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QantasLink withdrawal from South Australia and Burnie , Tas.

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QantasLink withdrawal from South Australia and Burnie , Tas.

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Old 15th Jun 2006, 06:22
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QantasLink withdrawal from South Australia and Burnie , Tas.

QantasLink just announced they are withdrawing all services in South Australia , ADL - Port Lincoln , ADL - Kangaroo Is and MEL - Kangaroo Is....
plus....withdrawing from Burnie and commencing twice daily Dash-8's MEL - Launceston replacing the Qantas overnite LST B737.
S.A. eff 28 June and Tas changes eff 1 August.
Allegedly no redundancies involved.
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Old 15th Jun 2006, 06:32
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Hanoi, me ol' mate. The redundancies occurred months ago - when QantasLink muscled in on Airlines of SA routes!
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Old 15th Jun 2006, 07:03
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Air Ace....not quite correct.

Airlines of S.A. were part of Regional Link who ceased all operations in S.A. on 9 November 05 due to ongoing losses.

QantasLink did not commence until 18 December 05 , some six weeks later.

Wouldn't call that ' muscling in '
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Old 15th Jun 2006, 07:06
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Angry From the Qantas Website

Qantas Reviews Services in Tasmania and South Australia

Sydney, 15 June 2006

Qantas today announced changes to its Northern Tasmania and South Australia schedules, following a review of the regional QantasLink network.
Qantas Group General Manager Regional Airlines Narendra Kumar said Qantas would:
* cease operations to its two South Australian ports, Kangaroo Island and Port Lincoln, on 28 June;
* cease operation to Burnie in Tasmania on 31 July;
* replace daily Qantas B737 Launceston-Melbourne services with double daily Dash 8 services on 1 August#; and
* maintain Jetstar's 21 A320 jet return services a week between Launceston and Melbourne.
"The Qantas Group operates more than two million seats a year in and out of Tasmania, and more than 600,000 of them fly empty," Mr Kumar said.
"Passenger numbers on the Burnie route have dropped by 20 per cent over the past two years and loads on Qantas B737 Launceston services have declined to below 60 per cent.
"In the current environment of escalating fuel prices, we cannot continue to absorb losses on these routes.
"Moving to double daily Dash 8 frequencies between Launceston and Melbourne will address the issue of excess capacity on the route and at the same time offer passengers better connections in Melbourne," he said.
Mr Kumar said that Jetstar would also continue to operate daily non-stop Launceston-Sydney service and three non-stop services between Brisbane and Launceston each week using its 177-seat A320 aircraft.
"The Group will provide more than 12,100 seats in and out of Launceston each week, with our Tasmania capacity seven per cent higher than it was two years ago."
Mr Kumar said that in South Australia, Port Lincoln loads had averaged only 45 per cent over the past two months, with Kangaroo Island services to Adelaide averaging 40 per cent and Kangaroo Island-Melbourne services only 25 per cent.
Mr Kumar said QantasLink would increase its turboprop capacity in regional Australia by 19 per cent in 2006/07, with plans to expand services to a range of destinations including:
* Dubbo, Tamworth and Port Macquarie in New South Wales;
* Longreach, Charleville and Roma in Queensland; and
* Mildura in Victoria.
# subject to regulatory approval

Issued by Qantas Corporate Communication (Q3441)
Email: [email protected]
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Old 15th Jun 2006, 07:19
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"...with plans to expand services to a range of destinations including:

* Longreach, Charleville and Roma in Queensland;"
Further increases in frequency? I thought the contract is due for renewal next year?
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Old 15th Jun 2006, 07:53
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muscle they did

ASA and Emu announced their withdrawl on the day that QLink announced that they were coming into S.A.. Capiteq offered to QLink to keep runnning until they were up and running but there was no use doing so unless they were to subsidise there losses.
Note: Qlink rejected this offer several days before ASA announced there closure.
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Old 15th Jun 2006, 07:54
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Re Port Lincoln services - if only Qantaslink could have woken up to themselves.
It's not rocket science really. All you have to do is provide a schedule to meet your customers requirements, provide a range of fares and above all be reliable. Sadly they missed the first and last and no amount of "cheap" fares could make up for that. This is now the first time since 1980 (apart from a short period when Airnorth pulled out - yes they got it wrong too) that Port Lincoln has had one carrier.
Now where can I find a good Bandit again???
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Old 15th Jun 2006, 08:58
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The pullout from Wynyard (and it is NOT bloody Burnie Airport) of QFlink does not amaze me.

