Qantas Domestic Bliss Sale

[Marty H]

Originally Posted by Owen H

Low prices won't hurt QF as much as they could hurt DJ. QF can offer low prices but still has a reasonably consistent premium market around Australia. They are also in a far better financial position to accept it.

Radi K, airline prices at the moment are already at a low level. Airlines have bills to pay... there is a minimum fare that makes it viable to even operate a route. Qantas would be mad to start a price war with itself... of course it takes another airline to generate the low prices!

I think QF being full service and having higher operating costs would hurt them I mean you look at a simple MEL-ADL ticket for $55 that inc the cost of their own caterers, providing food for all those onboard, their own cleaners to come on board and clean the aircraft before flight, where as DJ at $49 then will generate revenue through the sale of food onboard, they wont have the cost of cleaners coming on board, they dont hire their own caterers.

[Marty H]

Originally Posted by Craig Murray

Marty is this level of post really necessary? Quite frankly your one eyed, biased and thoughtless posts are becoming more tiresome by the day. I have worked in the Automotive industry for many years most recently in the financial arm of a large manufacturer. I'm a born and bred Holden lover, but am I blinded by this to think that only they build the cars I most desire? No! I think the Falcon and Aurion are the best local offerings at the moment (excluding the Calais V V8 Sportswagon!!!). Keep an open mind and you might find you're views earn a little more respect around here.

Craig please see my next post for my reasons

[Tim C]

Originally Posted by Radi K

Haha what I love is that AS USUAL it took competition from another carrier to stimulate QF to lower their fares. Wish QF would be a market leader rather than follower sometimes. But alas I'm certain hell will freeze over before a legacy carrier does anything like that. Can't blame them I suppose, I would do the same.

The product and service difference onboard is what I hope people will notice when they step on the brand new B777-300ER. It’s funky, layback and new.

Never been a better time for everyone to fly with these fares around. Hope you all use K-Rudd’s payout for travel!

They are a business not a charity. They are flying for their shareholders for the highest sustainable price. Why would they lower their fares without competitor activity?

[Montague S]

Originally Posted by Radi K

Haha what I love is that AS USUAL it took competition from another carrier to stimulate QF to lower their fares. Wish QF would be a market leader rather than follower sometimes. But alas I'm certain hell will freeze over before a legacy carrier does anything like that. Can't blame them I suppose, I would do the same.

The product and service difference onboard is what I hope people will notice when they step on the brand new B777-300ER. It’s funky, layback and new.

Never been a better time for everyone to fly with these fares around. Hope you all use K-Rudd’s payout for travel!

what competition would that be? its a domestic sale, there is only 1 full service airline serving Australia on a domestic basis and that is Qantas.

try understanding the difference between an international and domestic sale before making false comments.

[D Chan]

Originally Posted by Marty H

I think QF being full service and having higher operating costs would hurt them I mean you look at a simple MEL-ADL ticket for $55 that inc the cost of their own caterers, providing food for all those onboard, their own cleaners to come on board and clean the aircraft before flight, where as DJ at $49 then will generate revenue through the sale of food onboard, they wont have the cost of cleaners coming on board, they dont hire their own caterers.

From a balanced viewpoint, I would say the actual cost of producing a meal and actual cost of having cleaners, per passenger, in a flight is quite minimal. Having said that this is only the cost of 'production' and there are hidden costs involved so you are correct in what you are saying.
However I question the ability of generating additional revenue and how much this will actually be when you work out the revenue per passenger per flight. I suspect this will not be a big amount as most passengers would bring their own food or drinks etc or just go without.

What you have said essentially summarises the changes the industry has been going through. One could imagine however if QF decides to charge for food onboard or eliminate cleaners how much of an uproar this will create, especially in the media.

You are also forgetting the substantial investments made by DJ in the VA expansion and what this will mean for DJ as a company and its bottomline. In essence the timing could not have been worse (sheer bad luck). They will take at minimum 2 or 3 years to breakeven (or more depending on how badly the financial crisis hits in the next 12 months) and until then will continue to be a burden on the financial performance of the group.

[Andi O]

Maybe it is more to do with stimulating demand than actually putting bums on seats. Remember if you advertise "free (cheap) seats", everyman and his dog are tempted to hop on the net and try to grab one. Some will find only $100 seats and say that's not too bad and book that one....got ya hook line and sinker!!! Remember also, carrier like Qantas can offset the cheapies, by the sale of premium seats as well. Yield management is what it is all about.
It's not about how this will hurt them more than another airline.
Airlines don't put out sale fares just to go broke!
There are people who get paid for working these things out and SHOULD know more about it than you or me (unless of course you are one of the people!)

[James K]

Originally Posted by Andi O

Maybe it is more to do with stimulating demand than actually putting bums on seats. Remember if you advertise "free (cheap) seats", everyman and his dog are tempted to hop on the net and try to grab one. Some will find only $100 seats and say that's not too bad and book that one....got ya hook line and sinker!!! Remember also, carrier like Qantas can offset the cheapies, by the sale of premium seats as well. Yield management is what it is all about.
It's not about how this will hurt them more than another airline.
Airlines don't put out sale fares just to go broke!
There are people who get paid for working these things out and SHOULD know more about it than you or me (unless of course you are one of the people!)

Most sensible thing I've read here for a while

[Marty H]

Originally Posted by D Chan

From a balanced viewpoint, I would say the actual cost of producing a meal and actual cost of having cleaners, per passenger, in a flight is quite minimal. Having said that this is only the cost of 'production' and there are hidden costs involved so you are correct in what you are saying.
However I question the ability of generating additional revenue and how much this will actually be when you work out the revenue per passenger per flight. I suspect this will not be a big amount as most passengers would bring their own food or drinks etc or just go without.

What you have said essentially summarises the changes the industry has been going through. One could imagine however if QF decides to charge for food onboard or eliminate cleaners how much of an uproar this will create, especially in the media.

You are also forgetting the substantial investments made by DJ in the VA expansion and what this will mean for DJ as a company and its bottomline. In essence the timing could not have been worse (sheer bad luck). They will take at minimum 2 or 3 years to breakeven (or more depending on how badly the financial crisis hits in the next 12 months) and until then will continue to be a burden on the financial performance of the group.

Correct what you say, I guess we all hope V Australia can stand on its own two feet sooner rather than later.

[Montague S]

looks like QF has an international sale going too...might swap some shifts at work and go to LA for a few days.

[NickN]

JQ have a 2 for 1 sale on now too. I like the look of 2 x ppl each way to OOL for $69.