RedQ firms as name for Qantas's new premium airline in Asia

[S V Choong 4]

This is Malaysia styles... Many investors flee away from Malaysia due to unjust profit sharing as suggested by Malaysia. Too bad!

 

Well these cronies will never learn... as it has demonstrated over and over again! They will never make anything work as long as they are still n power!

 

In fact, it is not the first time QF has flirted ideas with MH and they did it again (and blew it again)! I had a hunch that it won't have any breakthrough and I was right. RedQ is a cheesy name which belongs to QF's IFE...

(On the other hand, QF are in a bit of shits at the moment back home in Australia, it is perhaps wise for them to fix their problem here than venturing abroad.)

 

I guess Singapore is not even worried. As far as competitiveness goes, they always have the cutting edge and know how to make deals happen, rather than blowing them. Not hard to imagine many have seen this one coming...

[KC Sim 2]

If QF is only using KUL to extract a better deal from SIN, then AJ would be getting another massive pay rise this year!

 

I have to differ on this point. QF is definitely not in it to extract a better deal from SIN ... because there was absolutely no deal here. I am sure it is no secret that SIA protested about letting Qantas establish a premium carrier in SIN ... after seeing how Jetstar took hold and many believe the local ownership was just a proxy for QF which have controlling interest.

 

Actually, I am certain Qantas know from a very early stage that SIN was already out of the equation and used it in an attempt to extract better terms from Malaysia ... but perhaps Alan Joyce should have engaged a good con-Sultan on how to work things in Malaysia. I would like to borrow an opinion that TF expressed about SIA establishing Scoot : SIA is a confused puppy. I think in this instance, Alan Joyce is one confused puppy.

 

KC Sim

[Mike P 0]

I have to differ on this point. QF is definitely not in it to extract a better deal from SIN ... because there was absolutely no deal here. I am sure it is no secret that SIA protested about letting Qantas establish a premium carrier in SIN ... after seeing how Jetstar took hold and many believe the local ownership was just a proxy for QF which have controlling interest.

 

Actually, I am certain Qantas know from a very early stage that SIN was already out of the equation and used it in an attempt to extract better terms from Malaysia ... but perhaps Alan Joyce should have engaged a good con-Sultan on how to work things in Malaysia. I would like to borrow an opinion that TF expressed about SIA establishing Scoot : SIA is a confused puppy. I think in this instance, Alan Joyce is one confused puppy.

 

KC Sim

 

Rather than nego with MH, nego with the PM directly... just like how McD did when they wanted to enter Malaysian markets.

[Johan Z 0]

QF is also under pressure to keep everything Australian. I would imagine RedQ planned to use local cabin crew at lower salary scale.

[Raymund Yeoh 1]

Qantas Airways Ltd Chief Executive Officer Alan Joyce said plans to set up a full-service carrier in Asia have been put back by “a year or two, or three” after the carrier failed to secure a deal to build a hub there. “We are still in dialogue with both the Singaporeans and Malaysians but nothing is happening in the short term,” Joyce said in a Berlin interview.

“It’s more of a long-term issue.” Qantas said in August it planned to build a base in Malaysia or Singapore in order to hire workers at a lower cost and offer a greater choice of connecting flights in the fastest growing aviation market.

Talks with Malaysian Airline System Bhd collapsed after the companies couldn’t agree commercial terms, the Sydney-based company said in a statement on March 9.

The project failed because the requisite traffic rights couldn’t be secured in Singapore, while Malaysian Air is going through a restructuring plan of its own, so that reaching an accord with Qantas proved too “complex,” Joyce said last night in Germany, where Air Berlin joined the Oneworld alliance. “We both agreed mutually that we would delay it for a while and then start the dialogue again in the future,” he said.

The Asian carrier would have lost money in the first few years of operation, and was aimed more at recovering market share than delivering on current earnings targets, Joyce said. “We’ll eventually do it but the time wasn’t right today,” he said. Qantas and Malaysian are both Oneworld members.

