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Taking on Emirates in their own background

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Taking on Emirates in their own background

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Old 10th Jun 2010, 04:28
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Taking on Emirates in their own Backyard

Emirates seems to be the only airline that is confident about the future and is not risk averse.
Qantas just sits back and cops it while complaining about the uneven playing field.
Get some hulls to start flying to Dubai and take these guys on.
The kangaroo route is losing money.Travellers are sick of Deathrow and having to backtrack to reach their European destinations.
Dubai is a fantastic launchpad to Europe...no Deathrow and no backtracking
Qantas used to be an innovator..now its just a shrinking whiner

Last edited by Ka.Boom; 10th Jun 2010 at 07:24. Reason: oops!
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Old 10th Jun 2010, 04:59
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Ka,

Not to be pedantic (OK, yes I am!!) but the phrase you're looking for is "Taking on Emirates in their own backYARD"

The porblem with what you are saying is, well, exactley what you are saying. Dubai is a great Hub, not a destination in itself. Something like 80% of EKs traffic through DXB is transit pax going on the different destinations.

There would be no point QF flying there unless it was tied up with other carriers going on to popular destinations in Europe, Africa and the Sub-Continent,.

Even then, you can't match the seamlessness and consistency of product of flying with one carrier through a hub which it basically owns. This has always been the strength of the likes of Singair and Thai, and EK has taken it to a new level.

Australia simply is where it is, and Qantas has the restraints that implys. It also has the advantage that it can reach some of it's biggest markets (notably North America) non-stop, and is thus able to shut fifth-freedom competition out on those routes.

If THAT ever changes, QF would be in REAL trouble!
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Old 10th Jun 2010, 05:06
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slight thread drift

Wizofoz,

Your entire argument is not only correct, but exactly the reason Singapore, Emirates and any other carrier should not be given rights to fly across the Pacific.

Australia is simply where it is. We need some advantage over the rest of the world. Everything down here is all to hard for the rest of the world, UNLESS there is a dollar in for someone.

Back on topic. No matter where Qantas hub through, people going to Europe want to go to Europe. A stop in Dubai, Singapore, Bangkok is still a stop. Ka does have a point.
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Old 10th Jun 2010, 05:27
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If you can't beat 'em join 'em!

Qantas and Emirates merger
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Old 10th Jun 2010, 05:46
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correct,there

was a plan to go to abu dhabi a while ago but it looks like being shelved. there is no clear strategy at the moment for QF. They pin their hopes on 7 million FF, J* expansion and Qf using A380 to Lax & Lhr. sad story indeed!
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Old 10th Jun 2010, 06:14
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A good post. QFs problems in my opinion are twofold. 1) The product has slipped, however the A380 is an excellent improvement however it only makes up a small part of the network at the moment. 2) Thanks to Dickson we never purchased the 777 and this has created a major problem in that Qf cant hub into Singapore from Brisbane and Perth with these aircraft and then send them on thinner routes to Europe with paxs that have come from Syd/Mel on the A380. I believe the failure to purchase the 777 will go down in history as one of the worst mistakes management have made in the airlines history. It will haunt Qf for many many years to come. I think they are now so far behind the power curve re competing with Emirates that they will never get in front of them. Witness the Tasman where they have basically capitulated and are competing with 737s against Emirates wide bodies. I know whose aircraft id be on if i was paying for the ticket.
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Old 10th Jun 2010, 07:17
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Abu Dhabi

What about operating the A380 as QF1 and QF2 through Abu Dhabi to LHR and return. QF already codeshare with Etihad and they have a fairly substantial network into Europe. This would at least put a QF presence in the Middle East with connections through to the UK and Europe. They could then leave Bangkok/Thailand to JQ.
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Old 10th Jun 2010, 07:57
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Solution

A380 into Dubai
Base 3 or 4 A330 in Dubai
Zurich Copenhagen and Paris all within reach
But wait...I forgot JetStar will be doing that.
Therein lies the problem...no growth for mainline while Jetstar is around
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Old 10th Jun 2010, 10:25
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Basically, exactly as Wizofoz says. Emirates offers CONNECTIONS, QF would need to fly into Dubai from SYD/MEL/PER/BNE and then tie up connecting flights with other airlines or operate those flights themselves.

They would have the problems of coordinating timetables, code shares, baggage transfers and revenue sharing just to start with.

Emirates can offer Birmingham UK to Perth with one stop via Dubai. QF would only attract passengers going to Australia where as EK can offer them Africa, Far East, Asia and South America, possibly North America if the price made up for the extra travel time. A seamless, easy way to travel with all the ease of staying on one carrier.

With modern aircraft it is possible to fly from Dubai to any point in the world non stop. With its central location it covers a huge chunk of the travel market.

QF don't have the aircraft or product to compete. B744s are too big for frequency on the thinner routes, and who wants to fly long range on a B767 ? EK enjoy considerable cost savings with Dubai based non unionized labour, and don't have to follow Australian workplace laws.ie they don't have to pay inflated wages to non performing personnel who can't be sacked.

