Qantas board approves LCC
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Qantas to launch low-cost airline
Adelaide, 16 October 2003
Qantas said today it would launch a new low cost domestic airline in May 2004.
The Qantas Board approved the establishment of the new airline at a meeting in Adelaide yesterday.
The Chief Executive Officer and Managing Director of Qantas, Geoff Dixon, said the new airline would be a separate business with its own brand.
He said it would be established using the operation of the former low cost carrier, Impulse, which was acquired by Qantas in May 2001 or by using a new "greenfields" company. A decision on which option would be used would be made within six weeks.
"This will be a true low cost carrier - lean, highly competitive and with the standards of safety and reliability associated with Qantas," Mr Dixon said.
He said it would further enhance the flying services operated by the Qantas Group, namely:
* the main Qantas domestic and international airline;
* QantasLink, the regional airline operations; and
* Australian Airlines, Qantas' international leisure carrier.
"Together, these airlines will offer a comprehensive range of services for travellers and see Qantas boost its role as a major supporter of the Australian tourism industry," Mr Dixon said.
"Negotiations are underway with Boeing, Airbus and aircraft lessors for the acquisition of 737-800 or A320 aircraft that will see the new low cost carrier have a minimum of 23 aircraft by mid-2005."
Mr Dixon said the current Qantas domestic operation would continue as now, but with an even greater focus on delivering quality service, particularly to the business community.
"Our network offering will be enhanced and additional investment made in both in-flight and on-ground product," he said.
Mr Dixon said that Alan Joyce, 37, had been appointed Executive General Manager of the low cost carrier.
"Alan joined Qantas in 2001 and he has an extensive airline industry background, having worked with both Aer Lingus and Ansett," he said.
"His experience is principally in fleet and network planning and business improvement and he was actively involved in Aer Lingus' low cost strategy."
Mr Dixon said a small team, including a number of former senior executives from the very successful European low cost carrier Ryanair, would assist Alan to establish the new airline.
He said the new airline would select the location of its headquarters, which would not be in Sydney, within the next six weeks.
Melbourne advertising agency, Dewey and Horten, had been engaged to work with the new airline's executives on naming, branding and advertising.
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Adelaide, 16 October 2003
Qantas said today it would launch a new low cost domestic airline in May 2004.
The Qantas Board approved the establishment of the new airline at a meeting in Adelaide yesterday.
The Chief Executive Officer and Managing Director of Qantas, Geoff Dixon, said the new airline would be a separate business with its own brand.
He said it would be established using the operation of the former low cost carrier, Impulse, which was acquired by Qantas in May 2001 or by using a new "greenfields" company. A decision on which option would be used would be made within six weeks.
"This will be a true low cost carrier - lean, highly competitive and with the standards of safety and reliability associated with Qantas," Mr Dixon said.
He said it would further enhance the flying services operated by the Qantas Group, namely:
* the main Qantas domestic and international airline;
* QantasLink, the regional airline operations; and
* Australian Airlines, Qantas' international leisure carrier.
"Together, these airlines will offer a comprehensive range of services for travellers and see Qantas boost its role as a major supporter of the Australian tourism industry," Mr Dixon said.
"Negotiations are underway with Boeing, Airbus and aircraft lessors for the acquisition of 737-800 or A320 aircraft that will see the new low cost carrier have a minimum of 23 aircraft by mid-2005."
Mr Dixon said the current Qantas domestic operation would continue as now, but with an even greater focus on delivering quality service, particularly to the business community.
"Our network offering will be enhanced and additional investment made in both in-flight and on-ground product," he said.
Mr Dixon said that Alan Joyce, 37, had been appointed Executive General Manager of the low cost carrier.
"Alan joined Qantas in 2001 and he has an extensive airline industry background, having worked with both Aer Lingus and Ansett," he said.
"His experience is principally in fleet and network planning and business improvement and he was actively involved in Aer Lingus' low cost strategy."
Mr Dixon said a small team, including a number of former senior executives from the very successful European low cost carrier Ryanair, would assist Alan to establish the new airline.
He said the new airline would select the location of its headquarters, which would not be in Sydney, within the next six weeks.
Melbourne advertising agency, Dewey and Horten, had been engaged to work with the new airline's executives on naming, branding and advertising.
Issued by Qantas Corporate Communication (2974)
Email: [email protected]
© Qantas Airways Limited ABN 16 009 661 901 | Terms of Use | Viewing Performance | Privacy Statement | Qantas Home
He said it would be established using the operation of the former low cost carrier, Impulse, which was acquired by Qantas in May 2001 or by using a new "greenfields" company. A decision on which option would be used would be made within six weeks.
