CHK Y'R 6
20th Sep 2002, 02:57
When Australia's newest international airline takes to the skies next month, analysts say it will be blazing a new aviation trail in Asia.
Australian Airlines, a subsidiary of Australia's flag carrier Qantas, has a simple mission: to make money on routes where its parent company _ and some of its competitors _ could not turn a profit.
Industry analysts say the airline's new concept, which includes using non-union pilots and one-class cabins, has a reasonable chance of keeping it aloft in a competitive market.
"It's a bold new approach _ hopefully that boldness will justify the risk,'' said Peter Harbison of the Center for Asia-Pacific Aviation.
Australian Airlines will make its debut Oct 27. Initially it will connect Cairns, a resort on Australia's tropical northeastern coast, with six Asian cities: Nagoya, Fukuoka and Osaka in Japan; Hong Kong, Singapore and the Taiwanese capital, Taipei.
Early in 2003, the carrier is aiming to open a second hub in a southern Australian city for service to Thailand and Malaysia. Plans call for eventually expanding its fleet of Boeing 767-300s from four to 12.
Australian Airlines is not a budget or no-frills airline in the mold of EasyJet in Europe or Southwest in the United States, which seek to attract budget travelers on mostly short-haul routes.
The airline's chief executive, Denis Adams, formerly marketing chief at Qantas, describes it as an "international leisure carrier.''
"We were charged with lowering the cost of routes where Qantas found it unprofitable or marginal,'' Adams told The Associated Press.
"But that does not make us a discount or no-frills airline. We are an international leisure carrier providing full in-flight service, meals and entertainment.''
The focus of its business model is slashing not fares but costs _ by 25% to 30% compared with parent Qantas, he said.
Because it flies only so-called "leisure routes,'' which have few or no business travellers, the airline has stripped out the first and business class sections on its jets. That increases seating from 229 to 271.
Significant savings also flow from running a single-class service across the whole chain of airline functions, from reservations through cabin and airport services, the executive said.
The company's 50 pilots, who mostly come from Qantas, and 180 cabin crew, are employed under new labor agreements negotiated without unions.
"The whole approach has been simplicity. Just keep it simple, don't add any costs,'' Mr Adams said.
The fledgling airline will be picking up where several of its competitors left off.
Just a couple of years ago, Qantas, Singapore Airlines and Malaysia Airlines all connected Cairns to Singapore; now there's not a single flight.
The Asian market has "extensive opportunities'' for low-cost airlines "which have barely been explored,'' said Harbison.
Regional carriers will be watching closely to see if Australian Airlines has come up with the right formula.
Another industry analyst, Ian Miles of Macquarie Equities, said the new carrier would help Qantas bolster its traditionally weak Asian operations.
"It will allow them to compete better with Asian carriers, from budget airlines such as Dragon Air right through to Singapore Airlines,'' Mr Miles said.
The local tourism industry _ still reeling from a downturn triggered by the Sept 11 attacks _ is ecstatic.
"Air access is the lifeline for Australian tourism, and the new venture presents a tremendous opportunity for our industry,'' said Ken Boundy from the Australian Tourist Commission.
Source : Aviation News (http://luchtvaart.pagina.nl)
Australian Airlines, a subsidiary of Australia's flag carrier Qantas, has a simple mission: to make money on routes where its parent company _ and some of its competitors _ could not turn a profit.
Industry analysts say the airline's new concept, which includes using non-union pilots and one-class cabins, has a reasonable chance of keeping it aloft in a competitive market.
"It's a bold new approach _ hopefully that boldness will justify the risk,'' said Peter Harbison of the Center for Asia-Pacific Aviation.
Australian Airlines will make its debut Oct 27. Initially it will connect Cairns, a resort on Australia's tropical northeastern coast, with six Asian cities: Nagoya, Fukuoka and Osaka in Japan; Hong Kong, Singapore and the Taiwanese capital, Taipei.
Early in 2003, the carrier is aiming to open a second hub in a southern Australian city for service to Thailand and Malaysia. Plans call for eventually expanding its fleet of Boeing 767-300s from four to 12.
Australian Airlines is not a budget or no-frills airline in the mold of EasyJet in Europe or Southwest in the United States, which seek to attract budget travelers on mostly short-haul routes.
The airline's chief executive, Denis Adams, formerly marketing chief at Qantas, describes it as an "international leisure carrier.''
"We were charged with lowering the cost of routes where Qantas found it unprofitable or marginal,'' Adams told The Associated Press.
"But that does not make us a discount or no-frills airline. We are an international leisure carrier providing full in-flight service, meals and entertainment.''
The focus of its business model is slashing not fares but costs _ by 25% to 30% compared with parent Qantas, he said.
Because it flies only so-called "leisure routes,'' which have few or no business travellers, the airline has stripped out the first and business class sections on its jets. That increases seating from 229 to 271.
Significant savings also flow from running a single-class service across the whole chain of airline functions, from reservations through cabin and airport services, the executive said.
The company's 50 pilots, who mostly come from Qantas, and 180 cabin crew, are employed under new labor agreements negotiated without unions.
"The whole approach has been simplicity. Just keep it simple, don't add any costs,'' Mr Adams said.
The fledgling airline will be picking up where several of its competitors left off.
Just a couple of years ago, Qantas, Singapore Airlines and Malaysia Airlines all connected Cairns to Singapore; now there's not a single flight.
The Asian market has "extensive opportunities'' for low-cost airlines "which have barely been explored,'' said Harbison.
Regional carriers will be watching closely to see if Australian Airlines has come up with the right formula.
Another industry analyst, Ian Miles of Macquarie Equities, said the new carrier would help Qantas bolster its traditionally weak Asian operations.
"It will allow them to compete better with Asian carriers, from budget airlines such as Dragon Air right through to Singapore Airlines,'' Mr Miles said.
The local tourism industry _ still reeling from a downturn triggered by the Sept 11 attacks _ is ecstatic.
"Air access is the lifeline for Australian tourism, and the new venture presents a tremendous opportunity for our industry,'' said Ken Boundy from the Australian Tourist Commission.
Source : Aviation News (http://luchtvaart.pagina.nl)