Had QF bought B777s and operated a hub through Singapore it could have had a much more extensive European network and competed on the major city routes to Australia. EK now have a huge lead which will be difficult to catch even with the B787.
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Old 10th Jun 2010, 11:23
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Nothing wrong with being a pedant Wiz but
The porblem with what you are saying is, well, exactley what you are saying.
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Old 10th Jun 2010, 13:07
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Bugger Dubai, just go to twice a day with Etihad out of the ports the currently serve to Abu Dhabi. One Etihad flight, one QANATS flight. They codeshare already, and Etihad connections are pretty good to Europe. Could it be a possibility?
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Old 10th Jun 2010, 13:59
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B744s are too big for frequency on the thinner routes, and who wants to fly long range on a B767 ?
......Seemed to be okay for B707's back in the day.

EK enjoy considerable cost savings with Dubai based non unionized labour, and don't have to follow Australian workplace laws.ie they don't have to pay inflated wages to non performing personnel who can't be sacked.
......You're welcome to come work here in Australia for free.
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Old 10th Jun 2010, 14:33
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Originally Posted by The Green Goblin
Qantas and Emirates merger
Three words, Qantas Sales Act, no can do.

However if you were to spin off a lot of your airline growth into an airline that sits somewhere between a full service carrier and a LCC, it would be as good as, if not better than what airlines like EK offer as a regional product.

That airline would not be subject to the Qantas Sales Act, and could be taken over.

Originally Posted by A380-800 driver
Not being biased (I am an Aussie), but EK has a much better product than QF
EK has a range of products in service, not every aircraft is kitted out like the new A380s. Their older "regional" 2 class aircraft are not as good at the Jetstar product on the A330. However the seats on the aircraft are only just a part of the overall experience as you mentioned.
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Old 10th Jun 2010, 15:15
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......Seemed to be okay for B707's back in the day.
Ah yes, the good old days, when you would have gone London - Bahrain - Singapore - Perth - Sydney. A projector screen at the front and those rubber tube earphones. A trip down under or back to the old country would have been the highlight of your life. Now it's a wide body with 100 channels on demand IFE and a stopover in Dubai for some shopping. Affordable every few years if you're careful.

You're welcome to come work here in Australia for free
Unionised inefficiency and cost is fine when you have no competition or your competition has the same handicap. When the kangaroo route was a QF/BA duopoly the customer had little choice. Now Emirates, Etihad, Qatar, Cathay, Singapore, Malaysian, Korean, EVA, China, Thai, Brunei just to name a few are competing on the same route. They play by different rules with most of them having award winning service and/or government oil money backing them.

In the latest Skytrax awards QF come in at number seven THE WORLD AIRLINE AWARDS™ - the Passenger's Choice all of the other airlines in the top ten, except Air New Zealand, compete directly on the Australia - Europe run.

Whilst QF did well in the premium economy category, BA didn't win a single award, are bleeding money and beset by strikes. QF could be in the same position in a few years time.
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Old 11th Jun 2010, 18:06
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Why get so worked up about it?
It's beyond your control.
........let it go.
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Old 11th Jun 2010, 21:57
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Why get so worked up about it?
It's beyond your control.
........let it go.
Because it would be a great shame to see QANTAS end up like Swissair and SABENA perhaps?
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Old 11th Jun 2010, 22:13
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but EK has a much better product than QF. In my opinion, EK offers a better level of service on board than QF
Have travelled Business and with EK and the same with QF and in my opinion....QF's product is far superior to that of EK.
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Old 11th Jun 2010, 23:21
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You all seem to be forgetting the underlying issue with operating via the Middle East; it would only be viable if Qantas secured rights to fly onwards to Europe. Qantas needs daily services from the Middle East and beyond for the market to work. Flying only to the Middle East does not offer value for Qantas. The traffic would primarily be VFR.

The majority of traffic that actually goes to the Middle East is European traffic. It's not a destination, but simply a transit. People are not specifically going to the Middle East for holidays, they're simply transiting onwards to Europe.

Qantas cannot get traffic rights onwards to London on other preferred European cities.

That is the bottom line. The same applies to China. Qantas has been lobbying to allow travel to China and on to Europe, however has been denied access onwards.

Qantas needs access (and frequent) to London to enable onward European travel for customers, otherwise why would a customer fly Qantas via the Middle East to Europe when they can fly a Middle Eastern airline with a minimum potential two stops to get to a European city?

On Qantas you'd have to fly i.e. MEL/DXB (if an aircraft can make it)LHR/ATH for example or potential MEL/SIN/DXB/LHR/ATH to keep it all QF metal.

That is why Qantas code-shares with Etihad. But for Qantas to operate just to the Middle East - not viable. Also consider that the Middle East market is heavily saturated with capacity. The yields would be relatively poor.
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Old 12th Jun 2010, 03:20
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QANTAS had traffic rights via Bahrain to Europe for years, what happened to those?
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Old 12th Jun 2010, 03:45
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But for Qantas to operate just to the Middle East - not viable. Also consider that the Middle East market is heavily saturated with capacity
And if Emirates and Etihad were restricted to Aus/ME uplift/discharge, then they may elect not to operate at all to Australia. They are operating to/from Australia to capture end-to-end Aus/UK-Europe traffic, make no mistake. With the excess capacity they offer, the yields are also probably quite low but they have the wherewthal to absorb it - for now. These carriers are no more than leeches, parasites - call them what you will.
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