Qantas signals Pacific fare war . . . with itself
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Qantas signals Pacific fare war . . . with itself
Thurs "Sydney Morning Herald"
Qantas signals Pacific fare war . . . with itself
By Clive Dorman and Rod Myer
December 15, 2005
QANTAS yesterday vowed to slash fares to the United States, announcing the planned expansion of its budget carrier Jetstar to US routes and a massive $10 billion investment in 65 new-generation Boeing 787 Dreamliner aircraft from 2008.
The move will add to the political pressure on the Howard Government to keep Singapore Airlines locked out of the lucrative Pacific routes and is designed to deflect one of main arguments for exposing Qantas to more competition over the Pacific — that the airline has been charging excessive fares to Los Angeles and San Francisco.
By launching discount flights to North America, Qantas is also trying to head off moves by its domestic competitor, Virgin Blue, to fly to Los Angeles.
Singapore Airlines has been lobbying the Federal Government for permission to fly the Sydney-Los Angeles route, one of the most lucrative in the world, because Qantas currently faces competition from only one carrier, a weakened United Airlines trading under bankruptcy protection.
Qantas chief executive Geoff Dixon said Jetstar would line up against its parent airline on US routes "in the immediate future " — well before the introduction of the new planes. The 787s will revolutionise the economics of the airline, allowing it to operate more direct services to Asia and North America.
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Qantas signals Pacific fare war . . . with itself
By Clive Dorman and Rod Myer
December 15, 2005
QANTAS yesterday vowed to slash fares to the United States, announcing the planned expansion of its budget carrier Jetstar to US routes and a massive $10 billion investment in 65 new-generation Boeing 787 Dreamliner aircraft from 2008.
The move will add to the political pressure on the Howard Government to keep Singapore Airlines locked out of the lucrative Pacific routes and is designed to deflect one of main arguments for exposing Qantas to more competition over the Pacific — that the airline has been charging excessive fares to Los Angeles and San Francisco.
By launching discount flights to North America, Qantas is also trying to head off moves by its domestic competitor, Virgin Blue, to fly to Los Angeles.
Singapore Airlines has been lobbying the Federal Government for permission to fly the Sydney-Los Angeles route, one of the most lucrative in the world, because Qantas currently faces competition from only one carrier, a weakened United Airlines trading under bankruptcy protection.
Qantas chief executive Geoff Dixon said Jetstar would line up against its parent airline on US routes "in the immediate future " — well before the introduction of the new planes. The 787s will revolutionise the economics of the airline, allowing it to operate more direct services to Asia and North America.
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Yes, agreed, where's the sensibility in creating an airline to undercut the one that made its existence possible?
Dixon is shadow boxing - using consolidated revenue (read shareholders' assets) - to destroy QANTAS, whilst outwardly appearing to "grow" Jetstar in preparation for a perceived fight with SQ or VB.
It must be fun for him to squander others' money debilitating QF, rather than building it up - and receiving $6 million per year to do it!
Dixon is shadow boxing - using consolidated revenue (read shareholders' assets) - to destroy QANTAS, whilst outwardly appearing to "grow" Jetstar in preparation for a perceived fight with SQ or VB.
It must be fun for him to squander others' money debilitating QF, rather than building it up - and receiving $6 million per year to do it!
