Qantas is looking at 'buy on board' for meals, inflight movies
EXCLUSIVE | Qantas could begin charging passengers for meals, movies and even a single piece of checked luggage under a new pricing model being considered by the airline.
The scheme would be partnered to a 'basic economy' fare similar to those recently introduced by British Airways, Virgin Atlantic, Air New Zealand and US airlines American, Delta and United.
This would entitle passengers to an economy class seat and, well, pretty much nothing else unless they pay extra for it.
Qantas has floated the concept in a survey sent out this week to its select Qantas Advisory Panel, an invitation-only group of frequent flyers regularly polled to assess the airline's future plans.
Members are being asked for their thoughts on "pay as you use Qantas flights between Australia and New Zealand", indicating the busy and highly competitive trans-Tasman routes as a likely launch pad for what has often been a contentious model when adopted by other airlines.
"By 'pay as you use' we mean the ability to purchase a base fare, then add on items such as baggage, food & beverage, in-flight entertainment (and) seat choice for an additional cost – only as you require them", the survey elaborates.
Such a move would represent a sharp about-face for Qantas, which has often made a selling point of its full-service promise that every passenger on every fare gets a meal and checked baggage.
Approached by Australian Business Traveller for comment, a Qantas spokesperson offered this expected boilerplate text :"We regularly conduct surveys with our Advisory Panel, asking for their feedback on a range of topics and ideas. We are always looking at ways to improve the customer experience, however have no plans to introduce this at this stage."
Updated 25/5/18: Qantas has now issued a follow-up statement which appears to rule out the buy-on-board approach, saying "we have no intention on unbundling our fares."
Read: Qantas says it has no plans to charge for meals, drinks and baggage
Cheap seats and paid-for-eats across the pond?
The impending split between former partners Virgin Australia and Air New Zealand will turn the trans-Tasman market into a three-cornered battle in which Qantas is eager to gain the advantage.
Introducing a seat-only economy fare between Australia and New Zealand would bring Qantas closer to Air New Zealand's Seats to Suit strategy, which offers three packages – Seat, Seat + Bag and The Works – with varying options.
This starts with a basic Seat fare which doesn't include checked baggage, inflight movies or meals, with the latter available from a 'buy on board' menu using a credit card or prepaid voucher.
Air New Zealand also sells a Works Deluxe package on its all-economy Airbus A320 jets, which acts as a 'pseudo-business class' offering similar to EuroBusiness where passengers get the full bundle plus perks such as an empty seat next to them, an extra free checked bag plus priority check-in, boarding and bag handling.
Earn Qantas frequent flyer points on every dollar you spend and get a sign-up bonus of up to 120,000 points with our expert monthly round-up of Australia's best Qantas Frequent Flyer credit card sign-up deals.
Qantas - Qantas Frequent Flyer
04 Nov 2011
Total posts 359
They already have this...it’s called Jetstar.
Qantas - Qantas Frequent Flyer
20 Dec 2017
Total posts 18
I wonder if this would be lower in price than the Red e-Deal fare or maybe just replace it?
01 Jul 2011
Total posts 11
This is literally the worst idea I’ve heard come from Qantas, jetstar 2.0
Qantas - Qantas Frequent Flyer
02 Apr 2017
Total posts 133
Not a huge fan. I like low cost and full service carriers to be distinct. If I just want a cheap seat, then there’s nothing wrong with Jetstar or Tiger and that’s who I’ll fly.
Virgin Australia - Velocity Rewards
25 Jul 2013
Total posts 72
I would expect to hear something like this (in the current climate) from, say, Etihad - but not Qantas. Aren’t they recording billion dollar annual profits?!
17 Sep 2015
Total posts 371
It is (although fuel prices have risen, and hedging isn't cost free), but greed is so often present in Australia. Look at the huge salary that the CEO is on.
Qantas - Qantas Frequent Flyer
10 Dec 2014
Total posts 43
I wonder if Qantas has heard of Jetstar? Pretty sure they own them and this is what they do
Virgin Australia - Velocity Rewards
17 Aug 2017
Total posts 22
$1.6 billion is not enough. Qantas has really lost the plot if this occurs. Put a Jetstar 787 to AKL. Qantas has a premium airline and a low cost (JQ) ANZ doesn’t.