While Qantas has about 65 per cent of Australia’s domestic air market, less than 20 per cent of international passengers choose to fly on its planes after customers switched to rivals such as Singapore Airlines Ltd. and Dubai-based Emirates.

-- Bloomberg

[Mike P 0]

Probably QF is still fighting for the slot in KUL and negotiating with MH... for two reasons... MH would be OneWorld member soon by this year and KUL is so much cheaper than SIN.

[BC Tam 2]

Qantas, China Eastern Airlines to set up HK budget airline

 

March 26, 2012

 

SYDNEY, March 26 — Australia’s national carrier, Qantas, has moved to expand its Asian business and cut costs by entering into an equal joint venture with China Eastern Airlines Corp Ltd to set up a Hong Kong-based low-cost carrier.

Qantas will enter the alliance through its low-cost unit, Jetstar, which already runs joint-venture airlines in Singapore, Japan and Vietnam and its own airline in Australia and New Zealand.

Under the latest tie-up, China Eastern and Qantas will invest up to US$198 million (RM603.34 million) over three years, which will start in mid 2013 with three Airbus A320 aircraft, Qantas said today. The fleet would then expand to 18 by 2015.

“Establishing Jetstar Hong Kong in the heart of Asia and on the doorstep of mainland China is a historic opportunity to continue the successful expansion of the Jetstar brand in this region,” Qantas Chief Executive Alan Joyce said in a statement.

Qantas has embarked on an Asia-focused strategy as part a five-year plan to revive its international operations, which lost over A$200 million (RM637.66 million) in fiscal 2011.

It abandoned talks with Malaysian Airlines this month on setting up an Asia-based premium airline. The parties could not agree terms, prompting investors and analysts to say the Asia strategy would now hinge more on Jetstar.

Setting up airlines in Asia would let Qantas hire pilots, crew and maintenance staff at much lower costs than in Australia and offer a larger choice of connecting flights.

Staff costs at Qantas stand at about 25 per cent of revenue, compared with about 15 per cent for its Asian competitors.

Last month, the airline said it would axe 500 jobs, cut capital spending by A$700 million over two years, review and simplify maintenance operations, cut unprofitable routes and retire aircraft to protect profitability.

The Jetstar brand operates up to 3,000 flights in Asia Pacific a week to almost 60 destinations, including 30 in Asia and eight in Greater China. It has said that it is on track to carry more than 20 million people in fiscal 2012.

Jetstar Hong Kong would look to tap rising demand not just from Hong Kong, which caters to around 40 million passengers a year, but also from greater China — a market that Qantas says is set to see 450 million passengers by 2015.

Jetstar Hong Kong would combine Jetstar group’s brand management, commercial management, safety, aircraft maintenance and IT systems with China Eastern Airlines’ leading position in the Chinese aviation market, Qantas added. — Reuters

 

from here: http://www.themalaysianinsider.com/business/article/qantas-china-eastern-airlines-to-set-up-hk-budget-airline/

 

[Mike P 0]

Qantas, China Eastern Airlines to set up HK budget airline

 

March 26, 2012

 

SYDNEY, March 26 — Australia’s national carrier, Qantas, has moved to expand its Asian business and cut costs by entering into an equal joint venture with China Eastern Airlines Corp Ltd to set up a Hong Kong-based low-cost carrier.

Qantas will enter the alliance through its low-cost unit, Jetstar, which already runs joint-venture airlines in Singapore, Japan and Vietnam and its own airline in Australia and New Zealand.

Under the latest tie-up, China Eastern and Qantas will invest up to US$198 million (RM603.34 million) over three years, which will start in mid 2013 with three Airbus A320 aircraft, Qantas said today. The fleet would then expand to 18 by 2015.

“Establishing Jetstar Hong Kong in the heart of Asia and on the doorstep of mainland China is a historic opportunity to continue the successful expansion of the Jetstar brand in this region,” Qantas Chief Executive Alan Joyce said in a statement.

Qantas has embarked on an Asia-focused strategy as part a five-year plan to revive its international operations, which lost over A$200 million (RM637.66 million) in fiscal 2011.

It abandoned talks with Malaysian Airlines this month on setting up an Asia-based premium airline. The parties could not agree terms, prompting investors and analysts to say the Asia strategy would now hinge more on Jetstar.

Setting up airlines in Asia would let Qantas hire pilots, crew and maintenance staff at much lower costs than in Australia and offer a larger choice of connecting flights.

Staff costs at Qantas stand at about 25 per cent of revenue, compared with about 15 per cent for its Asian competitors.

Last month, the airline said it would axe 500 jobs, cut capital spending by A$700 million over two years, review and simplify maintenance operations, cut unprofitable routes and retire aircraft to protect profitability.

The Jetstar brand operates up to 3,000 flights in Asia Pacific a week to almost 60 destinations, including 30 in Asia and eight in Greater China. It has said that it is on track to carry more than 20 million people in fiscal 2012.

Jetstar Hong Kong would look to tap rising demand not just from Hong Kong, which caters to around 40 million passengers a year, but also from greater China — a market that Qantas says is set to see 450 million passengers by 2015.

Jetstar Hong Kong would combine Jetstar group’s brand management, commercial management, safety, aircraft maintenance and IT systems with China Eastern Airlines’ leading position in the Chinese aviation market, Qantas added. — Reuters

 

from here: http://www.themalays...budget-airline/

 

 

An unexpected surprise, not like MU is an OW member... and collaborating with MU and setting hub in HKG? Really a surprise!

[lionel 0]

Qantas, China Eastern Airlines to set up HK budget airline

 

March 26, 2012

 

SYDNEY, March 26 — Australia’s national carrier, Qantas, has moved to expand its Asian business and cut costs by entering into an equal joint venture with China Eastern Airlines Corp Ltd to set up a Hong Kong-based low-cost carrier.

Qantas will enter the alliance through its low-cost unit, Jetstar, which already runs joint-venture airlines in Singapore, Japan and Vietnam and its own airline in Australia and New Zealand.

Under the latest tie-up, China Eastern and Qantas will invest up to US$198 million (RM603.34 million) over three years, which will start in mid 2013 with three Airbus A320 aircraft, Qantas said today. The fleet would then expand to 18 by 2015.

“Establishing Jetstar Hong Kong in the heart of Asia and on the doorstep of mainland China is a historic opportunity to continue the successful expansion of the Jetstar brand in this region,” Qantas Chief Executive Alan Joyce said in a statement.

Qantas has embarked on an Asia-focused strategy as part a five-year plan to revive its international operations, which lost over A$200 million (RM637.66 million) in fiscal 2011.

It abandoned talks with Malaysian Airlines this month on setting up an Asia-based premium airline. The parties could not agree terms, prompting investors and analysts to say the Asia strategy would now hinge more on Jetstar.

Setting up airlines in Asia would let Qantas hire pilots, crew and maintenance staff at much lower costs than in Australia and offer a larger choice of connecting flights.

Staff costs at Qantas stand at about 25 per cent of revenue, compared with about 15 per cent for its Asian competitors.

Last month, the airline said it would axe 500 jobs, cut capital spending by A$700 million over two years, review and simplify maintenance operations, cut unprofitable routes and retire aircraft to protect profitability.

The Jetstar brand operates up to 3,000 flights in Asia Pacific a week to almost 60 destinations, including 30 in Asia and eight in Greater China. It has said that it is on track to carry more than 20 million people in fiscal 2012.

Jetstar Hong Kong would look to tap rising demand not just from Hong Kong, which caters to around 40 million passengers a year, but also from greater China — a market that Qantas says is set to see 450 million passengers by 2015.

