"Exploiting Asian Markets" - Irish Suicide.
Quote:
The simple answer to turning mainline around is putting 787's on routes instead of the cancer getting 'em.
The simple answer to turning mainline around now is putting 777's on routes instead of waiting for 787s which may turn out to be lemons (if they ever arrive).
The simple answer to turning mainline around is putting 787's on routes instead of the cancer getting 'em.
The simple answer to turning mainline around now is putting 777's on routes instead of waiting for 787s which may turn out to be lemons (if they ever arrive).
They have also said publicly on numberous occasions that it's not the right aircraft for Qantas (even though darth said publicly it'd be nice to have them circa 2008). They can't be seen to have made a mistake. They are the worlds best airline management team. In fact they are so good, when negotiating with other airlines they are using their 'expertise' and 'systems' as a resource to bid with instead of capital. Good grief. Not even a bankrupt airline would do a deal like that!
Lasty they can't get old of them because there is such a long wait list.
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People will be happy to not pay for their legs?
Asia's Budget Airlines Add Long-Haul Flights - Travel News Story - KTVZ Bend
Hmmm, we will see I guess...
He did not believe that the lack of service and legroom provided by budget airlines would necessarily be a fatal turn-off for customers facing a 10-hour long-haul flight -- as long as the fares were low enough.
"No entertainment? You can solve it by having your own iPad or PSP. Free food on a flag carrier, or buy it yourself on a low-cost carrier? It's not an issue. Most of us will have a bite to eat at the airport and can purchase something extra on board if necessary," he said. "Besides, in economy class on the flag carriers there's not a lot of leg room to begin with."
Cowen added that low-cost carriers could pack up to 25% extra passenger seats in their aircraft, and also had a "big advantage" in not facing the substantial infrastructure costs borne by the legacy carriers, who were being forced to get into the low-cost sector themselves. "They've realized if they don't, they're going to lose the market anyway," he said.
Cannibalization needn't be a problem, according to Cowen. The success of a budget carrier like Jetstar in operating alongside its full-service counterpart Qantas shows how the two brands could collaborate to serve different segments of the market without poaching each other's customers. "All of us don't drive a Mercedes Benz and all of us don't drive a Volkswagen Golf," he said
"No entertainment? You can solve it by having your own iPad or PSP. Free food on a flag carrier, or buy it yourself on a low-cost carrier? It's not an issue. Most of us will have a bite to eat at the airport and can purchase something extra on board if necessary," he said. "Besides, in economy class on the flag carriers there's not a lot of leg room to begin with."
Cowen added that low-cost carriers could pack up to 25% extra passenger seats in their aircraft, and also had a "big advantage" in not facing the substantial infrastructure costs borne by the legacy carriers, who were being forced to get into the low-cost sector themselves. "They've realized if they don't, they're going to lose the market anyway," he said.
Cannibalization needn't be a problem, according to Cowen. The success of a budget carrier like Jetstar in operating alongside its full-service counterpart Qantas shows how the two brands could collaborate to serve different segments of the market without poaching each other's customers. "All of us don't drive a Mercedes Benz and all of us don't drive a Volkswagen Golf," he said
Except VW Golfs and MB are both premium brands. Bad analogy - or a good one. Idiots! Fundamentally all LCC's MUST learn how to charge more for a product or they will fail.
We had a worlds best premium brand that is now at least partly trashed. With J* they are working out how to charge more for the product. By definition they will meet in the middle. Crazy duplication if nothing else...
It is a bit like arguing wars are good for economic development. If that were really the case the US govt would have been busily building aircraft carriers and battle groups since 1945 and sending them out on their maiden voyages to sink them in the Pacific.
We had a worlds best premium brand that is now at least partly trashed. With J* they are working out how to charge more for the product. By definition they will meet in the middle. Crazy duplication if nothing else...
It is a bit like arguing wars are good for economic development. If that were really the case the US govt would have been busily building aircraft carriers and battle groups since 1945 and sending them out on their maiden voyages to sink them in the Pacific.
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What now for our beleaguered roo?
Flacks in flight from Qantas
Qantas Airways has been rocked by the sudden departures of two senior executives.
The head of government and public affairs Jim Carden and the head of corporate communication Justin Kelly resigned on Tuesday and left their positions immediately.
