Qantas: New Spirit Announcement

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This topic contains 26 replies, has 17 voices, and was last updated by  travelswithmybriefcase 19 Aug 2011
at 09:12
.

Viewing 15 posts - 1 through 15 (of 27 total)

  • Anonymous

    VintageKrug
    Participant

    Some Big News from Downunder:

    http://www.qantas.com.au/travel/airlines/a-new-spirit/global/en

    Key points about the New Spirit:

    New levels of comfort and entertainment across our Boeing 747 fleet, with fully-flat Skybeds and over 1,000 channels to choose from
    A major investment by the Qantas Group in up to 110 Airbus A320 aircraft, with 78 of these being the most sought after aircraft on the planet, the next-generation A320neo
    The launch of direct services to Santiago, home of our oneworld partner LAN, which will replace Buenos Aires as Australia’s best gateway to South America
    Stronger partnerships with our oneworld partners British Airways and American Airlines
    One-stop flights to destinations in Europe on oneworld member-elect Malaysia Airlines, including Istanbul, Rome and Amsterdam
    The expansion of our network in Asia, with a brand new airline offering better connections to more destinations
    The establishment of new Marc Newson-designed First lounges in Los Angeles, Singapore and Hong Kong
    An even more rewarding Frequent Flyer program, with increased bonuses for Silver and Gold members, a new level of recognition for our most valued customers, and more ways to earn and redeem points for all members


    VintageKrug
    Participant

    Qantas to Enhance Partnership with British Airways: Building a Stronger Qantas – New International Strategy

    Sydney, 16 August 2011

    Qantas and British Airways will enhance their long-standing Joint Services Agreement (JSA) partnership to strengthen their Singapore hub and provide better connections, product and service for customers on flights between Australia and London Heathrow.
    The move is part of the Qantas Group’s five-year plan to build a truly modern, customer-focused and competitive global airline business.

    Qantas will continue Airbus A380 services from Melbourne and Sydney to London via Singapore, as well as constructing a new premium lounge at Changi International Airport. British Airways will upgrade its London-Singapore-Sydney service from a Boeing 777 to a larger Boeing 747.

    These changes will consolidate Singapore’s position as the primary hub for the JSA relationship, bolstering the two carriers’ competitive position in the Asia-Pacific region. They will result in a market-leading customer offer both north and south of Singapore, as well as greater operational efficiencies.

    Under the restructured JSA, from early 2012 Qantas will fly Australia-Bangkok and Australia-Hong Kong, while British Airways will operate Bangkok-London and Hong Kong-London, maximising the airlines’ respective network strengths. British Airways will increase the frequency of London-Hong Kong services from 14 per week to 17 per week.

    Qantas will no longer operate the Bangkok-London and Hong Kong-London sectors and British Airways will no longer operate the Bangkok-Sydney sector. However, customers will still be able to connect swiftly and efficiently through both cities.

    For Qantas, the restructured JSA will improve profitability on London routes and allow the early retirement of four Boeing 747 aircraft. Valuable landing rights at Heathrow will be retained for future requirements.

    Qantas CEO Alan Joyce said it was the right time to restructure the JSA.

    “Strengthening our relationship with British Airways is an important element of our new strategy for Qantas International,” Mr Joyce said.
    “Singapore will become the focal point of the JSA relationship, with daily Qantas A380 services from Melbourne and Sydney and onward to London, increased British Airways capacity and a new premium lounge.
    “The new approach is a smarter use of both airlines’ resources that will enhance our competitive position in Asia and in the Australia-Europe market.

    “Regardless of which airline is operating flights between Australia and the United Kingdom, we are focused on delivering a smooth and enjoyable flying experience for passengers. Restructuring the JSA will put us on the front foot in the fiercely competitive Australia-UK air travel market.”

    The Qantas-British Airways JSA was established in 1995 and gives the airlines regulatory approval to work together on strategic planning, schedules, pricing frequent flyer programs and sales and marketing, as well as permitting revenue sharing.

