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Qantas Asian Expansion

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Old 13th Dec 2012, 04:08
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Dr Pepz,
Thats the whole point.
If EK is approved the flights will be retimed to earlier - this was never possible when they were flying through to LHR to land in the wee hours of the QF slots.

Given RedQ seems to be dead and buried hopefully QF can setup a mini-hub in SIN with requisite fly thru rights..
eg. SYD-SIN-DEL, MEL-SIN-BOM, BNE-SIN-BKK all arriving in SIN at around the same time to get the transfers occurring..

All should be achievable on 330s
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Old 13th Dec 2012, 04:10
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Qantas plans earlier Asia flights to win business travellers

It will reschedule HK, S'pore services that are arriving too late for meetings

It will also be offered on Qantas's routes to Johannesburg, London, Frankfurt and Dallas by the same date.
[SYDNEY] Qantas Airways Ltd, seeking to end losses on international routes, will reschedule Hong Kong and Singapore services that arrive too late for business meetings as part of an Asia restructuring to lure corporate travellers.
Many of Qantas's flights from Australia to Singapore and Hong Kong currently take up most of the working day, as the schedule is designed around onward connections to Europe, Simon Hickey, head of the airline's international division, said in an interview in Sydney on Tuesday.
The changes would mean travellers waste less of the business day in the air and can make regional connections without overnighting in Asian ports.
"You've been landing in Asia at convenient times for landing in London, instead of convenient times for you to go and do business in Singapore," Mr Hickey said.

Last edited by Metro man; 13th Dec 2012 at 04:11.
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Old 13th Dec 2012, 04:36
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Given RedQ seems to be dead and buried hopefully QF can setup a mini-hub in SIN with requisite fly thru rights..
eg. SYD-SIN-DEL, MEL-SIN-BOM, BNE-SIN-BKK all arriving in SIN at around the same time to get the transfers occurring..

All should be achievable on 330s
So QANTAS are going to go up against Singapore Incorporated in their own back yard ? They would be better off having a code share with SQ and transferring their passengers onto Singapore Airlines flights for onward connections. SQ have multiple departures (6 or 7 flights a day) to a wide range of destinations which aren't practical to fly to via Dubai. Full service in economy, business and sometimes first class is offered to a high standard. You're not asking premium passengers to fly on Jetstar.

At least Singapore and Hong Kong are destinations in themselves and not just a transit point. Perth certainly has the demand for flights to Singapore without having to rely on connecting passengers to fill the aircraft.

Of course there would be the same problem as there is with Emirates, why not just buy a ticket all the way on one airline if you have a connecting flight. QANTAS could sell code share seats on SQ and become a virtual airline.
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Old 13th Dec 2012, 17:32
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I think Joyce is clutching at straws.
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Old 13th Dec 2012, 17:55
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Singapore Airlines puts focus on Asia after selling Virgin Atlantic stake

