Tag Archives: QANTAS Airways

QANTAS launches 787 Dreamliner services to Hong Kong

QANTAS Airways Boeing 787-9 Dreamliner VH-ZNC (msn 39040) LHR (Keith Burton). Image: 944781.

The first QANTAS Boeing 787 Dreamliner service from Australia to Hong Kong took off on December 13, marking the first destination in Asia to be served by the airline’s Boeing 787-9.

QF29 pushed back from Melbourne just after 10 am in the morning and arrived in Hong Kong at 4.15pm (local time).

The launch follows the arrival of QANTAS’ eighth Dreamliner in November, joining the national carrier’s A330 and A380 aircraft that also fly to Hong Kong.

Hong Kong joins Los Angeles, New York, London and San Francisco as international destinations served by the QANTAS Dreamliner, as the more efficient aircraft gradually replaces the 747 on key routes.

QANTAS has also re-timed one of its two daily flights from Sydney to Hong Kong from March 31, 2019, offering customers the choice of a midday or evening departure from Sydney.

QF117 will operate overnight and arrive into Hong Kong in the morning, providing more options for onward connections to other destinations in Asia, including those operated by QANTAS’ new codeshare partner Cathay Pacific.

QANTAS’ Dreamliner carries 236 passengers across three cabins. It features the latest version of the airline’s Business Suite, nicknamed “mini First Class” by some frequent flyers, as well as a next generation Premium Economy seat and a significantly improved Economy seat with extra storage compartments and more legroom.

QANTAS operates 28 flights per week to Hong Kong from Sydney, Melbourne and Brisbane.

Top Copyright Photo (all other by the airline): QANTAS Airways Boeing 787-9 Dreamliner VH-ZNC (msn 39040) LHR (Keith Burton). Image: 944781.

QANTAS aircraft slide show:

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WestJet expands its codeshare agreement with QANTAS

Delivered on July 19, 2018

WestJet made this announcement:

WestJet today announced it has expanded its codeshare relationship with Qantas by placing its WS code and flight numbers on QANTAS-operated flights between Los Angeles and Sydney, Melbourne and Brisbane.

Itineraries connecting the growing WestJet network to these Australian destinations are available today for purchase on all WestJet sales channels for flights starting December 6, 2018.

WestJet and QANTAS have been codeshare partners since 2014 and the airlines have offered QANTAS Frequent Flyer and WestJet Rewards members the ability to earn and redeem loyalty rewards since 2017. Travellers will also continue to enjoy one-stop check-in and baggage transfers to their final destination.

WestJet operates flights from Vancouver, Calgary, Edmonton and Toronto to Los Angeles. The WS code will be added on QANTAS’ daily flights between Los Angeles and Sydney, Melbourne and Brisbane and its seasonal service between Vancouver and Sydney.

Top Copyright Photo (all others by the airlines): WestJet Airlines Boeing 737-8 MAX 8 C-GZSG (msn 60516) LAX (Michael B. Ing). Image: 944547.

WestJet aircraft slide show:

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KLM and QANTAS sign a code-sharing agreement

"Orchid", delivered on March 29, 2018

KLM Royal Dutch Airlines and QANTAS Airways, Australia’s national carrier, have signed a code-sharing agreement, allowing both airlines to expand their networks substantially.

For KLM passengers, this means they can fly from anywhere in the world, on a single ticket, with full baggage transfers, via Singapore to Sydney, Melbourne, Brisbane or Perth.

The code-share begins on October 31, 2018. KLM will attach its flight number to daily flights between Singapore and the four key Australian destinations listed above. QANTAS will attach its QF code to KLM flights between Amsterdam and Singapore.

Top Copyright Photo (all others by KLM): KLM Royal Dutch Airlines Boeing 787-9 Dreamliner PH-BHO (msn 42509) JFK (Fred Freketic). Image: 943707.

KLM aircraft slide show:

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QANTAS and Cathay Pacific to code share

"Official airline partner of Sydney Mardi Gras"

The two airlines have jointly announced:

Cathay Pacific Airways and QANTAS Airways customers are set to benefit from a new codeshare agreement that leverages the strengths of each carrier’s regional networks and provides more options for customers traveling between Australia and Asia.

The codeshare agreement will see QANTAS add its code to Cathay Pacific and Cathay Dragon’s services within Asia from Hong Kong to 10 cities across India, Myanmar, Sri Lanka and Vietnam, and on Cathay Pacific’s long-haul services from Hong Kong to Perth and Cairns*.

In turn, Cathay Pacific will add its code to 13 routes on QANTAS’ domestic network in Australia*.

