Why doesn’t Alliance Airlines use QFF?

[dajop]

Honestly think whatever network/operator emerges from the ashes of the Rex of old, Velocity would be the logical partner. Simple as that. By and large the route network is complementary to VA, Link and Fly Pelican and somewhat competitive with Qantas Link.

 

[RSVKanga]

By and large the route network is complementary to VA, Link and Fly Pelican and somewhat competitive with Qantas Link.

Most major regional centres in southeast Australia are now on the VA map thanks to Pelican and Link. Why do we need to keep padding Velocity when they have not one but two regional partners?

Of course QantasLink, being Australia's largest regional airline, flies to a few more 'regional' destinations than what's on the VA/VA partner network, but many of those routes are thinner routes that can't sustain competition. What you've said here contradicts your earlier post in this thread. Competition is detrimental to many regional cities who can only sustain one operator.

 

[elanshin]

Again did you also consider cost not necessarily in terms of per point but integration both financially and from a time perspective.

Whilst theres nothing detrimental about it on face value, there will be a real financial and time cost to integration.

Does management even have time for auxiliary lower priority things. Right now all of managements focus should be on Rex and post Rex situation. Lots of potential reasons why QFF isnt adopted.

 

[RSVKanga]

Again did you also consider cost not necessarily in terms of per point but integration both financially and from a time perspective.

Whilst theres nothing detrimental about it on face value, there will be a real financial and time cost to integration.

Does management even have time for auxiliary lower priority things. Right now all of managements focus should be on Rex and post Rex situation. Lots of potential reasons why QFF isnt adopted.

I'm not sure if your argument is against post #1 or post #5. If it's against the former then sure I agree currently Alliance using QFF may not be that beneficial long-term since they are mostly charter/FIFO, but if your argument is against post #5 then I'm not sure what to say considering there hasn't been any trouble at Link and Pelican adopting Velocity, and those airlines are significantly smaller than Alliance.

 

[elanshin]

I'm not sure if your argument is against post #1 or post #5. If it's against the former then sure I agree currently Alliance using QFF may not be that beneficial long-term since they are mostly charter/FIFO, but if your argument is against post #5 then I'm not sure what to say considering there hasn't been any trouble at Link and Pelican adopting Velocity, and those airlines are significantly smaller than Alliance.

Please try running a business first then understand that not everything can happen all at once and that every business is different. Got nothing to do with pelican or link.

It could literally be as simple as. We do not have the resources right now to do such a job. Not because it's not beneficial to the company in the long run. Unless you're in alliance's CEOs shoes you really don't know what's on their plate and why they haven't done it.

 

[dajop]

Most major regional centres in southeast Australia are now on the VA map thanks to Pelican and Link. Why do we need to keep padding Velocity when they have not one but two regional partners?

They might well have lots of destinations served by Pelican and Link, but in terms of routes, I don't think there are any that go head to head with Rex, and thus they would be complementary to rather than overlap with the Rex Saab network (Link seems to specialise in low frequency routes not served by the other two, such as SYD-NAA, MEL/BNE-DBO, and as such doesn't offer a lot to "mainline" commuters from the regions such as DBO-SYD, MEL-MQL etc)

Meanwhile Rex and QF Link compete head to head on at least 10 regional routes. QFF just doesn't seem to be the logical home of these Rex operations, Velocity would certainly offer greater competition to regional passengers in this sense.

 

[RSVKanga]

Meanwhile Rex and QF Link compete head to head on at least 10 regional routes.

Alliance, under the influence of Qantas in the boardroom, could choose to withdraw from most of those 10 routes to maximise profit by focusing on monopolies. If that option is the best way to maximise profits then its unlikely the other parties would disagree with this idea. Going back to post #11 it was one of the ideas floated for a reborn Rex, regardless of its owner. That would then pave the way for 26 regional and remote communities (former Rex monopolies - most of them in QLD milk run network) to be given access to QFF.

 

[dajop]

Yep don't let competition stand in the way of Qantas dominance!!!!

 

[justinbrett]

it’s completely possible that Alliance will only buy the regulated routes and only the fleet required to service them (or perhaps not even that if they choose to get their own aircraft).

Doesn’t seem logical to buy the competitive part of Rex when they can just wait for them to stop flying and start their own services if they want.

Alliance is quite a successful company, I don’t think they’ll be running to adopt the rotting carcass that is Rex, just cherry pick the profitable parts.

As for loyalty programs I would bet it hasn’t even been brought up.

 

[equus]

Why on earth would any charter operator / monopoly operator choose to add costs to something where the punter has no choice? The whole point of a loyalty program is to attempt to apply the golden handcuffs so the pax chooses your operation over the competition. If there is no competition and no choice, then any loyalty program is just a waste of money. This is especially true for some of those FIFO mining operations where the entity paying differs from the person in the seat who would gain the loyalty rewards - even less point in offering a program there as even if there was competition, the benefits offered won't affect the choice of carrier.

 

[RooFlyer]

Link Airways (seperate to VA) uses Velocity.
FlyPelican (seperate to VA) uses Velocity.
BWS (seperate company to Woolworths) uses Everyday Rewards.

But Alliance (partly owned by QF) using QFF is somehow 'illegal' in your world?

[You're] <redacted> trying to push an anti-Qantas agenda, <redacted>. Alliance acquiring Rex, rebranding it and adopting QFF will be fantastic for regional Australia.

None of which remotely addresses what I wrote.

"In my world" laws exist. In this case I mentioned Corporations Law. I doubt you have never looked at it, or its effects on companies, their directors and shareholders ( and the public in general).

Fiduciary duties are important, and highly regulated. No, I'm not going to bother listing the sections, as you won't take any notice. Except to say 'profit' isn't the over riding principle in the board room. You may wish to consider what is.