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If you owned Qantas...

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#1
kingoftheskies

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What would you do if you owned Qantas?  ;)

 

Qantas has recently terminated several international services, and has made losses since 2013 (correct me if I'm wrong). But now, they're recovering gradually. But, what would you do if you were Alan Joyce?

 

For me, instead of partnering with Emirates, I would partner with Cathay Pacific and put HKG as my secondary hub. With this, I wouldn't need to worry about competition on the HKG - Australia flights. And I would be able to codeshare on CX's European Routes, while CX could codeshare on my domestic/transtasman routes. NZ was smart enough to partner with SQ instead of CX (it makes more sense). 

 

Secondly, I will not use Jetstar as the "international subsidiary". Let's take SIN-PER as an example, Jetstar has been operating that route too successfully that its own parent company has to stop flying that route. I would actually ensure Jetstar has lesser frequency that my own airline, and more frequency on QF. I would price the flights at an attractive price, yet with great service and products onboard, increasing the amount of passengers. This may not kill SQ, but it will still make a better profit.

 

Lastly, I would rather use the 787 to expand QF's network, than to give it to Jetstar.


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#2
zipp

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I'd execute Allan Joyce, buy back the 747, order 767s, get the 748 and ditch the airbii planes


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#3
Superman

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Fly to Miami :awesome:

#4
zipp

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Fly to Miami :awesome:

We can go via LAX ^_^ In the 747?


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#5
kingoftheskies

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We can go via LAX ^_^ In the 747?

Yas. Totes.  :thumbsup:


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#6
BernieBro

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I'd execute Allan Joyce, buy back the 747, order 767s, get the 748 and ditch the airbii planes

But the A380 be lookin real good at DFW



#7
zipp

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But the A380 be lookin real good at DFW

747 looks better


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#8
ar157

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For me, instead of partnering with Emirates, I would partner with Cathay Pacific and put HKG as my secondary hub. With this, I wouldn't need to worry about competition on the HKG - Australia flights. And I would be able to codeshare on CX's European Routes, while CX could codeshare on my domestic/transtasman routes.

EK provides a much larger European network for QF to tap into. Furthermore QF already places significant importance on Hong Kong however it is being repositioned as a primary business destination as opposed to simply a stopover point to Europe. However there are 2 significant points that prevent a QF/CX tie up from happening. The first being the regulators would never approve such a monopoly, particularly now that VS have pulled out of the Australia - Hong Kong market. 

 

 

  NZ was smart enough to partner with SQ instead of CX (it makes more sense). 

NZ actually partner both SQ and CX and I agree that it was a a very smart manoeuvre by Luxon and co.

 

 

Secondly, I will not use Jetstar as the "international subsidiary". 

I'm not sure where the concept of JQ as an "international subsidiary" came from as QF still have albeit smaller but nonetheless a significant international network granted it is focused on the Eastern Seaboard. 

 

 

Let's take SIN-PER as an example, Jetstar has been operating that route too successfully that its own parent company has to stop flying that route. I would actually ensure Jetstar has lesser frequency that my own airline, and more frequency on QF. I would price the flights at an attractive price, yet with great service and products onboard, increasing the amount of passengers. This may not kill SQ, but it will still make a better profit.

In my opinion, QF's withdrawal from the PER-SIN route is showing that Joyce's management team are recognising the changing nature of the PER-SIN market. Previously the double daily flights fed into a sizeable SIN hub with connections to Europe. However with that hub no relocated to DXB, SIN has like HKG become a primary business destination for QF focusing on O&D and thus the corresponding drop in passenger numbers and subsequently fewer flights. If anything, the Australia - South East Asian market is suffering from overcapacity by the low cost carriers. Whilst it would be nice for QF to reinstate PER-SIN (possible with a 738) and my personal wish for routes such as PER-HKG and PER-CGK we need to remember that the mining boom in WA is very much finished and that the Qantas Group as a whole must be a lean and efficient operation. We also need to remember that QF will inevitably have a higher cost base than its primary competitor on the route (which would be SQ) and so QF would have to heavily rely on contracts as well as its frequent flyer base in order to ensure profitable flights. Thus is I see it somewhat unlikely in the near future for QF to reinstate PER-SIN until the market picks up again and is no longer suffering from overcapacity. 

 

 

Lastly, I would rather use the 787 to expand QF's network, than to give it to Jetstar.

Had the initial 14 788s been moved over to QF we would have seen an absolute mess of a fleet at QF. By moving all 788s over to JQ we have seen JQ return their A330s to QF in order to make for a more consistent product. This will also allow a much smoother transition for future 789s to be rolled out into the QF fleet as the Qantas Group by that time would be vastly experienced in 787 operations.