Customers of both airlines will also have increased opportunities to earn frequent flyer points through their respective loyalty programs.

QANTAS Frequent Flyer members will be able to earn more QANTAS Points and status credits when traveling on the QANTAS-coded flights. Similarly, Cathay Pacific Marco Polo Club members will earn more Club Points when travelling on a Cathay Pacific-coded flight.

Cathay Pacific and QANTAS together operate more than 100 services a week between Hong Kong and Australia. As oneworld alliance partners, eligible customers will continue to enjoy access to both Cathay Pacific and QANTAS lounges in Australia and Hong Kong, as well as other oneworld associated lounges across both airlines broader networks.

Tickets for the codeshare services will be available for sale from October 22, 2018, for travel from October 28, 2018.

*Flights subject to regulatory approval.

Codeshare routes

Qantas codeshare on Cathay Pacific / Cathay Dragon routes

Between Hong Kong and Asia

  • Hong Kong – Bangalore, India
  • Hong Kong – Mumbai, India
  • Hong Kong – Calcutta, India
  • Hong Kong – Delhi, India
  • Hong Kong – Chennai, India
  • Hong Kong – Colombo, Sri Lanka
  • Hong Kong – Danang, Vietnam
  • Hong Kong – Ho Chi Minh City, Vietnam
  • Hong Kong – Hanoi, Vietnam
  • Hong Kong – Yangon, Myanmar

Between Hong Kong and Australia

  • Hong Kong – Cairns
  • Hong Kong – Perth

Cathay Pacific codeshare on Qantas domestic routes

  • Adelaide-Melbourne
  • Adelaide-Sydney
  • Alice Springs-Sydney
  • Brisbane-Cairns
  • Brisbane-Melbourne
  • Brisbane-Sydney
  • Brisbane – Townsville
  • Canberra-Melbourne
  • Cairns-Melbourne
  • Cairns-Sydney
  • Darwin-Perth
  • Hobart-Melbourne
  • Melbourne-Sydney

Top Copyright Photo (all others by the two airlines): QANTAS Airways Airbus A330-303 VH-QPJ (msn 712) (Sydney Mardi Gras) SYD (John Adlard). Image: 937063.

QANTAS aircraft slide show:

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QANTAS releases video to celebrate the Spirit of Australia

QANTAS has joined with its partners – including sports teams, Olympians and Paralympians, and leaders in the arts – in a new video celebrating the importance of diversity to national life.

The 60 second video opens with actor and Qantas Ambassador Hugh Jackman on Maroubra Beach, talking about the Australian spirit and “standing up for a fair go”.

It then moves on to feature a range of talented Australians representing groups that Qantas has worked with for many years, standing together in celebration of inclusion and diversity. They include:

  • Indigenous leader, Qantas Ambassador and former AFL player, Adam Goodes at a NAIDOC week celebration at Qantas head office.
  • Athletes from several Qantas sport partners, including Rugby Australia, Football Federation of Australia, Cricket Australia, Australian Olympic and Paralympic Committees:

-National teams the Qantas Wallabies, and Matildas and Socceroos
-Australia’s champion mixed Wheelchair Rugby Team taking on the Olympic Gold Medal winning Australian Women’s 7’s Rugby team
-Members of the Australian men and women’s cricket teams playing a game of beach cricket
-Defence Force veteran and Paralympian Curtis McGrath
-Olympic swimmer Bronte Campbell swimming with Paralympian Ellie Cole

  • Indigenous dance company Bangarra and members of the Australian Ballet
  • Qantas Indigenous School Based Trainees and students from Australian Indigenous Education Foundation program
  • Qantas staff celebrating Sydney Gay & Lesbian Mardi Gras, which the airline has supported for over 25 years
  • Singer Bernard Fanning providing vocals to the song underpinning the video.

The video is part of the national carrier’s longstanding support for equality and inclusion – something it has championed through gender diversity (including encouraging more women to train for traditionally male dominated aviation roles), Indigenous reconciliation and support for LGBTI issues.

Qantas Group Executive, Vanessa Hudson, said: “We carry over 50 million people a year from all walks of life. And we have over 30,000 people working at Qantas who represent a cross section of the community. We don’t all think, look or act the same and that’s a huge asset. This video is about celebrating the strength that comes from diversity and why it’s one of the great things about the kind of place Australia is.”

The video will be screened during the Bledisloe match between Australia v New Zealand on 18 August on Fox Sports, thanks to Rugby Australia, as well as at the stadium to an audience of up to 80,000 people. It will also appear across social media channels for Qantas as well as several of the sporting bodies involved, and screen on board Qantas flights.

