Issues & Trends – June 2010
Qantas confident it can see off any challenge by DJ/NZ
THE Australian Competition and Consumer Commission can rule on the proposed Virgin Blue-Air New Zealand tie-up in the knowledge that Qantas does not see it as a threat.
Qantas Group managing director Alan Joyce and Qantas Group executive commercial Rob Gurney made that clear during a press conference at last month’s Australian Tourism Exchange (ATE) in Adelaide.
oyce told the ATE press corps that the airline’s trans-Tasman product proposition will remain the “simplest, best and easiest to understand”, combining full service Qantas flights with Jetstar’s value offering.
“There is no confusion – Qantas is still offering business class,” he said.
He is also supremely confident the Qantas Group can continue to hold a 65 per cent capacity share of the domestic market, claiming the ability to add “significant double digit” capacity increases or to “taper” seat numbers according to market conditions.
He stressed that the airline will continue to enhance Qantas’ premium offering and pointed to airport transition as a key focus for innovations such as web and mobile phone check-in.
While the business travel market did shrink during the global financial crisis, in recent months it has been coming back faster than anticipated, Joyce reported.
He predicted Qantas would be the most profitable domestic carrier by year’s-end.
Meanwhile, he said, Jetstar has grown to be the third largest carrier flying international routes out of Australia.
Gurney spoke of plans for a long-haul Jetstar A330 base in Singapore and, within days of his revelation, Jetstar managing director Bruce Buchanan announced plans to inaugurate daily direct Melbourne-Singapore flights in December. Flights ex Auckland will follow. Qantas will code share on the route.
• Qantas and Tourism Australia announced a new three year $44 million partnership during ATE. The deal will see Qantas participating in marketing Australia internationally through participation in co-operative marketing, trade and business events and public relations activities.