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OzJet Filling Seats? - Give Seats Away  
User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Posted (8 years 3 months 1 week 3 days 21 hours ago) and read 1951 times:

Ozjet are now doing something that makes sense. If you can't sell it give it away. As Australia is still on summer holiday mode for another couple of weeks, not a lot of business types flying anywhere except on holidays. So OzJet are now giving away a seat with everyone purchased. They don't seem to clarify if it's on all fares or just the top fare, which at AUD$325 inclusive is still a deal compared to old QF.


below straight from OzJet website ...


For the price of one economy seat we'll give you two premium seats

Here is your opportunity to experience OzJet.

During January we are offering two all-leather premium seats for the price of one.

Pass one on to a colleague or friend or use the second seat for the return leg.

And once on board make sure you enjoy great service, space, comfort as well as the fine food on fine china and real drinks served in real glass.

Now that's an upgrade!

Conditions: All bookings to be made in January for travel from the 9th of January 2006 until February 28, 2006.

[Edited 2006-01-10 00:13:29]

17 replies: All unread, jump to last
 
User currently offlineBakestar From Australia, joined Sep 2005, 87 posts, RR: 0
Reply 1, posted (8 years 3 months 1 week 3 days 20 hours ago) and read 1898 times:

sounds like a last ditch effort.


fly'nhi
User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Reply 2, posted (8 years 3 months 1 week 3 days 20 hours ago) and read 1882 times:

Quoting Bakestar (Reply 1):
sounds like a last ditch effort.

Hardly !!! Stoddart knows how to mkae money !!!

Because of the ridiculous amount of Australian bureaucracy, it took them ages to get their AOC. Unfortunately getting it in late NOV in OZ, means they have to weather 2 months of very few business types flying for work, so this seems an excellent way of selling seats. Give away a few with ones they are selling. Still think they should have gone 2 class even if mostly busines or with converter seats !!!


User currently offlineAussieindc From United States of America, joined Jul 2005, 437 posts, RR: 0
Reply 3, posted (8 years 3 months 1 week 3 days 19 hours ago) and read 1838 times:

As OzJet is looking at the business market, it seems to make perfect sense for them to release a deal to put bums on seats during the holiday period. In all, it may just attract interest from those who would normally take a flex fare with either QF or DJ.

Good for them!

Quoting Simpilicity (Reply 2):
Hardly !!! Stoddart knows how to mkae money !!!

Agreed! You don't manage to run a Formula 1 minnow racing team for the length of time he did without brains and some business sense.


User currently offlineAussieindc From United States of America, joined Jul 2005, 437 posts, RR: 0
Reply 4, posted (8 years 3 months 1 week 3 days 19 hours ago) and read 1821 times:

Just checking their website, they do have the 2 for 1 available on the lower priced fares. Round trip from SYD-MEL based on 20 - 27 Jan $249.01 incl GST. Not too bad from where I sit over here in the US.

User currently offlineHKGKaiTak From Australia, joined Jun 2005, 1050 posts, RR: 0
Reply 5, posted (8 years 3 months 1 week 3 days 17 hours ago) and read 1770 times:

I think the deals are great ... too bad I don't have the urge to go to Melbourne right now!

It does sound a little desperate I have to say. I wonder how long they can keep this up for or what the QF and DJ response would be!

Looks like the discount war has begun!!!



4 Engines 4 LongHaul
User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Reply 6, posted (8 years 3 months 1 week 3 days 16 hours ago) and read 1745 times:

Quoting HKGKaiTak (Reply 5):
Looks like the discount war has begun!!!

ye but he's not discounting, it's not 50% off it's buy 1 get 1 free ... HUGE different. I don't think QF or DJ will or can react, especially QF.

It makes more sense to give away something you can't sell in summer holiday months than say free car hire which would cost them more cash !!!

This way it only costs them a few extra cents in fuel.


User currently offlineMrMcCoy From United States of America, joined Sep 2005, 377 posts, RR: 2
Reply 7, posted (8 years 3 months 1 week 3 days 14 hours ago) and read 1700 times:

Sounds good, but I wonder if we aren't asking the right questions.. OzJet's got a beautiful livery and a neat new business plan, but I'm not so sure on this one.


It only takes five years to go from rumor to standard operating procedure.
User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Reply 8, posted (8 years 3 months 1 week 2 days 18 hours ago) and read 1570 times:

let's hope it helps OzJet. QF certainly need some more competition ... they are so incredibly arrogant !!!

User currently offlineAntskip From Australia, joined Jan 2006, 910 posts, RR: 6
Reply 9, posted (8 years 2 months 4 weeks 1 day 22 hours ago) and read 1455 times:

An article today 21/01/06 on Ozjet in the Melbourne Age headed "New airline flies into turbulence": http://www.theage.com.au/news/busine...nce/2006/01/20/1137734151946.html.
"Some in the industry predict it could join Compass, Impulse and Ansett on the aviation scrap heap...Staff at one Australian airport are running a tab on how long OzJet will last. Many say it's only a matter of weeks...One source from a rival airline said OzJet was being bled by airport charges, fuel costs and staff wages but owner Mr Stoddart sold his Minardi formula one team last year for more than $35 million and Mr Van Pelt said he could afford to absorb losses. But the rival airline source said: "The way they are going I'd be stunned if they are around in six months."


