Wouldn't it be so much better if Rex took QF headlong on profitable and bulk-traffic routes (eg: SYD/MEL), while exploiting some white space that QF has abrogated? Is that commercially realistic, or are the small-centre regional routes truly uncommercial and unprofitable?
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Lismore - The trouble would be a more frequently served, more competitive airport (BNK) is only 35km away, and OOL 100km away. Yes - Casino is further, but still only 30 mins further to the better served BNK than LSY.
We're definitely lucky (or well-served) in Australia in terms of quick access to significant airports. NYC has three airports, any one of which is claimed to take 20-30 minutes from the middle of Manhattan, but is more like an unpredictable 90 minutes when it's important. But I don't believe that's a fair comparison with our feeder airports. I value being able to fly from somewhere relatively close to where I am.Some major cities have airports that are more than 35km from the city they are supposed to serve - let alone neighbouring towns/cities.
Some major cities have airports that are more than 35km from the city they are supposed to serve - let alone neighbouring towns/cities.
MUC, CMB, NRT, DME, FRU, ICN, KUL, WDH, CNF, IKA are a few that come to mind. Admittedly, some (although not all) of these airports have high-speed rail links to the nearby city.
Jetstar are starting SYD-HVB in a couple of months so pricing should be lower and non stop too.There has to be decent revenue on shorter links, and I'm all for Rex giving QF a bit of a squeeze. I'm flying to Hervey Bay in a few weeks. QF quotes $247 to go SYD/BNE/HVB. The SYD/BNE sector is selling at $140 right now, so... another $150 to go BNE/HVB? Sure. And then it's $247 to return HVB/SYD a few days later, when the stand-alone BNE/SYD sector is selling for $200, so incremental HVB/BNE is $47 that day. And I checked a non-QF booking site, and was offered $207 for the full one-way on the same planes.
I'm sort of surprised at the pricing. QFLink seems to be the only carrier doing BNE/HVB/BNE, so they could conceivably charge a motza. In fact I think the incremental fare is pretty reasonable considering the alternative is a 3.5 hour drive in a rental car. So what's the special sauce? Does Fraser Coast have a seriously active polly at work?
Which leads to the question: would I choose a one-hop JQ over a two-hop QF? Just as well that I don't have that moral dilemma for the SYD/HVB work trip that I booked yesterday! But the need to take two 30kg suitcases would seal the deal, I think.Jetstar are starting SYD-HVB in a couple of months so pricing should be lower and non stop too.
Interesting report...The ACCC has responded to Rex's allegations, basically saying that they don't think Qantas is being anti-competitive, that competition across the broader market appears to be increasing rather than decreasing, and that the ACCC is focused on protecting competition, not individual competitors.
Rex has been gouging country people for years. I have flown the Adelaide to Kangaroo Island route for many years and on near full planes could never understand why it cost more than twice as much to do a 100km 20 minute flight than my flight from Adelaide to Melbourne. On top of that they would cancel flights with no notice if on occasions there were a low number of passengers - and then make you wait in a run down airport with no food or beverages for up to 6 hours until the next flight. The only choices were to drive back home (80km in my case), go to the nearest town and wait (15km), or throw away your ticket because they would not refund. I refer to Rex as the worlds worst airline and they have only been interested in servicing routes where there is no or very little competition. And despite their whining, Rex has been a very profitable business- for their Malaysian owners that is.Their antics however seem to work more often than not (and frankly it's sad that it does).
Unsurprisingly, locally here in SA, the Opposition Party was quick to announce that the State Gov should throw Rex a handout to ensure they keep flying their twice weekly return flights to Kangaroo Island (versus the current QF 4 returns).
For SA, I wonder how long Rex will continue with Mt Gambier given the QF push on this route, and whether we'll see reductions/changes to the Pt Lincoln and Whyalla routes which QF also fly.
Malaysian or Singaporean?And despite their whining, Rex has been a very profitable business- for their Malaysian owners that is.
Malaysian
You don't have to think that... the AFR has an article about it. You're 100% correct that's the case.I can't help but think that Rex's push into 737s was based on the premise that Virgin would not be around. I can't see this ending all that well.
You don't have to think that... the AFR has an article about it. You're 100% correct that's the case.
Would Rex's owners be cashed up enough to take VA2 off Bain's hands and merge the brands....
Either Rex or VA2 is going down thats for sure.... (or Rex dramatically scales back again) just a question of when....