Qantas gives Jetstar northern route

[Yada Yada]

Qantas gives Jetstar northern route

Steve Creedy - Aviation writer
September 06, 2006

QANTAS mainline is axing its Sydney-Townsville services in favour of low-cost carrier Jetstar.

Qantas announced today that it would replace its three weekly Qantas Boeing 737 Townsville-Sydney flights with two 177-seat Jetstar A320 services.

The move is in line with the airline's two-brand policy which sees leisure routes with little business traffic operated by lower cost Jetstar services.

"Sydney-Townsville is predominantly a leisure route, so Jetstar is the most appropriate carrier for this service," Qantas executive general manager John Borghetti said.

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I've flown on QF's direct SYD-TSV service a number of times in the past. It sure beats the hell out of having to transit through BNE. Oh well. :-|

 

[coco50]

I've flown on QF's direct SYD-TSV service a number of times in the past. It sure beats the hell out of having to transit through BNE. Oh well. :-|

This has happened with SYD-BNK and to a lesser extent SYD-OOL and seems to be a Qantas strategy. Soon, I guess, the only Dom routes flown by QF will be CityFlyer routes and some regionals that remain profitable.

 

[NM]

As disappointing (and somewhat disturbing) it is to see more QF mainline routes moving to JQ-only services, I think one of the driving forces behind this is a fleet capacity problem at QF mainline. Obviously the lower operating costs of JQ vs QF are also involved.

The move of the A330-200's to JQ International and the delay of the A380 are stretching the QF mainline fleet. We are seeing more and more trans-Tasman services starting to get 737-800's (note QF126/126 BNE-AKL-BNE will be 73H some days for a while from November) as they rearrange capacity to meet demand and profits. I think bringing AO back into the mainline operations is also partly driven by the current fleet capacity problems, where QF can get better utilisation and flexibility from a shared fleet of 763s across QF domestic, QF International and AO routes rather than dedicating a sub-fleet of aircraft to each.

I am sure they would love to have the 787 available now. Even the few A330's coming from Airbus to help with the A380 delay are not going to completely fill the gap. So QF is left with the problem of reasonable A320 fleet operated by JQ looking to expand services per their growth plan, and competing pressures for their domestic 737 fleet to cover the removal of A332s. The movement of A333s and 763s across the international routes is also a result of this fleet replacement/growth delay.

That is the problem with committing to two new aircraft types (A380 and 787) where the lead time for integration into the fleet means some short-term pain. The benefit is that in not too many years they will have a fleet of modern and efficient aircraft to operate their chosen routes and potentially enter a new growth phase.

So I would certainly not expect SYD-TSV to be the last of these changes :evil: . And once gone to JQ, its going to tough for the route to return to QF mainline in the future.

 

[Yada Yada]

The move of the A330-200's to JQ International and the delay of the A380 are stretching the QF mainline fleet.

When looking at QF's SYD-PER schedule for some specific days later in September, I noticed 763's appearing, I assume in lieu of 332's.

 

[NM]

Re: Qantas gives Jet star northern route

When looking at F's SYD-PER schedule for some specific days later in September, I noticed 763's appearing, I assume in lieu of 332's.

Indeed. The A332's will be removed for painting and leather seat coverings around that time ready for their introduction into JQ International service.

 

[garyjohn951]

The reason for the change is simple economics. Jetstar costs are 40% less than Qantas and it is a holiday route. So Qantas looks at balance sheet.
More routes will go as Jetstar gets more planees.

 

[Yada Yada]

The reason for the change is simple economics. Jetstar costs are 40% less than Qantas and it is a holiday route. So Qantas looks at balance sheet.
More routes will go as Jetstar gets more planees.

Hmmm... I wonder. Every time I have caught that service, it was full of people in business attire. Who goes to TSV for a vacation? Cairns I can understand!

 

[garyjohn951]

Magnetic Island. Heeps of families pile off the plane, transfer to Ferry, go to island, then return same way.

 

[turtlemichael]

Hmmm... I wonder. Every time I have caught that service, it was full of people in business attire. Who goes to TSV for a vacation? Cairns I can understand!

As a Cairns resident, good question!

I expect we'll be now nearing the top of the pile to be tackled shortly.

Most of my domestic travel is Y and International is in J. The consequences for this resident,when QF leaves CNS domestic, are that I will continue my shift to DJ for domestic travel because, in my view, it is better than JQ. As it will now be near impossible for me to maintain WP status just solely on the amount of international travel I do, I'll have to get used to the idea when my WP status dies of not using the lounges etc when travelling domestically. As most of my international is in J I will be free of the self-imposed pressure to have to fly QF, or OW generally, to maintain status. If I am travelling on anyone in J I'll get to use the lounges, priority check in, boarding etc. anyway.