Qantas - Qantas Frequent Flyer
09 Feb 2015
Total posts 387
What a stupid idea from Qantas management. They have a great fair structure currently which the market clearly like showing by the record profits. DO NOT PROCEED!!
Qantas - Qantas Frequent Flyer
28 Apr 2013
Total posts 14
This will burn all the loyalty I have left for Qantas.
Air New Zealand - Airpoints
12 Jul 2016
Total posts 27
Qantas ' fly generous
Qantas - Qantas Frequent Flyer
20 Sep 2013
Total posts 462
What a great idea,now you really would get what you paid for.
Qantas - Qantas Frequent Flyer
14 Sep 2012
Total posts 382
Nothing says “innovation” like a ‘de bundle charge for everything’ pitch from the marketing department.
Singapore Airlines - KrisFlyer
17 Nov 2014
Total posts 101
Perhaps Qantas should rename themselves as Jetstar then.
Qantas - Qantas Frequent Flyer
10 May 2017
Total posts 84
So because I don't want to eat airline food, I'm all of a sudden someone who, in your words, dodgy?
05 May 2016
Total posts 616
When I flew BA and there was no free meal/drink onboard I felt it was very cheap for what’s meant to be a premium airline. It would be a bad move for QF to copy this.
Qantas - Qantas Frequent Flyer
01 Nov 2016
Total posts 130
Absolutely poor and totally goes against the grain of what Qantas is or was should I say.
Qantas - Qantas Frequent Flyer
02 Jan 2015
Total posts 70
I understand the possible motive and business case behind this but it would be a really bad move. Most other full service airlines that have opted into this fare option don't have the low cost subsidiary like qantas have with Jetstar
Qantas - Qantas Frequent Flyer
22 May 2017
Total posts 12
I think this would be counterproductive for them, as they would have to seriously slash their prices down in order for people to continue to consider them, or else most would swap to AirNZ which has a FAR better soft product. Or choose AirChina/LAN from BNE/SYD with super cheap fares, full service and brand new A350/787 vs the cramped old 738 Qantas offers
28 Feb 2014
Total posts 18
I get the business case, but this is really a poor move. Jetstar is the low cost option, and it should remain that way. It starts with the trans Tasman business, then before we know it, it will be across the entire network. QF should wait and see what happens with the break up of the Virgin / Air NZ alliance first. I suspect this could hurt Air NZ more then it thinks....
24 May 2018
Total posts 1
If I want a no frill airline I would fly a no frill airline. If Qantas is going to join the no frill airline then I shall have to fly with Singapore airline everytime I go overseas. Qantas still uses the old aircraft to Singapore and I would still fly them even you are still dearer than SQ but to charge for everything then the loyalty will be to tell us to book any airline that have the cheapest fair
Qantas - Qantas Frequent Flyer
30 May 2013
Total posts 383
I hope Qantas are reading the comments on this article. It's a ridiculous idea, if people wanted this type of service they would fly Jetstar. After all, isn't that why they created Jetstar? Qantas need to leave a distinct difference between Qantas and Jetstar or else it will end up like Virgin Australia - an airline that's stuck in the middle between budget and premium, not really knowing what it wants to be.
Qantas - Qantas Frequent Flyer
30 May 2013
Total posts 383
It would also be interesting to know Jetstar's thoughts on this!
13 Sep 2016
Total posts 174
Qantas - Qantas Frequent Flyer
30 May 2013
Total posts 383
Fair enough comment. The thing to watch though, is whether the cheapest fare would actually come down in price, or would the current Red e-deal fare morph into food, drink or entertainment?
Qantas - Qantas Frequent Flyer
10 May 2017
Total posts 84
Agree ^
Not sure why everyone is finding this such a terrible plan.(Just the idea of not being served a quiche on board a 3 hr flight! Could you imagine!!!!!??)
04 May 2018
Total posts 30
I would tend to think that if the "basic fare" dropped with a no frills ticket and bundles like JQ. Then the most basic fare will not attract points and SCs. IMHO you will buy a bundle where you will earn those just like JQ.
