Qantas to bone Air Pacific in favour of Jetstar
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Qantas to bone Air Pacific in favour of Jetstar
Steve Creedy, Aviation writer | September 09, 2009
Article from: The Australian
QANTAS has confirmed it is in talks with the Fijian government to sell its 46 per cent stake in Air Pacific as it lobbies for capacity to introduce Jetstar flights to the holiday island.
The airline, which is competing with Virgin Blue for seats on the route, admitted it was looking at the potential sale in a submission to the International Air Services Commission, arguing the case for its low-cost subsidiary.
The proposal stemmed from a review of its investments in light of the global financial crisis.
Qantas spokesman David Epstein confirmed last night that the Air Pacific stake was under review and that the airline was in discussions with the Fijian government about possible terms.
"While that's at very early stages, we can now confirm that the continuation of the shareholding is formally under review," he said.
Mr Epstein said talks with the Fijian government had mapped out a possible way forward but there would need to be agreement on valuation procedures before there was a commercial conversation.
This included maintaining commercial arrangements with the Fijian flag-carrier.
It is understood the Fijian government is favourably disposed to the idea of Qantas exiting its stake to allow it to take complete control of the carrier and remove vetoes the Australians have on some decisions.
But it is unclear how the Fijian carrier has fared in the global downturn and after crippling floods earlier this year. The latest available profit appears to be the record $F38.2 million posted in 2007-08.
Qantas brought forward its plans to introduce Jetstar on the route after Virgin Blue applied for an additional 1260 seats and to transfer another 1260 from Pacific Blue to allow it to operate V Australia's 360-seat Boeing 777-300ERs on the route.
The IASC asked for further submissions after Qantas applied for almost 1500 seats on the route. It told the airlines they were applying for the same capacity and to justify their applications on public benefit grounds.
Jetstar plans to start daily services between Sydney and Nadi using 213-seat Airbus A321 aircraft from next April.
Qantas wants to codeshare with Jetstar services on the route and to continue codesharing with Air Pacific.
However, there will be no codeshare between Jetstar and Air Pacific and the low-cost carrier will operate independently of other carriers on the route.
Virgin wants to fly the 777s to Nadi as part of moves to work the widebody jets harder.
The daily service would allow a plane that currently spends 12 hours on the ground in Sydney between flights to the US to be used on the nine-hour return trip to Fiji.
Virgin says this type of incremental flying needs only to recover its direct operating cost and it expects the B777 to generate a higher average ticket price than its smaller B737s by attracting upmarket passengers whom the airline has not previously served.
Article from: The Australian
QANTAS has confirmed it is in talks with the Fijian government to sell its 46 per cent stake in Air Pacific as it lobbies for capacity to introduce Jetstar flights to the holiday island.
The airline, which is competing with Virgin Blue for seats on the route, admitted it was looking at the potential sale in a submission to the International Air Services Commission, arguing the case for its low-cost subsidiary.
The proposal stemmed from a review of its investments in light of the global financial crisis.
Qantas spokesman David Epstein confirmed last night that the Air Pacific stake was under review and that the airline was in discussions with the Fijian government about possible terms.
"While that's at very early stages, we can now confirm that the continuation of the shareholding is formally under review," he said.
Mr Epstein said talks with the Fijian government had mapped out a possible way forward but there would need to be agreement on valuation procedures before there was a commercial conversation.
This included maintaining commercial arrangements with the Fijian flag-carrier.
It is understood the Fijian government is favourably disposed to the idea of Qantas exiting its stake to allow it to take complete control of the carrier and remove vetoes the Australians have on some decisions.
But it is unclear how the Fijian carrier has fared in the global downturn and after crippling floods earlier this year. The latest available profit appears to be the record $F38.2 million posted in 2007-08.
Qantas brought forward its plans to introduce Jetstar on the route after Virgin Blue applied for an additional 1260 seats and to transfer another 1260 from Pacific Blue to allow it to operate V Australia's 360-seat Boeing 777-300ERs on the route.
The IASC asked for further submissions after Qantas applied for almost 1500 seats on the route. It told the airlines they were applying for the same capacity and to justify their applications on public benefit grounds.
Jetstar plans to start daily services between Sydney and Nadi using 213-seat Airbus A321 aircraft from next April.
Qantas wants to codeshare with Jetstar services on the route and to continue codesharing with Air Pacific.
However, there will be no codeshare between Jetstar and Air Pacific and the low-cost carrier will operate independently of other carriers on the route.
Virgin wants to fly the 777s to Nadi as part of moves to work the widebody jets harder.
The daily service would allow a plane that currently spends 12 hours on the ground in Sydney between flights to the US to be used on the nine-hour return trip to Fiji.
Virgin says this type of incremental flying needs only to recover its direct operating cost and it expects the B777 to generate a higher average ticket price than its smaller B737s by attracting upmarket passengers whom the airline has not previously served.