Burnie/Wynyard/Smithton is a working class market with a low yield local market and a difficult to connect with mainland market. What I mean is who the hell would choose to gateway in Burnie for a holiday. Simple fact that will no doubt light local ire.

Ansett was always the incumbent airline in the area, and TN struggled to make 50% market share. East West shared the same local bias once we took over from TN and Rex, after the demise of the Kendell brand does reasonably well out of the port.

The negatives are the impact on the good and true staff of the ground handling operation and ancilliary service providers such as refuelling.

The positives are that it will polarise that market for Rex on a shorthaul basis and will no doubt increase their overall profitability.

QFlink DPO will also reap benefit as corporate Club Rat traffic and Fractured Flyers will no doubt redirect there as will the in/oncarriage market.

Overall it is a pretty logical rationalisation of ports/airlines and should make the whole mess more viable.

I can only just wait until the local alleged City Fathers (and Mothers - some are definitely both!!) start bleating like wounded sheep. They are still whineing at LCCs to service the coast. Since the demise of East West at the hands of Ansett, the closest they will come to a jet service is the MEL HBA traffic that turns over the DPO beacon or the AKL PER NZ flights that track over the top every now and then.

Overall, a positive long term move.

Best all.

EWL
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Old 15th Jun 2006, 09:12
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So who was the Eastern Pilot who killed the black cat while walking under a ladder before breaking a mirror! No Q400, SS Canberra base, shut down South Australia, move out of Burnie, no pay rise for two years and still no EBA, but i am sure it is all good for the group and GD will still get a big bonus.. i am getting cynical
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Old 15th Jun 2006, 09:14
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Now where can I find a good Bandit again???
Don't Air South have BQB sitting there? Could be interesting times ahead for the charter guys around YPAD me thinks
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Old 15th Jun 2006, 11:53
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Thumbs up

Just goes to show,no one can compete with REX in SA, not even Qantas!
sic em REX!
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Old 15th Jun 2006, 22:41
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Devil

Just goes to show,no one can compete with REX in SA, not even Qantas!
sic em REX!

Ohhhh...Perleeeeeeeeease

TDI
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Old 15th Jun 2006, 22:49
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Sorry newsensation and fellow colleagues, I walked under a ladder about a week ago. I also ran over a pidgeon last week but no black cat, it was an accident. Last time I smashed a mirror was about six months ago.

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Old 16th Jun 2006, 00:52
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The Crazy Horse loses more regular customers

Oh dear
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Old 16th Jun 2006, 00:52
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Unhappy

I'm sorry too guy's, I do hope things work out well for you all.
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Old 16th Jun 2006, 01:17
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Here's a great opportunity for O'Connors to finally wake up and do something.. but I think they have a crisis of their own.. Multiple resignations... unhappy staff...sick aeroplanes..
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Old 16th Jun 2006, 02:12
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And a word from REX...

Regional Express (Rex) has reacted to the news of QantasLink’s withdrawal from Port Lincoln, Kingscote and Burnie by saying it will take steps to ensure there will be enough capacity to satisfy the demand from these communities.

Rex Managing Director Geoff Breust said Rex already had plans to introduce five more SAAB 340 aircraft into service before the end of the year. If necessary, these resources would be diverted to give priority to the communities affected by the withdrawal.

'”We will monitor the situation closely and will increase frequencies should the situation justify it. Serving our existing network will take absolute priority over our expansion plans. As an immediate first measure, we will be looking at increasing the number of weekend flights to Port Lincoln and Burnie to replace some of the frequency that will be lost.”

“Rex will maintain the same affordable pricing structure that it has on all its routes and will not change this policy simply because QantasLink has withdrawn its service.”

Mr Breust added, “Rex is in close consultation with QantasLink to ensure a smooth transition and all QantasLink tickets will be accepted at face value for travel on Rex. Any passengers who wish to take advantage of this offer should contact Qantas to arrange the ticket transfer. We do not expect to have any major disruptions.”


