View Full Version : Qantas gets its coin into London slot

21st Jan 2004, 09:17
Wed "The Australian"

Qantas gets its coin into London slot
By Clive Mathieson and Steve Creedy
January 21, 2004

QANTAS last night sealed the acquisition of two prized landing slots into London's Heathrow Airport in a deal worth about 20 million ($47 million) that will give the airline the opportunity to increase flights to the UK.

The deal, which came as Sydney Airport parent Southern Cross Airports Holdings reported a strong 11.7 per cent rise in first-half earnings, will give Qantas an additional two landing and take-off slots every day.

The airline, which has already restored its London service to the pre-SARS level of 21 flights a week, could theoretically offer an additional 14 services a week with the new slots.

A Qantas spokesman said the airline was "very pleased" to have managed to secure extra slots at the world's busiest airport, which were rarely made available and highly prized by airlines around the world.

He said the slots, bought from European airline FlyBe, were also for landings and take-offs at "premium" times. "These will certainly give us the opportunity to increase services into Heathrow," he said.

Qantas declined to comment on the exact value of the deal but said it was at "market rates", which industry insiders put at about pound stg. 20 million.

Earlier, rebounding passenger traffic and cost cutting set Sydney Airport on track for a solid full-year result.

Southern Cross released figures showing December traffic was 9.2 per cent higher than last year the strongest monthly increase for 13 months as international passenger numbers rose 7.8 per cent and domestic grew 10 per cent.

Sydney airport chief executive Max Moore-Wilton expects traffic growth to continue in the second half as airlines introduce a series of what he described as "very positive" initiatives.

These included the start of Hawaiian Airlines flights, an expected increase in Emirates services, the arrival of Qantas low-cost offshoot Jetstar and Virgin international services.

"We don't do any forecasts but I've got to say that in terms of the half-year outcome and where we're sitting at the moment, the prognosis is very optimistic," Mr Moore-Wilton said. "The market is picking up, we don't expect any hiccups in the market at the present time, growth is there, we've got a good control on our costs (and) we're moving ahead with our developments.

"So I'm very optimistic that we'll do very well in the second half, providing we don't have these external shocks."

The airport's earnings before interest, tax, depreciation and amortisation increased to $206.2 million from $184.6 million.

Excluding specific non-recurring expenses for redundancies, restructuring and an airline refund, first-half EBITDA rose 15.4 per cent $214.3 million. Revenue rose 9.2 per cent to $271.6 million, while expenses fell 9.7 per cent to $57.3 million.


21st Jan 2004, 09:52
Anyone know if Qantas has plans to take up the opportuntity of additional services to London with the new slots?

Has anything come of the Shanghai to London route that Qantas is pursuing?

21st Jan 2004, 20:09
'We don't do any forecasts' ?????!!!!!

How can one run a business without forecasts?

Are the good bankers at Macquarie aware of this seemingly novel approach?

And if QF are angling at PVG-LHR, why not DXB-LHR??!!

21st Jan 2004, 20:54
Someone who would know, mentioned the other day that QF are considering the following-

Shanghai-London, Hong Kong-London and Delhi-London as options for their increased flights into LHR.

Mention was also made about aquiring more 744's to support these [and other ?] expansion plans.



22nd Jan 2004, 11:59
Australian Airlines to do SYD-SIN-DELHI (or Bombay)- London using 744's?? or CNS-Pudong- LHR ??

22nd Jan 2004, 13:55
QF, one stop to LHR.

AO? I dont think so.

22nd Jan 2004, 22:05
Fri "Sydney Morning Herald"

Sky high at Heathrow
January 23, 2004

Qantas and Virgin Atlantic have trumped British Airways by paying record sums for scarce take-off and landing slots at London's congested Heathrow airport.

The Australian flag carrier, a British Airways partner, had paid 20 million ($47.5 million) - up to twice the normal rate - for two pairs of daily slots, industry sources said. Virgin has paid a similar sum for four pairs.

"They've certainly paid top dollar, in fact a shed-load of money," sources said of deals which are traditionally conducted in a grey market rather than by open auction.

