Qantas to start another airline offshore?
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Sorry Seldom I can't see how it would be different under a Liberal government. Are you privy to a secret plan by Tony Abbot to nationalize Qantas (I'd almost vote for him then)
Otherwise, what planet are they on, 'Premier Asian Airline' isn't there enough airlines already competing in Asia on both LLC and Legacy level.
QANTAS best playing card is that its Qantas. Its the Flag Carrier, its the only Australian Airline. Not Jetstar or Jetstar Asia or any other business title. Rather than trying to start new airlines shouldn't they be revamping and streamlining their products to compete with a new energized Virgin product. Perhaps we will see Virgin try and pick up the flag carrier mantle like they did with BA years ago.
My 2c
Perhaps they should ditch 'Spirit of Australia and give this a whirl, Qantas Still 51% Australian (till we get around the Qantas Sales Act.)'
Otherwise, what planet are they on, 'Premier Asian Airline' isn't there enough airlines already competing in Asia on both LLC and Legacy level.
QANTAS best playing card is that its Qantas. Its the Flag Carrier, its the only Australian Airline. Not Jetstar or Jetstar Asia or any other business title. Rather than trying to start new airlines shouldn't they be revamping and streamlining their products to compete with a new energized Virgin product. Perhaps we will see Virgin try and pick up the flag carrier mantle like they did with BA years ago.
My 2c
Perhaps they should ditch 'Spirit of Australia and give this a whirl, Qantas Still 51% Australian (till we get around the Qantas Sales Act.)'
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This is a very sad day :-(
Another silo is to be set up to destroy what we and our forefathers achieved.
I hate how our (QF) profits will be re routed to pay for another bunch of pilots that are to be used as industrial leverage to wipe me and my career from the face of the earth.
I love my job at Qantas but the future looks so dark I need night vision goggles. Looks like we will be S/Os for a very long time while they give window seats to blokes off the street to fly aircraft financed by mainline pilots work to Asian inexperience or Aussies wanting to jump the queue in shiny new A320s.
This Jetstar group crewing, does this remind anyone of the Waterfront dispute lead by chris corrigan?
Another silo is to be set up to destroy what we and our forefathers achieved.
I hate how our (QF) profits will be re routed to pay for another bunch of pilots that are to be used as industrial leverage to wipe me and my career from the face of the earth.
I love my job at Qantas but the future looks so dark I need night vision goggles. Looks like we will be S/Os for a very long time while they give window seats to blokes off the street to fly aircraft financed by mainline pilots work to Asian inexperience or Aussies wanting to jump the queue in shiny new A320s.
This Jetstar group crewing, does this remind anyone of the Waterfront dispute lead by chris corrigan?
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shmoo are you referring to the article in the AFR today? I have seen the first 2 lines of it online but cant access the rest. Something about a QANTAS Singapore or something? Any chance you can give more details?
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SHANGHAI has firmed as Qantas' preferred option for an Asian depot to resuscitate its international business by transferring those services to its discount airline Jetstar and avoid the costly long-haul trips to Australia.
The flag carrier, which yesterday scotched reports it was planning a Singapore or Malaysian hub, has launched a review of its overseas services.
A taskforce is expected to report to the board within months.
"The focus is on Qantas's long-haul business and we are keen to get it back to where it is providing an improved return on capital as soon as we can," a Qantas spokesman said.
However, this sparked renewed talk that Qantas might be planning for Jetstar to take over the bulk of its international operations in a bid to avoid unionised labour.
The spokesman refused to comment, and also dismissed as "pure speculation" reports that it was planning a new hub in Singapore or Malaysia to avoid flying some of its services all the way back to Australia.
Qantas chief executive Alan Joyce told BusinessDaily last month it would pursue a hub in Shanghai.
An analyst said the Qantas taskforce could not ignore establishing a base for Jetstar in Shanghai and offer the airline's services as a "real alternative to the Flying Kangaroo".
