At the end of a post in Plane Talking about Singapore Airlines, Tiger and Virgin there is this about the AFR report on Qantasia being delayed
Of parallel concern to Qantas investors are reports that its plans for an Asia based premium carrier using single aisle A320s, and a non Qantas branding in conjunction with a partners in Malaysia, Singapore or China, are running late, and might not see it able to start service until 2013.
At the moment that plan seems to be flying through treacle. Constant references by Qantas sources to the Malaysia potential have been received with disbelief among those familiar with the risks of doing business with Tony Fernandes, the founder of AirAsia, who has been far more successful with his low cost franchise than either Qantas with Jetstar or Singapore Airlines with Tiger.
The Asia delays will not reflect well on Qantas CEO Alan Joyce if the new Asia premium carrier is deferred into the second financial year reporting period from now, as he has already announced sacrificial cuts to Qantas long haul services, including half of its capacity on the kangaroo route to London, in order to rebuild the airline’s fortunes around non Qantas brands exploiting the lower labor costs of Asia.
The gap between downsizing Qantas, and invading the turf of large, powerful and supremely well connected Asian competitors is looking deeper and more treacherous the further the venture is delayed.
The Joyce plan serves existing Qantas market share of long haul routes up on a platter to its smarter and more relevant competitors. Doing so for a risky Asia venture that runs quickly into difficulties would be a double disaster for the flying kangaroo.