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QF To Discuss Low-cost Start-up This Week  
User currently offlineDalecary From , joined Dec 1969, posts, RR:
Posted (13 years 1 week 6 days 10 hours ago) and read 2029 times:


- BIZ-TECH


D-day looms for Qantas cut-price airline

By Mark Todd

Qantas Airways' board will this week consider a detailed plan to launch a low-cost international airline as the company tries to identify ways of expanding in a fiercely competitive aviation market.

The new airline would target markets, mostly in Asia, that are not profitable for Qantas to serve under its current cost structure. It is believed the proposal calls for the creation of a new entity operating under a separate management team and using a fresh logo, leaving the Flying Kangaroo to the main brand.

Analysts believe Qantas could launch the airline for relatively little outlay. Aircraft leases will comprise the bulk of the costs, as the company already has all the requisite terminal and administrative infrastructure in place.

It is estimated Qantas could start a service of six Boeing 767s using only $400 million in capital. Qantas would inject as much as $100 million in equity into a new subsidiary and raise $300 million in debt funding.

Qantas would put employees of the new carrier on separate, presumably inferior, awards and conditions. The airline's planes would have only one class of seating.

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Macquarie Equities suggested in a recent research note that Qantas needed to expand its international business away from the traditional routes of the US, Europe, and Japan to increase revenue at better than the 5 per cent to 7 per cent at which the market is growing.

A low-cost carrier could open "at least" another 10 routes for Qantas. Potential routes include Malaysia, Greece, Vanuatu, Vietnam, Korea, China, United Arab Emirates, Sri Lanka, and secondary ports in Thailand and Japan.

Macquarie estimated a low-cost carrier could break even with a load factor of only 54 per cent, or a little more than half a plane load. Qantas's current threshold on its international business is 66 per cent, meaning it is restricted to flying the busier routes.

Earlier this year, Qantas was forced to suspend uneconomical services to Canada and China.

Qantas's board will meet this Wednesday to discuss the proposal. Some analysts are expecting a decision on a cut-price airline to accompany the full-year financial results scheduled for issue on Thursday.

A year of tough domestic and international competition, spiralling fuel prices and a weak dollar have extracted a heavy toll on the company. On average, analysts forecast Qantas earned a net profit of $320 million in the 12 months to June 30, 2001, down more than 25 per cent from a year ago.

The board is also expected to consider the outlook and whether to further investigate a partial float of the company's wholesale travel division, Qantas Holidays, and its $500 million worth of terminal assets.

On another front, Qantas remains busy trying to garner support for its proposal to take a substantial stake in Air New Zealand as a precursor to closer relations between the two carriers. Late last week, Qantas chief executive Mr Geoff Dixon held talks with Mr Rob Cameron, representing the joint committee established by the Australian and New Zealand governments to consider the issue.

Air NZ has favoured a plan for major shareholder Singapore Airlines to increase its stake to help provide funds for a much needed $4 billion fleet upgrade. The deal requires NZ government approval. A decision is expected by the end of the month.




18 replies: All unread, jump to last
 
User currently offlineKiwi dave From New Zealand, joined Aug 2000, 895 posts, RR: 0
Reply 1, posted (13 years 1 week 6 days 4 hours ago) and read 1925 times:

Good to see that QANTAS is going ahead with this idea.
What will it be called?


User currently offlineBruneiAir From , joined Dec 1969, posts, RR:
Reply 2, posted (13 years 1 week 6 days 4 hours ago) and read 1921 times:

QUTARZ
 Smile/happy/getting dizzy Smile/happy/getting dizzy Smile/happy/getting dizzy


User currently offlineQANTASforever From , joined Dec 1969, posts, RR:
Reply 3, posted (13 years 1 week 6 days 3 hours ago) and read 1920 times:

Australian Airlines??? LOL
Maybe OZ Air?


User currently offlineBruneiair From , joined Dec 1969, posts, RR:
Reply 4, posted (13 years 1 week 6 days 1 hour ago) and read 1909 times:

maybe we might see Australia Asia again ? (hope not)

Would love for Australian Airlines to come back (QF please bring back the livery too)

For More info read Oz777's post he seems as though he is in the know about this

http://www.airliners.net/discussions/general_aviation/read.main/543742/

 Smile Giving the world Asias BEST  Smile


User currently offlineAussie_ From Australia, joined Dec 2000, 1766 posts, RR: 5
Reply 5, posted (13 years 1 week 6 days ago) and read 1902 times:

I've heard that a rebirth of Australian Airlines is on the cards as a name. But nothing is certain yet.

I wonder if they'll just fly from SYD and MEL or whether they might actually consider caring about cities such as Adelaide again???

I'm curious about the livery too, as the flying Kangaroo will not be on it.

Exciting times.


User currently offlineGardermoen From Australia, joined Jul 1999, 1522 posts, RR: 1
Reply 6, posted (13 years 1 week 5 days 23 hours ago) and read 1895 times:

If they did something along the lines as to what Condor is to Lufthansa, Balair to Swissair it will probably work well.

User currently offlineCeilidh From , joined Dec 1969, posts, RR:
Reply 7, posted (13 years 1 week 5 days 18 hours ago) and read 1881 times:

Come on guys, you should be able to guess what it will be called... Impulse!!!! Big grin Big grin Big grin

User currently offlineGardermoen From Australia, joined Jul 1999, 1522 posts, RR: 1
Reply 8, posted (13 years 1 week 5 days 17 hours ago) and read 1880 times:

Ceilidh, Actually, I have always thought that the Impulse brand would be a good one for its low-cost start up. That cockatoo logo is very impressive, yet has this "low cost"/leisure-like feel to it, without it looking trashy. It looked really good on the 717s, so imagine it on a bigger long haul jet.
Perhaps they could bring that brand back to the skies....