"The old Qantas model will not be around in anything like its present guise for too much longer, because if it continues the company will go out of business," the analyst said.
"This is the next logical step for two reasons: it allows Jetstar to address a far larger Asian and Middle-East market; and it gives the group the ability to assign the Jetstar or Qantas brands and cost structure to various international markets."
Qantas acknowledged its international business was underperforming.
"Our market share has fallen in recent years and we need to re-look at this area of the business," the statement said. "A project team has been established to look at Qantas' international product and service."
The flag carrier, which yesterday scotched reports it was planning a Singapore or Malaysian hub, has launched a review of its overseas services.
A taskforce is expected to report to the board within months.
"The focus is on Qantas's long-haul business and we are keen to get it back to where it is providing an improved return on capital as soon as we can," a Qantas spokesman said.
However, this sparked renewed talk that Qantas might be planning for Jetstar to take over the bulk of its international operations in a bid to avoid unionised labour.
The spokesman refused to comment, and also dismissed as "pure speculation" reports that it was planning a new hub in Singapore or Malaysia to avoid flying some of its services all the way back to Australia.
Qantas chief executive Alan Joyce told BusinessDaily last month it would pursue a hub in Shanghai.
An analyst said the Qantas taskforce could not ignore establishing a base for Jetstar in Shanghai and offer the airline's services as a "real alternative to the Flying Kangaroo".
"The old Qantas model will not be around in anything like its present guise for too much longer, because if it continues the company will go out of business," the analyst said.
"This is the next logical step for two reasons: it allows Jetstar to address a far larger Asian and Middle-East market; and it gives the group the ability to assign the Jetstar or Qantas brands and cost structure to various international markets."
Qantas acknowledged its international business was underperforming.
"Our market share has fallen in recent years and we need to re-look at this area of the business," the statement said. "A project team has been established to look at Qantas' international product and service."
You do not have to be a rocket scientist to see why QF International (non pacific) are underperforming. Uncompetitive number of frequencies, lack of destinations, poor inflight service, low quality catering etc etc.
You do not have to be a rocket scientist to see why QF International (non pacific) are underperforming.
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The only reason they are performing across the Pacific is because passengers don't (yet) have the option of Singapore Airlines or Emirates on that route.
Which, if the federal government stand back and allow Qantas to set up shop in asia to circumvent the Qantas sale act and Australian industrial laws, should be allowed to happen.
No more Alan Joyce pleading to the government for protection from competition on the pacific route, and of Australian jobs, if he's shipping jobs off to asia anyway.
Certainly is a bad smell in the air about Qantas these days. Not surprising after management have now hollowed out the QF Mainline carcass almost as must as can be.
Although, I'm sure there will be a lifeboat on this Titanic for Messers Joyce, Buchannan and co.
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what QF really wants
is to have the sales act changed!. this wold allow it to tie up with either IAG or other carriers.The idea of setting up a base in shanghai amuses me. they get skinned in Singapore, Vietnam and what makes them think they get a chanche to set up shop in Shanghai? With another local partner owning 51%? bloody stupied but who listens!
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Im not sure about this caper.
Setting up a bunch of A320's (initially) to cater to a growing middle class in Asia with a "premium" product flying into/out of Singapore just doesnt add up.
The market out of SIN already has a world beating premium airline of its own, SIA which the Singaporeans are fiercely proud of. Why on earth would this market suddenly be tempted away from SIA, CX, NH, JL, MH, etc etc with all the points and status they may already have accumulated over years of loyal patronage, to suddenly go en-masse to "Qantas Asia".
What they will most likely aim for is to eventually have 787's that will take all the pax inbound from Australia that have arrived into SIN on QF and send them off to points in Europe or wherever, with crew based completely in SIN. Basically, any service into/out of SIN on the 787 will NOT be crewed by Australians (on Australian terms and conditions)
Apparently they cannot use the Qantas name in this venture so who knows
what they plan to do about that.