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Well that's refreshing, a bit of good news for the ex B1900 drivers - especially those guys who got a start with Horizon a few months ago!
I'm not getting my hopes up quite yet but let's just see where this decision takes us - hopefully back to the pointy end with our former colleagues!
P.S - Skeptics such as Pete Conrad et al: it's all good and well to hose other blokes down just 'coz they work for a company you mightn't like, but at the end of the day all they're trying to do is make a living. The major decisions like those made today are COMPLETELY out of their control. And yours.
P.P.S - What ever happened to proplever?
I'm not getting my hopes up quite yet but let's just see where this decision takes us - hopefully back to the pointy end with our former colleagues!
P.S - Skeptics such as Pete Conrad et al: it's all good and well to hose other blokes down just 'coz they work for a company you mightn't like, but at the end of the day all they're trying to do is make a living. The major decisions like those made today are COMPLETELY out of their control. And yours.
P.P.S - What ever happened to proplever?
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The establishment of a LCC off shoot is total lunacy. Evidently the Board is getting nervous about Virgin Blue's successes, but a simpler and more logical solution is at hand.
Virgin's costs are converging with Qantas', and it was Geoff Dixon who was so delighted when Virgin gained use of the old Ansett facilities, claiming that it was yet another move away from its low cost business model. ETOPs and international operations are yet another.
Unfortunately, the Board has neither the patience or the courage to focus on improving its own product - domestic punctuality and customer service come to mind - while allowing the natural convergence of Virgin and Qantas costs to continue, but instead is bypassing this "difficult" task to establish a venture which will certainly canibilise the high yield mainline operation. These people just cannot think outside the square . . .
Virgin's costs are converging with Qantas', and it was Geoff Dixon who was so delighted when Virgin gained use of the old Ansett facilities, claiming that it was yet another move away from its low cost business model. ETOPs and international operations are yet another.
Unfortunately, the Board has neither the patience or the courage to focus on improving its own product - domestic punctuality and customer service come to mind - while allowing the natural convergence of Virgin and Qantas costs to continue, but instead is bypassing this "difficult" task to establish a venture which will certainly canibilise the high yield mainline operation. These people just cannot think outside the square . . .
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I don't think Dixon could ever be accused of Lunacy.
Being a cold-hearted, ruthless bastard of a CEO (one who already made me lose my job once before)? Yes. Suffering from lunacy? No.
Give it a while, Waste Gate. Let's see what happens.
Or, of course, you could try running Qantas for a while..........
Being a cold-hearted, ruthless bastard of a CEO (one who already made me lose my job once before)? Yes. Suffering from lunacy? No.
Give it a while, Waste Gate. Let's see what happens.
Or, of course, you could try running Qantas for a while..........
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Interesting points:
1) The QantasLink 'brand' will continue, not be replaced by the LCC.
2) The LCC will come out of Impulse or a 'greenfields' operation.
So existing ops like Eastern, Southern, Alliance, Skywest et al, are not in the picture?
Hmm. Who was it that just got a high capacity AoC this year with no aircraft, no staff, no facilities (yet)?
This will be interesting....
1) The QantasLink 'brand' will continue, not be replaced by the LCC.
2) The LCC will come out of Impulse or a 'greenfields' operation.
So existing ops like Eastern, Southern, Alliance, Skywest et al, are not in the picture?
Hmm. Who was it that just got a high capacity AoC this year with no aircraft, no staff, no facilities (yet)?
This will be interesting....
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mabye i read that wrong but i thought that meant that mainline crew and qflink crews stay put (but will prob have some changes on routes etc) and this new company will recruit its own crew from scratch... like AO and mainline/regional have atm.
it also says they wont be syd based...
it also says they wont be syd based...
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Jakethemuss,
Come on fess up, why do you think it will be crewed by mainline pilots?
No doubt that decision has already been made and they are dragging this out for their own industrial psychological reasons. Time heals all wounds etc. - as long as it's not a death blow.
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For those gloating about bringing Qantas crew down - just think - we are really the last bastion to get a decent pay packet. I understand 130K for a Captain may sound great if you are on 30K or less in Numbulwar, but it's not enough when you have to live in Sydney raise kids, pay school fees & morgage etc and are away half your life.
Our Jetconnect pilots will have to be very astute/spendthrift as they survive on these style of wages and then at the end they have no super or anything - is that what you all want aviation to be?