The other loss of course is award flights. I have enough points to keep my going, both via QF and Amex, for a good while yet.

The other issue, which I think has been raised previously, is that surely QF's OW partners must be a touch concerned about the diminution of opportunities for their FF members to use and earn points in Aus. Doing and paying for a DONEx around the world but then having to get onto JQ for some of the long distance legs in Aus does not sound to me overly attractive for their members

 

[Yada Yada]

This is the risk QF runs when handing over routes to JQ. Not everyone will transfer over and may begin using other carriers.

The local paper in TSV has weighed in with a few articles now:
Townsville Bulletin: townsvillebulletin EDITORIAL/COLUMNISTS
Townsville Bulletin: Qantas snub [ 07sep06 ]

 

[simongr]

I wonder when JQ might join the oneworld alliance...

 

[turtlemichael]

I wonder when JQ might join the oneworld alliance...

As a full partner, probably never! I doubt they are eligible as presently constituted. And QF will only loosen up the earn and burn rules re JQ if they see bleeding to the opposition. That's probably the best hope for those of us with only DJ/JQ as a practical choice.

 

[NM]

I wonder when JQ might join the oneworld alliance...

To join OneWorld they would need to change many of the things that are the basis for their low operating costs, such as interlining, ticketing and reservations interoperability and FF program integration. So I can't see it happening as the changes required to enter the alliance would negate the benefit the QF group gets from operating them as a LCC and they might as well just use QF mainline.

Welcome to the new world of air travel, driven by the ever increasing demand from passengers for cheaper fares. We all persue cheaper fares and talk about the need for competition, but then complain when changes are made in order to reduce the cost base so we can all have cheaper fares .

 

[jakeseven7]

As a full partner, probably never! I doubt they are eligible as presently constituted. And QF will only loosen up the earn and burn rules re JQ if they see bleeding to the opposition.

I agree with you, but it hasn't happened yet to an extent QF group are worried yet

What would be perfect would be for DJ to sign up some decent partners all in a row, somehow pinch a couple of major business accounts from QF and get some share points from them in a short period of time.

That would mobilise QF and we all know what happens when QF gets nasty with competitors - big happy customers!

Even better (though dreaming now) DJ gets sold off by Toll to a strong carrier like SQ... can you IMAGINE the reaction at QF!!

 

[JohnK]

What would be perfect would be for DJ to sign up some decent partners all in a row, somehow pinch a couple of major business accounts from QF and get some share points from them in a short period of time.

Does QF treat DJ as a serious competitor? DJ has around 25% of the domestic market and a FFP that is growing all the time. JQ has around 10% market share, no FFP (unless you purchase expensive airfares) yet QF continues to hand services over to them.

I get the feeling that most people are not interested in FFP's/loyalty programs but rather cheap airfares. I have some friends who fly domestically 3-4 times a year, mainly DJ but also JQ, and always purchase sale fares. I mentioned that if they join Velocity after 6-10 flights they could redeem a "free return flight" SYD-BNE or SYD-MEL + taxes and they showed no interest. The taxes paid on a "free return flight" are equivalent to the cost of a sale fare.

 

[Yada Yada]

Does QF treat DJ as a serious competitor? DJ has around 25% of the domestic market and a FFP that is growing all the time. JQ has around 10% market share, no FFP (unless you purchase expensive airfares) yet QF continues to hand services over to them.

I can't answer the question but I am guessing that as Virgin Blue adds more airline partners, it will put more pressure on Qantas. Once Velocity members can fly anywhere in the world and credit points to their FF account it should up the ante. (EDIT: I should have said: "Now that Velocity members can fly almost anywhere in the world..." i.e. via the partnership with MH. With more to be added soon.

I get the feeling that most people are not interested in FFP's/loyalty programs but rather cheap airfares. I have some friends who fly domestically 3-4 times a year, mainly DJ but also JQ, and always purchase sale fares. I mentioned that if they join Velocity after 6-10 flights they could redeem a "free return flight" SYD-BNE or SYD-MEL + taxes and they showed no interest. The taxes paid on a "free return flight" are equivalent to the cost of a sale fare.

I think you are right, John. Most people couldn't be bothered because it all looks to difficult and there are too many "gotchas". Unless an FF program is easy to join, easy to use, and benefits are totally transparent, many people will just ignore them.