And the obvious trade off in all of this will be giving SQ Trans Pacific rights they have long been after....a real smart move (not!)
Or, this could just be a smokescreen. A tactic to use in the middle of contentious EBA negotiations.
Who knows!!
One things for sure, Ill give them points for creativity.
Setting up a bunch of A320's (initially) to cater to a growing middle class in Asia with a "premium" product flying into/out of Singapore just doesnt add up.
The market out of SIN already has a world beating premium airline of its own, SIA which the Singaporeans are fiercely proud of. Why on earth would this market suddenly be tempted away from SIA, CX, NH, JL, MH, etc etc with all the points and status they may already have accumulated over years of loyal patronage, to suddenly go en-masse to "Qantas Asia".
What they will most likely aim for is to eventually have 787's that will take all the pax inbound from Australia that have arrived into SIN on QF and send them off to points in Europe or wherever, with crew based completely in SIN. Basically, any service into/out of SIN on the 787 will NOT be crewed by Australians (on Australian terms and conditions)
Apparently they cannot use the Qantas name in this venture so who knows
what they plan to do about that.
And the obvious trade off in all of this will be giving SQ Trans Pacific rights they have long been after....a real smart move (not!)
Or, this could just be a smokescreen. A tactic to use in the middle of contentious EBA negotiations.
Who knows!!
One things for sure, Ill give them points for creativity.
I suspect that this could be a pre-EBA negotiation warning shot.
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AH, I believe that the reference is today's 3-4 full pages on this subject in the weekend Financial Review. It's front page too... QANTAS LEAVES HOME.
Can't get access on line, so cannot post.
What a state of affairs!!!
Can't get access on line, so cannot post.
What a state of affairs!!!
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Hardball tactics may deliver rough ride
Can anyone get access to this article on QANTAS in todays AFR?
How about primitive scan, and upload image if anyone has the paper?
How about primitive scan, and upload image if anyone has the paper?
Hold on, I thought Shanghai wouldn't allow Low Cost airlines into their airport?
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Since when has it been good business practice to transfer capital and assets to a foreign entity over which you have no control? All it would take is a change in sentiment from the Singaporean investors or change in government policy and Qantas SIN could be speared off in a direction contrary to Qantas Group's best interests. Have any other companies successfully used this strategy?
This is apart from the fact that no foreign franchise (J* Asia, J* Pac) has made any money up to date. So why continue with this strategy, while neglecting the core business?
Also, the Australian public and politicians are well aware that this is a blatant attempt to circumvent the Qantas Sales Act, tax, employment conditions etc. How much goodwill had been lost? How receptive will Canberra be next time Qantas is lobbying for reduced foreign capacity? Will Qantas be able to take any action next time SIA applies to fly across the pacific? Not only has a Qantas given the Singaporeans a precedent to justify this occurring, it has now compromised its ability to lobby government to prevent this happening as it must keep the Singaporean government on side.
This is apart from the fact that no foreign franchise (J* Asia, J* Pac) has made any money up to date. So why continue with this strategy, while neglecting the core business?
Also, the Australian public and politicians are well aware that this is a blatant attempt to circumvent the Qantas Sales Act, tax, employment conditions etc. How much goodwill had been lost? How receptive will Canberra be next time Qantas is lobbying for reduced foreign capacity? Will Qantas be able to take any action next time SIA applies to fly across the pacific? Not only has a Qantas given the Singaporeans a precedent to justify this occurring, it has now compromised its ability to lobby government to prevent this happening as it must keep the Singaporean government on side.
The QANTAS group's best interest is simply whatever lines the pockets of the management. They did not make this airline, but the current lot will most certainly be the ones who destroy it.
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Qantas Leaves Home AFR May 14-15 2011
Note: if the images don't work, you can download a complete zip file PACK HERE
(even though it may say file not available, clicking on the images should still work)
(even though it may say file not available, clicking on the images should still work)
Last edited by breakfastburrito; 14th May 2011 at 23:21.