Now if only Adelaide Airport could get it's act together...
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Old 16th Jun 2006, 02:14
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On eyre; You would'nt dare!!!! Would you???
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Old 16th Jun 2006, 02:36
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REX and Q-Link in ca-hoots

Conspirasy theory 1 - Rex and Q-Link in ca-hoots
Starts with:
1. Rumoured that Q-Link were not happy (obviously) when Rex moved into ARM driving down fares on the marginal route.
2. Heard rumours of a secert squirrel hand shake over SA and QLD remaining untouched by the opposing airline (Which was broken by the Q in Nov/Dec 2005)
In the past week and a half we have seen:
1. Rex withdraw from ARM
2. Q-Link withdraw from Wynyard
A port for port, seeing the end of competion, discounted fares and both airlines making money on the route without leaving the affected community without an essential service.
3. Q-Link withdraw from SA to possibly keep QLD untouched by Rex
I personally don't see any problem with the above as it keeps the greater regional network serviced, people in jobs and the affected airlines profitable.
Any thoughts?
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Old 16th Jun 2006, 02:45
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Originally Posted by areal
Just goes to show,no one can compete with REX in SA, not even Qantas!
sic em REX!
I don't think one aircraft servicing 2 ports is really a genuine comparison.
Rex's network provided them with economies of scale, that few regional carriers have.

KGC is a b*gger of a route as far as cycle time is concerned, where else in Australia is there such a short route being serviced by RPT? And given that the Islanders expected "Resident Fares" even if they are mainlanders with land over there, as well as the high volume medium yield inbound market that goes down at 0900 returns at 1800. It was, even in Kendell days a marginal route, profitable though.
Rex seemed to have stuck to their guns and flown one aircraft down and one aircraft back, none of the old old Emu of cross hiring to get the SLF down there and back.
At least ASA/Emu/RegionalLink had their own aircraft to do this, although there was more than one outside charter when planes broke.

Rex deciding to swamp the PLO route with additional services, probably caught QFLink on the hop (pun not intended).
They had the capacity to do so, and their route agent in PLO would have been advising them of QF's loads, deciding to go for the jugular and break them in service levels.

QFLink needed a minimum of 2 aircraft to make a go of SA, one running 5 daily returns to PLO and 1 to run 2 daily returns to KGC to service the inbound market.
The Dash 8 did have some reliability issues, but at least pax didn't have to
walk the cattle run. However, a single plane op is fraught with danger see GWA and even ASA who at least had Bandits (shudder) and Chieftains (bigger shudder) and even O'Connor's (Conquest - no comment) to fly relief when the Brasilia decided not to fly for whatever reason or reasons for that matter.

The KGC/MEL route was never going to generate a great deal of revenue and/or loads as the numbers would never stack up, and was only designed to return the plane into maintenance.
By having a morning only to KGC, the day return market corporate and inbound had no choice but to go with Rex, indeed not rocket science, as the plane was being used on PLO in the afternoon.

Where QFLink got caught I think is that they should have come in all guns blazing to PLO, KGC, Roxby and/or Whyalla/Mt Gambier subject to O'Connor machinations. This would have provided suitable critical mass for the corporate market to look at an airline other than Rex, and if either of the last 2 towns mentioned were included, given the SA Government market a true competitor as well.

As for O'Connor taking on PLO, with what aircraft?
They don't have any do they?????
Couldn't see the suits let alone any of the Tuna boys sitting in a Conquest, esp after having the Brasilia and Saab on the route.

Will be intersesting to see what next Tuesday's PLO Times has to say about all this.
Would suggest that any airfield extension, terminal redevelopment is on hold.
Wonder if VB will pull their usual PR trick and say that regional australia deserves a LCC and not be ripped off?

Airsouth running RPT? That too would indeed be interesting, car parking is cheaper at the GA Terminal too, less crowds, no security hassles, no cattle runs.

Leane7
So who will do these routes? Any part of the QF group?

Dubya's comments are interesting. If there is internal implosion happening at Mt Gambier it might be sooner than later, that QFLink might be back in, especially when all the -400's have been delivered.

Finally my best wishes to the route agent in PLO (and his great team), third time for them in 18 months, don't break the quad bike GN, and have a red for me.
Also to route agent in KGC.
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