Tim Clark EK CEO comments: "QF should reconsider oneworld"

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dalereardon

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Sorry if doing wrong thing but thought should draw this post to people's attention. Maybe the mods want to do their own story instead:

Emirates president Clark speaks for Qantas in HK interview | Plane Talking

Very worrying indeed if Qantas reviews OneWorld membership or is forced to do so by Emirates. I want a 280K OneWorld redemption fare in the future and don't want that ruined. Also not being able to earn points on other airlines would be a real problem.

Dale.
 
Qantas resubmits request for ACCC Interim Authorisation

Sorry if doing wrong thing but thought should draw this post to people's attention. Maybe the mods want to do their own story instead:

Emirates president Clark speaks for Qantas in HK interview | Plane Talking

Very worrying indeed if Qantas reviews OneWorld membership or is forced to do so by Emirates. I want a 280K OneWorld redemption fare in the future and don't want that ruined. Also not being able to earn points on other airlines would be a real problem.

Dale.

It is Ben sandilands there, so take out of it what you may
 
Re: Qantas resubmits request for ACCC Interim Authorisation

It is Ben sandilands there, so take out of it what you may

But this isn't:

Qantas-Emirates link forces Cathay Pacific to rethink network strategy | South China Morning Post

Note the comment: "Airlines cannot operate by themselves any more and need to build deeper partnerships through bilateral agreements."Clark said the proposed tie-up with Emirates would see Qantas reconsidering its Oneworld alliance, to which Cathay also belongs.
"The world of alliance is changing. We will see major realignments in the next three to five years since they are not delivering the value that certain carriers thought they were going to get," Clark said.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

If approval is granted does this mean we'd be able to start booking EK codeshares?

That would depend entirely on what Qantas is willing to give you out of a codeshare flight. They might not give you anything more than lounge access, and thus codeshares might not be valuable.

Sorry if doing wrong thing but thought should draw this post to people's attention. Maybe the mods want to do their own story instead:

Emirates president Clark speaks for Qantas in HK interview | Plane Talking

Very worrying indeed if Qantas reviews OneWorld membership or is forced to do so by Emirates. I want a 280K OneWorld redemption fare in the future and don't want that ruined. Also not being able to earn points on other airlines would be a real problem.

Dale.

The problem with alliances as they stand, are they're getting too busy.

Take Star Alliance for example, how many airlines are involved? 27!

Back when it was formed, and when the others were no doubt formed, there were main players in regions, with perhaps smaller partners to fill in the gaps, but the main idea being the main players controlled the traffic. These days, you have lots of big players in small spaces with each other and that just creates too much competition for the alliance to work properly.

I think Qantas, being the only partner from the region, isn't doing too badly, in fact they probably get a lot of OneWorld members flying domestically with them, way more than they'd get from solely partnering with Emirates. Likewise, Air New Zealand probably has it made with Star Alliance.

Problem is when you look at Europe or North/South America, where there are many partners, all seemingly competing with each other instead of taking customers for this leg to here, and passing them to a partner for those legs to there. With all the US merging going on, it's not so bad over there now, and the occasional bankruptcy helps, but slowly things get crowded.

There's three major alliances, and some are huge, when maybe they should downsize and focus more on looking after their customers, than being the biggest.

I don't see why there couldn't be more Alliances, with big players connecting the main dots, and smaller airline either filling in the gap for one alliance, or multiple alliances/airlines.

Emirates thinks they're fine on their own/with partnerships, and they might be. But having a big partner somewhere else, being the partner for a region and sharing customers I think would work better.

I see some airlines leaving Alliances in the future, as the Alliance downsizes to focus on core member airlines, but I think Qantas would be in a bad position to do that when they're a big player in one region, and presumably do well out of their alliance.

Probably made no sense with all of that.

Note the comment: "Airlines cannot operate by themselves any more and need to build deeper partnerships through bilateral agreements."Clark said the proposed tie-up with Emirates would see Qantas reconsidering its Oneworld alliance, to which Cathay also belongs.
"The world of alliance is changing. We will see major realignments in the next three to five years since they are not delivering the value that certain carriers thought they were going to get," Clark said.

The reason why is they're too big, have too many partners competing on routes, when the focus should be not not compete, but compliment each other and ensure the customer gets where they want to go when they want to go.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

Very worrying indeed if Qantas reviews OneWorld membership or is forced to do so by Emirates. I want a 280K OneWorld redemption fare in the future and don't want that ruined. Also not being able to earn points on other airlines would be a real problem.
There was more chance of the Mayans being right about the world ending on 21 December than there is about QF leaving oneworld!! When you read the actual SCMP article, Tim Clark's comment appears to be one of his usual "we hate alliances" lines, which he trots out all the time. It's Sandilands who has sought to recast it as being altogether more significant. Just look at the first couple of lines in the Sandilands piece! He sees everything through his unique anti-QF perspective .... I wonder if he ever got knocked back for a job there in QF's Corporate Communications team?
 