Comment from Rugby Australia CEO, Raelene Castle: “One of the great things about rugby is that it brings together people from all sorts of backgrounds and it shows how they can all unite. We’re proud to support Qantas in celebrating why diversity and inclusion matter.”

Comment from Australian Paralympic Committee CEO, Lynne Anderson: “The Australian Paralympic Committee is passionate about diversity and inclusion. We believe in the power of sport to positively lead change in the community. We are proud of our partnership with Qantas and to stand with them as they celebrate equality.”

Comment from Adam Goodes: “As a Qantas Ambassador since 2013 I continue to proudly stand up with Qantas and support their commitment to promoting diversity and inclusion in Australia and celebrating the contribution of Aboriginal and Torres Strait Islander people this great nation.”

Comment from Bernard Fanning: “I’ve never been involved in an ad before but think this is such a pivotal time in Australian culture for ideas that promote fairness. I think it’s really significant that such an iconic Australian company and so many prominent Australians would promote the ideas of diversity, equality and inclusion in such a public way. Standing up for the vulnerable and disadvantaged should be a fundamental part of all societies.”

Comment from David McAllister, Artistic Director, The Australian Ballet: “Australia is such a vibrant, creative place because we celebrate difference. The Australian Ballet is pleased to stand with Qantas in support of inclusion.”

QANTAS Group reports a record full year profit

  • Underlying Profit Before Tax: $1.6 billion (up 14%)
  • Statutory Profit Before Tax: $1.4 billion (up 18%)
  • Statutory Earnings Per Share: 56c (up 21%)
  • Return On Invested Capital: 22%
  • Net free cash flow: $1,442 million (up 10%)
  • Shareholder return of up to $500 million: 10 cents per share ordinary franked dividend, plus an on-market buyback of up to $332 million
  • Bonus for 27,000 non-executive employees, worth a total of $67 million
  • Extension of global lounge improvement program –– six additional ports to be upgraded
  • Commitment to create a second pilot academy facility in regional Australia.

 

The QANTAS Group has reported an Underlying Profit Before Tax of $1.6 billion for the 2018 financial year – a record for the national carrier.

All parts of the business contributed to the result, helped by healthy levels of demand across key markets, higher revenue and a particularly strong performance in the domestic flying businesses of Qantas and Jetstar.

The result enables the Group to return further capital to shareholders, keep investing for customers and reward its employees with a cash bonus.

 

CEO COMMENTS

Chief Executive Officer Alan Joyce said the record profit reflected a strong market as well as the benefits of ongoing work to improve the business and build long-term shareholder value.

“These numbers show a company that’s delivering across the board,” said Mr Joyce.

“Our investment in free Wi-Fi and cabin improvements are delivering a better experience for customers as well as higher earnings for Qantas and Jetstar. The overall value for the travelling public remains extremely strong, with domestic sale fares almost 40 per cent lower in real terms than they were fifteen years ago.

“We’re seeing healthy demand across key sectors matched with improving levels of capacity discipline, which is a positive sign for the year ahead.

“This record result comes despite higher oil prices. We’re facing another increase to our fuel bill for FY19 and we’re confident that we will substantially recover this through a range of capacity, revenue and cost efficiency measures, in addition to our hedging program.

“Ultimately our success relies on the great service and dedication to safety from our people, which is supported by continuing to invest and innovate.

“We’re very pleased to reward our people with a bonus for this fantastic result. It brings the total amount set aside for non-executive employees to over $300 million over the past four years for their part in the Group’s exceptional performance,” added Mr Joyce.

 

GROUP DOMESTIC

The Group’s domestic flying operations delivered EBIT of $1.1 billion, which is 25 per cent higher than FY17 and represents a new record for the business.

This was achieved through the combination of Qantas and Jetstar’s network, schedule and product strengths in key markets, and supported by capacity discipline driving higher seat factors and higher unit revenue.

Margin growth was helped through efficiency gains (such as Jetstar’s A320 cabin refit program) and investing for a higher premium (such as new lounges and free inflight Wi-Fi on Qantas). Qantas Domestic achieved a 19 per cent increase in earnings from a 6 per cent increase in revenue.

The Group maintained its corporate share, increased its share of small to medium enterprises, and saw a continuation of growth in the resources sector that began in the first half of the year. Demand was also boosted by flows from international partner airlines on to domestic services. Leisure demand remains strong and Jetstar carried 24 million passengers domestically and internationally for under $100.

 

GROUP INTERNATIONAL

Qantas International increased its earnings by 7 per cent to $399 million and maintained its margin in the face of strong competition and higher fuel prices.

