FOXTROTS

 

Fox – sly.  Trots – left-leaning (Trotsky) plus its more insalubrious meaning.

Foxtrots – leading the industry in a dance.

 

 

June 4 2012

 

Press Release: Qantas gets it right.

 

A

PRESS RELEASE issued today by Travel Business Analyst names the Qantas Group (QG) as the world’s only major airline group to have resolved current market challenges. The Press Release follows a full report in the Asia Pacific edition of the Travel Business Analyst newsletter.

 

Travel Business Analyst (TBA) comments are based partly on recent traffic results.

 

TBA reports that the QG sold 8% more seats in the first quarter of this year. Not many airlines matched that. In the same period, Cathay Pacific (+9%) actually did better, but it has China, even better southern China, on its doorstop, so big growth is almost a given; Delta was +2%, Lufthansa +4%, Singapore +6%.

 

TBA attributes this success to the QG’s creation of three airline types – what TBA calls FSA (full-service-airline), LFA (low-fare-airline), and LCA (low-cost-airline). The report adds that this formula is necessary for any sizeable airline group to profit.

 

The report provides a comprehensive checklist on what it says is needed to operate a FSA, LFA, or LCA. For instance, for low-fare-airlines this goes into details on the number of toilets, aircraft turnaround time, fare-change costs, and much more.

 

But despite TBA’s statement that QG has “got it right”, it adds a number of points that still need to be resolved.

 

These include taking the ‘Link’ and ‘Domestic’ name appendages on its Qantas airline subsidiaries in Australia, changing the name of Jetstar International (TBA calls this a LCA, and affirms that it needs a name different to its no-frills namesakes based in Australia, New Zealand, and Singapore). It proposes ‘Star International’.

 

Finally, it says the QG needs to rewrite the business plan of Jetstar Japan, due to start operating this summer.

 

 

 

The Fox

Advertisements