They reported directly to the group executive of government and corporate affairs, Olivia Wirth, who many say is the closest confidant of chief executive Alan Joyce.
Last night Ms Wirth confirmed Mr Carden and Mr Kelly had left the airline but declined to discuss the circumstances surrounding their departure. She said only that they had “resigned to pursue other interests”.
uh oh. rats deserting the shinking ship 
Nunc est bibendum
They reported directly... Olivia Wirth, who many say is the closest confidant of chief executive Alan Joyce.
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The best analagy of what's been going on at the big Q as I've been told, goes something like what Murdoch did to Ansett. He used the cash flow from Ansett to build his media empire. Little or no money pumped back into the product which eventually caused Ansett to wither and die. Amazing how many of those same managers who engineered this amazing transformation at Ansett are also in charge of Qantas' grand business transformation too.
The same appears to be happening with Qantas. The smartest guys in the room are using Qantas' cashflow to build their Pan Asian strategy through Jetstar, thereby hoping to cash in on the one place in the world where growth is predicted to be greatest. In the process bypassing the Qantas Sale Act and Australias complex and restrictive labour laws.
Will be interesting to see how much longer this house of cards will remain standing.
The future is bright, the future is Absolutely Orange!
The same appears to be happening with Qantas. The smartest guys in the room are using Qantas' cashflow to build their Pan Asian strategy through Jetstar, thereby hoping to cash in on the one place in the world where growth is predicted to be greatest. In the process bypassing the Qantas Sale Act and Australias complex and restrictive labour laws.
Will be interesting to see how much longer this house of cards will remain standing.
The future is bright, the future is Absolutely Orange!
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Back to QF's Asian strategy and how it is supposed to make them lots of money. Asia is touted as this wonderful place with astronomical growth. Growing middle class and what not.
The Asian Growth story is a lovely story to spin to the media, especially if you are a listed stock. My company makes most of its money in the West, but it's not a nice story to tell the media when you appear before them and say "well despite the negative press you read about Italy, the USA and Europe, it generates more profits for us than our Asian operations ever will".
The fact of the matter is, only 20 million Indian nationals have an income of US$2000 or more per month. That's less than 2% of India. 90% of Indonesians haven't stepped onto a plane. The only markets in Asia with a sizeable middle class able to fly (besides Japan and Korea) are SIN and HKG. But SIN and HKG are small with tiny domestic populations. Now how jetstar japan would turn out with 4 shareholders and having to appease all 4 of them.... God only knows. With a small home population of 5 million, SIN handles nearly 50 million pax. How much more could SIN feasibly handle?
Airfares, especially international airfares, out of Australia, are among the highest in the world. This is why SIA and CX focus huge amounts of capacity flying into Australia rather than their own backyards.
The SIA Group with Scoot will fly 5 widebodies a day to Sydney, including 2 A380s, 1 773, 1 A330 and 1 772ER. That's more capacity than SIA has to most cities in South East Asia, except Jakarta.
SIA Group has more capacity to Sydney than Bangkok. More capacity to Brisbane than Penang. More capacity to Perth than Guangzhou, more capacity to Adelaide than Surabaya (which is the second largest city in "booming" Indonesia) and almost more capacity to Melbourne than Manila.
SIA would happily divert their widebody aircraft to Sydney and Melbourne, and let Jetstar/Tiger fight over serving Ho Chi Minh City 4 times a day at their $90 return fares. Or KUL at their usual $0 base return fares, and Manila with fares at $100 return or less sometimes.
The 777s and A330s better serve SIA to and from Australia, where they can extract some of the highest yields known in the industry.
Qantas happily withdraws from its home market and wants to enter routes such as SIN-KUL, SIN-MNL and SIN-SGN to earn $60 return from pax, whereas SQ uses their aircraft to SYD and extracts $12,000 return fares in First Class from Sydney onwards to Europe and limits their exposure in South East Asia to a few trunk routes, relegating most of the region to Silk Air.
Who's the winner here?
The Asian Growth story is a lovely story to spin to the media, especially if you are a listed stock. My company makes most of its money in the West, but it's not a nice story to tell the media when you appear before them and say "well despite the negative press you read about Italy, the USA and Europe, it generates more profits for us than our Asian operations ever will".