Qantas International made several important structural changes during the year, including the introduction of the 787, new routes like Perth–London and taking on additional Trans Tasman flying for partner Emirates. These changes started delivering cost and revenue benefits in late FY18, which will continue through FY19 onwards.

Jetstar International posted a strong profit after managing an $11 million impact from Bali ash clouds and start-up of new routes like Melbourne-Ho Chi Minh.

Jetstar branded airlines in Asia were all profitable and continue to give the Group a capital-light foothold in key growth markets. The expansion of Qantas’ Singapore hub has been helped by traffic flows and onward connections with these airlines.

Qantas Freight continued to perform well, with the international market strengthening and the domestic market stable.

 

QANTAS LOYALTY

Qantas Loyalty achieved a record result of $372 million, up 1 per cent from the prior year. Margins dropped by 0.4 percentage points due to a mix of market conditions and bonus points promotions to support the launch of new financial products, but remained strong at 24.1 per cent.

The impact of interchange fee adjustments – which continued into the second half of the year – was mitigated by consumer demand for Qantas Points. While total growth in new credit cards issued in Australia shrank by 4 per cent, cards that earn Qantas Points grew at 7 per cent[2] (opens in new window), showing the value that points have in card acquisition.

The Frequent Flyer program grew by 4.2 per cent[3] (opens in new window) to reach 12.3 million members. Levels of member engagement increased, helped by the widening number of partners in the program and additional ‘opt-ins’ among Woolworths customers to earn Qantas Points.

There was continued revenue growth from new ventures, including health insurance and Qantas’ own premier credit card. Further expansion into financial services is planned in the first half of FY19.

 

FINANCIAL FRAMEWORK

The Group delivered against its financial framework in FY18.

Net free cash flow increased by $133 million, helping to push net debt below the low end of the preferred range. This gives future flexibility for earnings accretive investment and to continue rewarding shareholders.

The Group remains on track for a combined $3 billion in capital expenditure for FY18 and FY19 (net of asset sales), with $1.97 billion of this delivered in FY18. Ongoing transformation delivered $463 million of revenue and cost benefits.

Hedging helped minimise impact of fuel price increases during FY18, giving the Group time to adjust revenue settings to reflect increased costs. This has continued into FY19, with the first half of the year 87 per cent hedged.  Ongoing efficiency measures drove a 1 per cent reduction in fuel consumption and the same is expected in FY19.

Continued profitability saw Qantas exhaust the last of its available carry forward tax losses and incur company tax in the second half of FY18.

 

SHAREHOLDER RETURNS

The Qantas Board has announced up to $500 million to be returned to shareholders. This comprises an increased, fully franked dividend of 10 cents per share to be paid on 10 October 2018 with a record date of 6 September 2018, as well as an on market buy-back of up to $332 million.

This will bring the amount of capital returned to Qantas shareholders to $3.1 billion since October 2015 and the total reduction in shares on issue to around 26 per cent.

 

INVESTING FOR THE FUTURE 

Several major investments were announced during FY18, including six additional 787-9s for Qantas International, accelerated retirement of remaining 747s, a major upgrade of A380 cabins and 18 new A321LR NEOs for Jetstar.

Work on Project Sunrise – which will unlock direct flights from the east coast of Australia to London and New York by 2022 – advanced to the request for proposal stage with Airbus and Boeing. And several lounge upgrades were announced, underway or completed.

Qantas has today announced an extension of its global lounge upgrade program, designed to support demand for premium travel across six additional ports. They are:

  • Updated and expanded Sydney International First Lounge
  • Major upgrade to the Auckland Lounge
  • Refreshed Tokyo Narita Lounge
  • Expanded Brisbane International Lounge
  • Two regional lounge upgrades – Tamworth and Hobart.

The Qantas Group has today also committed to a second Pilot Academy facility, which will help meet the unprecedented global demand for skills as the aviation sector continues to grow. The academy concept is designed to provide a future talent pipeline for Qantas Group airlines and support General Aviation in a country that relies heavily on air transport. It also represents a commercial opportunity to create a centre of excellence to train pilots for airlines throughout the region.

The concept has been met with substantial levels of support from state governments, local councils and the private sector. (See separate release.)

Qantas has set aside a total of $20 million towards establishment of the two facilities. Both will be located in regional Australia, with cities to be announced in coming weeks. The first location will open during calendar year 2019 and the second expected to follow in 2020.

Qantas has also committed to delivering up to $3 million to regional communities as part of its drought assistance program.

 

OUTLOOK

The strength of forward bookings and continued focus on transformation provides confidence that the Group will substantially recover higher fuel costs in FY19. This is supported by capacity discipline and fundamental strengths of our dual brand strategy in the domestic market, combined with margin advantage and fleet investment in the international market.