I honestly believe we are not the hogs at the trough we are often made out to be.
Come on fess up, why do you think it will be crewed by mainline pilots?
it would be established using the operation of the former low cost carrier, Impulse, which was acquired by Qantas in May 2001 or by using a new "greenfields" company. A decision on which option would be used would be made within six weeks.
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For those gloating about bringing Qantas crew down - just think - we are really the last bastion to get a decent pay packet. I understand 130K for a Captain may sound great if you are on 30K or less in Numbulwar, but it's not enough when you have to live in Sydney raise kids, pay school fees & morgage etc and are away half your life.
Our Jetconnect pilots will have to be very astute/spendthrift as they survive on these style of wages and then at the end they have no super or anything - is that what you all want aviation to be?
I honestly believe we are not the hogs at the trough we are often made out to be.
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Just remember 2 dads, the only reason you are with nopulse is because you were turned down by QF. Same with almost all of your buddies there. So cut the smug attitude.
You guys are pulling down pay and conditions for airline pilots throughout Australia, and are somehow happy about it?
You guys are pulling down pay and conditions for airline pilots throughout Australia, and are somehow happy about it?
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Well now...
I would like to say that the Qantas employment process is crap and everyone knows that, for example if you are employed by a Qantas subsidiary then that’s where you will stay. So it’s unfair to say you were rejected by Qantas, you were never going to get a start.
Most of the regional pilots I know would handle the progression to a jet with ease, just look at the people leaving for Virgin, Dragon, and Cathay, they don’t seem to have a problem.
The problem rests with the Qantas union, if they had insisted on an integration policy where by all Qantas pilots had a career progression then the divide and conquer method would have failed, but as it is now, how else does one improve your lot.
I really do think that the regional pilots have been shat on again and I would not blame any of them for offering there services for less than a mainline crew after all a dash captain as I understand gets less that a 747-400 second officer...
When I hear a main line pilot say to a subsidiary airline pilot you’re a reject and accept what you have got and don’t threaten my job by bring down my wages and conditions really gets up my nose.
I would like to say that the Qantas employment process is crap and everyone knows that, for example if you are employed by a Qantas subsidiary then that’s where you will stay. So it’s unfair to say you were rejected by Qantas, you were never going to get a start.
Most of the regional pilots I know would handle the progression to a jet with ease, just look at the people leaving for Virgin, Dragon, and Cathay, they don’t seem to have a problem.
The problem rests with the Qantas union, if they had insisted on an integration policy where by all Qantas pilots had a career progression then the divide and conquer method would have failed, but as it is now, how else does one improve your lot.
I really do think that the regional pilots have been shat on again and I would not blame any of them for offering there services for less than a mainline crew after all a dash captain as I understand gets less that a 747-400 second officer...
When I hear a main line pilot say to a subsidiary airline pilot you’re a reject and accept what you have got and don’t threaten my job by bring down my wages and conditions really gets up my nose.
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Here here Spinout.
If QF pilots joined together with their union and helped regional pilots have career progression, then we would all benefit from being a larger group. As it stands now, the only way to progress is to leave.
I speak for myself only, but to be honest, if QF offered me 5K more to fly something else, I'd do it as there currently is no light at the end of the tunnel.
So if we all want to protect our livelihood, we need to band together.
If QF pilots joined together with their union and helped regional pilots have career progression, then we would all benefit from being a larger group. As it stands now, the only way to progress is to leave.
I speak for myself only, but to be honest, if QF offered me 5K more to fly something else, I'd do it as there currently is no light at the end of the tunnel.
So if we all want to protect our livelihood, we need to band together.
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Shesgreatinthegalley
The only crew that went to AO were QF mainline techies. Ground staff (read qf) outsourced so the only crew recruited from scratch were the cabin crew!!!.
Spinout
Couldn't agree more. Link crews have had one hand tied behind their backs whenever they have come up for interviews. Failure of the unions to get together and get a proper intergration agreement and reduce the abilitity of Q to divide and conquer.
But Qantas seemed happy with the fact that if they don't get into mainline we save money on training cost only to have to pay when they all pissed of to other airlines. Go figure???
The only thing I don't get is this mad scramble to say I can do it cheaper than you. The airlines must be pissing themselves. Must be waiting for the day some w*nker walks in and says "listen for a coulpa bickies and a lolly I'll do it" I just want to fly big airplanes.
Then we can all sit back very smugly and say, gosh we are the most efficent pilots in the world.
