MEA
Topic Author
Posts: 585
Joined: Mon Jan 15, 2001 8:30 pm

No Low Fares For Australian Airlines

Wed Apr 10, 2002 12:34 pm

Low fares out at airline
AAP
10apr02

QANTAS Airways's new low-cost international airline, Australian Airlines, will not be a low-fare carrier nor compete head to head with its parent.

Australian Airlines chief executive officer Denis Adams said that while its cost base would be 30 per cent lower than Qantas, it would not be offering low fares to international passengers.

The new airline, owned by Qantas but independently managed out of a small corporate office of 15 staff in Cairns, will commence flying on October 27 with bookings open in May.

Mr Adams told a tourism industry breakfast in Brisbane that while the new carrier would be a party to the Qantas Frequent Flyer program, it would be restricted.

He said passengers would be able to burn points with Australian Airlines but the jury was still out as to whether or not they could earn them.

Access to the business passengers' Qantas Club lounge was also off limits to Australian Airlines passengers, in the interests of cost savings,

The Qantas offshoot was also confident of turning a "small profit" in its first year.

source: http://www.news.com.au/common/story_page/0,4057,4107071%255E1702,00.html
 
Air Taiwan
Posts: 1498
Joined: Fri Dec 03, 1999 3:06 pm

RE: No Low Fares For Australian Airlines

Wed Apr 10, 2002 4:05 pm

typical Qantas style...
 
TNboy
Posts: 1115
Joined: Mon Mar 04, 2002 8:12 pm

RE: No Low Fares For Australian Airlines

Wed Apr 10, 2002 7:27 pm

This really amazes me. The original plan called for a reduction in the number of FAs on each flight (numbers have since increased to QF levels), all-economy at, I think standard 32" pitch, and now there's a big question over award points.
If Australian is planning to charge standard industry fares, then it might just need to rethink the impression it has created of being a low-cost carrier. Low-cost to the operator, yes, but apparantly not to the customer.
But I guess we need to wait until fares are released before getting up too big a head of steam. Standard fares with good availability of advance purchase and similar discounts may be the way they go, and that would be fine, I guess.
Bill
"...every aircraft is subtly different.."