The Group’s current operating expectations for FY19 are:

  • Total fuel bill is expected to increase to ~A$3.92 billion (up ~$690 million).
  • Inflation impact on Group expenditure (including wage growth) expected to be ~$250 million.
  • Transformation benefits are expected to be ~$400 million.
  • Net capital expenditure1 expected to be $1.0b for FY19.
  • Total Group capacity to increase by ~0–1 per cent in the first half of FY19, with Group International up by 1 per cent and Group Domestic capacity flat.
  • Net depreciation and non-cancellable aircraft operating leases expected to be ~$155 million higher than FY18.

[1] (opens in new window) BITRE Australian Domestic Best Discount Air Fare Index.

[2] (opens in new window) At June 2018 compared to June 2017. Source: RBA credit and card charges statistics.

[3] (opens in new window) At June 2018 compared to June 2017.

[4] (opens in new window) See Investor Presentation for detailed outlook assumptions.

Top Copyright Photo (all others by QANTAS): QANTAS Airways Boeing 787-9 Dreamliner VH-ZNB (msn 39039) LAX (Michael B. Ing). Image: 942566.

QANTAS aircraft slide show:

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QANTAS to operate the Boeing 787-9 to Hong Kong

QANTAS Airways Boeing 787-9 Dreamliner VH-ZNA (msn 39038) LHR (SPA). Image: 942447.

QANTAS Airways has announced Hong Kong as the next destination for its Boeing 787-9 Dreamliner.

From December 2018*, customers travelling on selected QANTAS flights to Hong Kong will experience the Dreamliner’s next generation Economy, Premium Economy and Business class cabins:

  • Brisbane to Hong Kong from 19 December 2018
  • Melbourne to Hong Kong between 13 December 2018 until 29 March 2019
  • Sydney to Hong Kong from 30 March 2019.

The changes are timed with the arrival of QANTAS’ eighth Dreamliner and will join the national carrier’s Airbus A330 and A380 aircraft that also fly to Hong Kong.

Hong Kong joins Los Angeles, New York, London and San Francisco as international destinations served by the QANTAS Dreamliner, as the more efficient aircraft gradually replaces the 747 on key routes.

QANTAS’ Dreamliner carries 236 passengers across three cabins. It features the latest version of the airline’s Business Suite, nicknamed “mini First Class” by some frequent flyers, as well as a next generation Premium Economy seat and a significantly improved Economy seat with extra storage compartments and more legroom.

QANTAS will also bring forward the peak season upgrade of one of its two daily Sydney-Hong Kong flights from a 747 to the A380 aircraft to early December, offering four cabins on the route including First Class through to the end of March 2019.

 

Summary of changes

Route Frequency Details
Brisbane – Hong Kong (QF97/98) Daily 789 to operate one day per week from 19 December 2018, increasing to two days per week from 30 January 2019. A330 to operate all other days.
Melbourne – Hong Kong (QF29/30) Daily 789 to operate five days per week from 13 December 2018, increasing to six days per week from 28 January to 29 March 2019. A330 to operate all other days.
Sydney – Hong Kong (QF127/128 and QF117/118) Double daily 789 to operate six days per week from 30 March 2019. A330 to operate all other services, with A380 operating daily during peak season.

Fares for 787 flights to Hong Kong are available via qantas.com and through Travel Agents progressively from today.

*Subject to Government and regulatory approvals.

In other news, QANTAS Freight will launch a new direct seasonal freight service from Darwin to Hong Kong*, supporting producers in Northern Australia to respond to growing demand from Asia.

The new service – which will be the only direct cargo link between the Northern Territory and Hong Kong – will provide capacity to carry up to 50 tonnes of fresh produce such as chilled meat, seafood, dairy, fruit and vegetables, as well as general cargo. It will provide local producers with the opportunity to get their products into Asia faster and fresher, potentially extending the shelf life and profitability of quality Australian exports.

Commencing in late August, the weekly Boeing 767-300F service will depart Darwin on Sunday night and arrive in Hong Kong six hours later at 11pm local time.

The QANTAS Group is a long-term investor in the Northern Territory, stimulating tourism and providing vital connectivity for the region. In FY17, the QANTAS Group contributed more than $150 million to the Territory economy, including employing 400 people locally as well as tourists spending with local businesses.

QANTAS currently carries freight to over 20 destinations in Asia, including locations in China, Japan, Indonesia, Thailand and Vietnam.

Top Copyright Photo (all others by QANTAS): QANTAS Airways Boeing 787-9 Dreamliner VH-ZNA (msn 39038) LHR (SPA). Image: 942447.

QANTAS aircraft slide show: