Impulse: Cheap Flights

Wed Apr 12, 2000 5:49 pm

Impulse Airlines have announced that they will buy
5 New Boeing 717's to fly the No-frills Australian Domestic flights.
Directly competing with the soon to be Virgin Australia, QANTAS and Ansett Australia.
Posts: 3687
Joined: Mon Nov 15, 1999 4:51 am

RE: Impulse: Cheap Flights

Wed Apr 12, 2000 6:39 pm

Let's hope and pray that Impulse and Virgin will succeed. Compass was kicked out a few years ago, just because Ansett and Qantas blocked them from slots and facilities.
Domestic ticket-prices really suck now in Australia. I was there on holiday last month, and even short sectors like Darwin-Alice Springs were $500 or so, way above my budget.
Long live competition.
nobody has ever died from hard work, but why take the risk?
Posts: 150
Joined: Wed Sep 08, 1999 7:32 pm

RE: Impulse: Cheap Flights

Thu Apr 13, 2000 6:18 am

Heard on last night's news that Impulse plan to initially fly the SYD-MEL route from mid year, then around August add BNE to the network. Their fares are claimed to be half that charged by AN and QF. While similarly priced advance purchase fares are available from the domestic duopoly, they are limited to very few seats on any given flight and strict conditions apply. Impulse claim they will sell the cheaper tickets with no advance purchase requirement. I assume also that all seats on the no frills services will be the same price. Haven't heard yet if Impulse plans to operate in two classes as Compass Mk1 & 2 did.
Virgin will probably service the same capitals. It will be a very long time before fares on routes such as DRW-ASP see any real change in pricing I susupect....if ever!

Few Points

Thu Apr 13, 2000 9:51 am

Just a few points to make:

1) are correct about Compass failing, but another major reason is the fact that the A300 they were utilising are too big for domestic services (at the time). Plus the fact, that a business retard in the form of Brian Grey was at the helm, didn't do them much good either.

2) Domestic airfares in this country, when compared over comparable distances in the US, are really all not that different, and we have only 2 competing airlines. The Northern Territory really is an exception to the rule.

3) may be interested to know that Impulse are actually wanting to operate SYD-MEB, not MEL, as this is where they currently fly to from NTL with the Beech 1900. Although, it was on the news, that they would be building a terminal at MEL, so maybe the MEB plan has been forgotten about.

4) An interesting fact that I heard on the news last night. The financial backers behind Impulse's foray into the domestic sector, include the current owners, AMP and a Singapore Government Ministry. I wonder whether it would be the Ministry of Finance, which is a majority shareholder in Temasek Holdings, which in turn, has a majority share in SQ. Wouldn't this make for interesting times. Singapore is wanting a finger in each available pie.

5) QF hs just finalised a 5 year, $4 billion dollar deal with Flight Centres, to become their preferred carrier.
Macair SAAB
Posts: 322
Joined: Sun May 30, 1999 5:35 pm

RE: Impulse: Cheap Flights

Thu Apr 13, 2000 10:41 am

In an interview on Channel 9's Today program (Thursday morning) with the co-founder of Impulse, it was stated that the first of 5 new B717's would be delivered in 2 weeks and all five would be in service by the opening of the Olympics.
The first service will be between Sydney and Melbourne on June 6. Services to Brisbane will begin soon after. Impulse initially expect to have 11 return SYD-MEL flights and 6 SYD-BNE flights operating daily, with a majority of their slot times in the peak hours.
The seating arrangements will be all Economy. Tea and Coffee will be provided and a bar service will operate after Midday. No meals will be provided, however food may be purchased in the terminal before boarding the aircraft.
Impulse's regional flights will not change with the introductuion of the new flights. The regional network will continue to expand and will offer passengers with the chance to fly to and from the capitals and beyond.

Not too bad for an airline who started by flying newspapers through the bush! 

- Macair SAAB
Posts: 1008
Joined: Fri Nov 05, 1999 11:28 am

RE: Impulse: Cheap Flights

Thu Apr 13, 2000 10:43 am

Impulse are only going to offer 1 class, no meals, and no alliances.

Also, Impulse are still hosted in and are reliant on the Ansett reservation system (a legacy of their former alliances).

I agree too with you B_L in your first point, Compass went out of business as much for bad management as anything else. They started a price-war with a service level that could not support it, they operated the wrong aircraft types, and they operated the wrong markets as a start-up carrier.

Impulse has the advantage of knowing the market already. Believe me, they have been building and preparing themselves for this for quite some time now (I estimate about 4-5 years).

It is interesting that they have already fallen into the trap of crying foul of the big two carriers on a "predator pricing" basis. They have tried to use the very annual "May Sale" that both carriers have conducted over the last 5 years as a heart-string puller on the public (as the release of the sale coincided with the Impulse strategy release).

It all makes for interesting times ahead.


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