Singapore Airlines puts focus on Asia after selling Virgin Atlantic stake

Singapore Airlines puts focus on Asia after selling Virgin Atlantic stake

Date December 13, 2012 - 11:54PM


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Singapore Airlines' sale of its 49-per cent stake in Virgin Atlantic will allow the cash-rich Asian carrier to focus resources on its fast-growing regional market, analysts said Wednesday.
The Singapore carrier's tie-up with British billionaire Richard Branson's Virgin Atlantic never really took off since the alliance began 12 years ago when the stake was bought for 600 million pounds ($A918 million).
Singapore Airlines (SIA) on Tuesday said it will sell the stake to Delta Air Lines of the United States for $US360 million ($A341 million) in cash in a deal to be completed next year.
SIA said it "had been evaluating strategic options for the stake for some time, as the investment has not performed to expectations and the synergies the parties originally hoped for have not materialised."
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Analysts said SIA, consistently one of the world's most profitable airlines, had little say in how Virgin Atlantic was run by the flamboyant Branson, and the sale allows it to exit an underperforming investment in the troubled European market.
"SIA can now focus on investments in the Asia Pacific region," Brendan Sobie, a Singapore-based analyst with industry consultancy Centre for Aviation, said.
Sobie said it made more sense for Delta to have a strategic stake in Virgin Atlantic as there are more synergies in their trans-Atlantic network.
Jason Hughes, an analyst with IG Markets Singapore, said that despite the higher acquisition price paid by SIA, the $US360 million "will go down as a profit, as losses had already been accounted for in previous years".
Malaysian bank CIMB said in a note that the sale would give SIA a "short-term boost" but urged investors to focus on the long-term challenges posed by Middle Eastern carriers and budget airlines.
Shukor Yusof, an aviation analyst with Standard & Poor's Equity Research, said SIA can use the extra cash to "redefine its business strategy on top of beefing up its regional subsidiaries".
"It's also good to exit out of Europe because the market conditions there are quite atrocious," he said.
Shukor said conflicting management styles with Branson was one of the chief reasons why the alliance failed to prosper beyond a code-sharing agreement.
"Branson remained the controlling shareholder and he called the shots," he said.
Virgin Atlantic also did not have enough slots at London's high-traffic Heathrow airport for SIA to latch on in its bid to gain a share of the lucrative trans-Atlantic route to New York, Shukor added.
Analysts said SIA's decision to buy the stake in Virgin Atlantic in March 2000 was a good move at the time because Asia was just emerging from the 1997-1998 financial crisis.
But the centre of global economic power has since shifted to Asia, sparking a travel boom in the region.
Passenger traffic in the Asia Pacific is forecast to account for 33 percent of the global market in 2016, up from 29 percent in 2011, according to trade body International Air Transport Association (IATA).
"This makes the region the largest regional market for air transport, ahead of North America and Europe which each represent 21 percent," IATA said in a statement on their latest industry forecast.
SIA has been investing both in the premium travel segment, where it faces competition from Middle East carriers, and in the low-cost market where it is challenged by budget airlines.
SIA in June launched a long-haul budget wing called Scoot while maintaining a substantial stake in low-fare carrier Tiger Airways. It also operates a regional wing, SilkAir.
SIA and Scoot in October announced orders for 45 Airbus and Boeing aircraft. The orders came after SilkAir in August said it would buy 54 new Boeing planes with an option to buy a further 14 aircraft.
AFP
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Old 13th Dec 2012, 23:23
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Jetstar IS the direction Qantas is taking..




THE competition watchdog has approved plans by Qantas to more closely integrate its operations with that of its low-cost airline Jetstar.

In a draft ruling, the Australian Competition and Consumer Commission (ACCC) has approved coordination between Qantas and its Jetstar operations in Australia, Singapore, Vietnam, Japan and yet-to-be-approved venture in Hong Kong on passenger and cargo services.

"The ACCC considers that the coordination is likely to result in public benefits to consumers by increasing the likelihood of additional Jetstar flights and destinations in Asia, and providing increased online connections for consumers," ACCC chairman Rod Sims said today.

In June, Qantas applied to the ACCC seeking approval for a Jetstar Joint Venture Coordination Agreement (JVCA) allowing the airlines to work together on matters such as network, scheduling, pricing, marketing, purchasing, customer service, frequent flyer and information technology.

"Under the JVCA, the parties propose to operate as a single, fully integrated organisation by coordinating their operations and activities in the Asian region," Qantas said in its submission.

"By adopting a single business model, the Jetstar group can achieve scale, generate efficiencies and deliver cost savings while optimising local execution."

Qantas said the JVCA would increase the "international competitiveness of a key Australian business by seeking to capitalise on the growth in demand for air travel services in Asia for its own benefit and ultimately the benefit of Australians".

The JVCA also proposed Jetstar's Japan, Vietnam and Hong Kong units being allowed coordinate services with their respective airline shareholders Japan Airlines, Vietnam Airlines and China Eastern Airlines.

Jetstar Hong Kong is waiting for regulatory approval from Hong Kong authorities.