User currently offlineA380 From Canada, joined Dec 2000, 658 posts, RR: 1
Reply 9, posted (13 years 1 week 5 days 13 hours ago) and read 1867 times:

How about

Quantas Big grin


User currently offlineZizou From Australia, joined Oct 2000, 1535 posts, RR: 4
Reply 10, posted (13 years 1 week 5 days 10 hours ago) and read 1859 times:

Interestting that they are looking at routes to Sri Lanka (of all places!) and the UAE. Would they fly direct? Or stopover in Singapore, Kuala Lumpur etc? With what aircraft? I suppose the B767-300s are probably the frontrunners...

User currently offlineAussie_ From Australia, joined Dec 2000, 1766 posts, RR: 5
Reply 11, posted (13 years 1 week 5 days 8 hours ago) and read 1853 times:

I wonder whether they'll be a totally seperate entity or still hosted in the QF reservations system with a QF flight number code.

Another interesting question is whether QF Frequent Flyer will apply to the airline's services. Perhaps 0.5 FF miles per mile flown???

I noted Greece in the list of destinations - one of the obvious gaps in the QF network. However 763s into ATH maybe difficult using 767s if a stop is made in SIN or BKK as most QF flights do today. Perhaps the idea is to use Sri Lanka as a stopover for Europe services.

I would also tip Rome becoming a destination for this airline, as QF have often stated they have bumper loads but minimal profitability on these flights, due to Italys VFR destination status.

I also wonder whether QF might start flights to LON or elsewhere in the UK with this airline (also big VFR market), transferring all cheap seats on their current flights onto this new airline (say 2x QF to LON, 1x QFlite daily) thus allowing QF-proper planes higher yields.

Perhaps some of the remaining 742s or 743s could be used for FCO, ATH...

Just a few ideas.


User currently offlineMark_D. From Canada, joined Aug 2001, 1447 posts, RR: 5
Reply 12, posted (13 years 1 week 5 days 8 hours ago) and read 1854 times:


It would be nice if Impulse came back somehow, but.. probably too soon after the takeover, and anyway Qantas probably wouldn't be the ones to do such a thing either. Seems like they're really throwing around the flak with the timing of this, so overlapping the big AN/SQ etc. decision still being pondered, in Wellington.


User currently offlineFlyboyOz From Australia, joined Nov 2000, 1985 posts, RR: 25
Reply 13, posted (13 years 1 week 5 days 7 hours ago) and read 1847 times:

What about the new name of the airlines? Perhaps
The Australian Airlines or Impulse or Qanlite or Qantas Asia Shuttle or Qantas Asia airways or Quantas or etc...




The Spirit of AustraliAN - Longreach
User currently offlineAussie_ From Australia, joined Dec 2000, 1766 posts, RR: 5
Reply 14, posted (13 years 1 week 5 days 4 hours ago) and read 1840 times:

It's funny, because surely such an announcement would just serve to justify Ansett/Air NZ claim that Qantas is already big, getting bigger and wouldn't be too much at risk from a stronger AN/NZ.

User currently offlineOdiE From United States of America, joined Jan 2001, 1641 posts, RR: 1
Reply 15, posted (13 years 1 week 5 days 3 hours ago) and read 1836 times:

With this low-cost carrier, does this means that the service and the seats of this aircraft is compromised? Like those in the charter flights where the seat pitch is only 30" and stuff? And no PTV's and stuff? I don't think that an all Coach Class thing will do, at least have some Business Class seats.

I don't think they will fly into London or even Singapore as well as they do generate high yields for Qantas with their high load factor for their premium passengers!

Regards.


User currently offlineQantasAirways From Australia, joined Mar 2001, 1277 posts, RR: 3
Reply 16, posted (13 years 1 week 4 days 22 hours ago) and read 1824 times:

I completely support this idea!
I heard that they did it just to compete on levels with Singapore Airlines (though not the quality). But I am sure Asia is an excellent place to locate a budget airline - a lot of passengers would choose it!
I am excited  Big thumbs up

I really hope they name it something like Australian Airlines (Though I would have liked that better for Qantas) or even better Qantas Asia

What was the Australian Airlines logo?

Regards
QantasAirways
The spirit of Australia



Spirit of Australia
User currently offlineBruneiair From , joined Dec 1969, posts, RR:
Reply 17, posted (13 years 1 week 4 days 20 hours ago) and read 1810 times:

Here is a A300 in the Australian Airlines C/S - I reckon it looks nice just paint the engines, Would love to see a 767 in impulse markings.

But dont AirConnex still own the name and cocky ??


Click for large version
Click here for full size photo!

Photo © Brian Wilkes



Click for large version
Click here for full size photo!

Photo © Bruce Linwood




And heres TAA before they changed their name to Australian Airlines


Click for large version
Click here for full size photo!

Photo © Rod Callins



User currently offlineDalecary From , joined Dec 1969, posts, RR:
Reply 18, posted (13 years 1 week 3 days 6 hours ago) and read 1792 times:

Geoff Dixon stated today after the annual financial statement was announced that QF would decide by October whether to launch the discount carrier and it was hoped to start by July 1 2002,if approved.

Dale.


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