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...