The ACCC was seeking submissions from interested parties before issuing a final determination.
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Old 14th Dec 2012, 00:06
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next step: repainting
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Old 14th Dec 2012, 08:04
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I agree, it doesnt add up, a mass rebranding to QF for jetstar asia is far more likely than trying to connect QF pax onto jetstar from SIN. I recently flew jetstar OOL - NRT and back in their business class, and it was painful, real painful, i cant even imaGine what economy is like. And when i checked in at Narita it was amusing to say the least at several boxes of printer paper and boarding pass templates addressed to Qantas Airways Ltd Coward Street Mascot, then a sticker next to it forwarding to Jetstar Japan, who says they dont buy their own stuff?
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Old 14th Dec 2012, 09:43
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Just move QANTAS International entirely to the Asian hubs, Australian destinations to be served as a turn around flight originating in Asia. Aircraft and crews based in Singapore, Hong Kong etc with far more favourable (to the company) tax and employment laws, and lower costs.

Singapore recently had it's first strike in 26 years, a number of Chinese bus drivers refused to work. The ring leaders are out on bail at the moment awaiting court dates, a number of the others have been deported.

Problem solved.
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Old 15th Dec 2012, 03:48
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They would be better off having a code share with SQ and transferring their passengers onto Singapore Airlines flights for onward connections. SQ have multiple departures (6 or 7 flights a day) to a wide range of destinations which aren't practical to fly to via Dubai. Full service in economy, business and sometimes first class is offered to a high standard. You're not asking premium passengers to fly on Jetstar.
QF has tried unsuccessfully to deals with SQ for many years and couldn't reach an arrangement.
SQ is in Star and a shareholder of DJ.
There is more chance of PorkyPig Airline than a QF/SQ codeshare.

Doing a more comprehensive deal with MH, soon to join oneworld, is more foreseeable, but then KUL gets nowhere near the business demand as SIN so I suspect QF would only lose more passengers to SQ by switching services from SIN to KUL.
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Old 15th Dec 2012, 05:29
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At the moment QF can manage one direct flight between Brisbane and Singapore per day, next year when the hub is shifted to Dubai passenger numbers may decrease slightly as there won't be onward connections to London. Flying Qantas would only be suitable for those people who are only going as far as Singapore or those who don't mind stepping down to Jetstar for onward flights.

Singapore Airlines have three direct Singapore - Brisbane services per day which cater to people going to Singapore AND people with connecting flights to Asia and Europe.

The same would apply to other cities in Australia besides Brisbane.

Qantas may only be able to fly once a day to Asian cities while SQ and CX operate multiple flights on the same route with convenient, full service onward connecting flights attracting the bulk of the passengers.

Kuala Lumpur could be a good option to plug into Malaysia Airlines route network, the airport is underutilized and would probably offer attractive rates to promote itself as an air hub over it's rival, Changi. Same problem as before though, why not just buy a Malaysian Airlines ticket for the whole journey ?

Once MAS join One World, I wouldn't be surprised if QF start direct services from SYD/MEL to KL, with onward code share flights on Malaysia Airlines. However I doubt that Malaysia on it's own, unlike Singapore, has enough demand to support Qantas flights without connections. It may be easier to let MAS do all the flying from their lower cost base country and for QF to simply sell code share
tickets.

It may be more profitable to be a virtual airline instead of a real one.
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Old 15th Dec 2012, 08:59
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Joyce's announcement of Qantas Asian expansion must be seen for what it really is. A short term promise to get the Emirates deal over the line.

Joyce has no passion for Australian tourism, he's pulled out of the joint marketing deal with Tourism Australia and royally shafted 70,000 passengers and tourists when he grounded the airline last year.

Besides. Emirates have recently entered into agreements with Tourism Australia so why the need for Qantas too as well.

After grounding the airline last year, I thought at the time what was the logic behind alienating loyal passengers. Now I realise why, cause the Emirates deal will have premium passengers flocking to them in droves. That's the end game.