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It might be an un-elected government but no more un-democratic than many so called democracies with only one party and which we deal with regularly........
Care to give me some examples of this abuse?????
Back to the J* story and the question I would like to ask is how can you code share QF with J*
If you are being forced to fly J* then book a ticket with them....or do you get a meal and a pillow at no cost when you book your J* ticket with QF.....
human-rights abusing
Back to the J* story and the question I would like to ask is how can you code share QF with J*
If you are being forced to fly J* then book a ticket with them....or do you get a meal and a pillow at no cost when you book your J* ticket with QF.....
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Qantas have been putting QF code on flights operated by J* for year, what are you worried about?
If you are booking out of the UK, travelling to Christchurch, Qantas will put some SYD-CHC legs, operated by JQ on the itinerary. The UK passenger or their Travel Agent will have to look closely to see that the flights will not be Qantas flights. Perhaps by the time they get off at SYD, they are too tired to notice which plane they are getting on next.
If you are booking out of the UK, travelling to Christchurch, Qantas will put some SYD-CHC legs, operated by JQ on the itinerary. The UK passenger or their Travel Agent will have to look closely to see that the flights will not be Qantas flights. Perhaps by the time they get off at SYD, they are too tired to notice which plane they are getting on next.
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if QF want to sell they will have to find a willing buyer - who in their right minds would buy into an airline at the moment , particularly one in a country with the sort of issues that Fiji has ? are QF hoping maybe to sell their stake in FJ to the Fijian government for $AUD1.00 ? I have been scratching my head trying to think of any other likely buyers - surely even NZ wouldnt be so stupid after the last dog they bought turned out to have rabies .
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As FJ are generally the same or better priced than Pac Blue, the flying fruit tingle will be able to stand safely and solidly on their own.
They have a generally good reputation for pleasantly confused onboard service and run a fairly decent schedule apart from the occasional knock on delays. You get that with a small fleet and it all goes West for a few days.
In my opinion they will stand well alone bit I am pissed off trying to hold a set level of QF revenue with more and more runs evaporating.
Best all
EWL
They have a generally good reputation for pleasantly confused onboard service and run a fairly decent schedule apart from the occasional knock on delays. You get that with a small fleet and it all goes West for a few days.
In my opinion they will stand well alone bit I am pissed off trying to hold a set level of QF revenue with more and more runs evaporating.
Best all
EWL
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Fris B. Fairing said Freedom of speech causes troubles.
Flypy,You have to be kidding.Is there any country that amnesty international does not complain about?
Qantas have been putting QF code on flights operated by J* for year, what are you worried about?
Quote:
Fris B. Fairing said Freedom of speech causes troubles.
Fris B. Fairing said Freedom of speech causes troubles.
He certainly did not. The quote comes from Fiji's leader. I think an edit might be in order thank you.
Rgds
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Fris B. Fairing,
After the statement
The question was asked.
To which you replied.
You made no mention of who made that quote.By posting it after the question of an example of human rights abuse was asked for would normally imply that you agree with it,would it not?
After the statement
the un-elected, human-rights abusing military government that caused Fiji to be kicked out of the Commonwealth
Care to give me some examples of this abuse?????
This memorable quote springs to mind:
Quote:
Freedom of speech causes troubles.
Quote:
Freedom of speech causes troubles.
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Kiwiandrew. So as to not allow any younger players to think Ansett gave rabies to ANZ, I think the reverse was actually true but Helen and John gave the medicine only to ANZ. Having witnessed the 50% and the 100% ownership period I can attest to the incompetence of the ANZ takeover.
As for Air Pacific, the ultra national "government" would be similarly stupidly proud enough ( a la Helen Clark's government) to actually buy it. I think QF would basically give it away to get JQ in there and either block Vaust or damage it further. This is a strategic play.Thus causing its ultimate demise. Airpac is a well known basket case and I believe without Qantas it would fail with this proposed ramping up of capacity on a low profit route. Similar things are happening now on the tasman. No one makes any money.Someone will fall.
As for Air Pacific, the ultra national "government" would be similarly stupidly proud enough ( a la Helen Clark's government) to actually buy it. I think QF would basically give it away to get JQ in there and either block Vaust or damage it further. This is a strategic play.Thus causing its ultimate demise. Airpac is a well known basket case and I believe without Qantas it would fail with this proposed ramping up of capacity on a low profit route. Similar things are happening now on the tasman. No one makes any money.Someone will fall.
Jelly
No actually 
By posting it after the question of an example of human rights abuse was asked for would normally imply that you agree with it,would it not?
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Yep, Amnesty do toss on about everyone, including Australia, but it has been documented elsewhere, including the detention of leaders of the methodist church (anyone who knows Fiji knows how big that is) for meeting together outside of "church times". The other part of the AI reporting was that the Fijian 'government' tried to influence the outcome of the report before and during its compilation.
Very OT now tho, so i'll leave it alone.
Very OT now tho, so i'll leave it alone.
