View Full Version : European Airlines Abandoning Australia
VH-Cheer Up
9th Apr 2008, 01:09
Interesting article in The Age here (http://www.theage.com.au/articles/2008/04/04/1207249417449.html?page=fullpage#contentSwap2).
RadioSaigon
9th Apr 2008, 02:34
ahhhhmmmm... code sharing? A better use of resources for all the airlines involved? just guessing...
Buster Hyman
9th Apr 2008, 02:38
No money in it...simple.
CO used to operate LAX-HNL-AKL-MEL vv & only made money on the first & last sectors. I imagine that for EU carriers, the profits dry up once they stop in Asia. As there is no "profitable" leg at the end of the journey, like CO had, then its a no brainer.
Its the same with freight. Whilst there is money to be made EU to Oz, there's sweet FA on the way back...except when it stops in Asia & picks up a load.
Metro man
9th Apr 2008, 03:10
If you fly on a European airline you are basically with passengers from that country to Australia only, small market. Hub airlines such as SQ and EK pull in passengers from many countries and funnel them on via Singapore or Dubai.
SQ will be flying 4x daily between SIN and SYD soon and offer connections worldwide from SIN onwards. Non stop Australia to Europe isn't yet viable so you will be refuelling enroute anyway. You get off anyway to stretch your legs after a nine hour flight, it's not that much trouble to take your cabin bag with you and get on another aircraft at a different gate. You can have a stop over as well if you like.
QF use SIN as a hub.
For European airlines it's better to have two full return flights to asia rather than one which is full as far as the first refuelling stop and half empty down to Sydney and back.
Populations: Asia 3.5 billion, Europe 700 million, Nth America 300 million, Australia 21 million. Australia has been punching above its weight for a long time now, and as developing economies experience exponential growth, (and our interest rates are artificially jacked up to restrict growth), the situation is likely to continue.