Re: Qantas resubmits request for ACCC Interim Authorisation

I don't know if QF will easily leave oneworld.

EK is fine to keep at arms length from alliances...all power to them if that is their prerogative and it works. EK actually don't have many partners at all - whether they be partners or bilaterals. Contrast that with its national counterpart EY, notwithstanding the VA bilateral it has.

So this is pretty new to EK, and if EK wasn't keen on alliances in the first place then even this bilateral with QF was anything but an easy decision to consider let alone go full steam ahead on. Even for a visionary like Tim Clark.

I suppose the only thing that may sway QF towards leaving oneworld is if it could be convinced that they can deliver a significantly higher profit on the EK alliance alone (plus perhaps new, residual agreements from former oneworld airlines and the other existing non-oneworld agreements), particularly if leaving oneworld opens opportunities to strengthen existing or create new agreements not possible previously from a competition point-of-view due to the circumstances.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

Sorry if doing wrong thing but thought should draw this post to people's attention. Maybe the mods want to do their own story instead:

Emirates president Clark speaks for Qantas in HK interview | Plane Talking

Very worrying indeed if Qantas reviews OneWorld membership or is forced to do so by Emirates. I want a 280K OneWorld redemption fare in the future and don't want that ruined. Also not being able to earn points on other airlines would be a real problem.

Dale.

But this isn't:

Qantas-Emirates link forces Cathay Pacific to rethink network strategy | South China Morning Post

Note the comment: "Airlines cannot operate by themselves any more and need to build deeper partnerships through bilateral agreements."Clark said the proposed tie-up with Emirates would see Qantas reconsidering its Oneworld alliance, to which Cathay also belongs.
"The world of alliance is changing. We will see major realignments in the next three to five years since they are not delivering the value that certain carriers thought they were going to get," Clark said.

If I was Joyce, as soon as I'd heard of Clark's comment I would have been straight on the phone to pull him into line. Although Clark doesn't appear to have been quoted as saying 'Qantas must reconsider its alliance', that sentence in the article is potentially very damaging and should not go unchallenged, publicly, but QF management.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

I suppose the only thing that may sway QF towards leaving oneworld is if it could be convinced that they can deliver a significantly higher profit on the EK alliance alone (plus perhaps new, residual agreements from former oneworld airlines and the other existing non-oneworld agreements), particularly if leaving oneworld opens opportunities to strengthen existing or create new agreements not possible previously from a competition point-of-view due to the circumstances.

I think it would silly for them to leave, considering how profitable their FF business is, take OW from the equation and we as travellers/Frequent Flyers would suddenly have a lot less choice, and our beloved elite benefits wouldn't stretch as far! = a lot of us would defect to another FF program, like AA or CX to keep our beloved benefits/entitlements on OW.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

I still don't think QF will leave oneworld.

Going forward I see its key partners (and Joyce mentioned as much recently being)
unaligned: Emirates
SkyTeam: China Eastern
Star: South African
oneworld: American, LAN, BA (albeit to a lesser extent), JAL, Malaysian

less relevant are Cathay, Iberia, S7, Sri Lankan, Qatar
 
Re: Qantas resubmits request for ACCC Interim Authorisation

I still don't think QF will leave oneworld.

Going forward I see its key partners (and Joyce mentioned as much recently being)
unaligned: Emirates
SkyTeam: China Eastern
Star: South African
oneworld: American, LAN, BA (albeit to a lesser extent), JAL, Malaysian

less relevant are Cathay, Iberia, S7, Sri Lankan, Qatar

I'd add Finnair to that list and I'd argue that BA is still a huge player in their alliances considering that they're still routing people from ADL, BNE and I believe PER through SIN to connect to BA services.

On another note, QF will most likely stay put in oneworld since the PR blow back would be huge, plus it'd bring the lounge situation in LAX into question since it is an OW lounge.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

But this isn't:

Qantas-Emirates link forces Cathay Pacific to rethink network strategy | South China Morning Post

Note the comment: "Airlines cannot operate by themselves any more and need to build deeper partnerships through bilateral agreements."Clark said the proposed tie-up with Emirates would see Qantas reconsidering its Oneworld alliance, to which Cathay also belongs.
"The world of alliance is changing. We will see major realignments in the next three to five years since they are not delivering the value that certain carriers thought they were going to get," Clark said.
But we all know Tim Clark's view about alliances. He is often pushing his own view as if it should apply equally to all airlines. Its almost like he is trying to justify his approach all the time. While I have no doubt that his approach to alliances has been very successful for his airline, there are a lot of other factors that are unique to his airline and region that also contribute to that success that do not apply equally to all other airlines.