 

With QF tipped to return to profit this financial year, I can see ~12 789 options being firmed up with deliveries starting late 2016. Routes i'd personally like to see the 789s run on would be the Tokyo, Singapore and Hong Kong routes with potential for new services such as BNE-PVG, and the reinstatement of Asian services to PER. In the longer term, we should see potentially all the options firmed up for replacement of the A330s as well as further forays on the international scene. Routes I'd personally like to see would be BNE-DFW, SYD-YVR, SYD-SFO, PER-JNB, SYD-PEK, SYD-ICN and BNE-DXB-BER/FRA.



#9
kingoftheskies

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Had the initial 14 788s been moved over to QF we would have seen an absolute mess of a fleet at QF. By moving all 788s over to JQ we have seen JQ return their A330s to QF in order to make for a more consistent product.

 

Yep. True though.


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#10
Chubby Bear

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Ordered QF some 777s! :D


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#11
TNT88

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1. Retire all of their B747 immediately. (Obviously)

    Retire all their A330 when replacement A350 arrived.

 

2. Order 20 A350-900 and 20 A350-1000 to replace B747, A330-200 and A330-300.

 

3. Open more routes to:

- Beijing

- Shanghai

- Guangzhou

- Vancouver

- Frankfurt

- Delhi

- Mumbai

- Rome

- Kuala Lumpur

- Seoul

- Taipei

- Paris

- Phuket

- Istanbul

- San Francisco

- San Diego

*Dubai would be the stop over for Kangaroo Routes.

 

4. Create low cost carrier to compete in domestic and regional market. Use the existing B737-800 and order 33 more.

 

5. Fitted the Qantas B737-800 with only 8 business class seat and 168 economy class seat while fitted the low-cost carrier with 189 economy class seat.

 

6. Cut back on domestic services (Only drinks, no food on board).



#12
Tesla

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Turn Qantas Domestic services into LCC (charge for food, free drinks) and keep everything else as is. Overbook flights to have 100% loadfactors on A380. :D . btw, I flew on a BA flight from Naples to london 2 days ago, and it had 100% loadfactor for some reason.



#13
bAnderson

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If I owned Quantas, I would undertake a rebrand, order some more large planes and have less domestic routes. With the large planes, I would increase flights to the Middle East, join Star Alliance, possibly add extra flights to Indonesia (Especially Jakarta), and have a short haul (Domestic, New Zealand, Indonesia, Singapore, Malaysia, and the philippines as lower costs. I'd also downsize unneeded employees. I would try to have a good advertising campaign to America and Europe, especially in California and Hawaii.


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#14
zipp

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Would you also spell Qantas right?

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#15
bAnderson

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No, it's a part of the rebrand  :rofl2:


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#16
TNT88

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I would probably call it Pregnant Kangaroo Airlines. The livery would all metal fuselage like AA's previous livery and a massive picture of pregnant Homosexual Kangaroo holding beer can on the right hand and a cigarette in the other.



#17
Tesla

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I would probably call it Pregnant Kangaroo Airlines. The livery would all metal fuselage like AA's previous livery and a massive picture of pregnant Homosexual Kangaroo holding beer can on the right hand and a cigarette in the other.

Umm.... I thnk the advertising standards agency just gave you a billion dollar fine for false advertising XD  XD



#18
kingoftheskies

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If I owned Quantas, I would undertake a rebrand, order some more large planes and have less domestic routes. With the large planes, I would increase flights to the Middle East, join Star Alliance, possibly add extra flights to Indonesia (Especially Jakarta), and have a short haul (Domestic, New Zealand, Indonesia, Singapore, Malaysia, and the philippines as lower costs. I'd also downsize unneeded employees. I would try to have a good advertising campaign to America and Europe, especially in California and Hawaii.

 

I don't think flights to South East Asia are short-haul. I wouldn't dare to ride a LCC for 7 hours straight.  :ermm:


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#19
TNT88

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I don't think flights to South East Asia are short-haul. I wouldn't dare to ride a LCC for 7 hours straight.  :ermm:

Well, it's 8 to 9 hours to Southeast Asia, and 10 to 14 hours to china. To be honest, with major airlines like BA, Qantas, KLM fitted their plane with 31" seat pitch and 17" of width these days. People would get accustomed to LCC anyway. The only difference would be the IFE and the food. Other than that, the market would still be there if LCC could offer 30% lower ticket prices.



#20
Tesla

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Ba is basically an LCCS, the only difference is that you get free food, that tastes disgusting. I much prefer LCCS for this reason. Norwegian seat pitch is identical to BA, seat width 17.2 vs 17. Come on, you have a winner right there.




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