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Old 19th Sep 2019, 04:24
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PlasticFantastic
 
Join Date: Dec 2018
Location: Sydney
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I'd focus on maximising QF's comparative advantages, which I see as:
  • dominant position domestically
  • unique geography, that means QF can build a sizeable LH/ULH fleet
  • customer loyalty for their international operations, driven by their strength domestically and QFF, and
  • ability to focus QF on the premium market, because JQ is strong enough to cover the LCC market domestically and on short haul regional flights.
Based on that, I'd:
  • keep pursuing Project Sunrise, to launch unique ULH routes that have no direct competition, command a yield premium, and build premium customer loyalty (ie loyalty among customers who are willing to pay for non-stop flights, who will often tend to also be premium customers for other flights)
  • buy more small widebodies (789/NMA) for more competitive routes (LAX, YVR, Asia etc) to allow QF to capture premium traffic on routes like SIN/HKG/HND while also opening up more direct routes that bypass hubs
  • pick up the NMA and/or 321XLR/LR to do the same out of ADL and PER (and maybe CBR and OOL in the future)
  • keep expanding into premium leisure routes
  • invest in lounges, greater availability of reward seats, and other things to increase customer loyalty
  • hold off starting replacing the domestic fleet til the early/mid 2020s - they don't need a fleet advantage there, or any radical change in business plan
  • and, bluntly, keep working on reducing costs on all fronts - head office, suppliers and staff - because this kind of strategy naturally results in higher CASK than packing A35Ks full through hubs, and only works if the RASK increase exceeds the CASK increase.
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