Qantas Aims to Surpass Singapore Air A380s in Comfort With Luxury Cabins

[flee 5]

Qantas Airways Ltd. (QAN) said its planned Asian carrier will have cabins more luxurious than those on the group’s flagship Airbus SAS A380s as it tries to lure fliers from Singapore Airlines Ltd. (SIA)

 

“This will be a top premium product,” Qantas Chief Executive Officer Alan Joyce said in a Bloomberg TV interview on Aug. 19. The business-class and economy-class cabins will both be “better than the A380s,” he said.

 

The new carrier, which may be based in Singapore or Malaysia, will have a “private-jet feel,” Joyce said, as Australia’s biggest airline focuses on Asia to help end losses at its international unit. The planned airline will need better services than Qantas’ existing operations to challenge Singapore Air, Cathay Pacific Airways Ltd. and Korean Air Lines Co., said Neil Hansford, chairman of Strategic Aviation Solutions.

 

“Asian carriers have been beating Qantas with a better product,” Hansford said. Furthermore, the existing airlines “are not going to sit back and wait for Qantas to take their business,” he said.

 

The new Qantas carrier, which will operate under a new brand, will begin services with 11 single-aisle A320s. That will enable it to fly to Australia, India and China, Joyce said.

 

‘Own Hub’

 

“We think there is an opportunity for us to create our own hub,” Joyce said. “We will have a lot of traffic and a complementary network in and out of Australia.”

 

Qantas rose 8.5 percent to A$1.54 at the 4:10 p.m. close of Sydney trading, the biggest gain since Dec. 2008. The stock has declined 39 percent this year. The carrier is the third-worst performer among the 17 stocks in the Bloomberg Asia-Pacific Airlines Index this year.

 

The carrier is seeking other shareholders for the venture and is talking to both financial investors and other airlines, Joyce said, without elaboration. An announcement about where the airline will be based is “a little bit away,” he said.

Qantas also last week announced plans to cut Europe flights and to form a budget carrier in Japan. The airline suffered annual losses of as much as A$200 million ($208 million) at its international operations as Middle East airlines including Dubai-based Emirates Airline and Abu Dhabi-based Etihad Airways added Australia flights.

 

Singapore Option

 

Singapore is an attractive option for the new carrier because Qantas is already the second-biggest airline in the city-state, Joyce said. Qantas’s budget unit Jetstar has a base there, and the carrier flies long-haul services to Frankfurt and London via the city-state using its A380s.

 

Singapore Air has “faced competition since day one on every route we operate and we compete by constantly trying to improve our services,” Nicholas Ionides, a spokesman for the carrier, said by phone today.

 

Business class on Qantas’s superjumbos boasts 2-meter (6- foot, 6-inch) long lie-flat beds, 1,000 options on the inflight entertainment system and an onboard lounge, according to the carrier’s website. Joyce didn’t elaborate on what features the new airline may have. Qantas has a four-star rating from airline-reviewer Skytrax, trailing Singapore Air’s five stars.

 

Kuala Lumpur offers Qantas the opportunity to cooperate with Malaysian Airline System Bhd. (MAS) and AirAsia Bhd. (AIRA), Joyce said. The two Malaysian carriers recently became affiliates after their main investors agreed to a share swap. Jetstar also cooperates with AirAsia.

 

“The combination of Qantas, Malaysian, AirAsia and Jetstar makes KL an attractive alternative,” Joyce said.

 

Source: http://www.bloomberg.com/news/2011-08-22/qantas-asia-cabins-to-surpass-a380s-in-singapore-air-challenge.html

[Craig 0]

My 2 cents bet that the new startup is going to be in Singapore. Qantas wants this to be a premium airline and Singapore will be the perfect place for it (KUL/Malaysia doesn't really generate that much premium traffic).

[flee 5]

I tend to agree - Qantas are attracted by the low costs in KUL but what is the good of low cost facilities if there is insufficient sales? Perhaps they will run KUL-SIN and then beyond? They might use MH's MRO facilities as they are lower cost.

 

These A320s will probably feature only 50-70 seats - probably similar to the A318s BA are using for the LCY-JFK service. It will be very interesting to see if this sort of business model will work.

[Mushrif A 3]

The title is incorrect and misleading. The new carrier's premium offering will be more luxurious than QF's own A380 biz and Y class. Never did the article state that it will trump SQ's A380 products.

[Mike P 0]

I've already watched QF's A380 video, very nice and tempting, basically come in 4 classes, First, Business, Premium Economy and Economy. There is a bar corner or drinks refill section in Economy Class where passengers are free to roam to that section to refill any drinks they want. Very cool! It signifies and implies that how spacious A380 is, good for those who are claustrophobic.

[alberttky 0]

I look forward to seeing what they can squeeze into a A320.

[mohd sukri abd hamid 0]

i bet for KUL

[alberttky 0]

i bet for KUL

 

My money is on SIN.

[Isaac 0]

My money is on SIN.

Likewise

[reezal 0]

i bet for KUL

 

I really wish it would be KL, But with all the Qantas/Jetstar resources all readily available at Changi, i guess SIN is imminent!

[Pieter C. 5]

I really wish it would be KL, But with all the Qantas/Jetstar resources all readily available at Changi, i guess SIN is imminent!

 

agree 100% here...you couldn't have said it better...

[Waiping 12]

Bold move!

[S V Choong 4]

Likewise

Has to be SIN - premium traffic, much higher living standard with a lot more purchasing power and a business hub. KUL is only the low cost alternative...

 

Business is about money afterall...

Edited August 25, 2011 by S V Choong

[Mike P 0]

What is it going to do by voting KUL or SIN here? It's out of the topic, it says how QF is going to surpass SQ.

[alberttky 0]

Qantas' new premium carrier to use A320s

 

Qantas announced its new Asia-based premium carrier will be using Airbus A320 aircraft.

 

According to a company spokesperson, the "new premium carrier will have the feel of a private jet".

 

The executive added: “As Qantas is still in negotiations with governments and investors on this project, we are unable to disclose the location for the carrier and the configuration of the aircraft.”

 

The new project, announced as part of its international growth strategy (see story here), will sport “a new name, a new brand, a new aircraft and an exciting new look and feel,” said Alan Joyce, Qantas chief executive.

 

http://www.businesstraveller.com/asia-pacific/news/qantas-new-premium-carrier-to-use-a320s

[Isaac 0]

Has to be SIN - premium traffic, much higher living standard with a lot more purchasing power and a business hub. KUL is only the low cost alternative...

 

Business is about money afterall...

Spot on bro!

 

It will be very exciting to see how the interior arrangement of their 320 will be like. In order for the Economy Class to be better than the parent's company flagship 388, they have to offer 34" of seat pitch in it or else they are just boasting. Business Class definitely has to be a true flat bed too.

[jackch747 0]

The new airline may not have economy class, just premium class like BA's flight from LCY to JFK, using A319.

[KK Lee 5]

Qantas Airways Ltd. (QAN) said its planned Asian carrier will have cabins more luxurious than those on the group’s flagship Airbus SAS A380s as it tries to lure fliers from Singapore Airlines Ltd. (SIA

 

One more reason for MH to defer A380 delivery indefinitely and quit OW