QF/EK Tie Up To Be Announced
short flights long nights
Here is a thought. Rumours of EK/QF tie up. Rumours of QF stopping all international services (or what are lerft of them) out of Perth and Adelaide.
Could the two be related?
Could the two be related?
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Qantas, Australia and the Middle East
Perhaps the best written article concerning Qantas, Australia and Middle Eastern Airlines.. Taken from gulfnews.com
Australia looms large in Gulf aviation
Emirates and Etihad eye expansion Down Under
Yet again, Australia looms large in Gulf aviation. First, Etihad Airways gets approval from Australia’s Foreign Investment Review Board to increase its stake in Virgin Australia to 10 per cent. Then Qantas’ share price goes up by that percentage when it announces that it is in serious discussion about some sort of cooperation with Emirates.
From the perspective of the Gulf carriers, the target is access to Australia’s domestic market. As I have previously mentioned, the arcane rules that govern air transport rule out the normal commercial options for accessing a market. So each of the UAE’s big two have taken their own road to get to market.
Australia is, in aviation terms, a special case. It is as if it was designed to be the world’s aviation test market. It is geographically huge and populated by some of the most industrious, peripatetic people on earth. Each weekend, for example, half the country seems to in airports following their football team to away fixtures. Sydney-Melbourne is one of the five busiest sectors in the world.
The mining boom means that on Monday mornings too, miners working on ‘fly-in; fly-out’ contracts are reporting for duty. That has put huge pressure on the existing infrastructure, particularly Perth and Brisbane airports. It has also meant that the domestic Australian market has been very strong. The strength of the Aussie dollar means Australians are taking overseas holidays in big numbers, making the international market strong too.
Beyond Australia is the trans-Tasman market and then going further east, there are the trans-Pacific routes to the USA and to Latin America to consider. Historically, trans-Pacific routes have been very profitable for Qantas. The Tasman is busy, but less profitable.
Emirates and Etihad need to access those keen-to-fly Australian passengers to feed into their network. Etihad’s strategy is to invest in like-minded carriers in certain markets — Aer Lingus in Ireland, airBerlin in Germany and Virgin Australia in Australia — and build feed from that relationship.
Emirates, to date, has not done that and has not done much in the way of traditional airline cooperation with other carriers generally. Its strategy has been to fly from its huge hub with new generation equipment to under-served markets that formerly required passengers to make a transfer to access. Geneva, Manchester and Lyon are examples of this; large cities on the ‘spoke’ of most airline networks. They have not needed to code-share to access these markets.
Code-sharing is an agreement between airlines to sell the flight using the airline codes of each airline, for each airline to sell the route as one it operates and then for the carriers to agree that only one of them will actually operate the flight on a particular day. It requires that each carrier be entitled to operate that route.
Pricing on the seats each carrier sells can be agreed individually, so it is not of itself anti-competitive to enter a code-share agreement. But it does have the effect of limiting, and sometimes reducing, the number of seats in the market. Reducing supply will usually work to increase prices.
Australia is different. Even if you fly to the big four — Sydney, Melbourne, Brisbane and Perth — there are still many passengers that need to fly on to other locations, or who commence their journey in other locations. It is those passengers that Emirates and Etihad are looking to bring onto their network.
For Qantas, an arrangement with Emirates will be interesting, to say the least. If it means that Qantas flies its passengers to Dubai, to have them transfer onto the Emirates’ European destinations, that will be good for Qantas’ passengers, giving them a vast choice of non-stop destinations, while avoiding a Heathrow transfer. But it will be a disaster for Qantas’ alliance partners, particularly British Airways, who will miss out on this traffic.
It will also signal a near final, fatal, retreat by Qantas from Europe. That will be a sad day for Australian aviation, but a lesson in airline management the world should learn from.
Emirates and Etihad shine out, like beacons in a blackout, to say that cost cutting and downsizing do not have to be the one and only way to build a successful airline. You need the right equipment, investment in your product, an understanding of your customers and their needs and vision.
In a nutshell, that's what we're all facing. Not just a tie up, but then a push into our domestic market.
Australia looms large in Gulf aviation
Emirates and Etihad eye expansion Down Under
Yet again, Australia looms large in Gulf aviation. First, Etihad Airways gets approval from Australia’s Foreign Investment Review Board to increase its stake in Virgin Australia to 10 per cent. Then Qantas’ share price goes up by that percentage when it announces that it is in serious discussion about some sort of cooperation with Emirates.
From the perspective of the Gulf carriers, the target is access to Australia’s domestic market. As I have previously mentioned, the arcane rules that govern air transport rule out the normal commercial options for accessing a market. So each of the UAE’s big two have taken their own road to get to market.
Australia is, in aviation terms, a special case. It is as if it was designed to be the world’s aviation test market. It is geographically huge and populated by some of the most industrious, peripatetic people on earth. Each weekend, for example, half the country seems to in airports following their football team to away fixtures. Sydney-Melbourne is one of the five busiest sectors in the world.
