Qantas Shrinking Footprint
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Qantas Shrinking Footprint
Qantas loses battle for rising passenger numbers
Steve Creedy, Aviation writer From: The Australian October 29, 2010 12:00 QANTAS mainline's share of the growing number of international passengers has slumped 40 per cent over the past decade.
The onslaught of hub and low-cost carriers has caused the decline, new figures show.
The slump comes as overall international passenger numbers flying in and out of Australia have soared from less than 16 million at the start of the decade to a record 25.6 million in 2009-10.
This includes a 9.1 per cent increase on 2008-09 figures as Australian aviation bucked the global financial crisis to post solid passenger growth both internationally and domestically.
The figures from the Bureau of Infrastructure, Transport and Regional Economics show Qantas mainline's share of the international market in 2009-10 was 19.5 per cent -- 15 percentage points down on 1999-2000.
Even the rising footprint of Jetstar, which went from zero market share to 8.1 per cent last financial year, failed to stem a shrinkage for the overall Qantas group.
This was well below the 34.5 per cent share Qantas enjoyed at the start of the decade.
Qantas remained the dominant player in international markets, followed by Singapore Airlines (9.7 per cent), Jetstar (8.1 per cent), Air New Zealand (8 per cent) and Emirates (7.9 per cent).
The share of passenger traffic accounted for by Australian designated airlines slipped from 37.9 per cent in 1999-2000 to 32.8 per cent last year but was up slightly on the 2004-05 result of 32.1 per cent as V Australia and Strategic Airlines joined the fray.
The figures also highlighted the phenomenal growth of low-cost carriers over recent years.
They accounted for 18 per cent of the overall passenger market, up from 13.7 per cent in 2008-09 and 10.9 per cent in 2007-08.
Jetstar accounted for almost 45 per cent of the market followed by Pacific Blue with just under 34 per cent.
Domestically, passenger numbers grew 3 per cent in 2009-10 to 51.76 million after taking off in the second half.
The number of seats rose 1.7 per cent to 66.6 million while load factors increased from 78.6 per cent for the year ending June 2009, to 79.5 per cent last year.
The fastest growing domestic routes were Adelaide-Gold Coast, Cairns-Townsville, Port Macquarie-Sydney and Melbourne-Sydney.
Transport Minister Anthony Albanese said the growth underscored the industry's resilience but also the benefit of government stimulus packages.
Steve Creedy, Aviation writer From: The Australian October 29, 2010 12:00 QANTAS mainline's share of the growing number of international passengers has slumped 40 per cent over the past decade.
The onslaught of hub and low-cost carriers has caused the decline, new figures show.
The slump comes as overall international passenger numbers flying in and out of Australia have soared from less than 16 million at the start of the decade to a record 25.6 million in 2009-10.
This includes a 9.1 per cent increase on 2008-09 figures as Australian aviation bucked the global financial crisis to post solid passenger growth both internationally and domestically.
The figures from the Bureau of Infrastructure, Transport and Regional Economics show Qantas mainline's share of the international market in 2009-10 was 19.5 per cent -- 15 percentage points down on 1999-2000.
Even the rising footprint of Jetstar, which went from zero market share to 8.1 per cent last financial year, failed to stem a shrinkage for the overall Qantas group.
This was well below the 34.5 per cent share Qantas enjoyed at the start of the decade.
Qantas remained the dominant player in international markets, followed by Singapore Airlines (9.7 per cent), Jetstar (8.1 per cent), Air New Zealand (8 per cent) and Emirates (7.9 per cent).
The share of passenger traffic accounted for by Australian designated airlines slipped from 37.9 per cent in 1999-2000 to 32.8 per cent last year but was up slightly on the 2004-05 result of 32.1 per cent as V Australia and Strategic Airlines joined the fray.
The figures also highlighted the phenomenal growth of low-cost carriers over recent years.
They accounted for 18 per cent of the overall passenger market, up from 13.7 per cent in 2008-09 and 10.9 per cent in 2007-08.
Jetstar accounted for almost 45 per cent of the market followed by Pacific Blue with just under 34 per cent.
Domestically, passenger numbers grew 3 per cent in 2009-10 to 51.76 million after taking off in the second half.
The number of seats rose 1.7 per cent to 66.6 million while load factors increased from 78.6 per cent for the year ending June 2009, to 79.5 per cent last year.
The fastest growing domestic routes were Adelaide-Gold Coast, Cairns-Townsville, Port Macquarie-Sydney and Melbourne-Sydney.
Transport Minister Anthony Albanese said the growth underscored the industry's resilience but also the benefit of government stimulus packages.
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Just quoting percentages is useless, numbers can be made to say anything.
Annother way to look at it is, at the decade start QF had 34.5% of 16M pax or 5.52M pax. Now the QF group (QF + Jetstar) have 27.6% of 25.6M pax or 7.06M pax. Thats 27.8% growth over the decade, for the QF group.
