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What a way to serve a market?

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Old 19th Dec 2006, 04:19
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Tassie always has been the thorn in the side of QF.
They have never made money on HB or LT cos they treat these ports with contempt. JQ is no different. If an a/c goes 'tech' ANYWHERE it's always Tassie that suffers.
Engineering "Op's?"
Op's "Go ahead"
Engineering "XYZ is U/S"
Op's "Thanks for that. We'll CX LT/HB and send that to ......."
Lt was always AN and now it's a VB goldmine. Likewise HB. After QF had suffered too much out of LT, they put SAA in there with 146's and J class and it actually started to make money, quite a lot of money.
Anyway after another failed attempt at trying to save face, QF 737's go back to LT AGAIN and that exercise lasted for about 18 months.
Then the master stroke. Let's take the B737 out of there again with its J class and replace it(AGAIN) with a DASH 8. Geee!!!!!!!!!!!!! Now that really is looking after your market share
It's only a matter of time until tha ROO with jets all but disappears from the skies of Tassie. The Q400 although a very nice machine will never have the pax appeal of a jet.
QF yield/scheduling have no one to blame but themselves for the p1ss poor reputation they have, and always have had in Tassie.
"You reap what you sew"
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Old 19th Dec 2006, 07:22
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Wouldn't it just be better for Qantas to use the 717 they have seeing as QantasLink seems to be doing these routes now? Or are they all tied up with FIFO work?

Maybe they have too much capacity but it would seem tomake more sense than using the Q400.

Does Virgin still frequent this route?
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Old 19th Dec 2006, 08:56
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Does Virgin still frequent this route?
Which route do you mean? Current schedule shows that DJ do daily HB-AD, daily HB-BN, double daily HB-SY and up to 6 daily HB-ML. To LT they have up to 5 daily LT-ML and up to 2 daily LT-SY, all at very friendly timings.

Despite an increasing trend, JQ have dropped 3 weekly HB-AD (they don't do the route anymore - unprofitable appareantly, but DJ seem to do nicely with their daily year round service!), a weekly HB-BN, 3 weekly HB-SY and 2 weekly HB-ML from the same time last year (and last year there were no extra flights for peak season). So any wonder there are zero seats remaining when they were full last year and now we have 3440 fewer seats per week!
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Old 19th Dec 2006, 21:19
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So if they are getting good numbers on the route, why do they keep dropping services? What large expenses can there be flying to Tassie? Must be something there that I don't see......
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Old 20th Dec 2006, 03:35
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Well folks, I hate to be the bearer of sad tidings, but there aint nothin new in the zoo here.

As long as I can remember the Tassie Christmas situation has been this way - rock solid in before 25DEC and rock solid out from 26 December onwards.

An airline Shambles Planner that schedules extra capacity in over such a period where the aeroplane will most likely return with a very low load factor should be dragged out of their chair and given a severe thacking.

This is one of the few times of the year when Airlines can actually make a decent living out of servicing Tasmania which accounts for around 3% of the overall Australian domestic market. We should be glad that we get a service at all.

The loads into/out of HBA will tend to heavy southbound up to New Years and then heavy outbound thereafter, caused by the extra traffic generated by the Sydney Hobart yacht race and associated events around Constipation Dock such as the "Taste of Tasmania" festival etc.

The pattern is repeated on the DPO and BWT routes as well. This has been the same every year since Viscounts roamed the earth and I dare say will be the same for years to come.

Basically, we choose to live on a rock in the Southern Ocean and as such must put up with the peaks in transport demand.

Oh - and williamOK - the loads may be good, but the yield for most of the year sucks badly.

Best all

EWL
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Old 20th Dec 2006, 03:58
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Oh - and williamOK - the loads may be good, but the yield for most of the year sucks badly.

Which mob are you talking about EWL?............J* or DJ?
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Old 20th Dec 2006, 04:09
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The lot Pete.

ZL Ratlink QF mainline DJ and JQ.

