Virgin carried more than Qantas on domestic routes

Status
Not open for further replies.

Comoman

Active Member
Joined
Nov 4, 2011
Posts
809
I have to say I'm not surprised:


Virgin beats Qantas on domestic routes




"Virgin Australia carried more domestic passengers than its rival Qantas over the 12 months to the end of May - a first for the industry's traditional number two.
Virgin carried 1.42 million domestic passengers in May, it said on Wednesday, which compared to 1.37 million passengers who flew with Qantas Domestic.
It is not the first time Virgin's domestic operations have carried more passengers than Qantas in a single month, but Virgin has for the first time out-performed Qantas over a 12 month period.
In the year to May 31, Virgin carried 15.53 million domestic passengers, compared to Qantas' 15.49 million domestic passengers.
The Qantas figures do not include passengers who flew with its fully-owned subsidiary Jetstar, which carried 830,000 passengers in May and 9.84 million passengers in the year to May.
CBA analyst Matt Crowe said the numbers were a likely reflection of Qantas' increased focus on Jetstar's domestic routes.
"Qantas is moving a lot of passengers from domestic to Jetstar, over that period of time Qantas Domestic has become relatively smaller to Jetstar," he told AAP.
Virgin's move away from being a low-cost carrier to a corporate flyer may also have contributed to its rise in passenger numbers, Mr Crowe said.
"It wouldn't be purely business (passengers), but that has been the main initiative that Virgin's been pursuing in the last 12 months," he said.
Also a factor was Qantas' fleet grounding in October, which contributed to an 11 per cent drop in domestic passenger numbers in that month.
The number of kilometres travelled by paying Virgin customers remained lower than that of Qantas, but they have grown at a much stronger rate.
Virgin flew 17.63 million revenue passenger kilometres (RPKs) in the year to May, up 7.7 per cent on the previous 12 months.
Qantas flew 22.83 million RPKs in the year to May, which was flat compared to the previous 12 months.
Meanwhile, Virgin's international business posted a 0.3 per cent drop in passenger numbers in the month of May, and in the year to May international passengers dropped 6.2 per cent from the previous year to 2.43 million.
On a total group basis, Virgin Australia carried 17.8 million people in the year to the end of May, compared to Qantas' 43 million."


Source: Virgin beats Qantas on domestic routes - The West Australian
 
Why is their RPK lower? They giving away a lot of fares?

Either way the numbers are very close and has QF mainline not been grounded I figure QF would have just edged Virgin out.

Also shows how the company is pushing users to Jetstar! A profitable business with good loyalty and a solid brand, declining because of an increased push to another profitable business with poor loyalty and a poor brand image.

I'm not sure this strategy will pay off long term.



 
Why is their RPK lower? They giving away a lot of fares?

Based on evidence acquired from (only) looking at AFF: Qantas flyers maximising their SCs = an extra 5m km of unnecessary connections? :)
 
So Virgin is now Australia's biggest domestic airline?

Surely that would be their next marketing campaign?

'more Australians now choose to fly Virgin than any other domestic airline'
 
Nice angle for the article - I love selective use of statistics. Is the last line not a better indicator of the real picture?

On a total group basis, Virgin Australia carried 17.8 million people in the year to the end of May, compared to Qantas' 43 million.
 
Nice angle for the article - I love selective use of statistics. Is the last line not a better indicator of the real picture?

On a total group basis, Virgin Australia carried 17.8 million people in the year to the end of May, compared to Qantas' 43 million.

Yes and no. Given that Qantas domestic is meant to be the strong part of the business, the cash cow, and the bit that isn't going to hell in a handbasket any signs that it is deteriorating relative to its competitors is significant. It also emphasises the underlying trend to Jetstar. But, yeah, the statistics are a little arbitrary.
 
From what I read in another article

"Nor do they include the 4.76 million passengers who flew with QantasLink in the year to May"
 
Yes and no. Given that Qantas domestic is meant to be the strong part of the business, the cash cow, and the bit that isn't going to hell in a handbasket any signs that it is deteriorating relative to its competitors is significant. It also emphasises the underlying trend to Jetstar. But, yeah, the statistics are a little arbitrary.