The mining boom means that on Monday mornings too, miners working on ‘fly-in; fly-out’ contracts are reporting for duty. That has put huge pressure on the existing infrastructure, particularly Perth and Brisbane airports. It has also meant that the domestic Australian market has been very strong. The strength of the Aussie dollar means Australians are taking overseas holidays in big numbers, making the international market strong too.
Beyond Australia is the trans-Tasman market and then going further east, there are the trans-Pacific routes to the USA and to Latin America to consider. Historically, trans-Pacific routes have been very profitable for Qantas. The Tasman is busy, but less profitable.
Emirates and Etihad need to access those keen-to-fly Australian passengers to feed into their network. Etihad’s strategy is to invest in like-minded carriers in certain markets — Aer Lingus in Ireland, airBerlin in Germany and Virgin Australia in Australia — and build feed from that relationship.
Emirates, to date, has not done that and has not done much in the way of traditional airline cooperation with other carriers generally. Its strategy has been to fly from its huge hub with new generation equipment to under-served markets that formerly required passengers to make a transfer to access. Geneva, Manchester and Lyon are examples of this; large cities on the ‘spoke’ of most airline networks. They have not needed to code-share to access these markets.
Code-sharing is an agreement between airlines to sell the flight using the airline codes of each airline, for each airline to sell the route as one it operates and then for the carriers to agree that only one of them will actually operate the flight on a particular day. It requires that each carrier be entitled to operate that route.
Pricing on the seats each carrier sells can be agreed individually, so it is not of itself anti-competitive to enter a code-share agreement. But it does have the effect of limiting, and sometimes reducing, the number of seats in the market. Reducing supply will usually work to increase prices.
Australia is different. Even if you fly to the big four — Sydney, Melbourne, Brisbane and Perth — there are still many passengers that need to fly on to other locations, or who commence their journey in other locations. It is those passengers that Emirates and Etihad are looking to bring onto their network.
For Qantas, an arrangement with Emirates will be interesting, to say the least. If it means that Qantas flies its passengers to Dubai, to have them transfer onto the Emirates’ European destinations, that will be good for Qantas’ passengers, giving them a vast choice of non-stop destinations, while avoiding a Heathrow transfer. But it will be a disaster for Qantas’ alliance partners, particularly British Airways, who will miss out on this traffic.
It will also signal a near final, fatal, retreat by Qantas from Europe. That will be a sad day for Australian aviation, but a lesson in airline management the world should learn from.
Emirates and Etihad shine out, like beacons in a blackout, to say that cost cutting and downsizing do not have to be the one and only way to build a successful airline. You need the right equipment, investment in your product, an understanding of your customers and their needs and vision.
In a nutshell, that's what we're all facing. Not just a tie up, but then a push into our domestic market.
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Dear Alan,
"Emirates and Etihad shine out, like beacons in a blackout, to say that cost cutting and downsizing do not have to be the one and only way to build a successful airline. You need the right equipment, investment in your product, an understanding of your customers and their needs and vision."
"Emirates and Etihad shine out, like beacons in a blackout, to say that cost cutting and downsizing do not have to be the one and only way to build a successful airline. You need the right equipment, investment in your product, an understanding of your customers and their needs and vision."
Cheap access to debt, no or virtually no tax on any part of the business, foreign governments that allow unfettered access to carriage of people, no or minimal requirement for ROCE due to a fundamental difference in the key driver of the company, no requirement to follow UN human rights requirements with respect to collective negotiation, marginal compliance with ICAO flight and duty requirements, no independent umpire who can look at the books for predatory pricing or uncompetitive behaviour, and be in a fortunate geographical position, but besides that they're standouts!
Don't worry, I still think QF management are numpties, but really....
Don't worry, I still think QF management are numpties, but really....
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An intriguing statement by EK in the press today that any tie up will take 6 months. I know these things take time but there is obviously still no deal so the leak is appalling. Wonder if it props up the share price for that six months. Typically deal would be announced saying details to follow, but not so here so we are all left to hanging by a thread (pun intended).
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Rumour has it that Emirates dont want a code share with Jetstar only Qantas, but that leaves a gap in destinations.
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And who in their right mind would want to code share anything of the ilk of Jetstar, so that would hardly be a surprise? Its only the idiots at Qantas that have this dream of being able to spread the costs across as many business entities as they can to make the place look good.
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And then all you need is a small QF Int. in Australia, say 16 A380's or so who fly pax to the hubs, and the new QF pilots fly them from there.. It makes sense on a strategic level of where the company, as a group, are at and where they are heading..
And it goes some way to explaining the red 787 tails in the US whilst no training has been undertaken at QF
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Was at the Everett Field just last month and there definitely AINT any B787s with a red and white tail on 'em. Or an Orange start on 'em either for that matter!
You blokes are jumping at shadows.
You blokes are jumping at shadows.
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Was at the Everett Field just last month and there definitely AINT any B787s with a red and white tail on 'em. Or an Orange star on 'em either for that matter!
You blokes are jumping at shadows.
You blokes are jumping at shadows.
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Air India pre paint job could easily be confused for a QF tail
First 787 built in SC takes maiden flight - San Antonio Express-News
First 787 built in SC takes maiden flight - San Antonio Express-News