I think his comment about "Qantas reconsidering its Oneworld Alliance" is more about what he would do and what he would like to see happen (i.e. what would be best for EK rather than what would be best for QF), rather than any reflection of reality of what is going to happen under the current Qantas leadership team. While all options should always be considered, the duration of consideration is likely to be measured in milliseconds rather than making it to any board meeting agenda.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

If I was Joyce, as soon as I'd heard of Clark's comment I would have been straight on the phone to pull him into line. Although Clark doesn't appear to have been quoted as saying 'Qantas must reconsider its alliance', that sentence in the article is potentially very damaging and should not go unchallenged, publicly, but QF management.

I doubt that Joyce is in a position to pull Clark into line. He's very much the supplicant in this arrangement.
 
Re: Qantas resubmits request for ACCC Interim Authorisation

I doubt that Joyce is in a position to pull Clark into line. He's very much the supplicant in this arrangement.

I agree with that, its a bit like talking back to your dad!
 
QF exiting oneworld - Tim Clark EK CEO comments

I find this possibility disturbing.

The biggest reason why I choose to base my flying around accruing QFF status/points is the fact that oneworld is such a good alliance, in particular the ability to be recognised on AA, CX, and AY. I would be particularly shattered to lose privileges on CX if QF were ever to exit oneworld, especially since the CX programme in many ways is inferior to QFF.

Surely this would remove one of QF's great competitive edges against VA?
 
Re: Qantas resubmits request for ACCC Interim Authorisation

If I was Joyce, as soon as I'd heard of Clark's comment I would have been straight on the phone to pull him into line.

But AJ is his gimp!
 
re: Tim Clark EK CEO comments: "QF should reconsider oneworld"

I find this possibility disturbing.

The biggest reason why I choose to base my flying around accruing QFF status/points is the fact that oneworld is such a good alliance, in particular the ability to be recognised on AA, CX, and AY. I would be particularly shattered to lose privileges on CX if QF were ever to exit oneworld, especially since the CX programme in many ways is inferior to QFF.

Surely this would remove one of QF's great competitive edges against VA?
i really cant see QF leaving OW.. OW covers MORE THAN 800 DESTINATIONS IN 150 COUNTRIES... MANY MORE PORTS than EK/QF do/could.. the loss in revenue would be large!!! just my opinion
 
re: Tim Clark EK CEO comments: "QF should reconsider oneworld"

I think Qantas have enough on their plate bedding down the Emirates alliance, and reworking their flights to Asia, without considering leaving One World.
And we should also remember that Qantas was a founding member of One World.
I think NM's summary of the position is most salient.
 
re: Tim Clark EK CEO comments: "QF should reconsider oneworld"

Sorry if doing wrong thing but thought should draw this post to people's attention. Maybe the mods want to do their own story instead:

Emirates president Clark speaks for Qantas in HK interview | Plane Talking

Very worrying indeed if Qantas reviews OneWorld membership or is forced to do so by Emirates. I want a 280K OneWorld redemption fare in the future and don't want that ruined. Also not being able to earn points on other airlines would be a real problem.

Dale.

I find your post quite irresponsible, poorly researched and not founded on any commercial basis.
 
re: Tim Clark EK CEO comments: "QF should reconsider oneworld"

If QF does leave OW I think for most it will not make a great difference.QF as well as the EK deal has gone with a closer relationship with AA last year.It is also being reported that China Eastern is interested in a closer relationship with QF-
China Eastern eager to push Qantas tie-up talks | News | Business Spectator

then AA has also been busy signing closer relationships with BA/IB and JAL.Talk also of them wanting a tie up with EK.
Emirates and AMR in partnership talks

AY have their codesharing arrangements with QF.
So quite possible that you will still be able to get a RTW award using QF points and partners.Pounds to peanuts though if things do change the award will be enhanced by QF to say a 200000/400000/600000 RTW award.

So as long as AA is still closely involved with QF I dont think I will be too unhappy.
On the other hand I do think Ben has a blinkered view of the world.Reading the South china Morning Post article surely if he was unbiased it might be better headed-CX likely to be left in the lurch.
 
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re: Tim Clark EK CEO comments: "QF should reconsider oneworld"

I find your post quite irresponsible, poorly researched and not founded on any commercial basis.

The post isn't the problem. Just the heading. Maybe mod's should rename the thread to something that more accurately reflects the commentary in the linked article.
 
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