Qantas suspends First class product on certain routes

[David Ramsay]

Sounds like they may be going down the same track as NZ did a couple of years back, changing from first, biz, economy to biz, premium economy, economy.

It worked for NZ and sure didn't make them an LCC.

[Michael Morrison]

I think eventually F will only be offered on the A380. Makes sense for the 744's that stay to be 3 class (J/W/Y)

[NickN]

Your welcome to your opinions. I have my own. Qantas is a dying breed domestically, and as much as I understand that removing First Class on some international routes is a sensible business decision that doesn't mean they aren't doing it to save money and increase revenue.

What next? No business and only Economy and Premium Economy?

Even worse meals than you get already? Or no meals on sectors shorter than 3 hours?

It's hard to guage how far things will go to make QF highly competitive but still profitable.

[Andrew M]

Yes everyone has an opinion, but saying that Qantas will become a LCC is not correct in my opinion

Jetstar is their baby and is the LCC

Qantas will make changes where needed and where demand shows it is needed.

They would not be cutting back First unless the demand was simply not there for it.

You cannot blame Qantas, blame the people not flying First anymore

Qantas is a business and do whatever they need to do, to make money

Jetstar WILL simply get bigger and bigger and run alongside Qantas on MEL-SYD soonish.

However, Qantas will still have a small domestic fleet to keep the "business traveller" happy who wants "full service"

Internationally, only a select few routes will have First, while Business WILL stay around and Y+ will expand more. However, again, Jetstar will continue to expand, very heavily once the 787's arrive.

[NickN]

Jetstar is a great business model and concept and helped Qantas capture the low cost market and compete with DJ, but you have to wonder if in creating Jetstar has Qantas created its own monster.

[David Ramsay]

Qantas is a dying breed domestically, and as much as I understand that removing First Class on some international routes is a sensible business decision that doesn't mean they aren't doing it to save money and increase revenue.

Of course they are, they are in business to make a profit.

[NickN]

they are in business to make a profit.

Or not..... they lost $118m last quarter.

Is there a major place for QF in Australian aviation in 20 years time as a full cost carrier? That's the million dollar question.

[Daniel F]

Originally Posted by NickN

Or not..... they lost $118m last quarter.

Where did you get that from? Qantas doesn't release quarterly results, only half yearly.

[Michael Morrison]

Regardless of the exact details it is clear QF are making a loss as their full year is expected to be well below their first half results.

[Lee G]

The Gordon geckos of Australia and the rest of the world will not put up with travelling in Y W or J class for too long after the downturn starts to climb again - status in their world is everything.

Just as you have seen a cutback in the bad times, when the good times return - and they will, it will just take time - there will be people to take up the premium product.

What has happened in the last 10 years is that the cost of travel has decreased to capture the low end market and that base is still traveling (thank god!) so now there are more passengers in Y W .... but increased J and a return to P will happen.

In the meantime, airlines will modify their product to achieve the best return from their assets.

It is those airlines which can do this successfully that will be around in 5 years time. I believe QF is one of those airlines - as much as people deride them - they do know how to return a profit from limited sources.