Generally the amount of high yield passengers as an overall percentage of the load who choose to buy a fully flexible fare is much lower than say a MEL SYD or SYD BNE type run.

Even with the last seats going at top fare Southbound at time of the year like now, you still would be hard pressed to fund the lighter/lower yielding load on the return leg if you threw more aeroplanes/capacity at the place.

Any spare capacity would be more profitable thrown at trunk routes with proven 2 directional demand.

Best regards

EWL
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Old 20th Dec 2006, 05:18
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This constant Hobart has no yield banter is just rubbish.
The fact is, DJ have an operating cost of $0.08 per km. On a Hobart-Melbourne service (618km), using a 737-800 (177 seats), even if every seat was sold at the cheapest Blue Saver fare ($89), the aircraft would only need to be 55.6% full to be making a profit. Average loads for the year are over 80%, and closer to 90% at this time of year.
Saying that the last few seats were sold at top fare is rubbish too. Fully Flexible is all that has been available for months, and they've sold them all! They even had to add connecting flights MEL-ADL-HBA because there were zero seats left - that's right - all Fully Flexible sold. You can't ask for more than that! You only need to sell 34 Fully Flexible Fares ($259) to be making a profit, and they would have done that easily without the remaining Flexi Savers and Blue Savers.
Having one direction at 100% load factor for days on end hampers loads in the other direction. Tasmanians wanting to goto the mainland for a few days can't, becuase there is no way for them to get back, so they don't make the trip in the first place!!!
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Old 20th Dec 2006, 10:21
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I flew home on the 1835-2015 SYD-LST DJ flight last night, it was a 737-800 and was chock-a-block. Nice to see everyone piling off into the airport. We did a beautiful big turn right over the airport after flying in over north-east Tassie. What a beautiful thing. There's nothing like the Tassie air.
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Old 20th Dec 2006, 22:35
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The fact is, DJ have an operating cost of $0.08 per km. On a Hobart-Melbourne service (618km), using a 737-800 (177 seats), even if every seat was sold at the cheapest Blue Saver fare ($89), the aircraft would only need to be 55.6% full to be making a profit.
Actually, Hobay, this "constant Hobart has no yield banter" is not rubbish. The operating cost figures you quote are for DJ - a LCC. Mainline's operating costs are obviously more than this (significantly more as Dixon keeps telling us). Add to this the fact that you lose revenue seats to the FF program and international connecting fares which provide little or no revenue for the domestic leg. With only two flights a day, the capacity to recoup yield off J seats is significantly reduced. Much, if not most, of the pax into Hobart (especially this time of year) are only VFR (visiting friends and relatives) and backpackers - hardly the high yield pax you get on City Flyer routes. For that reason, ports like HB and LT are never going to be attractive to Full Service carriers like Mainline.
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Old 20th Dec 2006, 23:16
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Quick Check-in is the key

A prediction:

Any Qantas terminal that doesnt currently have Qantas Quick-Check terminals installed,with the possible exception of DRW,will not be served by Qantas Mainline flights within a couple of years.

They have only invested in the technology in terminals that will have Mainline services,and havent bothered with the terminals that will only have Q Link and/or J* serving them in the future.
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Old 20th Dec 2006, 23:27
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Actually, Hobay, this "constant Hobart has no yield banter" is not rubbish. The operating cost figures you quote are for DJ - a LCC. Mainline's operating costs are obviously more than this (significantly more as Dixon keeps telling us).
My post is referring to the following excerpt:

Tassie always has been the thorn in the side of QF.
They have never made money on HB or LT cos they treat these ports with contempt. JQ is no different. If an a/c goes 'tech' ANYWHERE it's always Tassie that suffers.
Engineering "Op's?"
Op's "Go ahead"
Engineering "XYZ is U/S"
Op's "Thanks for that. We'll CX LT/HB and send that to ......."
Lt was always AN and now it's a VB goldmine. Likewise HB.
That is why I gave figures for DJ.

