Wirraway
25th Jan 2005, 11:55
Wed "Sydney Morning Herald"
Qantas toys with cheap US flights
By Scott Rochfort in Singapore
January 26, 2005
Qantas chief executive Geoff Dixon has talked up the prospect of a low-cost long-haul airline starting services from Australia to the US and possibly Europe.
But the Qantas boss has fallen short of saying whether Qantas would be the first airline to set up such a carrier, given talk Virgin Blue and its founder Sir Richard Branson could announce such a carrier in the next few weeks.
Amid speculation that Qantas's leisure carrier, Australian Airlines, could replace Qantas on longer routes with the low-cost airline already pushing its crews to fly longer sectors, Mr Dixon said: "I really believe that someone would go for a lower cost [long-haul carrier]."
Yet Mr Dixon hosed down speculation that Qantas could spin three of its older Boeing 747-300s into Australian Airlines.
One problem with the older aircraft is that the high expense of maintaining them could tip Australian's marginal profit into a loss.
"The thing with Australian is if you change the model it really changes the cost base," Mr Dixon said.
"But it doesn't mean in the longer term we may not do it."
The Qantas chief, however, has failed to rule out replacing its services to Honolulu with Australian Airlines.
"I'm sure it's on the drawing board for a lot of people," he said.
Con Korfiatis, the chief operating officer of Qantas's Singapore subsidiary, Jetstar Asia, said his airline had no plans to start mid- to long-haul operations (those lasting more than five hours).
Asked why there was a model of a Boeing 747 in Jetstar Asia livery in his airline's offices, Mr Korfiatis said it was mock-up given to the airline when it launched services to Taipei last month.
"Believe me, I have the real model on my desk," he said, noting it was a short-haul 177-seat Airbus 320.
Mr Dixon, meanwhile, launched a fresh attack on Singapore's attempts to pressure the Australian Government to open up the Sydney-Los Angeles route to competition.
"Between 1988 and 1995 it lost $325 million. It turned a marginal profit a couple of years after and it's has made pretty decent profits in the last five or six years principally because we've invested so much on the route."
Qantas makes about 20 per cent of its profits from its LA route, where it only has one direct competitor, United Airlines.
"People have said, 'Gee, Qantas have had this bonanza for the last 30 years'. It was an absolute dog," Mr Dixon said.
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Qantas toys with cheap US flights
By Scott Rochfort in Singapore
January 26, 2005
Qantas chief executive Geoff Dixon has talked up the prospect of a low-cost long-haul airline starting services from Australia to the US and possibly Europe.
But the Qantas boss has fallen short of saying whether Qantas would be the first airline to set up such a carrier, given talk Virgin Blue and its founder Sir Richard Branson could announce such a carrier in the next few weeks.
Amid speculation that Qantas's leisure carrier, Australian Airlines, could replace Qantas on longer routes with the low-cost airline already pushing its crews to fly longer sectors, Mr Dixon said: "I really believe that someone would go for a lower cost [long-haul carrier]."
Yet Mr Dixon hosed down speculation that Qantas could spin three of its older Boeing 747-300s into Australian Airlines.
One problem with the older aircraft is that the high expense of maintaining them could tip Australian's marginal profit into a loss.
"The thing with Australian is if you change the model it really changes the cost base," Mr Dixon said.
"But it doesn't mean in the longer term we may not do it."
The Qantas chief, however, has failed to rule out replacing its services to Honolulu with Australian Airlines.
"I'm sure it's on the drawing board for a lot of people," he said.
Con Korfiatis, the chief operating officer of Qantas's Singapore subsidiary, Jetstar Asia, said his airline had no plans to start mid- to long-haul operations (those lasting more than five hours).
Asked why there was a model of a Boeing 747 in Jetstar Asia livery in his airline's offices, Mr Korfiatis said it was mock-up given to the airline when it launched services to Taipei last month.
"Believe me, I have the real model on my desk," he said, noting it was a short-haul 177-seat Airbus 320.
Mr Dixon, meanwhile, launched a fresh attack on Singapore's attempts to pressure the Australian Government to open up the Sydney-Los Angeles route to competition.
"Between 1988 and 1995 it lost $325 million. It turned a marginal profit a couple of years after and it's has made pretty decent profits in the last five or six years principally because we've invested so much on the route."
Qantas makes about 20 per cent of its profits from its LA route, where it only has one direct competitor, United Airlines.
"People have said, 'Gee, Qantas have had this bonanza for the last 30 years'. It was an absolute dog," Mr Dixon said.
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