I'm not advocating blindly ignoring what's going on in the world and sitting back on great big fat pay checks. But AO seem happy and so to the guys at Ryan air. Both on pretty good wickets.
Now back to skimpy. 737 800's I still think at the end of the day it will be either Jet Connect or mainline. 2 reasons. One group will pay for the endoresment themselves 2 the other group are already endorsed. A320 lookout
The only crew that went to AO were QF mainline techies. Ground staff (read qf) outsourced so the only crew recruited from scratch were the cabin crew!!!.
Spinout
Couldn't agree more. Link crews have had one hand tied behind their backs whenever they have come up for interviews. Failure of the unions to get together and get a proper intergration agreement and reduce the abilitity of Q to divide and conquer.
But Qantas seemed happy with the fact that if they don't get into mainline we save money on training cost only to have to pay when they all pissed of to other airlines. Go figure???
The only thing I don't get is this mad scramble to say I can do it cheaper than you. The airlines must be pissing themselves. Must be waiting for the day some w*nker walks in and says "listen for a coulpa bickies and a lolly I'll do it" I just want to fly big airplanes.
Then we can all sit back very smugly and say, gosh we are the most efficent pilots in the world.
I'm not advocating blindly ignoring what's going on in the world and sitting back on great big fat pay checks. But AO seem happy and so to the guys at Ryan air. Both on pretty good wickets.
Now back to skimpy. 737 800's I still think at the end of the day it will be either Jet Connect or mainline. 2 reasons. One group will pay for the endoresment themselves 2 the other group are already endorsed. A320 lookout
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That was too easy!
G'day, prop old buddy!
Mate, you've said nothing under this handle for 15 months and it was all because of little old me that you ended your sabbatical? I'm SO flattered!
Nothing smug about my previous post. I still think there's a good chance mainline will crew the LCC and I realistically promoted that view. Getting you to bite was just a bit of fun - and didn't you just take the bait!
By the way, people, check out Proplever's last few posts (early July 2002) - all slamming Impulse and its staff and denying that 6 more 717s would ever arrive. Oddly enough, he shut his cake-hole when the extra jets started landing at Williamtown!
I've implied it before but now I'll come out and say it. Proplever: you are a gimp.
I eagerly await your well thought out response.
Mate, you've said nothing under this handle for 15 months and it was all because of little old me that you ended your sabbatical? I'm SO flattered!
Nothing smug about my previous post. I still think there's a good chance mainline will crew the LCC and I realistically promoted that view. Getting you to bite was just a bit of fun - and didn't you just take the bait!
By the way, people, check out Proplever's last few posts (early July 2002) - all slamming Impulse and its staff and denying that 6 more 717s would ever arrive. Oddly enough, he shut his cake-hole when the extra jets started landing at Williamtown!
I've implied it before but now I'll come out and say it. Proplever: you are a gimp.
I eagerly await your well thought out response.
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Proplever,
With that sort of attitude you should run for AIPA comm.
What is needed is a reality check.
Despite the fact that many Virgin, Impulse NJS etc. pilots (not to mention Cathay or Dragon) have been rejected by QF (and AN in the past) we have not seen aluminium raining down as soon as these guys strapped into jets.
the simple fact is that you dont need to be a rocket scientist to fly a jet. What is needed is an acceptance amongst all pilots that the environment has changed.
Should we wake up one day and find that all pilots flying for the rat in one way or another are capable of flying all types I think we shall see the end of much bitterness and perhaps even an improvement in conditions
With that sort of attitude you should run for AIPA comm.
What is needed is a reality check.
Despite the fact that many Virgin, Impulse NJS etc. pilots (not to mention Cathay or Dragon) have been rejected by QF (and AN in the past) we have not seen aluminium raining down as soon as these guys strapped into jets.
the simple fact is that you dont need to be a rocket scientist to fly a jet. What is needed is an acceptance amongst all pilots that the environment has changed.
Should we wake up one day and find that all pilots flying for the rat in one way or another are capable of flying all types I think we shall see the end of much bitterness and perhaps even an improvement in conditions
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will ground handling and catering be outsourced too or do you think they will utilise qantas staff???
Although the splitting up into business units makes it even easier to play funny money.
Mobs like Aerocare are slowly infiltrating. They do the cleaning on the Dashes in MEL, and now marshalling and starting (although the crew always used to manage to find the gates quite satisfactorily by themselves).
I'd wager they'd love to get their hands on the bags as wekll.