Qantas - Qantas Frequent Flyer
06 May 2016
Total posts 33
This is a tragic for Qantas. SQ did that last year with the announcement of charging passengers with seat selection, etc. Within 24 hours, the announcement was corrected by SQ PR and such move was no longer valid. This is a sad case for any premium airlines to adopt a budget airline model. Emirates are doing so......... Who's next?
Virgin Australia - Velocity Rewards
06 Sep 2012
Total posts 231
Unfortunately it is our fault as price-conscious travellers, who are choosing flights based on their affordability rather than service. Airlines are feeling the pinch and hence needed a new business model to stay afloat.
Jetstar Airways - Qantas Frequent Flyer
06 Jul 2017
Total posts 2
they're making it easier for me & our business to consider the jump to Virgin
Qantas - Qantas Frequent Flyer
10 May 2017
Total posts 84
So let me get this straight,
23 Oct 2014
Total posts 238
“Virgin a “budget” airline”, this statement couldn’t be further from the truth. Haven’t seen carriers like Etihad and Singapore actively investing in Budget airlines.
Qantas - Qantas Frequent Flyer
10 May 2017
Total posts 84
Virgin are a low cost airline though
Qantas - Qantas Frequent Flyer
10 May 2017
Total posts 84
And Etihad a broke (can't afford a stadium sponsorship in Melbourne anymore), - Singapore have invested in Scoot .. so
Qantas - Qantas Frequent Flyer
18 Oct 2012
Total posts 135
Oh ... we will all complain about this ... but we will still fly them ...Monopoly x 2 I wonder what the ACCC will have to say? not much Id say.
26 Jul 2017
Total posts 13
What rubbish, I fly Qantas so i don't have to get this crap on Jetstar
27 Jan 2016
Total posts 52
QF currently charge International seat fees for sale fares but waive for Silver or above. Interesting proposition if they go down this path. One would hope the lead in would match the Air NZ seat product. Interestingly VA still allow Silver and above to get a bag even on a bag less ticket as a perk. Air NZ give increased hand luggage allowance as a FF perk for certain tiers. I am surprised they are looking at this though.
Etihad - Etihad Guest
06 Apr 2012
Total posts 124
Even though Qantas is not usually the cheapest fare in our company's travel booking system - a lot of business travelers I know prefer to pay a bit extra to get the additional services that they provide as part of their standard offering. This is how Qantas differentiated their product and brand from Virgin on domestic routes. By removing these extras from the standard fare - the difference between the two airlines becomes minimal. So for the business traveler the choice then boils down solely to price and schedule (unless they have a strong allegiance to a particular frequent flyer program). Will be interesting to see how this turns out if Qantas goes ahead with it.
Qantas - Qantas Frequent Flyer
02 Jul 2011
Total posts 1374
I think this is the issue - but many companies are forcing you to pick the best fare of the day - so Qantas doesn't even get shown as an option.
12 Apr 2017
Total posts 2
Stupid. Stupid. Stupid.
24 Aug 2011
Total posts 1217
The real potential downside of all this is that this ultra-cheap proposition will become the standard for reward redemptions meaning you will be charged extras on redemption bookings. Already some international travel using points is pointless (excuse the pun) due to the fees and "taxes" Qantas tag on. This has the potential to make it even worse.
Qantas - Qantas Frequent Flyer
18 Jun 2015
Total posts 105
This starts a very slippery slope. First Transtasman then other routes.
04 May 2018
Total posts 1
this is a great initiative, I never eat on a plane and rarely check in bagggage, so it would suit me. Plus I’m platinum so I’m alllowed baggage anyway. This is the same as AA, baggage not included unless your gold/platinum.
Qantas - Qantas Frequent Flyer
10 May 2017
Total posts 84
I like where this is going!
