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

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

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.

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...

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:uhoh: There won't be 2 operators on the same regional turbo-prop route in WA for a long time, not enough market.

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)

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 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 statistics do not seem to support your point of view...

http://www.minister.infrastructure.g...s_airports.gif

You think the mighty Q bought Network so they can fly to Nifty?

Only so long you can go before the big boys come to town.

Although
 

Network don't have an ability to do RPT on their AOC. Yet.


520.

Great 2 hangers and great position. Just like a master chess move just waiting to come off.

Tender submission date was extended by a few months for the big Q to dot the i's and cross the t's in time. Hence why it hasn't been announced yet. :=

Seriously...you must have been hiding under a rock, it's been common knowledge for a while that at least GET, ALH and EPR are going to have competition...

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.

The 50 will be no match for a Q400 plus frequent flyer points.

Just in case there is any confusion have a read of this...

Aviation Framework

The main points are...

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?

could be on the money claret, as there is not much room left around QF or T3 for some Q400s...