regional tourism with more destinations for travellers on the horizon.

www.google.com.au

Will you be using QF or ZL?

Just checking, at random, the first week or May, cheapest ADL-MGB fare on QF was $190. Cheapest ZL fare was $128.

By way of comparison, ZL is charging a whole $138 for one of their similar length monopoly routes on the same days. (ADL-BHQ), make of that what you will, but it doesn’t seem the additional competition from QF is lowering fares that much, yet.

 

[jakeseven7]

Will you be using QF or ZL?

Just checking, at random, the first week or May, cheapest ADL-MGB fare on QF was $190. Cheapest ZL fare was $128.

By way of comparison, ZL is charging a whole $138 for one of their similar length monopoly routes on the same days. (ADL-BHQ), make of that what you will, but it doesn’t seem the additional competition from QF is lowering fares that much, yet.

QFLink - like trying new routes and I'm seeing cheaper fares than that for when I want to go as well

Suspect the cheap fares sold out, because the launch fares were cheaper than that when they were loaded.... hope no one beats me to the first trip review on AFF

 

[jase05]

hope no one beats me to the first trip review on AFF

I do that route regularly on ZL, you ain’t missing much

 

[jakeseven7]

I do that route regularly on ZL, you ain’t missing much

So have I, glad there is better option to REX now - I loved it, but I love the countryside and nature in general

 

[Mattg]

The inaugural SYD-GFF filght took place yesterday.

Great to see more options to regional NSW and I look forward to trying out the Griffith route soon. But I do have to question this line from the Qantas media release:

The service will operate daily with the airline’s turboprop 50-seat Q300 aircraft, adding more than 700 seats on the route each week.

If you're running a return flight 7 times per week using a 50-seat aircraft, that's exactly 700 seats. That's not "more than" 700 seats.

As it happens, with 1A/B/E/F currently blocked on the Q300 due to covid there's actually only 46 seats per flight available for sale at the moment anyway - which makes a total of 644 seats per week.

 

[TheInsider]

The inaugural SYD-GFF filght took place yesterday.

Great to see more options to regional NSW and I look forward to trying out the Griffith route soon. But I do have to question this line from the Qantas media release:



If you're running a return flight 7 times per week using a 50-seat aircraft, that's exactly 700 seats. That's not "more than" 700 seats.

As it happens, with 1A/B/E/F currently blocked on the Q300 due to covid there's actually only 46 seats per flight available for sale at the moment anyway - which makes a total of 644 seats per week.

Jump seats can be used by staff travellers!