Looking at QF mainline vs Jetstar, mainline has gone from 5.52M pax to 5.38M pax, a slight reduction and Jetstar has gone from 0 to 2.2M pax. So thats where the growth is for QF. But its not all doom and gloom as per the headline.
Annother way to look at it is, at the decade start QF had 34.5% of 16M pax or 5.52M pax. Now the QF group (QF + Jetstar) have 27.6% of 25.6M pax or 7.06M pax. Thats 27.8% growth over the decade, for the QF group.
Looking at QF mainline vs Jetstar, mainline has gone from 5.52M pax to 5.38M pax, a slight reduction and Jetstar has gone from 0 to 2.2M pax. So thats where the growth is for QF. But its not all doom and gloom as per the headline.
More sobering reading is the chairmans and ceos address today at the agm.
http://www.asx.com.au/asxpdf/2010102...5yg1drfqqk.pdf
I'm just glad it's cup time and we can all be like the board, and back a winner.
http://www.asx.com.au/asxpdf/2010102...5yg1drfqqk.pdf
I'm just glad it's cup time and we can all be like the board, and back a winner.
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Gone From The Qantas Network
Tahiti
Bahrain
Amsterdam
Manchester
Athens
Rome
Osaka
Nagoya
Taipei
Seoul
Beijing
Auckland
Christchurch
Wellington
Paris
Kuala Lumpur
Harare
Mauritius
Belgrade
Apologies for those I've forgotten
Bahrain
Amsterdam
Manchester
Athens
Rome
Osaka
Nagoya
Taipei
Seoul
Beijing
Auckland
Christchurch
Wellington
Paris
Kuala Lumpur
Harare
Mauritius
Belgrade
Apologies for those I've forgotten
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Incapable of Defense
QF management have a Sydney/Domestic centric skillset.They all came from TAA when it took over Qantas.
They have no idea how to run an international operation
.Qantas will eventually be an oxidised bronze plaque on a building somewhere in Mascot.
Q.How do you turn a well run outstanding international airline into a basket case?
A.Put Goof Dixon in charge
They have no idea how to run an international operation
.Qantas will eventually be an oxidised bronze plaque on a building somewhere in Mascot.
Q.How do you turn a well run outstanding international airline into a basket case?
A.Put Goof Dixon in charge
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Interesting postion at yesterdays Annual Management Bonus Meeting where Clifford and later in a presser, AJ, - proclaimed more JQ growth with 787's on international routes including Milan & Greece from first delivery in 2012.
Given the initial 787 deliveries are 787-800's in a generic 'domestic' style config, it poses some interesting questions & definately underscores the SIN based hub model.
(BTW: Pilot rest = two seats in the last row of J with flimsy curtain)
Also what has escaped most was the Board's decree that the 787's are to be fully interoperable between JQ & QF........
........Ka.Boom suspect there will be a few more to added to your list!
AT
Given the initial 787 deliveries are 787-800's in a generic 'domestic' style config, it poses some interesting questions & definately underscores the SIN based hub model.
(BTW: Pilot rest = two seats in the last row of J with flimsy curtain)
Also what has escaped most was the Board's decree that the 787's are to be fully interoperable between JQ & QF........
........Ka.Boom suspect there will be a few more to added to your list!
AT
73to91 - I think the Fiesta Route went Sydney/Nadi/Papeete/Acapulco/Mexico City/Nassau/Bermuda/London and vv.
And I think Vienna has been omitted from the list of dropped stations, not to mention Damascus, Delhi, Tehran, and a few other flash places from days of old!.
And I think Vienna has been omitted from the list of dropped stations, not to mention Damascus, Delhi, Tehran, and a few other flash places from days of old!.
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My "Eyewitness" Travel books for Switzerland and Europe still say that QANTAS flies to Zurich, so I guess that they may have done so at some stage - obviously the book is now wrong. I also understand (from one of my spies) that there had been plans to service Paris via Shanghai, by Jet*, but that this was refused by the French on the grounds that CDG Airport was not available to Low Cost Carriers!
Nunc est bibendum
IIRC the issue with Paris is frequency. QF manager at Paris reckoned he could fill daily 744s but we only had rights for 3 a week and that was never going to make money.
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Keg, I think there was also the issue that we could have the slots we needed but only if we provided some sort of local feeder service. I can't remember the details but I do remember that being mentioned.
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QF also operated a Tehran-Tel Aviv sector (and was probably the last airline to do so) back in the days of noisy 707's and pilots fat pay packets
Yes, the worst kept secret in Qantas.
The only ones who don't appear to know yet are the SFO ground staff.
It makes me wonder some times why they don't just shut the whole airline down in one foul swoop.
This death by a thousand cuts just does my head in.......
The only ones who don't appear to know yet are the SFO ground staff.
It makes me wonder some times why they don't just shut the whole airline down in one foul swoop.
This death by a thousand cuts just does my head in.......