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FlyboyOz
Topic Author
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Qantas' Most Profitable Route

Tue Sep 20, 2005 9:15 am

It is very interesting to discuss about BA's and LH's most profitable route in the threads before...Now, let's talk about QF

Qantas (It is not in right order cos i dont know which one is bigger profit)
1) Los Angeles (Lots of QF aircraft in LAX)
2) Singapore (It's Qantas foreign Hub)
3) Hong Kong (two or three flights from SYD to HKG and one flight from HKG to LHR)
4) London
5) Auckland (It includes Qantas New Zealand)

Am I right?

Anymore information you know about QF's profitable route?

[Edited 2005-09-20 02:16:15]
The Spirit of AustraliAN - Longreach
 
777ER
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RE: Qantas' Most Profitable Route

Tue Sep 20, 2005 3:36 pm

Quoting FlyboyOz (Thread starter):
1) Los Angeles (Lots of QF aircraft in LAX)

Thats what I thought also.
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'Longreach'
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RE: Qantas' Most Profitable Route

Tue Sep 20, 2005 4:18 pm

In terms of Domestic Profitability can I suggest PER - MEL/SYD?

It just seems that they do quite well off this route, and that has been backed up by their reluctance to let Jetstar into the market!

Can anyone confirm or deny my guess?
 
ZK-NBT
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RE: Qantas' Most Profitable Route

Tue Sep 20, 2005 4:22 pm

LAX is number 1 for sure. SYD-LAX would be the single most profitable route for QF.

AKL however wouldn't be in the top 5, not even top 10, the only profitable route in the whole QF network ex AKL is AKL-LAX.

HKG, SIN and LHR are probably about right, i'd say they do alright out of JNB and BKK aswell.
 
Airbus A3XX
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RE: Qantas' Most Profitable Route

Tue Sep 20, 2005 6:13 pm

I don't think HKG is very profitable for QF for now as the competition on the route is just so intense with very low fare offered (low yield).
 
Trolley Dolley
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RE: Qantas' Most Profitable Route

Tue Sep 20, 2005 6:15 pm

I would suggest the JNB route contributes more to QF's bottom line per flight than any other route. The fares are almost equal to the fares charged all the way through to London, but it's only a single sector flight. It code shares with SAA, giving it very cosy duopoly situation. The fares are that high that the commerce commission has declined an application for SA and QF to continue to codeshare. Also, from what I've been reading from the likes of AirNewZealand, the route is often crewed by lower paid NZ based staff.
 
wunala
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RE: Qantas' Most Profitable Route

Tue Sep 20, 2005 11:10 pm

In terms of Domestic Profitability can I suggest PER - MEL/SYD?

Longreach, I think one of the main routes in the golden triangle of BNE-SYD-MEL will be more profitable that MEL/SYD-PER. I went to MEL for the weekend, and the flight cost $656 return.

There is not much money in the trans-Tasman routes, thats why pornstar are taking over some of the routes, and the routes from MEL-NZ are actually flown by NZ craft and staff.
 
'Longreach'
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RE: Qantas' Most Profitable Route

Tue Sep 20, 2005 11:45 pm

Wunala,

I would have thought that with the amount of competition on the BNE-MEL-SYD route, that profits wouldn't be as high?

Thanks,
LR
 
HKGKaiTak
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RE: Qantas' Most Profitable Route

Wed Sep 21, 2005 1:06 pm

I often wonder how much QF makes on SYD/MEL - ASP/AYQ, no competition and reasonably high load factors, virtually all leisure traffic but they certainly make you pay decent fares for it ...
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TBCITDG
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RE: Qantas' Most Profitable Route

Wed Sep 21, 2005 2:57 pm

As stated previously, one must not over look the JNB route. QF and SA can charge just about anything that they like on this sector as they face no competition by any other carrier.
There was a rumour going around that the service may be increased towards the end of the year. Other than that LAX would have to be a cash cow!
 
PIA747
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RE: Qantas' Most Profitable Route

Wed Sep 21, 2005 3:06 pm

Domestic
Melbourne-Sydney
Sydney-Brisbane

Overseas
Melbourne/Sydney-LAX
Melbourne/Sydney-LHR via SIN
 
Halophila
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RE: Qantas' Most Profitable Route

Wed Sep 21, 2005 3:15 pm

LAX has got to be a main profit route form all 3 australian (SYD, MEL and BNE) and 1 new zealand city (AKL). It is virtually a triopoly between QF, NZ, and UA, although FJ and TN may take some share of the loads; I don't know how HA and AC are doing on their runs to HNL, but everytime I have checked the airfares ex SYD to HNL have been slightly less (by $100 - 250) than to North America. Over holiday periods, fares typically shoot up by $500 - $900 on those routes (from $1000 to ca. $1500 - 2000, and it seems all carriers have very similar pricing. It actually can cost less to fly to SIN and then down to Aus from there during these periods.

I take it Air Mauritius don't take much of the SYD/S.Africa trade?
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wunala
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RE: Qantas' Most Profitable Route

Wed Sep 21, 2005 8:19 pm

I would have thought that with the amount of competition on the BNE-MEL-SYD route, that profits wouldn't be as high?

Longreach, when I flew to MEL, J was full apart from 1 seat. Assuming 25% upgraded using points, that is still 21 pax paying $565 o/w, which is nearly $12K. Even if the other 200 odd pax paid on average $150 a tix, thats another $30k. I doubt even the average price was $150, as when I was looking at flights, mu choice was full Y or J for Friday evening.

And dont forget when Ansett collasped, there were 747's doing the domestic routes. Lucky for Qantas it happened at the same time as SARS etc, so they could pull capacity to where it was needed.

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