Buckshot, your argument is simply music to my ears!

With only two flights a day, the capacity to recoup yield off J seats is significantly reduced.
That is why DJ are making so much money. Why would you pay QF for flexibility when it is impossible for them to give it to you? DJ can offer flexibility (provided all seats have not been sold!), thus sell plenty of Flexi Savers and Fully Flexible fares.

hardly the high yield pax you get on City Flyer routes.
The airline doesn't care if you buy full fare for a holiday or business trip. If business traffic is so good at this time of year, why do QF's CBR (arguably the highest yield destination in the network) schedules get cut so dramatically. They drop services to ADL, BNE and only operate a couple to SYD and MEL!

Add to this the fact that you lose revenue seats to the FF program and international connecting fares which provide little or no revenue for the domestic leg.
Every QF domestic route loses seats to FF and international connections, because QF is so SYD-centric!

WilliamOK,
So if they are getting good numbers on the route, why do they keep dropping services?
Because whenever they start a new route, they have to cut something else. When they began BN-TL, they shunted the HB-BN to the 10PM slot. When they started AD-MC and AD-HM, they dropped AD-HB. When they started ML-TL and ML-BNK, they cut back ML-HB. When they took over SY-TL from QF, they cut back SY-HB. As Normasars says, Tassie is the lowest priority for QF group. Compare this with DJ who invest in HBA; with daily year round services to ADL and BNE, double daily to SYD, and up to five year round daily to MEL, with additional flights for peak season. Go DJ!!!
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Old 21st Dec 2006, 00:17
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Originally Posted by HOBAY 3
If business traffic is so good at this time of year, why do QF's CBR (arguably the highest yield destination in the network) schedules get cut so dramatically.
Because Parliament's in recess, so the lobbyists and their J-class clients don't need to keep trooping down there to ingratiate themselves?
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Old 4th Jan 2007, 17:49
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MELKBQF check your pm's.
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Old 4th Jan 2007, 20:08
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A prediction:

Any Qantas terminal that doesnt currently have Qantas Quick-Check terminals installed,with the possible exception of DRW,will not be served by Qantas Mainline flights within a couple of years.
Adelaide doesn't have quick-check terminals in their brand spanking new terminal... Sorry but I think that just knocks your theory for six...
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Old 5th Jan 2007, 00:16
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I understand that QF is ready to install kiosks in ADL, but is in negotiation (read disagreement) with AAL over the location of them.

QF naturally wants its kiosks in proximity to its check in counters, whereas AAL want them all in a row, nex to VB
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Old 5th Jan 2007, 02:37
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Re the 'Quick Check' kiosks installation yet to happen in places like Darwin. It was my understanding that as each kiosk costs about $25K to install the airline was going to see how internet check took off first.

Why would management want to shell out that amount of money when the punters can do it for free on their own computer for nothing.

Mind you Quick Check is a bit of an oxymoron as it takes longer to check at one of those vs using a real person then if you've got baggage you've still got to line up to drop off your bag and that exercise takes the same time as doing the whole check-in process with a check-in agent.
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Old 5th Jan 2007, 04:56
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That's true. I went through the Virgin Check-in at Melbourne recently and luckily my flight was late, as it took longer than usual to check in (I was on a tight schedule anyway.)

It was slow and cumbersome to use, and sort of stupid, it's easy to make mistakes on them and then you have to go through and do it with an actual person anyway, I learnt last time I flew Qantas.
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Old 16th Sep 2009, 03:51
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When will they ever learn?

Hobart a no-fly zone Travel - The Mercury - The Voice of Tasmania

And JQ will be dropping a further 3 per week each direction off HBA-MEL from the end of October, as they need the aircraft for MEL-DRW in the wet season, when no-one goes there????

Last edited by HOBAY 3; 16th Sep 2009 at 08:14.
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Old 16th Sep 2009, 04:01
  #40 (permalink)  
 
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there was something strange about the earlier parts of this thread....... the date...
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