Tag Archives: VH-OQC

American and QANTAS file application to form joint business, may drop LAX and DFW Australian routes if not approved

American's second Boeing 787-9, delivered on October 5, 2016

American Airlines and QANTAS Airways have filed again an application with the U.S. Department of Transportation (DOT) seeking approval to form a joint business to better serve customers flying between North America and Australia and New Zealand.

The proposed joint business will significantly improve service, stimulate demand and unlock more than $300 million annually in consumer benefits that are not achievable through any other form of cooperation, including:

  • Up to $221 million in value from expanding codesharing between American and Qantas – opening more connections to more destinations.
  • Up to $89 million in value by offering a wider range of fare classes across each other’s networks, including lower fares and discounts.

The joint business will also give American and Qantas the opportunity to launch additional routes between the U.S. and Australia and New Zealand, including new flights to city pairs currently not served by either carrier.

 

An expanded relationship will encourage significant improvements in the overall customer experience, including additional frequent flyer benefits and investments in lounges, baggage systems and other infrastructure designed to better serve the carriers’ joint customers.

All these benefits will stimulate significant demand for new travel – generating up to 180,000 new trips between the U.S. and Australia and New Zealand every year.

Critically, if the joint business is not approved, American and QANTAS will have no choice but to further reduce codesharing on their networks. This will jeopardize the number of services and routes each carrier flies between the U.S. and Australia and New Zealand.

For example, QANTAS may be forced to reduce the frequency of, downgauge or potentially cancel its Airbus A380 service between Sydney and Dallas/Fort Worth (below), and American may further reduce its services between Los Angeles and Sydney and Auckland. These routes rely on codeshare support from each airline’s feeder network via their respective hub cities to be economically viable.

American and QANTAS look forward to working together to deliver new routes, a more seamless travel experience and greater access to lower fares under a joint business.

Top Copyright Photo: American Airlines Boeing 787-9 Dreamliner N821AN (msn 40640) LAX (Michael B. Ing). Image: 935286.

American Airlines aircraft slide show (current livery, Boeing):

QANTAS Airways aircraft slide show:

Bottom Copyright Photo: QANTAS Airways Airbus A380-842 VH-OQC (msn 022) LHR (SPA). Image: 931099.

Named "Paul McGinness"

QANTAS and Emirates welcome the draft ACCC determination

QANTAS Airways Airbus A380-842 VH-OQC (msn 022) LHR (Antony J. Best). Image: 901229.

QANTAS Airways and Emirates Airline issued this joint statement:

QANTAS and Emirates welcome the Australian Competition and Consumer Commission’s (ACCC) draft determination that proposes to grant authorization for their partnership for another five years.

The continuation of the joint business, announced in August 2017, will see the airlines deliver expanded services to better leverage each other’s networks, offering travellers improved schedule choice, increased frequent flyer benefits and an ongoing commitment to developing world class products and travel experiences for customers.

A final decision is expected in March 2018.

Comments from a QANTAS spokesperson:

“The ACCC’s draft determination is an important step in helping us deliver a better travel experience and more options between Australia, the UK and Europe for millions of customers.

“The first five years of the partnership has lived up to the promise of serving our customers better, together, and the changes to our network are designed to reinforce this for the next five years.

“With three options to get to Europe, via Perth, Singapore and Dubai, and more frequencies between Australia and New Zealand, the partnership better reflects customer demand, leverages new aircraft technology and plays to each airline’s respective network strengths.”

Comments from an Emirates spokesperson:

“We are pleased that the ACCC’s draft determination supports the authorization of our partnership with QANTAS for a further five years until 2023.

“More than 8 million passengers have benefited from Emirates and QANTAS’ joint network since the partnership began in 2013, and we look forward to continue leveraging on each airline’s unique strengths to offer travellers even more choice and enhanced services in the coming years.”

Top Copyright Photo: QANTAS Airways Airbus A380-842 VH-OQC (msn 022) LHR (Antony J. Best). Image: 901229.

QANTAS aircraft slide show:

Emirates aircraft slide show:

Bottom Copyright Photo: Emirates Airline Airbus A380-861 A6-EOD (msn 168) (Real Madrid) IAD (Brian McDonough). Image: 937458.

The third "Real Madrid" logo jet

QANTAS Group reports a profit of A$206 million for the first six months

QANTAS Group (QANTAS Airways and Jetstar Airways) (Sydney) reported an underlying profit before tax of A$367 million ($286.6 million) and a statutory profit after tax of A$206 million ($160.8 million) for the fiscal six months ending on December 31, 2014.

CEO Alan Joyce commented on the results:

I am pleased to report the results so far of the fundamental business transformation that is underway at Qantas.

Qantas reported an underlying profit before tax of $367 million for the six months to December 2014, and a statutory profit after tax of $206 million.

This is a $619 million improvement over the same period last year at the underlying level.

The decisive factor in this result – our best half-year performance for four years – is our transformation program, which delivered $374 million in benefits in the first half.

Without the impact of transformation, Qantas would not be profitable today.

The other positive drivers in the results were:

$208 million from reduced depreciation;

$162 million from increased revenue per available seat kilometre;

$59 million from the removal of the carbon tax; and

$33 million from lower fuel prices.

This result confirms that we are executing the right plan with discipline and speed.

We are meeting, or exceeding, all our targets as we build a strong, sustainable future for Qantas and grow long-term shareholder value.

Since we announced our transformation program in December 2013 we have:

Lowered our cost base;

Grown free cash flow and revenue;

Improved fleet, product and service;

Strengthened customer satisfaction;

Reduced debt and strengthened the balance sheet;

Improved our return on invested capital;

Achieved our youngest fleet age in more than 20 years; and

Simplified the fleet from eleven to nine aircraft types, on the way down to seven.

What sets this program apart is that we are reducing costs permanently, while at the same time delivering Qantas’ best ever fleet, product and service.

We now have a strong foundation for sustainable growth.

I want to express my deep appreciation to the people of Qantas who have worked so hard to make this transformation succeed.

We have come together to protect this great Australian company and give it a sustainable future.

I also want to thank our customers.

We are delighted to repay their loyalty with even better Qantas experiences today, and more rewards to come in the future.

All parts of our business have contributed to this good result.

Qantas International was profitable for the first time since the GFC with underlying earnings of $59 million, a turnaround of $321 million over the same period last year.

Over the period it cut unit costs by almost 4 per cent while revenue increased by nearly 5 per cent.

The partnership with Emirates is now more than two years old and it continues to deliver.

We’ve seen exceptional customer satisfaction with our Dubai hub and increased range of destinations, which in turn has given us a significant competitive advantage.

With smarter fleet utilisation, Qantas has been able to offer new or additional capacity, including seasonal flights to Vancouver and additional services to LA, Santiago and Japan.

Our new A330 product and lounges in Singapore, Hong Kong, and Los Angeles have been met with acclaim.

In 2011 we set ourselves the task of getting Qantas International back into profit.

We expect to achieve that goal this year, on target.

Our domestic airline businesses performed well over the half – with total domestic profitability of just under $300 million.

The Qantas Group strengthened its position substantially in the domestic market.

Qantas Domestic reported an improvement of $170 million compared with the same period last year, with underlying earnings of $227 million.

With its unrivalled network, frequencies, lounges, and Loyalty program, Qantas Domestic retained an overwhelming 80 per cent revenue share of the Australian corporate market.

Looking at large corporate accounts, we recorded 113 renewals, 42 new accounts – with 16 of those won back from the competition – and just four lost.

Customer satisfaction with Qantas Domestic was at record levels in the December quarter.

The Jetstar Group continues to build scale and brand presence, flying to 66 destinations across 16 countries in the Asia-Pacific.

It reported underlying earnings of $81 million, an improvement of $97 million on the same period last year.

Domestically, Jetstar achieved earnings of $63 million, driven by improved yields and loads and a continued focus on managing costs and capacity

Strong Jetstar International earnings of $51 million reflected the benefits of a network restructure and the roll-out of the Boeing 787 Dreamliner.

Qantas’ investments in the Jetstar-branded airlines in Asia will generate long-term returns in the world’s most important emerging markets.

These airlines improved their performance in the first half, relative to the prior period, with a $13 million reduction in Qantas’ share of losses.

Jetstar Asia in Singapore was profitable in the December quarter.

Both Qantas and Jetstar have won a string of awards and recognition for product, service and safety.

Qantas Loyalty continued its outstanding performance.

With 10 per cent earnings growth, Loyalty achieved underlying earnings of $160 million.