I'd say then that the revenue load factors are the relevant indicator - QFd still has a slight edge there - dropping 0.6 pts in the year compared to Virgin's drop of 0.9 pts. Taking into account the shutdown, I'd say that QFd is still strong and this is a classic media beat up.

Edit: Links to stats from ASX

Virgin - http://www.asx.com.au/asxpdf/20120704/pdf/42771z9tjbqth2.pdf
Qantas - http://www.asx.com.au/asxpdf/20120702/pdf/4275hj4b6vndzh.pdf
 
EXCLUSIVE OFFER - Offer expires: 20 Jan 2025

- Earn up to 200,000 bonus Velocity Points*
- Enjoy unlimited complimentary access to Priority Pass lounges worldwide
- Earn up to 3 Citi reward Points per dollar uncapped

*Terms And Conditions Apply

AFF Supporters can remove this and all advertisements

I'd say then that the revenue load factors are the relevant indicator - QFd still has a slight edge there - dropping 0.6 pts in the year compared to Virgin's drop of 0.9 pts. Taking into account the shutdown, I'd say that QFd is still strong and this is a classic media beat up.

Given the capacity increases i'm not sure that revenue load factors are particularly significant in and of themselves.
 
Why is their RPK lower? They giving away a lot of fares?

QF's larger aircraft probably explain a large part of that - for example on the triangle most QF services are widebodies (ie 240+ seats) whilst most DJ services are 737s (ie 176 seats). So assuming equivalent load factors across both airlines QF will accrue RPKs much faster. But on the whole it's of more statistical interest than being of any real significance. Given Virgin will eventually cover the leisure/low margin market, business/full service market and higher end of the regional market under one brand whilst QF uses three brands to cover those segments (JQ / QF / QantasLink respectively) it's inevitable that Virgin will probably consistently top QF in these stats down the the track.


I must admit I do like the irony of Mr Joyce stating a few months ago that he was going to flood the market with seats for no reason other than to make sure that 65% of seats available came from the QF group - but a month later he was begging for protection from the government because the evil Emiratis might enable Virgin to do the same thing.
 
Last edited:
Given the capacity increases i'm not sure that revenue load factors are particularly significant in and of themselves.

So I think between us we've established these stats are basically useless and the article is mostly nonsense.
 
From what I read in another article

"Nor do they include the 4.76 million passengers who flew with QantasLink in the year to May"

Well that's a big domestic chunk missing right there... though I think the fact still remains that Qantas appears to be pushing Jetstar more and more, even over their profitable domestic business, and I can only see a short term gain in that. I'm sure it can be spun any direction though.



 
So I think between us we've established these stats are basically useless and the article is mostly nonsense.

The headline is useless - but the underlying data is actually useful. The trick is not to use it to make comparisons between Qantas and Virgin but to look at the trends in each airline's data and patterns.
 
Based on evidence acquired from (only) looking at AFF: Qantas flyers maximising their SCs = an extra 5m km of unnecessary connections? :)

The DSC offer is a curse that both companies are having to endure these days:p We'll know that QF is absolutely gone to the dogs when they start status matching anyone that has a pulse;)
 
Good to see Virgin doing well. It will be interesting to see if they can sustain it.

On the other hand it is not nice to be witnessing the rapid demise of Qantas to the cancer that is Jetstar....
 
Status
Not open for further replies.

Become an AFF member!

Join Australian Frequent Flyer (AFF) for free and unlock insider tips, exclusive deals, and global meetups with 65,000+ frequent flyers.

AFF members can also access our Frequent Flyer Training courses, and upgrade to Fast-track your way to expert traveller status and unlock even more exclusive discounts!

AFF forum abbreviations

Wondering about Y, J or any of the other abbreviations used on our forum?

Check out our guide to common AFF acronyms & abbreviations.
Back
Top