04 May 2018
Total posts 30
Makes me wonder. When you read so much negativity about the "Neil Perry inspired food" that perhaps the amount they are tossing out because people will or cannot eat it is costing QF a lot of money. So lets save money copy the JQ model and you can have a far greater selection at your cost. Or BYO food
Qantas - Qantas Frequent Flyer
22 Dec 2016
Total posts 7
This QF initiated Survey on evaluating bundle fares on trans-tasman routes has been conducted over the past 3 years. Hopefully, as long as the majority of respondents rate the idea as poor, QF will put this Idea of out to pasture for the time being at least. It has to be said the idea of bundle fares on QF would potentially commence a slippery slope for Economy fare's on Domestic and short haul international sectors.
30 Jun 2011
Total posts 49
The simple choice of chicken, beef or quinoa is time-efficient. When cabin crew have to swipe a card and deal with pax making a paid-for choice it slows service to a crawl. Earlier this week on VA the women beside me ordered some wine and there was a noticeable delay - all those rows behind were left waiting longer. They should look at Virgin America's seat-back order portal - just pick what you want and the crew run it out to you. Also the F&B on VX was great. Not sure what Alaska are running out now.
Virgin Australia - Velocity Rewards
14 Mar 2017
Total posts 152
Finally, sensible comment...
Qantas - Qantas Frequent Flyer
10 May 2017
Total posts 84
The nerve of some people, ordering wine, how selfish.
30 Jun 2011
Total posts 49
I'm certainly not criticising my seat mate's choice or her right to order it, but were it free she'd have the bottle in hand and the crew would be done. Swiping a mobile terminal takes time (although we can marvel at the tech allowing it).
NZ
13 Aug 2016
Total posts 64
It's what NZ do - you can only order food and drink via your seat back screen (no cash payments). It is then handled by the crew in the galley, rather than the crew on the trolleys.
QF
11 Jul 2014
Total posts 1013
I’m sure it will happen one day, bye bye Qantas hello Jetstar with all those fantasic Jetstar passengers
09 May 2013
Total posts 8
So if Qantas were to do this then where's the incentive to fly with them instead of another low cost airline? You don't get any additional seat room compared to most Jetstar flights and Qantas food and drink is one of the few distinguishing features. These guys seem to have a LCC state of thinking, led from the top. Full service is well on its way to low service and further cannibalising Qantas market share and margins.
04 May 2018
Total posts 30
"led from the top" does that mean maybe it's time to move AJ on or is there another big bonus check dangling on the Christmas tree.
Qantas - Qantas Frequent Flyer
07 Mar 2017
Total posts 18
This is a dreadful idea. they may as well just paint a big star over the roo. Qantas prides itself (or at least it used to) on providing a full service. I can't imagine they are going to introduce a fare cheaper than the red e deal so really it looks like just another way to extort more money out of their faithful frequent flyers.
Qantas - Qantas Frequent Flyer
04 Oct 2016
Total posts 37
I think they can get away with doing uncomplimentary checked baggage, it will take down the price by a lot (for people not using checked baggage) while not sacrificing the onboard product, which seems to be what most people care about.
06 Feb 2018
Total posts 3
In a statement to 9NEWS, a Qantas spokesperson said: "
"Specifically on this question, we have no intention on unbundling our fares. Given we're in the middle of rolling out free Wi-Fi, we are clearly committed to being a full service airline."
15 Feb 2018
Total posts 43
If this proposal is correct, Qantas management clearly have no idea why people choose Qantas. If they want that reduced model, a passenger will choose Jetstar. I for one, should like to complete the survey , it would get the thumbs down in a big way.
Qantas - Qantas Frequent Flyer
23 Sep 2017
Total posts 163
On this great race to the bottom Qantas will soon be there with the other bottom feeders such as BA. My loyalty is waning by the day. That Joyce is a right treacherous individual!
Qantas - Qantas Frequent Flyer
23 Sep 2017
Total posts 163
Greedy red and white rat.
06 Dec 2017
Total posts 110
what a joke.I have been flying them domestically since it was known as TAA and later Australian.in those days they were on all sectors regardless of distance the only ones on all flights to offer inflight audio,the food was pretty decent and the service way better than what we got after the merger almost 25 years ago.what I see here being proposed will not work on anything other than a Trans Tasman,Noumea,Domestic or maybe Bali flights.
Hi Guest, join in the discussion on Qantas is looking at 'buy on board' for meals, inflight movies