Do foreign carriers make money flying to Australia.

4 replies

reno

Qantas - Qantas Frequent Flyer

Member since 20 Sep 2013

Total posts 316

Do foreign carriers make money flying to Australia.As a beloved Qantas P1 FF i wish to see Qantas succeed but i continue to see QF management say routes are un profitable at a time where most all low cost budget and full service legacy airlines make money. EG Singapore/Cathay say the make money out Perth/Brisbane/Sydney yet QF reduce and or eliminate service of reduce aircraft size.Am i nuts but with an ageing A330 witch will take up to a year to configure the first and with no PE cabin will pax drift away if not forever.

moa999

Qantas - Qantas Frequent Flyer

Member since 02 Jul 2011

Total posts 835

Certainly not all, in the last few months

Singapore Airlines - recently cut capacity to Sydney and Melbourne

Virgin Atlantic - cut all flights to Australia

With AirAsia X launching sale after sale for under A$200 from almost all ports to KL (and based on my experience struggling to fill planes) I can't see they are making money either.

On US routes we have gone from a cosy duopoly a few years ago of Qantas and United, to now adding Virgin Aus and Delta and also NZ impacting more.

I suspect most airlines are struggling.

am

Member since 15 Apr 2011

Total posts 216

Yes, otherwise they wouldn't fly here as much as they do.

Qantas is struggling because it costs so much more to run a business here in Australia compared to Asia and the Middle East (and even the US now that all three major international carriers have been through bankruptcy), which means that their competition can afford to charge less while making just as much profit.

Qantas will never be competitive with other carriers on cost, so instead of targeting a broad market like SIA, Cathay and Emirates do, they are forced to focus only on the part of the market that is willing to pay enough to cover an Australian cost base. 

abudhabi1

Thai Airways International - Royal Orchid Plus

Member since 15 Jan 2013

Total posts 65

It's since changed on the US Services.I remember In addition to Qantas and Air New Zealand we had Continental(1979 to 1993)Panam from the 1940's through to 1986 then United took over the Pacific and Two Times Around of American.So in a way with Virgin and Delta on the run too it's gone back to the old days kind of.I wonder how the going via USA TO LONDON routing went back in the days of the Iran/Iraq Conflict and later on with the Gulf War and Crisis of 1990/1991 for those of us who were determined to avoid going through the Middle East.

watson374

Qantas - Qantas Frequent Flyer

Member since 17 Aug 2012

Total posts 1,285

Of course they believe they can make money. That's why they're slaughtering each other over it.

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