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Old 15th Dec 2012, 13:09
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I just got off an EK flight and there was an interview with EK CEO Tim Clark in one of the radio programs. Can't quote him verbatim but roughly he said the following

===========

"We have grown in a fashion no other airline in history has done"
"We approached Qantas.... they have a very strong brand don't get me wrong... but their international operations are struggling"
"We bring great value to Australians who can now get to many destinations without going through 2 or more stops"
"Qantas brings great value to us"
(Note: Very little was spoken about the value EK brings to QF)
Next he went on to talk about alliances.

"We have never been a fan of alliances"
We want our passengers to have the same plane experience from the beginning to the end of their journey. We have a strong product, we want to deliver a consistent product. Sending passengers through alliance partners means they do not get the same product experience which is what we want to avoid"
"Being in an alliance means other airlines tell us what to do, we have to follow this and that rule..... This is something we want to avoid"

==========

I hope Alan Joyce has listened to the interview. QF is about to get raped by EK. Notice how the QF flights to DXB require a 5-8 hour transit if you want to go anywhere but LHR (but why do you need to take QF to DXB and transfer to an EK flight to LHR) and FRA.

Perhaps EK does not want the QF flights to connect anywhere through DXB and want QF just to take their own pax from SYD and MEL to LHR. Tim Clark said in no uncertain terms that he does not want Emirates pax experiencing different airlines to get to their final destination. In this partnership, QF will be reduced to carrying pax who want to travel from MEL and SYD straight to LHR. EK will take everybody else.
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Old 15th Dec 2012, 14:10
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All he needs now is to find an airline to cover Asia in the same way he's got EK covering non London Europe and America for him.

QF will be reduced to a niche airline operating on routes where they don't compete head on with Middle Eastern and Asian airlines, and a few prime destinations such as London and Hong Kong.

Garuda may pose a threat in the medium term, with big expansion plans. Whilst not as well positioned geographically as the Middle Eastern airlines, they could still be a viable option for Asian and some European destinations. Just look at where QATAR Airways, Et**ad and Turkish Airlines were a few years ago.
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Old 15th Dec 2012, 14:55
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Isn't this what Virgin Australia does with SIA? They basically codeshare with SIA and Silk Air on every flight throughout Asia. Difference though is VA started with nothing and are trying to grow by being a virtual airline.

QF actually was a real airline 15 years ago flying to more than Singapore, LAX, London. Really, QF's network outside South West Pacific in a year will be:

Singapore (45 flights a week)
Jakarta daily from SYD
Manila daily from SYD
Shanghai daily from SYD
Tokyo daily from SYD and MEL
London daily from SYD and MEL
Bangkok daily from SYD
LAX - from SYD MEL BNE
DFW - daily from SYD
Dubai - daily from SYD and MEL
Santiago - 3 weekly from SYD
JFK - daily from LAX connecting from SYD/MEL/BNE
Johannesburg: Daily from SYD
Hong Kong: Daily from MEL, SYD BNE, 3 weekly from PER

That's 13 destinations outside Australia, New Zealand and the Pacific. If you don't live in Sydney or Melbourne, Qantas can basically take you to Singapore and if you're lucky, Hong Kong.

I'm sceptical Perth-Hong Kong and ADL-SIN will stay for much longer. I'm almost positive PERSIN will be single daily in a year's time.

Who could cover Asia for QF? Maybe MAS? Their network is not nearly as big as SQ's though. But then they'll have a dual hub in SIN and KUL. The dual SIN DXB hub is already going to cause lots of problems with split flows of traffic because the SIN flights are really going to feed no where.
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Old 16th Dec 2012, 03:35
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"Being in an alliance means other airlines tell us what to do, we have to follow this and that rule..... This is something we want to avoid"
Really? I guess annoying things like flight & duty times and protection of workers rights might be in there somewhere.
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Old 16th Dec 2012, 04:18
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Who could cover Asia for QF? Maybe MAS?

Havent QF tried them all and failed to get to first base?? Even remember reading atleast one who went as far to say "Don't like the management" Wonder why that would be??

Whereas DJ/JB has them climbing over themselves to get more of DJ.

Says it all really.


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