    Issued by Qantas Corporate Communication (5159)


    austline
    Participant

    Yes interesting also from April next year QF will only fly to LHR 2xa380 a day’s one from MEL and one from SYD. QF will withdraw from HKG/LHR and BKK/LHR. BA will take QF pax from BKK and HKG to LHR. One wonders if these changes mean that BA will terminate its SYD/LHR flights. Also fascinating that Joyce said that QF will preserve its unused slots at LHR, not sure what he means by this as I thought that with the demand for slots at LHR that you would lose them after a certain time. Maybe he can preserve them through some sort of deal with BA?

    These changes on UK/Euro route will make it difficult to get seats and also open further opportunities for ME and Asian carriers.

    A further announcement is being made on the 24th and rumours are that FRA will go from Apr 2012 along with SYD/HNL.
    Good news on new FIRST lounges in SIN/LAX/HKG


    Bucksnet
    Participant

    I’ve just seen this on Bloomberg, and was about to start a new topic myself when I noticed this one.

    I think QF should drop LHR completely and BA should drop SYD, not take the half measures they have announced. This would save even more money, but they need to wait until BA get their A380s first, maybe that is the longer term plan.

    HKG should go triple daily, and another good move would be for BA to send a 3 class 777 to MNL. This is a growing market and connections could be made to BNE and SYD from there as well.

    P.S. Strange that VK started this topic at 1:46 in the morning. Adds to the belief that he is an investment banker/PR man for BA, and was told to start this just after QF made their announcement.


    JordanD
    Participant

    @Bucksnet – Let’s leave VK out of it, this is all about QF not him/her. Also, those posts were made at 0246hrs UK Time, as the forum times are GMT.

    @austline – the detailed statement to the Australian Stock Exchange (ASX) state that BA will not be pulling out of SYD. It does suggest that it will drop to just one flight daily, but that this will be a 744 rather than the 772 that it currently is. (Which brings about some interesting fleet reshuffles in itself).

    No doubt this announcement will be used by some to say that this means BA is quiting Australia, but equally, this will please some who look for the upgaging for services to HKG from 14 to 17 per week.

    What the real disappointment is, is that there are now only likely to be 3 (maybe 4) ‘one plane’ services from the UK to Australia. It won’t affect passengers too much as they already have to leave the plane in HKG/BKK/SIN, but a plane change brings with it its own challenges.


    Bucksnet
    Participant

    2:46 is even more suspect. Who is up at that time of the morning, unless they’ve got work to do?

    Maybe he is in Australia now as he was in the loop ahead of the announcement?


    austline
    Participant

    Does anyone know if QF can preserve its slots at LHR for future use? Rather odd seeing that they are scarce and command such high prices.


    Bullfrog
    Participant

    I’m pleased to hear that BA may be upgrading the LHR SIN SYD from a 777 to 747. I thought any further changes may have been in a different direction, possibly to a 767.

    After all, BA used to serve Brisbane, Adelaide Perth & Melbourne.

    Cutting capacity certainly leads to cutting business.


    Bucksnet
    Participant

    It seems Qantas will lease their unused LHR slots to BA.

    http://www.airliners.net/aviation-forums/general_aviation/read.main/5231797/

    I thought this was the most likely option anyway, as you cannot just stop using a slot and expect to keep it.


    continentalclub
    Participant

    Interestingly, the BA9 is still showing in the BA system as running through to Sydney as far ahead as it’s currently possible to book (July 2012).

    If the 9 is indeed withdrawn early in the year, then passengers on the 15 who were switched to the 9 last month for no particular reason will get another bite of the refund/rebooking cherry!

    This seems like good, positive news from Qantas though, in the face of stiff competition. I wonder if LAN will now withdraw their SCL-AKL-SYD route?

    01:25 here in Vegas, by the way. Lucky that it’s office hours in the UK, though, or some might conclude that I am in fact Celine Dion when in fact, it’s true, I am Barry Manilow.


    transtraxman
    Participant

    Thank you VK for pointing out the announcement from Qantas regarding its future. However, you did not mention everything. Qantas aims to establish a new premium airline in some Asian country which will not carry the Qantas nor Jetstar name. The full document pouints this out.

    http://www.qantas.com.au/travel/airlines/a-new-spirit/global/en

    This is supported by reports from REUTERS…

    http://www.reuters.com/article/2011/08/16/us-qantas-idUSTRE77F05720110816

    the BBC

    http://www.bbc.co.uk/news/business-14538726

    and AIRWISE

    http://news.airwise.com/story/view/1313465337.html

    Since the name of the country for the start up will not be mentioned until “we have completed our negotiations”. This leads to speculation of where it will be.