Jetstar Hong Kong would combine Jetstar group’s brand management, commercial management, safety, aircraft maintenance and IT systems with China Eastern Airlines’ leading position in the Chinese aviation market, Qantas added. — Reuters

 

from here: http://www.themalays...budget-airline/

 

 

it is truly a nice move for Qantas. China is a big market, and Hong Kong is such a strategic place...

[Raymund Yeoh 1]

Personally i think there are too many airline companies now in the world....the air space is getting pretty congested.....just my opinion....we dont even have that many automotive/car companies in the world compared to airlines

[dean hizudy 0]

Personally i think there are too many airline companies now in the world....the air space is getting pretty congested.....just my opinion....we dont even have that many automotive/car companies in the world compared to airlines

And every year there are many airlines ceased operations....so, i think its balance actually

[nrazmoor 0]

I wonder what will cathay say about this??

[Cheng Long 0]

I wonder what will cathay say about this??

 

Ya. Qantas gives people the impression that they are not a very faithful bed partner, or very desperate for a bed partner

[Mike P 0]

Qantas still eyes S'pore for premium airline base

04:45 AM Apr 24, 2012

SYDNEY - Singapore remains a possible base for a premium carrier that Qantas is keen to set up in Asia, chief executive Alan Joyce said.

 

The airline's plans suffered a setback last month after talks with potential partner Malaysia Airlines failed, with the two airlines "unable to reach mutually agreeable commercial terms". Qantas had also cited the global economic uncertainty as a reason for caution.

 

Mr Joyce told The Australian in a report published yesterday that Qantas was not shelving its plans and remains in dialogue with the Singapore Government about the idea.

 

"This will take a bit longer than we originally thought, but we're still keen to set up a premium airline in Asia and we're still looking at a range of options available to us - and Singapore is one of them," he said.

 

"We work with them (the Singapore Government) on a range of issues and one of them is keeping the door open to the possibility of a premium airline."

 

In an interview with Bloomberg last month, Mr Joyce said that Qantas' plans had been put back by "a year or two, or three" but the company was looking at a long-term strategy.

 

He said: "It's something we have to do in the long-term but we don't have to do immediately … We do believe that for the long-term success of Qantas it needs to participate in the premium end of the market."

 

Mr Joyce also said the new Asian carrier was aimed more at recovering market share than delivering on current earnings targets.

http://www.todayonline.com/World/EDC120424-0000035/Qantas-still-eyes-Spore-for-premium-airline-base

 

While Qantas has about 65 per cent of Australia's domestic air market, less than 20 per cent of international passengers choose to fly on its namesake planes after customers switched to rivals such as Singapore Airlines and Dubai-based Emirates. AGENCIES

 

[S V Choong 4]

I need to find a magnifying glass first!

[BC Tam 2]

I need to find a magnifying glass first!

In event you are unable to locate one, do bear in mind the 'zoom' function afforded by most if not all browsers nowadays

[Mike P 0]

Sorry, not sure why the letters turned out to be tiny after copied and pasted...

[Johan Z 0]

The new layout doesn't give you Preview option as the last one. Makes it harder to know what will come out after pasting an article.

Edited April 24, 2012 by Johan Z

[Izanee 0]

I really don't see how the OW thing is benefiting KUL or MH apart from RJ increasing frequencies to KUL. I would have thought the other OW members would start making tie-ups and Codeshare agreements with MH in the run up to them joining.

 

 

[Mike P 0]

I really don't see how the OW thing is benefiting KUL or MH apart from RJ increasing frequencies to KUL. I would have thought the other OW members would start making tie-ups and Codeshare agreements with MH in the run up to them joining.

 

Not happening yet... MH has not yet fully an OW member...

[S V Choong 4]

In event you are unable to locate one, do bear in mind the 'zoom' function afforded by most if not all browsers nowadays

I was expecting someone to say that Okay sarcasm off!