Qantas boss Alan Joyce says the airline will respond fiercely to new start-up carrier Bonza’s attempts to break into the domestic aviation market, while questioning its ability to find new routes that are currently unserved by incumbent carriers. |
He can talk the talk, still remains to be seen if the passenger demand even exists though.
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Oh dear.
He referenced Tiger being bought by Virgin as a loss of the only independent LCC. He did not mention that they could not make money. I gave up after five minutes. Good luck but I have a bad feeling. Edit; I went back to finish watching. “Airports are the single biggest cost”….really? |
Originally Posted by PoppaJo
(Post 11163417)
He can talk the talk, still remains to be seen if the passenger demand even exists though.
https://vimeo.com/655960388 |
This guys is way off the mark! Comparing Australia to the U.S which has a population 15 times us.
They’re suppose to be starting Q2 this yr! Shouldn’t they be up to employment, maybe proving flights etc? |
If the population here was 40/50m, then sure, he just might be able to to make it work. But even if it was, the incumbents would already have expanded and catered to that market.
The CCO here has worked at both Tiger and Jetstar in commercial and would have a good understanding of the profit pool available and where it is. Yet they are jumping into 90% of routes that are underserved or not served, with zero knowledge of the profit pool on these markets. Tiger did try a few of these regional low frequency markets like Alice, Mackay and Rocky directs from down south. Couldn’t get the demand. |
He referenced Tiger being bought by Virgin as a loss of the only independent LCC. He did not mention that they could not make money. And as said above, anyone who compares the Australian domestic market to the US has been sniffing some sort of fumes for too long. If the population here was 40/50m |
Perhaps they will make their fortune flying Busselton - Melbourne or Sydney - Broome?
|
Originally Posted by Icarus2001
(Post 11163693)
Perhaps they will make their fortune flying Busselton - Melbourne or Sydney - Broome?
40! The largest regional areas with a local airport capable of taking a 737. 1. Gold Coast 2. Newcastle 3. Sunshine Coast 4. Geelong/Avalon 5. Townsville 6. Cairns 7. Toowoomba 8. Launceston 9. Mackay 10. Rockhampton They all pretty much have fairly solid point to point routes as it is. |
I have to laugh at that list, Jetstar cant even operate Avalon/Sydney without subsidies, and that's a huge entity with market power to reduce cost per seat. None of the others would support a 737 on a frequency basis that would pay down the fixed op costs. Even if you said they hopped between destinations to keep utilisation high the truth is the main load factors all occurr at similar times and the rest of the week will be losses and marking time.
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Originally Posted by PoppaJo
(Post 11163708)
Thats only two. He said with 8 aircraft, 3/4 weekly he can serve 40 odd of these underrated routes.
40! The largest regional areas with a local airport capable of taking a 737. 1. Gold Coast 2. Newcastle 3. Sunshine Coast 4. Geelong/Avalon 5. Townsville 6. Cairns 7. Toowoomba 8. Launceston 9. Mackay 10. Rockhampton They all pretty much have fairly solid point to point routes as it is. |
Alice is about 35k, has around 5 flights a day. You really need foreign tourists to help that one work, Jetstar are direct into Ayers Rock now also. Tiger tried Alice from all major capitals, couldn’t get the demand high enough.
However Alice has high airport costs which goes against what the bloke above was talking about. |
So let's have a try at some routes that could support 2-4 returns per week
Sunny Coast to Hobart, Launceston or Perth Sydney or Melbourne to Mackay, Rockhampton or Bundy Gold Coast to Darwin Coffs, Port Maq, Ballina to Adelaide Hervey Bay to Melbourne Broome, Port Headland, Kalgoorlie, Brusselton to Sydney or Melbourne There's 25 Starting to get thin after this or routes already served |
I thought they were avoiding Sydney, Melbourne, Gold Coast, Adelaide and maybe Darwin as they’re major hubs and to expensive.
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Not possible to avoid Capitals one would think
If Capitals were out of the equation, what's left wouldn't even half fill a SAAB |
Originally Posted by PoppaJo
(Post 11163417)
He can talk the talk
That purple and thumbs up logo is ugly as hell. |
Originally Posted by Deano969
(Post 11163861)
If Capitals were out of the equation, what's left wouldn't even half fill a SAAB
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I would have thought an operation like the US regional using smaller jets would've been much most cost-effective if they are looking to tap the regional markets while avoiding the big cities... but what would I know:ugh:
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Originally Posted by hyg
(Post 11164936)
I would have thought an operation like the US regional using smaller jets would've been much most cost-effective if they are looking to tap the regional markets while avoiding the big cities... but what would I know:ugh:
|
Originally Posted by PoppaJo
(Post 11163417)
He can talk the talk, still remains to be seen if the passenger demand even exists though.
https://vimeo.com/655960388 |
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