ClassicLover From Ireland, joined Mar 2004, 4522 posts, RR: 25 Reply 1, posted (8 years 7 months 2 weeks 17 hours ago) and read 2056 times:
That seems very embryonic, doesn't it?
It would be interesting to see how a full service airline would go in Australia, considering that Qantas has that market sewn up. Also, Qantas, far from sitting on its laurels, is upgrading the domestic full service product as well...
Could be interesting, if it gets off the ground. I somehow doubt they will find the money to do it...
I do quite enjoy a spot of flying - more so when it's not in Economy!
Qantasflyer From Australia, joined Mar 2004, 396 posts, RR: 2 Reply 3, posted (8 years 7 months 2 weeks 15 hours ago) and read 1947 times:
Wow that would be GOLD! Another full service airline in Australia would be great, i am not too fond of the low cost carriers and much preffer traditional carriers. I would love to see Gold start operations, however i too must agree with everyone else this seems highly unlikely. I just doubt that there is enough demand for a fourth major dometsic player in the market for a population hardly exceeding 20 million.
Qantasflyer That's the spirit. The Spirit of Australia!
Bill142 From Australia, joined Aug 2004, 8320 posts, RR: 9 Reply 4, posted (8 years 7 months 2 weeks 11 hours ago) and read 1850 times:
we simply don't have the population to support 4 national airlines... had Qantas not introduced Jetstar, then this new airline may have found things easier. Although DJ whinge moan and bitch about QF and JQ, JQ has basically meant that no other airline can enter the market leaving the QF group and DJ to basically fight it out for marketshare.
Antares From Australia, joined Jun 2004, 1402 posts, RR: 41 Reply 8, posted (8 years 7 months 1 week 6 days 19 hours ago) and read 1464 times:
Singapore Airlines effectively did a deal with Qantas over 'on-carriage' or connecting flights that is so good it has no incentive to throw more money after the $700 million or so it has already burned on Air NZ/Ansett.
JQ has done considerable damage to Qantas and DJ yields, with Qantas admitting to a 9.6% drop in July and Virgin Blue shocking the market with a 20% drop in profits in the four months to the end of July.
But JQ is not going head to head with DJ where it does the most damage to Qantas which is the trunk line routes like SYD-MEL and SYD-Brisbane. And it appears to have driven a lot of former Qantas customers in Tasmania and the Gold and Sunshine Coasts into Virgin Blue jets, where they have discovered it is a much more comfortable experience than Jetstar, and at pretty good fares.
(The fares situation is very confusing, you can get great deals on all carriers if you haunt the websites. Really p**sses off the corporate accounts and small business types like me, because these accounts no longer deliver consistently competitive outcomes.)
Bearing in mind that all three carriers are run by pretty smart people it is safe to predict that all three may change their style of service in some manner over the next year or so.
Room for a fourth carrier just isn't there, as people have rightly noted. And you'd have to ask where they would get the necessary gates at the major airports. The new Adelaide domestic terminal is pretty shabby for REX but great for Qantas and Virgin Blue, as you'll see when it opens soon, T2 at Sydney is looking so tight they are trying to force REX out, and Qantas is dealing with its inability to sell T3 at the 'right' price to Sydney Airport, which wants to blend T2 and T3 via the horshoe shaped area that lies between them.
One things for sure, the market isn't going to back a full service carrier if it wants to have a float. They don't earn enough money, even Qantas says it is making less than an adequate return on investment, so it will have to be low cost in structure, whether it chooses to go the Virgin Blue/JetBlue route or model itself more like Ryanair/Jetstar.