Qantas in foreign territory as overseas passenger numbers slide

Discussion in 'Qantas Airways | Frequent Flyer' started by Chimpy, Mar 1, 2011.  |  Print Topic

  1. Chimpy
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    Chimpy Gold Member

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    http://www.adelaidenow.com.au/ipad/...er-numbers-slide/story-fn6bqphm-1226014481414

    QANTAS has suffered a new blow in the group's battle to return its deeply troubled international brand to profit.

    Latest figures show the long-haul carrier's ability to attract passengers from overseas slumped to a record low last year.

    The airline had just 17.7 per cent of the nation's international passenger market, well below the 20 per cent level chief Alan Joyce lamented in a speech last month to the Melbourne Press Club.

    The figures, released yesterday by the Bureau of Infrastructure, Transport and Regional Economics, show Qantas' share of international traffic fell 2.1 per cent or 9699 ticket sales in December compared with the same month in 2009.

    The fall contrasts with a 7.2 per cent rise in overseas visitor growth last year, with 10 major airlines bringing nearly 2.58 million passengers into the country.

    During December, Qantas International carried 445,996 passengers, down from 455,695 in the same month of 2009.

    But it was boosted by low-cost offshoot Jetstar, which carried 196,856 passengers to rank sixth among 10 carriers with 7.6 per cent of the market.

    In his speech, Mr Joyce said Qantas International was not pulling its weight financially and had to be reinvigorated by adding new routes and developing more profitable markets.

    Meanwhile, the International Air Transport Association has warned rising oil prices could undermine recovering airline profits.

    The association, which represents the world's major airlines, said airlines worldwide would be hit by a $1.6 billion rise in operating costs for each $1 increase in the oil price
     
  2. kiwi
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    kiwi Gold Member

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    What a silly comparison. If you shift lots of flights to jetstar and exclude them from analysis then of course doesn't look good (on volume, not necessarily on yield).
     
    samh004 likes this.
  3. brinkers
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    brinkers Gold Member

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    If nothing else, at least Mr Joyce recognises that Qantas needs to take a look at its network and do something about it. While the replacement of its fleet hasn't gone to plan beacuse of supplier issues, the network it flies to is somewhat under its control and they have not done so well on developing the network.
     
    Chimpy likes this.
  4. anat0l
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    anat0l Silver Member

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    What do you think would be a good start re: the network, apart from, say, less flights being replaced with Jetstar ones? Perhaps Middle East is where QF is really lacking, but we've had tete-a-tetes often on these forums that QF using the Middle East as a new hub is not going to happen, and even if so not for ages. Not to mention QF stuffed up a key partnership in EY (yes, yes I know JB from DJ and JH from EY are good mates, but still, QF could've held the fort but didn't).

    The only other thing I can think of is China. After all, it's supposed to be a "big" market, but we only have one route on QF going there, i.e. PVG/SYD. The rest are Jetstar...umm, right..... moving along.... it doesn't help that the market is served by 333s, not exactly showing that QF regard the market as very important.
     
  5. I have been writing about profit issues and load factors for airlines since the beginning of the year

    For US airlines, all M*P folks want to do is spend spend spend :p New Planes, BIG advertising spends and Major League Baseball. (the American Way !) The only BIG airline who has been brave enough or stupid enough to announce a sports deal or any big marketing and adversing expenditure is United. The only smart thing is they didn't entirely say when !

    The reality is all the big global airlines are in pretty HUGE trouble, versus early January projections of big profits.
    Possibly only Lufthansa, like 2009/2010 might look good in 2011 since they make so much money maintaining everyone else's airplanes. The refit market should be a boon for them too.

    Only thing that can save them is spending next to nothing for now and having great fuel hedges. (hedges alone can make an airline a profit )

    Without really knowing, I believe QF is in better shape than most US airlines and tends to make decisive and strategic decisions. (even if not always the right ones)
     
  6. anat0l
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    anat0l Silver Member

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    Well, the Middle Eastern airlines are doing pretty well and probably have not much to think about except for some political fun and games. Add to that most Asian carriers (notably SQ).

    In saying that, the article is not really talking about falling revenues. It's more addressing a lower market share, especially since the market has gotten bigger.
     

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