QF says PER AKL service demand higher than expected.

[markis10]

Maybe QF need to look at other services that they thought would not have demand - like day flights ex Asia!

Qantas has today launched its new Perth-Auckland service that will operate during the holiday season with a twice-weekly A330 service, adding almost 1,000 seats per week over the busy Christmas and summer holiday period. The aircraft will be an internationally configured A330 with Skybeds in Business.
The majority of customers who have booked on these services are travelling from Perth or Auckland, set to enjoy the convenience of a direct service to be with family and friends over the holiday period.


Chief Executive Officer Qantas International Mr Simon Hickey said “Demand for the direct services has exceeded our expectations, and we’re seeing a mix of customers including connections to the service from the Middle East. There is also strong support of the services from our frequent flyers through redemption bookings on the services.”

http://www.qantas.com.au/agents/dyn/qf/info/201312/1202

 

[Mwenenzi]

From reports I have read the Air NZ PER AKL flights have a high base load of FIFO guy's
On the flights home AKL the bar run out at times. Was told this by the Kiwi FIFO guy sitting beside me on my last MEL NZ flight

 

[dk4]

I think that Perth is in for some exciting times, once Virgin relocates all its services over to the Horrie Miller Drive side of the main runway.

Ansett was always the superior domestic carrier in W.A., with TAA/Australian a poor second, thanks to Ansett's acquisition of MMA/Airlines of Western Australia/Ansett WA.

So once VA International, VA Interstate, VA Intrastate (together with its newly acquired SkyWest) services are all positioned within easy transit points at T1 & T2, I think that we are likely to see VA take its PER hub to new heights (together with NZ, EY & SQ)!

Pic from SMH.com.au

 

[Isochronous]

Cost cutting is important in ensuring profitability, but what is management doing to grow revenueo This is the other side of the equation. The success of PER-AKL shows that sometimes you have to expand to profit. Why did the bean counters take such a pessimistic view of a PER-AKL service? How does that affect assessments of other route proposals?

 

[Mwenenzi]

Some new routes work better than expected. Others less. For example VAi failed badly on the Aust - South Arica route. Traffic forecasting is not 100% accurate. And is not the bean counters who do this: they just add up the numbers in a spread sheet

 

[markis10]

And is not the bean counters who do this: they just add up the numbers in a spread sheet

Thats what a spreadsheet does I thought :mrgreen:

 

[Isochronous]

Some new routes work better than expected. Others less. For example VAi failed badly on the Aust - South Arica route. Traffic forecasting is not 100% accurate. And is not the bean counters who do this: they just add up the numbers in a spread sheet

That was when VAi was being run by a container freight company with no airline experience. If your route is slower then of course you cannot win!

 

[Aussie_flyer]

Yes I anticipate virgin will shortly launch PER-SIN/HKG/NRT all direct flights soon and they will fly everyone over from SYD and MEL to connect with them.

 

[mannej]

Yes I anticipate virgin will shortly launch PER-SIN/HKG/NRT all direct flights soon and they will fly everyone over from SYD and MEL to connect with them.

Poor form - if you actually bother to read what people from PER and ADL say is that can't understand why QF never fully utilized their OW partners. VA's presence out of PER or ADL may be virtual but they seem to be utilizing SQ well for the East Asian region. You don't really have that choice on the Roo...

 

[erkpod]

Yes I anticipate virgin will shortly launch PER-SIN/HKG/NRT all direct flights soon and they will fly everyone over from SYD and MEL to connect with them.

If VA can't/won't do direct services from SYD/MEL/BNE/OOL/CNS to NRT, they won't from PER/ADL.

 

[Sprucegoose]

Some new routes work better than expected. Others less. For example VAi failed badly on the Aust - South Arica route. Traffic forecasting is not 100% accurate. And is not the bean counters who do this: they just add up the numbers in a spread sheet

No they prepare the revenue and cost forecasts taking into account all push pull factors.

Move into the 21st century!

 

[Isochronous]

Hopefully this can continue and PER-AKL moves to permanent. Is NZ running 1x daily? Maybe we could match that in time.

 

[casanovawa]

Twice weekly, what a pathetic number... NZ do PER-AKL daily don't they and were going to do PER-CHC whether that has started yet or not... No doubt at some point EK might be able to find a way to go through to NZ as well... Every airline but Qantas seems to be able to grow routes and make them work...

Even before they cut their flights down to just one international flight to SIN, how much advertising and promotions were QF doing over here in PER, you do need to try and sell your services against the Asian and Middle Eastern competitors who seem to keep increasing capacity not just take your bat and ball with you... QF seems to have so little faith in the people of PER i think they can stick their trifling services here seeing they can't seem to work a way out to make any money...

 

[HKGNZL]

Just been PER-HKG for an urgent unplanned visit. CX direct flights largely full, and no empty seats on J either way. PE was full one way and 3/4 full return. How could QF not fill its seats and cancel its PER-HKG flights is beyond me.
I have to pay 3x more than usual to get a ticket. Why didn't QF consider having holiday direct PER-HKG flights?

 

[VHOEJ]

I have to pay 3x more than usual to get a ticket. Why didn't QF consider having holiday direct PER-HKG flights?

You would need to take another aircraft off another route, which is probably already just as full. The PERAKL was taking away time from domestic, which is quiet at this time of the year. They don't have spare aircraft and crews sitting around.

 

[Isochronous]

Just been PER-HKG for an urgent unplanned visit. CX direct flights largely full, and no empty seats on J either way. PE was full one way and 3/4 full return. How could QF not fill its seats and cancel its PER-HKG flights is beyond me.
I have to pay 3x more than usual to get a ticket. Why didn't QF consider having holiday direct PER-HKG flights?

Perhaps because QF was running PER-HKG 4x weekly, i.e. not even daily. They need to make it daily to be competitive.

 

[moa999]

or because a high %ge of CX travellers are travelling onwards to China or other parts.

If CX/others don't make onward fares available to Qantas at the right price, then Qantas can't make money/ or fill its HKG service.
And why would CX help out when they run a competing service.

I assume this is behind QFs MU and CZ codeshares, but whether it adds up to enough traffic at a profitable price point for PER/ADL flights I don't know.

 

[eastwest101]

Perhaps because QF was running PER-HKG 4x weekly, i.e. not even daily. They need to make it daily to be competitive.

Some other people here commented that as far as PER-HGK goes - 4x weekly with rubbish arrival/departure times vs 7x weekly with rubbish arrival/departure times makes no difference at all.... still rubbish arrival and departure times - that also hurt QF. As well as their hard product and uncompetative pricing maybe...

Perhaps the press release should read "Qantas Yield managers surprised by actual demand for their product." or maybe "Qantas Yield managers surprised by residual goodwill/loyalty to QF from its Perth customers."

 

[eastwest101]

I assume this is behind QFs MU and CZ codeshares, but whether it adds up to enough traffic at a profitable price point for PER/ADL flights I don't know.

Too late for ADL - as I saw a few days ago - ADL is already a mini-hub for MH CX and SQ, (actually pretty much every airline except for QF) and I would expect that they will all be doing pretty well out of ADL. I can't speak for Perth lately.

 

[Isochronous]

A lot of PER residents travelling to US/Canada also go via HKG because it is quicker - e.g. 1 stop to NYC versus 2 stops (SYD/MEL and the awful LAX) on QF.

They could make it attractive for Europe travel by codesharing with AY on HKG-HEL and onwards to Europe, and also with JL to Japan. That would be a start if CX/KA were to play hardball.