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Wirraway
14th Apr 2004, 18:24
Thurs "The Australian"

Qantas flies into 'cheap fare' row
By Ashleigh Wilson
April 15, 2004

QANTAS was forced to declare its allegiance to the Gold Coast yesterday after it was accused of treating Australia's fastest-growing city like "Hicksville".

Gold Coast community and business leaders were fuming after the airline announced it would cut its business-class flights between Melbourne and the Gold Coast, and substitute budget carrier Jetstar. The no-frills service also will take over some Qantas business-class flights to Sydney.

Qantas was forced on to the back foot after The Gold Coast Bulletin accused it yesterday of treating the nation's seventh-largest city like a "no-frills Hicksville" and declared in its front-page headline: "Damn you, Qantas."

The newspaper even offered readers a free trip to Sydney - flying Virgin Blue - for the best response to the decision.

Rob Gurney, head of sales and distribution at Qantas, defended the changes and said the airline was increasing capacity to the Gold Coast by 20 per cent.

"Qantas has never been more committed to the Gold Coast," he said. "We're putting a significant additional investment with more capacity to the Gold Coast, which to us is a pretty strong indication of the value we place on the market."

Mr Gurney said business-class travel to Melbourne was not "economically sustainable" because only two or three seats per flight were taken.

"The (Melbourne) market is heavily skewed towards leisure, which is more price-sensitive, so what we're doing is providing more seats at lower prices which is good for tourism," he said.

But that argument did not wash with new Gold Coast Mayor Ron Clarke, who said he "hasn't been on a Qantas plane that wasn't packed", and called for the decision to be reconsidered.

"If Qantas was marketing a second airline, that's fine, but they're marketing it as a cheap airline, which I think reflects on the destination," Mr Clarke said.

"It says that well-heeled people won't go to the Cold Coast."

Gold Coast Combined Chamber of Commerce chairman John Witheriff said the decision could reduce the amount of business tourism to the city.

"We want to work with Qantas to bring back business class," Mr Witheriff said.

"A number of travellers who come to the Gold Coast choose to travel business class and, whether it's fair or unfair, good or bad, that does impact on the decision of some travellers."

Queensland Premier Peter Beattie said he would "reserve my judgment until we see how it works".

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proplever
14th Apr 2004, 23:04
The strange contradiction here is that Virgin doesn't offer business class. Yet they seem to be welcomed with open arms. The article seems rather biased and illogical in that regard, and just a little more of the tall poppy making a good story.

Rather than pressure Qantas to provide more business class, why not pressure Virgin to introduce business or first. Same principle really.

Johhny Utah
15th Apr 2004, 00:09
Yeah, nice impartial Australian journalism at it's best :yuk:

Here's the response to an earlier decision by an all economy class carrier to fly from Melbourne to the Gold Coast
Virgin to begin Melbourne - Gold Coast services (www.goldcoastairport.com.au/sub-media/newsdetails.cfm?id=0QjN)

ANOTHER FIRST FOR VIRGIN

Virgin Blue's flight DJ805/507 from Melbourne via Sydney at 10.35 on Monday morning will be the first to use Gold Coast Airport's new multi-user terminal.

Since taking over the former Ansett end of the main passenger terminal at Gold Coast Airport on May 22, there has been an intense effort to clean up and prepare the terminal for use by Virgin Blue.

"Virgin Blue made a major commitment to the Gold Coast, and their efforts to build capacity and provide a competitive and innovative service to Australia's premier leisure destination deserves recognition and full support," he said.

"The small international terminal has had to cope with substantially increased traffic over the past few months.

"Virgin Blue has gone from one flight a day to seven flights, with a new flight to Adelaide starting July 1.

"It is important that Virgin Blue’s guests and all visitors to the Gold Coast are given the kind of welcome, and the type of facilities, that are fitting for such an important part of Australia's tourism industry.

"It is great that Gold Coast Airport follows hard on the step of Cairns airport in turning over former Ansett facilities to an energetic carrier such as Virgin Blue."

Virgin Blue chief executive Brett Godfrey said Gold Coast Airport had put in an outstanding effort to refurbish parts of the old Ansett terminal to a standard that would appeal to Virgin's guests.

"Virgin Blue has found the Gold Coast to be a profitable route with a great deal of appeal to a wide cross-section of the Australian community," he said.

"Starting off with services from Sydney and Melbourne, Virgin Blue has now expanded to have direct flights from Adelaide and connecting flights from Perth.

"The new facilities at Gold Coast will be much more comfortable for passengers, enabling us to provide the superior level of service our guests have come to expect," Mr Godfrey said.

Wirraway
15th Apr 2004, 04:06
AAP

Qantas dumping passengers to Jetstar
April 15, 2004 - 12:30PM

Qantas Airways Ltd is reportedly dumping corporate customers onto its budget offshoot Jetstar, angering the business travel sector and sparking warnings big conferences could be moved offshore.

The Australian Financial Review said the insurance, motor, finance and liquor industries, the biggest buyers of group travel, would find executives forced to travel at a budget level after Jetstar's launch next month.

The paper said tour organisers expected companies would choose overseas leisure destinations for conferences and meetings, rather than Australia, "because executives would prefer to fly business or full-service economy class".

"All of our corporate clients are successful business people. They want to feel a bit special and expect better service than a budget airline," one conference travel agent was quoted as saying.

A Qantas spokesman denied that passengers had not been informed before being moved to Jetstar.


©2003 AAP