User currently offlineHKGKaiTak From Australia, joined Jun 2005, 1050 posts, RR: 0
Reply 10, posted (8 years 2 months 4 weeks 1 day 14 hours ago) and read 1372 times:

We'll wait and see I guess. I can't see them lasting much longer at this rate either, but then the holiday season is over soon so you never know.

I wonder why TAB hasn't got odds on how long Ozjet could survive ...  duck 



4 Engines 4 LongHaul
User currently offlinePhilSquares From , joined Dec 1969, posts, RR:
Reply 11, posted (8 years 2 months 4 weeks 1 day 13 hours ago) and read 1353 times:

Quoting Simpilicity (Reply 2):
Hardly !!! Stoddart knows how to mkae money !!!

Stoddart knows how to make money on his employees back! He doesn't know squat about running a money making airline!


User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Reply 12, posted (8 years 2 months 4 weeks 1 day 8 hours ago) and read 1285 times:

Quoting HKGKaiTak (Reply 10):
I wonder why TAB hasn't got odds on how long Ozjet could survive ...

I think you may have forgotten he has NO overheads, compared to DJ or dodgy QF.

Quoting PhilSquares (Reply 11):
Stoddart knows how to make money on his employees back! He doesn't know squat about running a money making airline!

Think he did quite well out of EAAC, while it was the amangement company that stuffed up, couldn't make progress payment number 3 I think it was, so Stoddart got EAAC back !!!


User currently offlineAntares From Australia, joined Jun 2004, 1402 posts, RR: 39
Reply 13, posted (8 years 2 months 4 weeks 1 day ago) and read 1214 times:

Simpilicity,

Could you explain your 'no overheads' comment? What are we missing? Don't they pay staff, the airports, the en route charges, fuel and maintenance? Please let us know if they don't pay maintenance?

I notice the report finally twigged to the fact that some of the business travellers they are supposed to be getting fly under the terms of airline contracts, ie, they don't have choice.

Antares


User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Reply 14, posted (8 years 2 months 4 weeks 8 hours ago) and read 1125 times:

Quoting Antares (Reply 13):
Could you explain your 'no overheads' comment? What are we missing?

No aircraft acquisition costs or leasing costs, it's just a book entry.

When aircraft not busy & therefore not required during middle of the day or Sat pm or Sun am, they can just park them.

Sure they have other overheads, but they also have a huge spare parts inventory.

I think it might start getting interesting this week & next, with many school starting back after summer break & business types flying again en masse !!!

I gather, many Australians with families, who can afford it, get home from their northern winter holidays this week, in time for school & getting back to business.


User currently offlinePhilSquares From , joined Dec 1969, posts, RR:
Reply 15, posted (8 years 2 months 4 weeks 7 hours ago) and read 1096 times:

Quoting Simpilicity (Reply 12):
Think he did quite well out of EAAC, while it was the amangement company that stuffed up, couldn't make progress payment number 3 I think it was, so Stoddart got EAAC back !!!

Hmm, me thinks you have your facts a little wrong. Stoddard got nothing back, since he never sold anything. The widebodies at EAC weren't sold, the narrow bodies (737) were sold to Ozjet. A paper transaction, but yet it is still a transaction and he does have overhead.

In fact, I'd be willing to bet his overhead is larger than QF of DJ as a percentage revenue or operating expense.

Your characterization of Stoddard as an airline genius is a little off base. I'd suggest you look at his track record in the UK. Poor service, dodgy aircraft, if you call that good management...well....


User currently offlineHKGKaiTak From Australia, joined Jun 2005, 1050 posts, RR: 0
Reply 16, posted (8 years 2 months 3 weeks 6 days 17 hours ago) and read 1004 times:

Quoting Simpilicity (Reply 14):
When aircraft not busy & therefore not required during middle of the day or Sat pm or Sun am, they can just park them.

Sure they have other overheads, but they also have a huge spare parts inventory.

They are overheads then ...

There's also the small matter of aircraft utilisation, if your plane only generates revenue (and hopefully profits) for less hours than your competitor's do, then your overhead costs per passenger are still higher no matter the dollar figure.

Quoting PhilSquares (Reply 15):
Poor service, dodgy aircraft, if you call that good management...well....

It's great management if the punters are happy with this sort of product!!!  Big grin



4 Engines 4 LongHaul
User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Reply 17, posted (8 years 2 months 3 weeks 6 days 15 hours ago) and read 962 times:

Quoting PhilSquares (Reply 15):
Hmm, me thinks you have your facts a little wrong. Stoddard got nothing back, since he never sold anything.

Sold EAAC, on a 3 payments basis. Recd. 1st & 2nd payment & when they couldn't come up with 3rd even with an extension, he took it all back.

He was appealing to the leisure/charter market. He got the 742 from BA just after SEP11 for nothing & worked them.


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