Will AUSBT interview BA to get their take on Qantas' unilateral dissolution of the BA/QF JVA?

10 replies

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

Will AUSBT interview BA to get their take on Qantas' unilateral dissolution of the BA/QF JVA?

David

Member since 24 Oct 2010

Total posts 992

It's not unilateral - Qantas discussed with BA, they didn't just run off and break up. We're waiting for a response from BA but don't expect anything apart from guarded politically-correct language. What's happening is mostly going to be under the surface.

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

Thanks for clarifying. It seems "unilateral" from the reporting in the Australian media. Nothing in the British papers, with the exception of the Guardian. Not even the Independent, which usually has quite  a good travel section.

David

Member since 24 Oct 2010

Total posts 992

Probably because the announcement at 10am here would have been 1am in London. That said I'd fully expect BA to have some statement ready, and would even have thought this might have been timed to go out when the QF release did... am sure we'll see more wash up from this tonight.

David

Member since 24 Oct 2010

Total posts 992

TRB: there was in fact a comment from Willie Walsh, CEO of BA parent IAG, in the statement issued by Qantas earlier today, and pretty much as you'd expect...

“We’re ending the joint business on amicable terms and support Qantas’ decision to work with Emirates. The world has changed since 1995 when the joint business started. This is a small part of our overall network and this move fits in with changes in our global strategy. Asia has become a key market focus for IAG and we’re talking to a number of airlines about alternative options for us.

“Qantas has made it clear that its international performance has been weak and the termination of the joint business won’t have any negative impact on IAG’s financial targets. The good relationship that we have with Qantas CEO Alan Joyce and his team will continue through our joint membership of oneworld”. 

DGP

Qantas - Qantas Frequent Flyer

Member since 17 Jan 2012

Total posts 42

Surely though the ending of on-carriage from QF via LHR onto BA intra-Europe is going to have a small dent in the BA pockets don't you think?

naggi

Member since 13 Dec 2011

Total posts 24

There will still be QF passengers that want to fly QF metal all the way to London.

Depending on how the status points situation pans out, that number could be substantial.

These passengers will still make their final connections in London with BA

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

One of the most disapointing elements of the BA/QF relationship was BA's decision not to honour Qantas Club (QC) member's access to BA Lounges. From what appears to be a technicality i.e. the rebranding of BA lounges from "Terraces" to "Galleries", BA effectively locked out QC members and consequently made BA intra-European flights unattractive for all but Elite OW members (Sapphire/Emerald).

Given that QC members can now access EK lounges in DXB, I do not see why anyone not flying in Club Europe on BA or with Elite OW status would want to fly with BA. Particularly when (hopefully) status credits can be earned on EK operated flights.

naggi

Member since 13 Dec 2011

Total posts 24

Given how quiet they were on the subject, status credits on EK flights are no certainty IMO.

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

If status credits is not a given, then what's the point? Everyone knows the essence of frequent flyer points is not in the mileage earned but in the benefits that status brings.

So if there is no corresponding increase in status, with increased flying, QF FF members might as well trek through to LHR on QF metal and take a BA flight to Europe, where status credits are earned as part of the OW relationship.

Doesn't this then make the QF/EK tie up pretty much pointless? Unless of course you've got Platinum 1 and cannot go any further or you're straggling in between Silver/Gold or Gold/Platinum and know that you're not going to hit the next level in the current accrual year.

naggi

Member since 13 Dec 2011

Total posts 24

Maybe you've hit it on the head.

The status chasers will do just that, stay on QF metal and keep feeding BA. This helps soften the termination of the JSA.

This agreement benefits the leisure traveller and credit card point collector by offering more one stop destinations than just LHR.

This is where QF has lost the leisure market. Holiday makers want to go to Paris and Rome. The EK tie up allows QF to attract leisure passengers away from SQ, CX, MH, TG

QF have to keep their premium passengers on QF seats all the way to Europe to lift profits. They can do this by not offering status on EK metal

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