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Australian Airlines bites the dust!

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aus_flyer

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Two airlines in two months!
Who's next?

QANTAS'S first Asian expansion play has proved a failure, with the flying kangaroo expected to announce today the axing of its Cairns-based leisure brand, Australian Airlines.
Australian's distinctive ochre planes will be repainted and returned to Qantas mainline operations from mid-year as the company concentrates on launching its low-cost Jetstar International.

It is understood Qantas officials believe Australian's demise was necessary to wipe the slate clean and allow it to concentrate on its twin-brand philosophy.

The decision to drop the Australian brand will be announced at a press conference in Melbourne today which will also reveal Jetstar's international routes to Asia.

Job losses among the airline's staff of more than 400 are expected to be negligible, with most staff being absorbed by the mainline operations.

The five all-economy Boeing 767s will be converted to two-class configurations and the airline is expected to retain Australian's base in Cairns.

Qantas announced in February it was restructuring its management and that it would group its flying businesses under the Jetstar and Qantas brands.

Jetstar is about to formally seek approvals to fly the routes from November and to change its air operators certificate to fly widebody, two-class A330 aircraft.
More here: http://finance.news.com.au/story/0,10166,18776751-462,00.html
 

jakeseven7

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odoherty said:
Two airlines in two months!
Who's next?

QANTAS'S first Asian expansion play has proved a failure, with the flying kangaroo expected to announce today the axing of its Cairns-based leisure brand, Australian Airlines.
Australian's distinctive ochre planes will be repainted and returned to Qantas mainline operations from mid-year as the company concentrates on launching its low-cost Jetstar International.

It is understood Qantas officials believe Australian's demise was necessary to wipe the slate clean and allow it to concentrate on its twin-brand philosophy.

The decision to drop the Australian brand will be announced at a press conference in Melbourne today which will also reveal Jetstar's international routes to Asia.

Job losses among the airline's staff of more than 400 are expected to be negligible, with most staff being absorbed by the mainline operations.

The five all-economy Boeing 767s will be converted to two-class configurations and the airline is expected to retain Australian's base in Cairns.

Qantas announced in February it was restructuring its management and that it would group its flying businesses under the Jetstar and Qantas brands.

Jetstar is about to formally seek approvals to fly the routes from November and to change its air operators certificate to fly widebody, two-class A330 aircraft.
More here: http://finance.news.com.au/story/0,10166,18776751-462,00.html

Don't think it was so much as a failure as a victim of Jetstars success and of other uncontrollable circumstances (e.g. Bali, SARS)

It served its purpose to reduce the groups losses on unprofitable routes that Qantas was having trouble making any money on.

Pity though I liked the look of the planes and the staff were friendly, but looking forward to seeing 2 class Jetstar where you can earn points unlike Australian which was always annoying.
 

NM

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This is not unexpected news. Many of us have been wondering where AO was going to fit into the Qantas Group with the birth of JQ International. And this seems to make business sense to me. AO was always a full-service airline established to have a lower operating cost. They can lower the costs further with the JQ International model.
 

Yada Yada

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Having read the details on the QF website, it appears to be mainly a change of paint, uniforms, and flight schedules/numbers.
 

oz_mark

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Yada Yada said:
Having read the details on the QF website, it appears to be mainly a change of paint, uniforms, and flight schedules/numbers.
This bit was interesting:

Mr Dixon said Australian Airlines staff would operate services under the Qantas brand. (This is called a wet lease operation in the aviation industry.)
Does this mean that Australian Airlines will be leasing the planes back to Qantas (together with crew etc?)
 

NM

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oz_mark said:
Does this mean that Australian Airlines will be leasing the planes back to Qantas (together with crew etc?)
Quite possibly. Part of the reason AO was created was to provide the ability to start new labour contracts with the staff. So by wet-leasing from AO, the staff still get paid as AO staff at AO rates, but the logo on the aircraft if QF. This is the same as the JetConnect Flights using aircraft and crews based on NZ.

If the existing AO staff were moved into the QF labour fold, they would have to pay them the same rates and conditions as other QF staff performing the same task.
 

macca172

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Jetstar International

I dont want to blow my own trumpet so to speak, however I predicted on the QFF forum the day Jetstar announced that they were going international, the demise of Australian Airlines. I will now take a punt and further predict that the name Jetstar will be a marketing disaster when it comes to international routes. I would stongly suggest that Qantas have a good look at the name Jetstar and change it to something that will appease the international Australian travelling public.
One of many reasons as I see it, Jetstar has had very bad publicity vide the media and the public in general. Listen to any talk back radio and when it comes to Jetstar conversation, it is always to the negative. In simple terms, mud sticks!
Ozjet, failed because they went for a nitch market and there is no room in Australian RPT aviation for a nitch market. If I had been the CEO of Ozjet, I would have gone back to the old "standby" ticketing system. Ballpark, $150 no frills each way, one class, MEL-SYD/SYD-MEL. First in best dressed, no web sales, counter sales only at the point of departure.
 

