[Luxembourger]

Canucklad

Couldn’t agree more. Dubai is in the wrong place for these flights. Apart from anything else, jetlag will be guaranteed given the timings.

The only way (it seems to me) you can make it work for the experienced traveller is (a) to cut corners (e.g. 10 across in 777s) and (b) to charge lower fares. When I looked last year, discounted first in Emirates was coming in at the same price as discounted business in Qantas (still then via Singapore).Both quoted at £4,300.Realise my knowledge of airline economics is pretty noddy, but I’ve never been able to understand what is benefit of EK tie up for Qantas.

For last year’s trip, booked Qantas notwithstanding higher fares and, apart from A380, wished I’d given another airline my money. When I went over this year, booked Cathay via Hong Kong. A vastly preferable experience. But would not think of booking through a middle east hub.

[AMcWhirter]

Hello Luxembourger

As we’ve previously written, the benefit for Qantas is the ability to offer one-stop flights to passengers originating in, or destined for Europe, Scandinavia and so on.

Granted some of the connections over Dubai need to be improved but that was the aim of the tie-up with Emirates.

[Jimmywright]

canucklad, if the market that has been supposedly alienated is so massive, can you please explain why BA and Virgin Atlantic only have one flight a day?

The simple answer is the market is massive, but the market is for the most part already travelling on alternatives including Emirates, Ethihad, Thai, JAL, Singapore, Cathay and many others snapping at their heals (Turkish, Garuda, Vietnam Airlines plus mainland Chinese carriers). What do all these airlines have in common, yep geographic advantage of being in the middle, what does QF, BA and VS have in common, yep being at the far end requiring an expensive double hop.

Bottom line only reason BA and Qantas fly end to end is ‘prestige’. As for VS just to stick it up both of them. The assets of all 3 airlines would make better money flying elsewhere.

[Edski777]

Jimmy is quite right. There is a massive competition on the routes to Oz. Almost all these carriers with the exception of BA, Qantas and VS have a lower cost base and offer comparable service products.
They offer flights to all major destinations in Australia, brand new aircraft, the best in-flight services on offer, competitive pricing, a huge choice in flight schedules, attractive stop overs, etc.
Other airlines may offer a slightly less product quality, but are cheaper.

Qantas with its current business model, strong unions and high cost base is being eaten alive. Unless the government removes investment restrictions totally and other parties, such as unions, airport management companies and other serviceproviders, are willing to make sacrifices the competition will wrap them up.

After all: Australia is for every competitor of Qantas a set of turn around destinations. These competitors take passengers to their hub and transport them to/from a multitude of destinations. A luxury not really available to Qantas.

I strongly believe that in the next couple of years Qantas will have two options: merge or fail. Let’s hope the management and shareholders are smart enough and take the first option.

[BigDog.]

Given the stellar economic forecast for Australia and being one of the few AAA rated developed economies I cannot see the Oz government remotely sanctioning its national airline either going down the tubes or being acquired by a non-national.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10519371/Australia-to-be-an-energy-superpower-by-mid-2017.html

[Jimmywright]

BigDog, whilst what you say about the current state of the Australian economy is quite true, however one thing maybe not reported in the UK press is the current Liberal/National conservative government, now in power 102 days, after 6 years of left leaning Labor got into power primarily by deriding the economic capabilities of the previous Labor government and talking down the relative strength of the Australian economy compared to the rest of the world. Helped of course by Mr Rupert Murdoch who I know is so popular in the UK. The fact the rest of the world and all leading economists praised the work of Labor keeping Australia out of trouble is therefore irrelevant in the eyes of the public.

The problem for the Liberal party of course, is they now have to fix this imaginary problem, to ensure that come 2016 when the next election is held they can be measured on how well they have fixed what they tell us every 5 minutes is Labors mess to ensure they get re-elected.

This will of course mean spending cuts, bribes in middle class welfare etc.. The upshot is if Qantas did start to go down the tubes the government is in a situation where it would make them look foolish (or even more foolish if you are left leaning) to bail them out, afterall where would the government get the money if things are so dire, and of course lets no forget conservatives are all for free market, not government run business.

The current government has however indicated it is willing to look, and I repeat LOOK at amendments to the Qantas sales act, the issue they have though is if they decided to make changes they don’t have control of the upper house so may not be able to get it through, especially as there is an independent Senator named Nick Xenophon, who every time there is a Qantas story gets on TV deriding Qantas management, rightly or wrongly and has expressed concerns about changes to the sales act. Whether the government needs him to pass the legislation is to be seen, as the balance of power is currently with left leaning parties, Labor and the greens, and come 1st July 2014 power will more than likely be with a mob of loony minor party Senators and Xenophon, so all to be seen.

[FrequentPR]

Philippine Airlines actually is quite a good option with competitive fares.

They use the 773ER between London and Manila and sometimes to Sydney, but not now to Melbourne although they did for a while. You need to check the days of operation: 5 afternoons or early evenings a week ex LHR, four a week ex MNL to SYD, three to MEL and 2 to BNE and DRW.

