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QF Cutting More Routes To Asia (TPE), Europe

Wed Feb 28, 2001 12:46 pm

This is from the Australian news paper: The West Australian on the 27th Feb.01

***More international Qantas routes facing the axe***

By Geoffrey Thomas

Qantas plans to cut flights to South America, Europe and Asia within the next month, as the airline rationalises operations to meet cost pressures from domestic competition.

Last Thursday, the airline outlined plans to halve services to China and Canada, along with 1,470 staff cuts in response to pressure on domestic yields, which sank 4.80 per cent.

That pressure was reflected in the airline's flat six monthly operating result of $416.4 million, from 13.1 per cent higher revenue of $5.1 billion.

At the same time, chief executive Mr Geoff Dixon confirmed that further international services faced the chopping block.

According to travel agents and analysts, those services will include Buenos Aires, Rome, Taipei, and some services to Indonesia and Fiji.

The move reverses a trend of two years ago of increasing flights to Asia following the Asian downturn in 1997-98. At that time seven flights were added to Singapore, Bangkok, Bali, Hong Kong and Jakarta.

But analysts have dismissed a suggestion from Mr Dixon that Qantas would be forced to set up a low-cost operation for services into Asian cities.

"This is more about sabre rattling with the unions," said one. "Certainly they have to cut costs out of their operation but this is not the way to do it."

More likely was a domestic cut price airline while an alliance with Impulse Airlines has not been ruled out by some analysts.

However, Qantas is under pressure on holiday flights to Bali and Fiji with Qantas Holiday's reporting an 8 per cent decline in earnings to December 31.

Those short international flights could be taken over by a low cost partner, analysts said.

And the airline faces more competition on the critical US route, which accounts for 65 per cent of international earnings on $285.9 million EBIT, according to J.B Were.

The West Australian


In our office (travel agency), everyone is talking about the BR-QF alliance on the Australia-Taiwan route. Currently BR operates TPE-BNE with BR/QF flight nos. and QF operates SYD-TPE with QF/BR flight nos.
So if QF cuts the SYD-TPE route, possibilities are:
1: BR operates TPE-BNE-AKL plus TPE-SYD (since it only has 3 MD11s and 4 763ERs.
2: BR pulls out of AKL and operates TPE-SYD and TPE-BNE
3: AN joins the BNE-TPE route (or possibaly SYD-TPE) and BR code shares with them
4: any others??

And the fact the QF is pulling out of BUE, that leaves AR and LA on the Australia-SA route... comments??

Tell me what you think...

Best Regards
v jet
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RE: QF Cutting More Routes To Asia (TPE), Europe

Wed Feb 28, 2001 1:26 pm

Where is it stated that it is FACT that QF is pulling out of EZE?
I dont believe it until see the offical release to public and staff.
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RE: QF Cutting More Routes To Asia (TPE), Europe

Wed Feb 28, 2001 1:38 pm

QF may well cut more services, to me the most obvious is to Buenos Aires as that can still be served via the codeshare with AR. However as for cuts to Europe highly unlikely, Rome was recently increased to 4 flights a week and a new code share arrangement has just been signed with AZ who will buy capacity on the QF services. Frankfurt is performing well as is LHR which is to be increased to 19 flights a week, the only possible city is Paris which from reports I've heard has good loads as well.
As for Asia the most likely I've heard is Denpasar for a reduction as there is no premium passengers unlike Jakarta. Taipei in the northern summer schedule in fact has an increase in capacity with the 747SP replacing 763's on a flight for flight basis.
Nadi, well QF don't actually fly there as all flights are codeshares operated by FJ.
I do feel however that Manila may be for the chopping block !!!
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RE: QF Cutting More Routes To Asia (TPE), Europe

Wed Feb 28, 2001 1:39 pm

BR does NOT operate TPE-BNE-AKL it operated TPE-AKL, but they have announced that they are pulling out when the winter schedule starts. QF seems to be able to fill seats codeshared with AR to EZE, so I think they'll keep going there for now.
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RE: QF Cutting More Routes To Asia (TPE), Europe

Wed Feb 28, 2001 5:29 pm

Qantas have said they will DEFINETLY continue flying to Manila, so that will stay.
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RE: QF Cutting More Routes To Asia (TPE), Europe

Wed Feb 28, 2001 8:25 pm

You can find more discussion regarding this press release at the following thread
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RE: QF Cutting More Routes To Asia (TPE), Europe

Wed Feb 28, 2001 11:07 pm

I would not believe speculative reports from any newspaper such as the West Australian who try to "stir up" reaction from within the industry.

The Qantas route to Buenos Aires is performing above expections with passenger and frieght loads constantly exceeding aircraft capacities and that goes for Aerolineas Argentinas as well. If any suspension of this route occurs it will only be to serve the more profitable european routes as QF do not currently have the extra aircraft needed to increase schedules which currently include flight to Paris to be increased to 5 x week and to London to be increased to 21 a week 2 x daily ex Singapore and daily existing flights ex Bangkok.

Rome and Frankfurt dont make money but play an important role in the airlines feeder operations at their hubs in SIngapore and Bangkok connecting to Australian cities. The only other definate suspension is know to be Denpasar, Bali and possibly Jakarta?

I think that QFs profitable routes to LA will be hard hit when Ansett Australia with their premium product, commence their non-stop routes to LA from Syndey and rumoured also to SanFrancisco to feed into the UA hub there, from years end.
v jet
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RE: QF Cutting More Routes To Asia (TPE), Europe

Thu Mar 01, 2001 9:04 am

DPS is NOT a definate suspension. Nothing has been officially announced. This is almost as bad as the endless speculation prior to the announcement for the fleet expansion order.
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RE: QF Cutting More Routes To Asia (TPE), Europe

Thu Mar 01, 2001 9:28 am

Just a couple of points:

1) How can Qantas pull out of Fiji when they don't even fly there?

2) BR have in the past flown TPE/AKL vv direct and also TPE/BNE/AKL vv

3) Qantas is pulling out of Rome because AZ is pulling out of Sydney and the are going to the Daily Codeshare scheme

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RE: QF Cutting More Routes To Asia (TPE), Europe

Thu Mar 01, 2001 6:56 pm

BR is not pulling out of AKL or at least whan did they announce they were pulling out.
QF's EZE flight goes via AKL and seems pretty full watching the take off roll at AKL. If they are to pull out of this route I would say it would be at the end of the northern summer shedules 2001, and that would allow AR to increase flights EZE,AKL,SYD.

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RE: QF Cutting More Routes To Asia (TPE), Europe

Thu Mar 01, 2001 7:24 pm

I don't see why Qantas is loosing money.

Well, agree with ZK-NBT, the take off roll for those QF planes are always long.... using up lots of runway, every single machine that pass singapore always do. Or they use de-rated thrust for take off?


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