QF into Esp and others??
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Join Date: Jun 2010
Location: Sth West WA.
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QF into Esp and others??
Heard a rumour today that QF had won the tender to fly onto Esp.and other regional W.A.ports.Can anyone tell me what the go is.I have been stuck at Cloudbreak lately and have not been able to follow the news.(nothing to do with an a320 or whatever).Cheers.
no news I have heard, but if QF don't pick up some routes it will be a big surprise, likely that they will be competing over many of these routes however with XR
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do you reckon that they or anyone for that matter would survive if two (or more) airlines were allowed to compete in most of the smaller ports (such as ESP and others) where the state govt has had a one airline policy to provide some sort of protection for the airline that gets the contract
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Reality
The reality is that QF could take a loss on however many routes it needed to while competing with XR or whoever else until they muscled the competitor(s) out of the market.
After that, once they have the monopoly, they'll make money cause they can jack up the ticket prices to the extent where a typical passenger load from the particular port (such as ESP) will still break even or make money despite it not being so on other routes.
I.e. They (QF) may only break even on a flight from point A to point B with X number of tickets/pax sold at a price of $X. So, since places the WA coast towns are slightly shy on loads, they'll do ridiculously low prices to compete, then jack them up to $1.5X (for example) once they have the monopoly.
Just my opinion......as uninformed as it may be!
520.
After that, once they have the monopoly, they'll make money cause they can jack up the ticket prices to the extent where a typical passenger load from the particular port (such as ESP) will still break even or make money despite it not being so on other routes.
I.e. They (QF) may only break even on a flight from point A to point B with X number of tickets/pax sold at a price of $X. So, since places the WA coast towns are slightly shy on loads, they'll do ridiculously low prices to compete, then jack them up to $1.5X (for example) once they have the monopoly.
Just my opinion......as uninformed as it may be!
520.
I agree with Continental, and there is no way it would appear that a route like ESP with about 50,000 pax a year can support two viable operations.
The big advantage for QF is the lure of FF points and the ability to connect pax through Perth onto other services East, something XR can do but with a lesser extent on DJ...
The big advantage for QF is the lure of FF points and the ability to connect pax through Perth onto other services East, something XR can do but with a lesser extent on DJ...
There's been nothing about qantas/qantas link getting the coastal contract from the state government, it's a package. ie Albany, Geraldton, Esperance etc all come under the same deal. Skippers have the inland deal, Skywest have the coastal deal. Apart from the fact that Qantas/Qlink aren't even operating turbo-probs in WA yet...
I know they are apparenlty buying Network but that's still only Braz's until they can get some Dash 8s with defective undercarriage
There won't be 2 operators on the same regional turbo-prop route in WA for a long time, not enough market.
I know they are apparenlty buying Network but that's still only Braz's until they can get some Dash 8s with defective undercarriage There won't be 2 operators on the same regional turbo-prop route in WA for a long time, not enough market.
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And we all saw what happened when Skippers put the Braz and the Dash 8 up against the F50 into Geraldton & Monkey Mia. It didn't work, they didn't get the loads and adios Skippers.
Aside from the routes being a package, hisorically 2 operators don't get enough support for both to keep it viable. (Bearing in mind I think this was before the route networks were tendered for)
Aside from the routes being a package, hisorically 2 operators don't get enough support for both to keep it viable. (Bearing in mind I think this was before the route networks were tendered for)
Bottums Up
And there's not enough traffic to support more than two airlines, Ansett & Australian.
And in about ten years we've lost Ansett and gained Virgin, Jetsar & Tiger.
And in about ten years we've lost Ansett and gained Virgin, Jetsar & Tiger.
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And Clarrie in real terms VB replaced AN, JQ stole some of QF and any extra volume by JQ and the PussyCat is bugger all, so really only population growth has happened as well as the mix has changed a bit.
The beach has the sand castles moved around a bit and maybe a bit of extra sand.
The beach has the sand castles moved around a bit and maybe a bit of extra sand.
There's been nothing about qantas/qantas link getting the coastal contract from the state government, it's a package. ie Albany, Geraldton, Esperance etc all come under the same deal. Skippers have the inland deal, Skywest have the coastal deal. Apart from the fact that Qantas/Qlink aren't even operating turbo-probs in WA yet... I know they are apparenlty buying Network but that's still only Braz's until they can get some Dash 8s with defective undercarriage There won't be 2 operators on the same regional turbo-prop route in WA for a long time, not enough market.
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HAHAHA So you think XR doesn't rort the system with there pricing, your kidding yourself. Of course they do because they can. Competion is inevitable, maybe Skywest will just have to lift there game and provide a better service.
Just in case there is any confusion have a read of this...
Aviation Framework
The main points are...
Aviation Framework
The main points are...
■Geraldton will become deregulated;
■Services that are currently supplied through the Coastal Network, Northern Goldfields Network and the Kimberley subsidised air service will be offered through an arrangement of seven route/network configurations.
■There will be limited competition on four protected routes between Perth and Albany, Esperance, Learmonth and Leinster.
■Deeds will be for five years with a mid term review and a possible extension of up to a further five years.
■Services that are currently supplied through the Coastal Network, Northern Goldfields Network and the Kimberley subsidised air service will be offered through an arrangement of seven route/network configurations.
■There will be limited competition on four protected routes between Perth and Albany, Esperance, Learmonth and Leinster.
■Deeds will be for five years with a mid term review and a possible extension of up to a further five years.
Bottums Up
IMHO one is in lala land if one thinks QF has/is/might purchase Network in order to obtain an AOC. Why does QF need another AOC?
I wonder if their interest might be in some airport real estate?
I wonder if their interest might be in some airport real estate?