Yada Yada

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Re: Jetstar International

macca172 said:
I dont want to blow my own trumpet so to speak, however I predicted on the QFF forum the day Jetstar announced that they were going international, the demise of Australian Airlines.
You did indeed, macca172. Well done.

macca172 said:
I will now take a punt and further predict that the name Jetstar will be a marketing disaster when it comes to international routes. I would stongly suggest that Qantas have a good look at the name Jetstar and change it to something that will appease the international Australian travelling public.

One of many reasons as I see it, Jetstar has had very bad publicity vide the media and the public in general. Listen to any talk back radio and when it comes to Jetstar conversation, it is always to the negative. In simple terms, mud sticks!
I agree. And they only have themselves to blame for this because they've thrown the baby out witht the bathwater in terms of customer service. Unless they address this they will tarnish any other name they care to use.
 

JohnK

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odoherty said:
Two airlines in two months!
Who's next?
I hope it is Jetstar and Allan Joyce to follow, as quickly as possible, from the bottom of my heart.

Two months ago it was all one happy family now AO is the black sheep.
 

macca172

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Yada,

Yes mate we have the same train of thought so to speak. If I was Geoff Dixon, I "wouldnt" being dumping the words "Australian Airlines" In fact I be doing exactly the opposite, I would be dumping the "Jetstar" brand. The word "Australia" sells, there is no doubt about that at all.
As for current aircraft paint schemes, the current Jetstar colours always reminds me of the morning after techni-colour yawn! The Australian Airlines colour scheme, although somewhat better, could be better defined. With that said, when Mr and Mrs Joe Average, log on or go to their local travel agent to buy a ticket, do you hear them "say or ask "what colour is the aircraft"? Of course not, all they are interested in is the price and on 90% of occasions the first time they see the colour of the bird is then they are at the departure lounge.
I consider that most so called airline marketing guru's have lost to plot when it comes to aircraft paint schemes, my advice to them....."KISS"!
 

straitman

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macca172 said:
Yada,

Yes mate we have the same train of thought so to speak. If I was Geoff Dixon, I "wouldnt" being dumping the words "Australian Airlines" In fact I be doing exactly the opposite, I would be dumping the "Jetstar" brand. The word "Australia" sells, there is no doubt about that at all.
As for current aircraft paint schemes, the current Jetstar colours always reminds me of the morning after techni-colour yawn! The Australian Airlines colour scheme, although somewhat better, could be better defined. With that said, when Mr and Mrs Joe Average, log on or go to their local travel agent to buy a ticket, do you hear them "say or ask "what colour is the aircraft"? Of course not, all they are interested in is the price and on 90% of occasions the first time they see the colour of the bird is then they are at the departure lounge.
I consider that most so called airline marketing guru's have lost to plot when it comes to aircraft paint schemes, my advice to them....."KISS"!
I suggest that maybe they're too embarrassed to use the AO name in place of Jetstar at this time. They probably don't want to totally denigrate the AO brand name down to the Jetstar level :!:
 

bigjobs

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Blind Freddie could have told you this was happening ages ago. no surprise at all.
 

oz_mark

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bigjobs said:
Blind Freddie could have told you this was happening ages ago. no surprise at all.
Blind Freddie doesn't seem to be registered on this board.
 

JohnK

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oz_mark said:
bigjobs said:
Blind Freddie could have told you this was happening ages ago. no surprise at all.
Blind Freddie doesn't seem to be registered on this board.
I think he is registered because odoherty knows him as well but he uses a different spelling.

Blind freddy
 

bigjobs

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JohnK said:
oz_mark said:
bigjobs said:
Blind Freddie could have told you this was happening ages ago. no surprise at all.
Blind Freddie doesn't seem to be registered on this board.
I think he is registered because odoherty knows him as well but he uses a different spelling.

Blind freddy
No Blind freddy is a different guy. You have to watch those two. it's easy to get them mixed up :wink:
 

DJ737

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Hi there

Will this be a phased introduction of QF services on to AO routes?

I have a CNS-SIN leg booked for May20, hope they put a 2 class 767 on the service, and put OW elites in the forward cabin with Y service :)

Cheers
DJ737
 
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Your CNS-SIN flight will be a standard AO flight...

SAT 01 JUL is when all AO services convert to QF and 2-Class 25J/204Y 763s. You'll still get the wonderful AO F/As, who are quite honestly, the most professional/friendly/caring employees in the QF Group.
 
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