The fact of the matter is, only 20 million Indian nationals have an income of US$2000 or more per month. That's less than 2% of India. 90% of Indonesians haven't stepped onto a plane. The only markets in Asia with a sizeable middle class able to fly (besides Japan and Korea) are SIN and HKG. But SIN and HKG are small with tiny domestic populations. Now how jetstar japan would turn out with 4 shareholders and having to appease all 4 of them.... God only knows. With a small home population of 5 million, SIN handles nearly 50 million pax. How much more could SIN feasibly handle?
Airfares, especially international airfares, out of Australia, are among the highest in the world. This is why SIA and CX focus huge amounts of capacity flying into Australia rather than their own backyards.
The SIA Group with Scoot will fly 5 widebodies a day to Sydney, including 2 A380s, 1 773, 1 A330 and 1 772ER. That's more capacity than SIA has to most cities in South East Asia, except Jakarta.
SIA Group has more capacity to Sydney than Bangkok. More capacity to Brisbane than Penang. More capacity to Perth than Guangzhou, more capacity to Adelaide than Surabaya (which is the second largest city in "booming" Indonesia) and almost more capacity to Melbourne than Manila.
SIA would happily divert their widebody aircraft to Sydney and Melbourne, and let Jetstar/Tiger fight over serving Ho Chi Minh City 4 times a day at their $90 return fares. Or KUL at their usual $0 base return fares, and Manila with fares at $100 return or less sometimes.
The 777s and A330s better serve SIA to and from Australia, where they can extract some of the highest yields known in the industry.
Qantas happily withdraws from its home market and wants to enter routes such as SIN-KUL, SIN-MNL and SIN-SGN to earn $60 return from pax, whereas SQ uses their aircraft to SYD and extracts $12,000 return fares in First Class from Sydney onwards to Europe and limits their exposure in South East Asia to a few trunk routes, relegating most of the region to Silk Air.
Who's the winner here?
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Perhaps Frau Wirthless, as the dominant alpha male, decided it was time to exercise that option?
Maybe her underlings had criticized her moustache or sideburns?
Or is it a cost cutting exercise - punt two PR clowns and save half a million per year and have a Nupty aviation reporter from WA do the PR almost for free!
As for her being da little fella's confidante I can only imagine (and it's not pretty) what he would be confiding in her about!!!
Maybe her underlings had criticized her moustache or sideburns?
Or is it a cost cutting exercise - punt two PR clowns and save half a million per year and have a Nupty aviation reporter from WA do the PR almost for free!
As for her being da little fella's confidante I can only imagine (and it's not pretty) what he would be confiding in her about!!!
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I can't believe this ... something er "Positive.."
Pretty good too! the question is do they mean it? It's the way it should be... considering the huge investment they have in you, Qantas pilots have always been good team players the same can be said for the engineers, cabin & ground crews..
The last ten years, somehow, it all got lost.... so sad...
Last edited by TIMA9X; 16th Mar 2012 at 17:04.
Does anyone seriously believe that little video makes any difference to management's plans to 'transform' the international business?
All Australian based staff are too expensive and will see their jobs outsourced, or eliminated and later re-established overseas to avoid the use of the word 'offshoring' wherever possible.
A 3 minute video won't change that. Stick that up your engagement survey.
All Australian based staff are too expensive and will see their jobs outsourced, or eliminated and later re-established overseas to avoid the use of the word 'offshoring' wherever possible.
A 3 minute video won't change that. Stick that up your engagement survey.
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Why is Olivia Wirth leaving she would be close to being the next one in line for the CEO's position surely???????
With a Mix of A380's and B787's Qantas must be in the box seat for international expansion. Using 787's on long haul from Asia to Heathrow or anywhere else in Europe makes the policy of bigger planes with more seats and lower operating costs redundant. If this is the new policy then full 737's flying to London from Australia would be the way to go!!!!!!
Just another QANTAS inconsistency and why the airline will go broke in time.
With a Mix of A380's and B787's Qantas must be in the box seat for international expansion. Using 787's on long haul from Asia to Heathrow or anywhere else in Europe makes the policy of bigger planes with more seats and lower operating costs redundant. If this is the new policy then full 737's flying to London from Australia would be the way to go!!!!!!
Just another QANTAS inconsistency and why the airline will go broke in time.