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'Great' idea that went wrong?

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Old 31st Aug 2006, 05:57
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'Great' idea that went wrong?

Qantas Announces Australian Airlines Start Date

Latest News
Sydney, 2 April 2002

Qantas Chief Executive Officer Geoff Dixon today announced that Australian Airlines would commence operations in October 2002.

Mr Dixon said Australian Airlines had been given the go-ahead after achieving a satisfactory cost structure and completing negotiations with various unions regarding wages, conditions and work practices.

He said the first stage of the new airline's operations would involve phasing in services between Cairns and Osaka, Fukuoka, Singapore, Taipei, Hong Kong and Nagoya between late October and December.

"The first flights will commence on 27 October, and bookings will open in May," Mr Dixon said.

"This is great news for the Australian tourism industry, particularly in light of the damaging effects of the events of 11 September 2001 and the collapse of Ansett.

"Australian Airlines will provide thousands of jobs for Australians as well as an important growth opportunity for Qantas.

"We will begin recruiting for Australian Airlines in the middle of the year and, given the circumstances surrounding the industry today, we will give priority to suitable former Ansett employees."

Mr Dixon said the airline was on track to commence its second stage of operations, focusing on the outbound market from Australia, in early 2003.

"This will involve flying from a second base in a southern Australian capital city to a number of ports including Phuket in Thailand and Kuala Lumpur in Malaysia," he said.

"Australian Airlines will not compete with Qantas. It will operate on routes Qantas has withdrawn from or on routes where Qantas has been unable to extract a satisfactory return.

"It will be a full service international leisure carrier, operating one aircraft type and offering a single high level of service including meals and snacks, the most modern comfortable seating, and inflight entertainment."

Australian Airlines will:
- Initially operate with four Boeing 767-300 aircraft, building to a fleet of 12 767-300s;
- Offer daily connecting flights for international passengers between its first operational base in Cairns and the Gold Coast;
- Be headquartered in Sydney;
- Establish a national presence as quickly as possible and eventually fly to every Australian mainland capital including Perth and Darwin; and
- Participate in the Qantas Frequent Flyer program.

Australian Airlines is wholly-owned by Qantas Airways Limited but managed separately, under Australian Airlines Chief Executive Denis Adams, and operating independently of Qantas.
In hindsight, what a load of cr@p this was, especially the claims of the original Australian CEO that southern bases would open and that the fleet would grow to a dozen units inside of two years. We now know the history and perhaps the real but hidden agenda.

Will Jetstar go the same way or has GD learnt his lesson?
Don Esson is offline  
Old 31st Aug 2006, 07:28
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Jetstar was a chance to get the same job done even cheaper. Initially on a Domestic scale only, but the International savings must be such a temptation.

If GD can find a way to halve the cost of Jetstar, it'll happen.
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Old 31st Aug 2006, 09:45
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Jetstar....A Roo Airline

AFTER spending most of the past two years distancing itself from Qantas, Jetstar has suddenly rediscovered its parentage.

On the eve of its long-haul launch into Thailand, Vietnam, Honolulu and Bali, Jetstar expects to be carrying mostly Australian passengers both ways.

But in Japan it is a different story: the airline has set itself the daunting challenge of filling 90 per cent of its return flights with Japanese tourists.

As it attempts to draw Japanese holidaymakers, it is the Qantas brand name rather than the Jetstar moniker that the marketers believe will get bums on the low-cost airline's seats.

"We won't see the same ads [as in Australia] delivered in Japanese because we have a different job to do there," said Jetstar's head of marketing, David May. "The Japanese market, for example, in travelling to Australia would like to travel with an Australian airline."

Mr May said Jetstar would face an uphill battle if it relied solely on its own brand. "In Japan we say Jetstar is a Qantas Group airline. So we're saving the group heritage," he said. The link is already reflected in ads running in Japan.

But the failure of Qantas's now defunct Australian Airlines subsidiary to crack the Japanese market has left some aviation watchers sceptical of Jetstar's ambitions for Japan.

"When they introduced Australian Airlines into Japan there was market resistance there because no one knew who they were," said consultant Ian Thomas from the Centre for Asia Pacific Aviation in Sydney.

"It took quite a while for Japan to accept Australian [Airlines] because they saw it as a downgraded service," he said.

Another challenge to Jetstar is that the number of Japanese visitors to Australia continues to fall, and dropped 3.3 per cent in the past year according to the most recent figures.

Jetstar is also altering its image in Australia for its international launch.

The airline's message for the past two years has been that it is an airline for everybody, said Mr May. The airline prided itself that 10 per cent of passengers in its first year were first-time flyers, and this so-called approach has worked, until now.

Jetstar is moving away from its utilitarian "everyday low fare" budget mantra to marketing itself as an international two-class airline of "choice" that offers travellers a standard service, and frills if they pay extra. "The major difference between that approach [to] where we sit today is that we have a very different product," admitted Mr May.

With an estimated $20 million advertising budget for the launch of its international services, Mr May said Jetstar would have to target budget travellers and economy passengers wanting to "trade up" to the StarClass (business class) offering.

It will have to broaden its appeal considerably to attract travellers wanting to "trade up" to StarClass, Japanese tourists wanting to travel on an Australian airline or just holidaymakers wanting a cheap ticket.
Ross Gittins SMH
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Old 31st Aug 2006, 10:21
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To quote David May.............."It took quite a while for Japan to accept Australian [Airlines] because they saw it as a downgraded service."
Talk about spin!

Whilst I was not the market target, I must say that I can't remember any occassions (allthought the Electra days were pretty good) when I have ever received better cabin service than on the many occassions I flew with AA.

And those from the target market were treated exactly the same, so what is that downgraded to.

In my experience the AA service and the overall experience outshone most of what I have experienced from a QANTAS, right to its end.

Are the number crunchers from the real world, or do they just exist to prove the fact that the wheel turns.
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Old 31st Aug 2006, 10:42
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Originally Posted by Machinegun Fellatio
"It took quite a while for Japan to accept Australian [Airlines] because they saw it as a downgraded service," he said.
And Jetstar will be an improvement?! (NOT a shot at the cabin crew)
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Old 31st Aug 2006, 10:50
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Active Reading Course

Hey Led Zep
Read the last line of my post...the piece was written by Ross Gittins of the SMH
The Japanese market perceived AA as a downgraded service just as it will Jet*...the active word...... "PERCEPTION"
If you dont understand this ..you dont understand the Japanese market.
Me ..I lived there for about 8 years in the late 70s..Jet*wont work in this market.
Gittins is right...Dixon isnt!!!!!
It will ultimately be folded back into QF ,wetleased with a much lower cost base
This is what this low cost carrier stuff is all about..for QF anyway
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Old 31st Aug 2006, 11:11
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That wasn't directed at you MF.
It was a shot at the "consultant" somewhat, moreso at the Dixon brigade who just don't seem to learn.

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Old 31st Aug 2006, 11:27
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Sorry

Sorry Zepp,
I`m getting a little sensitive in my old age
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Old 31st Aug 2006, 12:35
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Not to worry mate.
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Old 31st Aug 2006, 13:32
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Awww...you guys!
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