JetConnect is losing money

[oz_mark]

QANTAS' trans-Tasman flying business Jetconnect is losing money - even though it has a similar cost-base to major rival Air New Zealand - because of tough competition on the short-haul route between Australia and New Zealand.

The disclosure of the New Zealand subsidiary's financial health comes as Qantas is set to post on Thursday its first annual loss - expected to top $200 million - since it was fully privatised in 1995. The airline's biggest losses are on long-haul routes to Europe rather than short-haul flights.

Trans-Tasman costs hurt Jetconnect

 

[richie9x]

Trans-Tasman costs hurt Jetconnect

The previous two years they reported a profit of $11.3 million each year, although they previously did predict a drop in profits for this year. Trans-Tasman flight war set to heat up - Qantas | Stuff.co.nz

Maybe I am am cynical. But it would benefit Qantas to make it appear as unprofitable so as to make a tie up between Qantas and Emirates to be more favorable in the eyes of regulators.

 

[harvyk]

Maybe I am am cynical. But it would benefit Qantas to make it appear as unprofitable so as to make a tie up between Qantas and Emirates to be more favorable in the eyes of regulators.

I think that goes under the category of an "definite maybe"...

It could also be that in my mind, QF's TT service is nothing special, a long domestic flight with passports, nothing more. Their chief competitor AirNZ is certainly not any better (they have a more LCC at full service prices approach), where as EK and LA both appear to still treat it and run it as an international service. It could just be me, based on what I've seen when looking at the various websites for our trip later this year. But with all the TT options, EK looked to be the winner (it's an A380 service if nothing else). I'm sure I'm not alone in this analysis.

 

[kamchatsky]

I think that goes under the category of an "definite maybe"...

It could also be that in my mind, QF's TT service is nothing special, a long domestic flight with passports, nothing more. Their chief competitor AirNZ is certainly not any better (they have a more LCC at full service prices approach), where as EK and LA both appear to still treat it and run it as an international service. It could just be me, based on what I've seen when looking at the various websites for our trip later this year. But with all the TT options, EK looked to be the winner (it's an A380 service if nothing else). I'm sure I'm not alone in this analysis.

Until EK increase their TT frequency to similar to QF/NZ I cannot see them being a winner yet. Afterall you don't want to be restricted to next day flight if you miss the earlier flight of the day. But yes in terms of service and hardware EK A380 is very hard to beat. I was very impressed with their AKL-SYD EK A380 Y service.

 

[Must...Fly!]

JetConnect certainly could be a loser or a winner from any tie-up, depending on how it works out.