Intl LCC's Hurting Qantas

[ACheck]

I've seen this story in both "The Australian" and ATW. I think Emirates is one of their bigger problems (Canada should wake up and watch this).

Low-cost carriers are eating Qantas’s lunch, taking 19.5% of the international traffic into and out of Australia and—for the first time—equaling the national airline’s market share. The figures released by the Australian government and published in The Australian show that while Jetstar, a QF subsidiary, accounted for 8.1% it failed to stop the group’s overall market share from slipping from 28% to 27.7%. According to The Australian, QF itself lost 5% of the market share over the past two years as it battles not only LCCs but airlines from the Middle East. fficeffice" />>>
To address the threat from full-service carriers such as Emirates, a special team headed by QF Group Executive-Customer and Marketing Lesley Grant will investigate ways of improving the performance of the international business in areas such as lounges, menus and check-ins. In Australia, QF has drawn criticism for a number of years for lagging in cabin innovations such as IFE and a premium economy product. However, QF’s plans for rejuvenating its offering, upgrading the fleet and opening new point-to-point routes have been dealt severe blows by delivery delays of the Airbus A380 and Boeing 787. If the 787 had been on time, the Qantas Group would be taking delivery of its 29th this month. If its first 787 is delivered in late 2012, it comes when QF expected to be taking its 50^th Dreamliner. (Source: Air Transport World)

[TAP-A343]

I've seen this story in both "The Australian" and ATW. I think Emirates is one of their bigger problems (Canada should wake up and watch this).

Canada woke up already now it's time for Australia and especially QF to do the same.

Delivery delays of the A380 and B787 are not a good excuse for QF since EK and other competing airlines have been equally affected.

[SAMRPICS]

Canada woke up already now it's time for Australia and especially QF to do the same.

Delivery delays of the A380 and B787 are not a good excuse for QF since EK and other competing airlines have been equally affected.

Couldnt agree with you more on this, every airline has the same issues.

[MCM]

I think you have to read through the lines a little bit.

QF Mainline share drops 5%. Overall Qantas GROUP (IE Qantas and Jetstar combined) dropped 0.3%.

So where did this 4.7% go? This loss of market share is purely reduction in mainline capacity by management to allow Jetstar access to routes. Jetstar has not been a pioneer of non-Qantas routes (with a couple of exceptions)... it is a substitute. Take Japan for example. Have a look at the number of flights and destinations that QF operated to 6 years ago in Japan vs today - and the number of flights that Jetstar has taken control of. Qantas aeroplanes are still all full, and on many routes it is nearly impossible to get a seat!

A great example is the service between Melbourne and Singapore. This is a route that has traditionally been very very busy, and is still so today. The 747/A380 service once per day is almost always full. It is interesting to note, however, that another QF International service has not been added - instead, a Jetstar service was added to this route. Other carriers would have simply added another normal service.

Unfortunately the figures are now always going to look a little skewed when comparing QF International figures, because it is not being expanded despite passenger demand - instead Jetstar is being used.

[TAP-A343]

If the only problem for the QF group is the loss of 0.3% of market share why are they making such a fuss?