You can stop off in MNL and visit a beautiful beach. Only Boracay is criowded. At lots of others, there aren’t many tourists (unlike Bali or Thailand). See websites like Virtual Tourist for discussions of the better beaches in Philippines.

[FrequentPR]

It wasn’t an ‘imaginary problem’ that led to Labor’s recent defeat in Australia.

The previous Labor Government’s fiscal incompetence would have put the Australian economy in debt to the tune of A$630 billion.

Many of us were sick of the small number of members of socialist unions causing companies to go broke. Thanks to a few factors including Labor’s unwillingness to rule out above aware wages, two of the three car manufacturers have indicated they’re leaving Australia, while thanks to the unnecessary carbon tax, electricity and natural gas prices have shot up, disadvantaging business and consumers.

Most of us saw through the Australian Labor Party’s cosy relationship with the Fairfax Press and the government -owned, leftie Australian Broadcasting Corporation.

[paulkaz]

Just for some balance ,no recently elected Australian government has fallen so far so fast in the opinion polls.After 100 days sine the election the discredited labor party would have been returned to office. It seems most of us are now seeing through News Ltd s ownership of the conservatives.
Qantas ‘ problems are laid at the feet of its CEO and Chairman with out doubt!
Apologies to non Australian readers for this domestic political spat.

[AMcWhirter]

Hello FrequentPR

Apologies for diverting the subject thread briefly …

In the days when PAL last served Europe it was a major kangaroo route player. Fares were competitive and flight transfers at MNL were convenient.

But PAL’s new London route was launched at short notice and I expect the timings were dictated by slot availability at LHR.

PAL remains an option should you wish to stopover in the Philippines. Business class is alright but Y class on its B777-300ERs is configured 3-4-3.

Also, as we have reported, its flights are still taking the slow route to Europe as the Russians have yet to grant overflying rights.

http://www.businesstraveller.com/news/pals-long-and-slow-route-to-europe

[FrequentPR]

PAL’s CEO Mr Ramon Ang (also of conglomerate San Miguel Corporation) has indeed stated that the later PAL’s flights left Manila of a morning, the more connecting passengers would be carried.

I agree: PAL cannot obtain a later (say evening) arrival or departure slot at LHR, which must be frustrating. As usual Mr McWhirter of Business Traveller is completely on the ball (what an excellent monthly column he writes in the magazine: 99.8 per cent accurate – amazing).

So far it’s not carrying many on its MNL – LHR flights, so ideally it needs a later departure from MNL as heaps of Filipinos live on other islands and need to connect in MNL.

The southerly schedules are best as you can leave LHR mid to late afternoon and connect in MNL to Australia that night depending on the day of the week, but I recommend a stopover.

Mind you, if you travel from Australia to London using Asiana, Korean Air or Japan Air Lines, overnight stops one way (going to London) are required if I recall so PAL isn’t the only airline that has that feature in its timetables. So far it isn’t including ‘free’ MNL overnight accommodation as far as I can see.

For leisure tourists, the PAL flights leave Australia at convenient mid morning times (BNE, MEL and SYD) and mid afternoon (DRW).

MNL and Philippines is now the leading call centre place of employment in the world, as it’s shot past India, so businesspeople increasingly pay a visit to MNL. It’s also somewhat of a centre for business process outsourcing.

The popularity of Philippines as a tourism destination is continuing to rise but it has a lot of catching up to do compared to say Thailand, as Philippines’ stunning beaches aren’t generally as well known as the Thai ones even though in my view the Filipino ones surpass anything in Thailand.

[Jimmywright]

FrequentPR yes it was an imaginary problem, the debit of course is real but two seperate issues actually. But ask yourself if Labor hadn’t of spent thus creating that debit what would have been the alternative. All you need to do is look to Europe and the USA for your answer. Recession, unemployment, more debit and an economy struggling to pay it back. Australia on the other hand, AAA credit rating, an economy that grew from 17th to 12th in the world, and a debit, which is actually about $400b, not $630b that is manageable.

The whole imaginary thing is how the Libs got elected and is what they are going to now use to push through their real adgenda of change, all the while blaming the last government.

Also look outside of australia people think the Australian economy is healthy, indeed look at the comment that spurned this debate. Indeed even Mr Abbott when travelling overseas before the election was talking it up, but once back in Australia back to his down talking.

Anyway whether you agree with me or not, it is irrelevant, because no matter what Abbott isn’t going to bail out Qantas if they go down.

[FrequentPR]

The Qantas Sale Act may be amended reasonably quickly; I agree that the airline will not be bailed out by the Australian Federal Government.

Nor should it receive taxpayer assistance.

[FrequentPR]

The Qantas Sale Act may be amended reasonably quickly; I agree that the airline will not be bailed out by the Australian Federal Government.

Nor should it receive taxpayer assistance.

[Jimmywright]

Agree on the last point, it shouldn’t get taxpayer assistance, but by the same token it shouldn’t be held back by a nationalistic policy that has served its purpose and is simply not appropriate in 2013 almost 2014.

[Author]

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