Alliances and Friends
I know this subject has been touched on before by others. But, I continue to be bemused by the way Qantas appears virtually friendless. In an era when the alliances (Oneworld, Star and Skyteam) are akin to tribes, both protecting insiders and waging war against outsiders; Qantas seems to be an unreliable member of Oneworld, befriending non-aligned airlines, and single-handedly fighting significant members of the Star Alliance.
Having set-up Jetconnect and Jetstar NZ, is it any surprise that Air New Zealand has retaliated against Qantas? Having set up Jetstar Asia, is it any surprise that Singapore Airlines has come out to fight? It could be argued that Qantas precipitated the coalescence of Air New Zealand and Singapore Airlines beyond their natural affinity as Star Alliance partners. They have a common enemy that is openly expansionist and 'in their face'.
Qatar Airways is a member of Oneworld and yet Qantas has entered into a grand scheme with Emirates. Cathay Pacific is a member of Oneworld and yet Qantas has chosen to establish a provocative competitor in the form of Jetstar Hong Kong Airways. Jetstar Hong Kong is a joint venture with China Eastern Airlines - a natural competitor to Cathay Pacific and a rival of Air China. British Airways is a member of Oneworld and has been spurned by Qantas in the blush of new love with Emirates. The only manifestation of the Jetstar pan-asian strategy (at least in North Asia) that is not an affront to a Oneworld 'partner' is the Jetstar Japan set-up, which is a JV with Japan Airlines.
Etihad is a natural competitor of Emirates. It is entirely foreseeable, in terms of stimulus/response behaviour, that Qantas' grand alliance with Emirates would give Etihad (already an investor in Virgin Australia) cause to consider increasing their defensive posture. And, we all know that the best defense is attack.
Alan Joyce and other Qantas executives have quite rightly pointed out that diminishing the profitability of Qantas' domestic operations is the most effective way of weakening Qantas' strength as an international competitor. If, the Jetstar pan-asian strategy is seen as a function of Qantas' international strategic vision - then I suggest that Singapore Airlines, Air New Zealand and Etihad have good reasons (rational self-interest) for creating a powerful entity in Australia in the form of Virgin Australia. It is possible that even Cathay Pacific (supposedly a 'friend' of Qantas) is supporting the growth of Virgin Australia for tactical purposes.
On one hand, perhaps the grand alliance between Qantas and Emirates is a good thing for Qantas. On the other hand, it appears that Qantas has only got one good friend (EK) at the moment and is amassing a rather large crowd of opponents as a result of its corporate conduct in recent years.
There is nothing intrinsically wrong with 'going it alone'. However, if Qantas' domestic operations are the 'jewel in the crown' then why does the half-yearly financial report show that domestic ASK's growth is exceeding RPK's? Over-capacity is hurting both Qantas domestic and Virgin Australia. The difference is that VA is standing on one side of the school yard surrounded by friends, whilst the bully-boy Qantas is sulking in the far corner, alone.
Last edited by HIALS; 1st Mar 2014 at 01:02.