It attracted more than 400,000 new members in the half, to reach a new high of 10.5 million.

Continued innovation and investment in programs like the online mall, Aquire, and Qantas Cash card, have helped grow, diversify and maximise the customer base. They have brought in a younger demographic, with 60 per cent of new members aged 36 or younger.

Qantas Freight delivered underlying earnings of $54 million, a strong improvement which was driven by significant recovery in the international freight market – outweighing a challenging domestic market.

Overall, this result demonstrates the continuing strength in our portfolio of integrated Qantas Group businesses.

The Group’s financial position improved significantly with more than a billion dollars in cash generated from operations for the half, up nearly 45% on the prior year.

The outlook for the Group’s operating environment in the second half of this financial year has improved after a turbulent period.

Demand is mixed in the domestic market and steady in the international market.

Importantly, market capacity – both domestic and international – is moderating and aligning more closely to demand.

Yield and load factors have stabilised and are in the early stages of recovery.

Lower fuel and Australian dollar values have, overall, improved our competitive position.

While fuel prices produced a modest benefit in the first half, we expect fuel costs for the full year to be no more than $4 billion at current prices – which will be a significant boost to the bottom line in the second half.

And we expect all operating segments to be profitable in the full year.

The results are good and we take pride in our progress so far.

Transformation has been central to our recovery and we will drive it forward with all our energy.

It is about making ourselves strong and resilient through the ups and downs of economic cycles.

Over the next two years we will further strengthen the Qantas position.

We will be a company able to withstand tough times, capitalise on the good times, and deliver sustainable and attractive long term returns to our shareholders.

We will be a stronger integrated Group portfolio where each business complements the others, generating sustainable returns through the cycle.

We will always be the airline that represents the best of the Australian way of life.

And today we can see a bright future for this great Australian company.

Thank you.

Read the full report: CLICK HERE

Copyright Photo: Airbus A380-842 VH-OQJ (msn 062) taxies to the gate at London’s Heathrow Airport.

QANTAS Airways aircraft slide show: AG Airline Slide Show

AG Prints-6 Sizes

QANTAS Airways introduces new entertainment options

QANTAS logo

QANTAS Airways (Sydney) has implemented its new and improved inflight entertainment program giving customers more choice and variety and more regular and in-depth news coverage as a result of its new partnership with Sky News, Foxtel and Fox Sports.

QANTAS customers will be able to view a complete package of news, sport, entertainment and lifestyle programs with the partnership marking the start of a comprehensive transformation of Qantas’ inflight entertainment programming.

QANTAS is the only Australian airline to give its customers an inflight entertainment solution on every aircraft no matter what cabin they are traveling in.

New inflight entertainment features:

More news – QANTAS customers will enjoy multiple daily news bulletins on international and domestic flights seven days a week.

More exposure – A new international Australian news service called Australia Channel will broadcast live to Qantas’ international network of lounges so customers returning home will be able to watch the latest news, sport and business updates from Australia. Domestic customers will also enjoy this service.

More sport – Fox Sports content will be on offer for customers including highlights packages, interviews and documentaries.

More variety – A Foxtel Picks channel will showcase a library of lifestyle, drama, food, sport and entertainment programming from the likes of The Lifestyle Channel, Fox8, Showcase, the History Channel and Comedy Channel.

More content – Customers can expect more volume in popular categories including double the number of new releases and blockbusters, kid’s and drama content. Four times more business programming.

More music – Customers can now listen to a greater selection of music with triple the number of albums added each quarter.

QANTAS has also engaged Stellar Entertainment, a full-service content service provider, offering world-class IFE. The partnership has already seen QANTAS double its number of new releases and blockbusters, adding 100 hours of additional content.

Bottom Copyright Photo: SPA/AirlinersGallery.com. Airbus A380-842 VH-OQC (msn 022) arrives in London (Heathrow).

QANTAS Airways aircraft slide show: AG Slide Show

QANTAS Airways sees a 4% drop in its yearly profits

QANTAS Airways (Sydney) reported a four percent drop in its yearly profits to slightly over $100 million (US) for the fiscal year.

Read the full report from Bloomberg Businessweek:

CLICK HERE

Copyright Photo: John Adlard. An unusual angle photo of QF’s giant Airbus A380-841 VH-OQC (msn 022) at Sydney.