Sunday, August 14, 2011

Gulf poised to snap up rich Qantas travellers

ANY moves by Qantas to cut international routes or swap to no-frills Jetstar services will lead to Middle Eastern and Asian airlines swooping on its valuable passengers, Australian aviation dynamo James Hogan, of Etihad Airways, says.

In nine days Qantas is due to announce the outcome of its deepest review of its international services, prompted by anticipated losses of $200 million this year from the division.

The review has fuelled speculation Qantas might axe flights between Los Angeles and New York, with question marks hovering over Buenos Aires, Honolulu and Mumbai, and rumours Jetstar could replace Qantas on some flights to the US mainland and Europe. Speaking to the Herald during a brief visit to promote Australian-Gulf relations, Mr Hogan said the airline he runs, Etihad, would happily fill any voids Qantas creates.
 
''They [Qantas] don't have the network they had 15 years ago,'' Mr Hogan, a 36-year veteran of the aviation industry, said.

''As Qantas starts restructuring their network, it presents even further opportunities for us to strengthen our foothold in the market.

''As they continue to marginalise their global brand 'Qantas', that represents an opportunity for airlines such as us.

''The Gulf airlines and the Asian carriers out of Australia will have a stronger consumer offering - whether it's leisure or corporate.

''If they [Qantas] do dilute or marginalise their international flying that's a great opportunity for us … and we're happy to fill the gap.''

Qantas's chief executive, Alan Joyce, will announce its international business restructure on August 24, but the airline yesterday declined to discuss any competitive rivalries.

Etihad Airways is based in Abu Dhabi, the capital of the United Arab Emirates, and competes with the neighbouring colossus of Emirates Airline and the ambitious Qatar Airways, along with other global airlines.

Etihad Airways flies to 72 cities worldwide on a fleet of 61 aircraft.

It contrasts with the Qantas group, with its fleet of about 250 aircraft, which barely has a European presence outside of codeshare agreements with other airlines.

But Mr Hogan, who started Etihad from a clean sheet seven years ago, hopes to break even this year, then turn a profit next year for the first time.

Meanwhile, Tiger Australia is regenerating interest from the public, with more than 1500 tickets sold since its flying ban was lifted last week, the airline said.

The ticket sales were ''more than the daily capacity available [seats available per day],'' a Tiger spokeswoman said.

No comments:

Post a Comment