    The only possible clue can be found in the statement, “China may already have the world’s fourth largest population of millionaires; and India the twelfth largest.” Here we come up against the interests of other “oneworld” carriers.Kingfisher in India seems to rule out that country while Cathay Pacific (and Dragonair) in Hong Kong rules out, at least part of, China. Other cities as hubs in China cannot be ruled out but come up against the willingness of the Chinese government, or otherwise, to permit and promote a competitor for its homegrown airlines. Together with restrictions on ownership, this seems an unlikely solution.

    The ASEAN countries seem the next best bet. In Singapore Qantas has its Jetstar associate airline so that city state is ruled out. In Kuala Lumpur we have based Malaysia Airlines ( a “oneworld” candidate promoted by Qantas) which has recently decided on a cross shareholding with Asia´s biggest low cost airline Air Asia (and Air Asia X its long haul subsidiary) also based in KL.

    Bangkok is an interesting possibility but with strong competition from national and international carriers. Also Qantas is trying to expand operations there. Manila is a capital with great potential but maybe the country is not so well developed as Qantas may wish.

    Vietnam, a populous country(over 90 millions), offers two large cities. Hanoi would be good for access to other countries in the region, especially southern China. Saigon (sorry Ho Chi Minh City) offers the same but would be more southerly orientated.

    The largest country in the region is Indonesia at 238 millions. It has a large extension with many islands all needing air connections. It is an industrialising country with good tourism and potential for more. The national airline, Garuda International, has not been well looked upon for many years. All this makes me tend to think that Indonesia – Djakarta seems to be the country with the greatest potential, and thus the likeliest destination for a new Qantas subsidiary.

    It should not be forgotten that Qantas will set up a new Jetstar Japan associate airline in Japan with JAL and Mitsubishi as reported on BT and elsewhere.

    http://www.businesstraveller.com/middle-east/news/qantas-launches-jetstar-japan-and-announces-b74


    DClinPsy
    Participant

    “The largest country in the region is Indonesia at 238 millions. It has a large extension with many islands all needing air connections. It is an industrialising country with good tourism and potential for more. The national airline, Garuda International, has not been well looked upon for many years. All this makes me tend to think that Indonesia – Djakarta seems to be the country with the greatest potential, and thus the likeliest destination for a new Qantas subsidiary.”

    was just about to mention it…. although Garuda is now very well received here in the ASEAN regions…. If Qantas to choose jakarta/Bali as a new hub or hubs in ASEAN, QF would benefit a lot from Indonesian’s booming economy and extensive domestic routes, not to mention the busy Indonesia (any cities)-Singapore routes.

    Beside that, a cheap labour and maintenance fee are always a positive thing for any companies.

    While for Oneworld, Indonesia’s cities and islands would be a pack of exciting destinations both for businesses and tourist. From my travel experiences in Indonesia, mainly Sumatra and java regions, each provinces’ capital are growing really fast (they could easily surpass India). Btw, going to have dinner in an Indonesian island called Gili Trawangan and set to visit Komodo island in a couple of days, Happy travel everyone…..

    NB: “One-stop flights to destinations in Europe on oneworld member-elect Malaysia Airlines, including Istanbul, Rome and Amsterdam” Why now? what’s the point of CX?


    Hippocampus
    Participant

    Will be interesting to see what BA does with all of the weekly slots leased from QF and the aircraft utilisation released by dropping BKK-SYD.


    LondonCity
    Participant

    Bucksnet: “I think QF should drop LHR completely ….”

    Very unlikely. Let’s face it, if a tiny country like NZ finds it worthwhile serving LHR up to twice a day then surely Australia’s flag-carrier can justify air service as well.

    On the other hand, it is amazing how QF’s European network has shrunk over the past decades as it (and BA) have had to grapple with competition from the likes of SQ, TG, CX, MH and, more recently, EK, EY and QR.

    Way back in 1973, a QF timetable lists QF flights out of Oz into LHR, AMS, FRA, FCO, VIE and ATH. Today it’s just down to LHR and FRA.

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