In light of the impending code-share agreement between QF and EK, could someone enlighten me on the baggage and hang-ups of the QF and CX relationship?

10 replies

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

In light of the impending code-share agreement between QF and EK, could someone enlighten me on the baggage and hang-ups of the QF and CX relationship? The arguments of not wanting to hook up with an equally "prima donna" airline appear not to hold water, in light of the proposed hook-up with EK. Why invest in a deal with EK, when perhaps the infrastructure for a tie up (due to OW) with CX is already there?

Austline

Member since 23 Aug 2011

Total posts 42

Because CX are not interested in any form of working realtionship with QF and especailly now with the QF LCC proposed deal with China Eastern. They had a code share agreement on the HKG/FCO route not sure if it still operates, but I gather CX are not the easiest carrier to work with.

Southland

Virgin Australia - Velocity Rewards

Member since 31 Jan 2012

Total posts 57

but I gather CX are not the easiest carrier to work with.  

Same can be said for QF. EK deal is a codeshare without ACCC apporaval meaning EK can and maybe will under cut the seats sold to QF. Bad idea made in haste. Joyce needs to go STAT.

DGP

Qantas - Qantas Frequent Flyer

Member since 17 Jan 2012

Total posts 42

And not to mention, how QF got into bed with AF for Paris flights when you would have thought CX as a Oneworld partner would be the obvious choice. 

AA have quite an extensive codeshare arrangement with CX, why couldn't QF have worked out a similiar deal with them?

 

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

Thanks guys. I'm beginning to think QF management does not quite cut the mustard. I'd love to be a fly on the wall during a QF Board meeting. For a nation that loves international travel, I do not know why their international division is balls-up. An MBA case study on this would be a thorougly enjoyable read. Does anyone know if there is one published out there?

PeterLoh

Qantas - Qantas Frequent Flyer

Member since 25 May 2012

Total posts 356

Aside from AA and BA, Qantas have had a lackluster relationship with many of the other oneworld carriers, since even before Alan Joyce took the reigns. They've always maintained codeshares with non-oneworld carriers, which have fed their domestic network. The international network has been neglected for decades and is now suffering the consequences due to changes in world economies and the rise of regions which were once "second-world."

Its not just with CX that Qantas lacks potential. Despite their warmer relationship with JL, Qantas could leverage their North Asia network and Northern Europe routes if they improved their schedules. SYD-NRT-LHR has less than 200 miles difference than SYD-SIN-LHR, but JL also has flights to Moscow, Frankfurt and Paris with Finnair and BA also serving NRT.

Qantas' true benefit from a EK-QF codeshare will mostly be realized through increased passengers on domestic routes and short-haul international routes to the south pacific. They will not see much benefit in booking passengers onto Emirates long-haul flights.

CaptainCrackers

Member since 13 Mar 2012

Total posts 12

As EK fly into the 5 major ports in Australia (PER, SYD, BNE, MEL, soon ADL) plus extensions to NZ, the amount of benefit QF will receive via through traffic placed onto the domestic network is questionable. You wouldn't fly into SYD from Dubai on EK then down to MEL on QF when you can take an EK flight directly to MEL.

QF need EK a lot more than EK need QF, would appear to be getting a pretty raw deal...unless i'm missing something.

PeterLoh

Qantas - Qantas Frequent Flyer

Member since 25 May 2012

Total posts 356

I  agree, but there are other airports besides those capitals that Emirates serves, such as CNS, OOL, NTL, HBA, DRW, not to mention all the QantasLink destinations.

Internationally, there's Queenstown, Wellington, Fiji, Noumea.

PeterLoh

Qantas - Qantas Frequent Flyer

Member since 25 May 2012

Total posts 356

Also forgot CBR! :D

Southland

Virgin Australia - Velocity Rewards

Member since 31 Jan 2012

Total posts 57

Agree PeterLoh but only if the price difference from an EK tickect is in line with a QF ticket. If EK under cut QF price to below the agreed level no profit.

EK and QF agree that they QF pays 1000 for a seat and has to sell the fare for 1100 to make a profit. (codeshare) EK sells a seat on their flight for 900 then QF have to sell their seats at 1200 to get the 100 profit. QF pulls out of euorpe flies to DBX (EK wins) is not selling the seats they have to pay for (EK wins). Better to do it right ACCC the agreement and share revenue not seats. Another  reaction by Joyce to VA.

spinoza

Member since 01 Feb 2012

Total posts 218

I so wish some sort of merger could take place, especially given Qantas' low shareprice. In a laissez faire world, Cathay would now hostile takeover Qantas, consolidate and have one management team in HK. That would probably be the ideal outcome for faithful Qantas passengers, unlike the slow death it is dying now. Realistically, what external or internal drivers can turn the international business around? Oil isn't suddenly going to become cheap, Australia will still geographically be at the end of the world, Middle East and Asia will continue to grow in wealth and importance, our labour costs are not going to become more competitive. Over time the company will shift more and more towards the Jetstar model until our lifetime gold memberships lose all meaning.

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