Qantas to shelve new airline plan.

Discussion in 'Qantas Airways | Frequent Flyer' started by Chimpy, Nov 27, 2011.  |  Print Topic

  1. Chimpy
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    Chimpy Gold Member

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    From the Australian, more here.

    I was looking forward to giving the new airline a try.:(

    Qantas to abandon plan for new premium airline in Asia

    QANTAS Airways Ltd is poised to abandon its plan to establish a new premium airline in Asia, The Australian Financial Review reported today local time, citing a company interview.

    Qantas executives will shelve their development plans for a multimillion dollar investment in a Singapore and Kuala Lumpur based subsidiary airline in favour of a lower risk alliance with Malaysia Airlines, the newspaper reported.

    The two airlines are reportedly working towards a letter of intent for the new partnership and a code-sharing alliance is expected to allow joint marketing, scheduling and pricing six to nine months after an agreement is reached.
     
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  2. NYBanker
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    That was quick.
     
  3. Lufthansa Flyer
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    Just couldnt spare anymore of those imploding engines? :)
     
  4. cennas
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    Me too! :( I thought the new airline would SQ a run for its $$$.

    Thanks for the update though!
     
    zpaul and Lufthansa Flyer like this.
  5. Chimpy
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    Chimpy Gold Member

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    Update in this mornings smh, who knows what to believe :confused:.

    Qantas to fast-track plans to set up Asian carrier

    QANTAS'S chief executive, Alan Joyce, insists he will accelerate strategic plans to forge closer alliances with other airlines and set up an ultra-premium carrier in south-east Asia as higher jet fuel prices and the fallout from industrial action severely dents profitability in the first half.

    The airline has warned its underlying profits will fall by as much as 66 per cent to $140 million in the first half due to high fuel prices and $194 million in costs arising from industrial action and the grounding of its fleet late last month.
     
  6. Globaliser
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    Maybe the answer is in this story: http://www.smh.com.au/business/not-...a-cheaper-airline-in-asia-20111128-1o3bp.html
    Or, in other words, the AFR story simply reprinted a false and spoiling rumour circulated by "someone".
     
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  7. Chimpy
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  8. wombat18
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    "Joyce is believed to have been working on a deal to not only speed up these plans but make them bigger and less costly than the original proposal announced in August."

    Atta boy. Bigger and less costly sounds good, doesn't it!
     
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  9. wombat18
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    "Back when the oil price averaged $20 for 10 to 15 years, airlines increased supply in the market by 5 per cent per annum. This was rational.
    Now that the oil price is $100, is the profit maximising strategy still to grow supply at 5 per cent annually? The answer is no, yet airlines continue to expand seat capacity at this pace or faster.

    In fact, as part of its profit update today, Qantas announced expected seats capacity growth of 4 per cent to six per cent in the first half of FY12"
     
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