Flying Roo could become road kill!

[markis10]

Interesting article, although not surprising to many!

Two weeks ago I sent an email to my contact at China Southern Airlines as part of the daily maintenance of nurturing future column material. Early this year I had written that Qantas long-haul international could disappear within 10 years. I was looking towards October, when a new frontal assault begins as China Southern launches daily flights on its ''Canton route'' to London in competition with the famed ''kangaroo route''. I underestimated the scale of this challenge.

Read more: Flying 'roo in danger of becoming roadkill
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[samh004]

It’s got to be easy to carry the most passengers (or more than Qantas/anyone else) when you’re based in the most populated country in the world… and I’m just taking one paragraph out of the whole article, but it means nothing, not many airlines will ever compete on that figure if they’re not running domestic services in China…

As for the heavy maintenance bit, why would Australia even attempt to have that industry… they’re not in the centre, but on the outskirts, no one is going to fly their planes to the edge of the map to get them fixed up, and especially not to somewhere that unions have exerted so much control, they’re not price competitive. Though even without, I doubt they’d ever be able to compete with China.

It’s good that China Southern is going to have a big heavy maintenance facility so close by, easy for Qantas to get to.

 

[markis10]

As for the heavy maintenance bit, why would Australia even attempt to have that industry… they’re not in the centre, but on the outskirts, no one is going to fly their planes to the edge of the map to get them fixed up, and especially not to somewhere that unions have exerted so much control, they’re not price competitive. Though even without, I doubt they’d ever be able to compete with China.

We used to do a lot of heavy maintenance, including most of the CX fleet ten years ago. Its not a question about location, its about brains and how much they cost.

 

[anat0l]

Interesting article, although not surprising to many!

Eeeeeeeeeeexactly.

Same words, same critique, same boring excuse for a herald.

Qantas: get the **** on with it.

 

[openseat]

I really like the comment he makes about things being done in Australia:

It is about to embark on constructing Airline City, a 10-year project that will cost well over a billion dollars. The centrepiece will be the airline's own university. Imagine the feeding frenzy of bureaucrats, lawyers and environmentalists if a project like this were proposed in Australia. Which is why nothing like this is envisaged in Australia.

Read more: Flying 'roo in danger of becoming roadkill

So true.

 

[yohy?!]

CZ is the sleeping giant in the region - CX is eyeing them nervously also, they are expanding into international travel exponentially, feeding from their massive China domestic network - their fleet is growing rapidly and they are receiving 'grants' from the PRC government.

 

[kamchatsky]

Guangzhou has been transforming itself for the last 10 years. Every time i go there there is something new that is going on. New subway line being built, new hotels, new districts, shopping centres etc etc. The rate of transformation is quite amazing.


Canton Tower is quite impressive, especially with all those laser light shows on the Pearl River. Guangzhou was beautified just prior to Asian Games. Before everything looked so ordinary.




The only thing that is holding them back is customer service. They need to lift this before they are going to threatening


They could threaten CX, and in effect, Hong Kong, more than anyone else, especially for Chinese tourists. But I see them not threatening each other as the Chinese pie is too big for everyone else to eat.

 

[smit0847]

But they're not considered a premium airline. Until they are, SQ, EK, CX etc don't have that much to worry about.

If they want to play in the backpacker/budget space against Jetstar, Air Asia, China Everythingelse etc, then let them. I am one of the many people that will gladly pay a few hundred dollars more to fly SQ instead of CZ.

 

[elbarto]

But they're not considered a premium airline. Until they are, SQ, EK, CX etc don't have that much to worry about.

If they want to play in the backpacker/budget space against Jetstar, Air Asia, China Everythingelse etc, then let them. I am one of the many people that will gladly pay a few hundred dollars more to fly SQ instead of CZ.

But the message in the article suggests otherwise. The service standards will improve and if the costs remain low, they will take traffic from everyone.

 

[anat0l]

But they're not considered a premium airline. Until they are, SQ, EK, CX etc don't have that much to worry about.

If they want to play in the backpacker/budget space against Jetstar, Air Asia, China Everythingelse etc, then let them. I am one of the many people that will gladly pay a few hundred dollars more to fly SQ instead of CZ.

I think you're a silent minority. Cheaper airfares will really get people going; the fact it isn't actually a LCC (i.e. you get luggage, food and so on) is "even better". And Chinese - they are everywhere, not just China, and they are always in for a good deal! (I should know, I'm an ABC, but I'm nominally with you and the silent minority)

The thing about CZ is that they are part of Skyteam. Skyteam has been having sales all the time with very cheap prices to Europe from Australia. The increase from CZ just improves the number of cities they can target and traffic as well (since AF or KL won't fly all the way to Australia).

Whilst they may not have the front end of the plane down pat, the back is almost a level playing field, so playing on capacity and price point they will most certainly have a good hack at the competition. Besides, if the "price was really right", J pax will come flying CZ in droves, too. (More than a couple hundred dollars is very enticing for the average flyer).


In the end, are the Chinese government really subsidising CZ? Even if they were, what's wrong with that?

 

[yohy?!]

But they're not considered a premium airline. Until they are, SQ, EK, CX etc don't have that much to worry about.

If they want to play in the backpacker/budget space against Jetstar, Air Asia, China Everythingelse etc, then let them. I am one of the many people that will gladly pay a few hundred dollars more to fly SQ instead of CZ.

They are in China - their domestic service has business, pe, extra leg room economy and economy on A320s! They've also hired Australian FAs I believe recently.

 

[wallacej]

China southern came up as one of the cheaper options during my hunt for a flight to CAN ex MEL? I am reluctant to fly them, but should I be? Who are they affiliated with, QF or VA, or neither?


....sent from the place closest to the airport I just arrived at.

 

[anat0l]

China southern came up as one of the cheaper options during my hunt for a flight to CAN ex MEL? I am reluctant to fly them, but should I be? Who are they affiliated with, QF or VA, or neither?

Neither.

CZ is part of Skyteam, which may be of interest if you fly DL, AF, KL, KE and a few others quite a bit.


I have my reservations about the quality of service on the Chinese carriers (except for CX), but that's just me, and it's probably biased (because most of the time I'm trying to look for premium options when I'm in a position to fly them). If I'm just looking for my usual best fare options, they'd probably be on my horizon.

Probably no big reason - safety or others - otherwise to avoid them.

 

[ChrisFlyer]

China southern came up as one of the cheaper options during my hunt for a flight to CAN ex MEL? I am reluctant to fly them, but should I be? Who are they affiliated with, QF or VA, or neither?

China Southern is associated with neither, though China Eastern is a QFF partner... it can get confusing!

 

[drron]

In the end, are the Chinese government really subsidising CZ? Even if they were, what's wrong with that?

I'd be surprised if they aren't.Virtually every other business in China is.All the banks are at least part owned by the Government.Their policy is to get as near full employment as possible with no concern about profit.Even steel companies with all the development going on run at a loss.Can this keep going forever.I doubt it.Will be interesting to see when the proverbial hits the fan.