The moves by Qantas and Virgin are seen as underlining a more optimistic future for sales and growth in an industry ravaged by falling passenger numbers and revenues.

The much prized slots belonged to FlyBE, the low-cost carrier once known as British European and owned by family trusts set up by the late Sir Jack Walker, former owner of Blackburn Rovers.

The money-losing airline, based in Exeter, reported increases of up to 70 per cent in passengers flown last year from regional airports such as Southampton and Belfast, Birmingham and Bristol.

British Airways, which is expected to announce plans for a further 300 million-plus cost-cutting program next month, paid about 12 million last year for a pair of Heathrow slots owned by United Airlines and, earlier, a relatively modest 35 million for eight Swiss International daily slots. It has 40 per cent of the total.

The Guardian


26th Jan 2004, 04:52
Shanghai - London seems to be a definite.

As for London Heathrow I'm surprised Rod Eddington doesnt start flogging off slots and use the cash to improve the bottom line of BA.

Anti Skid On
2nd Feb 2004, 09:48
Inverted landings

Low cost ops to the UK on Australian - they sure as hell wouldn't go into the airport with the highest landing fees - they'd surely use Stansted

2nd Feb 2004, 10:22
Do not let the facts get in the way of a good story Capt Marvellous.

From memory ATL, ORD and LAX are not slot controlled which makes SYD a bit of a joke when you compare the statistics.

Feather #3
2nd Feb 2004, 11:11
How did SYD get into this:confused:


4th Feb 2004, 19:50
Captain Marvellous,

I think LHR has more international traffic than anyone else & I'd suggest is a shoe-in for the world's busiest two-strip field!

5th Feb 2004, 14:07
Heard today QF is pursuing 6 744's going cheap from another airline, and aiming for 'quick delivery' .... The source was pretty reliable. :cool:

5th Feb 2004, 18:55
I thought they had learnt their lesson re: other airlines cast-off jumbos.

It'll all end in tears... even the 744 they got from BA was bent!!

(Still.... it does bring my 744 slot inevitably closer... oh the dilemma... I'm too young to retire!!!.. heh heh..):hmm: :E

5th Feb 2004, 21:09
The word I'm hearing is Sydney-Delhi-London by June, with or without red-tailed jumbos. That QF has to take up the $47M slots by that date. Extremely reliable source. Also, Sydney-Shanghai and not beyond. Using either A330 or B767...........

I hope it all comes off!

6th Feb 2004, 16:14
4 UAL PW2000 powered 744s is the version of events that I heard. Engineers looking at them in the States at the moment. Of course, that doesn't mean that we'll actually GET them!!

I'll believe it when I see them sitting at SIT with red tails and white rats! :}

8th Feb 2004, 10:43
Only two at the moment.

9th Feb 2004, 20:38
Or the 767 still is currently! :E :ok:

11th Feb 2004, 20:27
Keg, The PW2000 series engine is neither certified or suitable for the B744.

The PW2037, PW2040 and PW2043 models of the PW2000 are designed for the B757.

All the United B744's are powered by the PW4000-94 series engine and the PW4056 model in particular. This engine suffers from the odd surge and stall.

I will be surprised to see QF operating the ex UA aircraft unless they are real cheap.

12th Feb 2004, 20:23
Just wondering why QF provides no service to DXB? Perhaps CX do it for them on codeshare? Would seem out of the way to fly to HKG first if thats the case (from the consumers point of view). Well i guess they do Rome this way now, so why not.

Just wondering of anyone knew, considering EK have heaps of service to Oz ports and DXB is open sky.

13th Feb 2004, 03:53
B772, thanks for the correction.

Keepon, I haven't researched the issue specifically but I reckon part of the issue would be that EK's traffic out of Australia would be mostly 'through' traffic. IE, passengers that are travelling through DXB on their way to Europe. QF already serves Europe in their own right out of Singapore and with various code shares as well so adding DXB to the mix with it's small number of direct DXB pax would probably not bring a return.

I guess a similar example would be of the number of Aussies that SQ take just to Singapore as opposed to the numbers that they take through to Europe!

Salt Spray
14th Feb 2004, 15:19

Does your reliable source know if those 6 744 will be leased with crews or purchased outright?????