2nd Full Service InterCity Carrier in Australia?

[Arthur T]

Since Ansett's failure, until now, QANTAS is the only full service carrier offering Economy Class 1 piece 32kg Free Luggage Allowance, Full Customer Service, Free Newspapers, Free Headphones and Inflight Magazines + Entertainment and Free Meals On Board plus Drinks. Offering frequent flights bewteen major Australian cities.

For other carriers, all above services need to be charged. That's make QANTAS is monopoly in Australian Domestic Market, and that QANTAS can charge customers extremely high price also a market follower, don't initiate market towards prices.

Due to its lack of competition, I really really really afraid with rise of oil prices and costs, QANTAS can further cut their full service as those others doing thus suffering all Australian commuters.

Frankly, from my point of view, I don't understand why commuters would choose Low Cost Carriers such as JetStar and Virgin Blue make them that popular where what they are providing to commuters in Australia is totally rubbish, and even more expensive if you choose to have all of their add-on service, and their add-on services such as food on board or entertainment etc is no better than Qantas.

(I don't know why Virgin Blue or JetStar is not offering a full big meal like steak or pancakes, hamburgers on short flights like an hour or two which I would really happy to have it, as it is what QF J Class is doing, and I can just pay $20/30 for it.)

Adhere, I really want to raise to see if we are going to have another Full Service Carrier to compete with QANTAS in its CityFlyer service that we can push and maintain the quality of QANTAS:

1. Possibility for Virgin Blue to convert to a full service carrier and offers Economy Class passengers Free 23kg Bag Allowance
2. Possibility for Air New Zealand to open Australian Domsetic Route as what JetConnect is doing in NZ
3. Possibility for relaunching Ansett Australia, a member of Star Alliance, offering full service to customers and frequent intercity service.
4. Possibility for a brand new Full Service Carrier in Australia, rather than those rubbish budget ones.

Thank you and hope to hear your comment shortly.

[Michael Mak]

Because there is no need to have a big steak with chips for an hour flight. Many commuters are more than happy to save $$ on things that they don't need and fly for a lot less than what QF offers. I'm more than happy to go without food and drink for that 1-2 hours flight and save on $$. Really who needs to eat a full meal when flying SYD-MEL?

Airlines like DJ and JQ offer a choice for their customers, not everyone would want or need meals, drinks or entertainment. I do agree with you that charging for check-in luggage is going to far but I'm happy to live with that for how much I could save to fly with DJ/JQ.

[David C]

It's all well and good having full service at full service price when someone else is paying for your ticket ... like your boss for example , but when you pay for your own ticket , the bottom line is the cost . I'm flying Birmingham to Shannon and return in 2 weeks time . I could have flown Aer Lingus , but I chose Ryan Air , why ?? .... 10 pounds return inc. tax and all charges thats why .. I can do without food and drink for an hour .

Dave C

[Radi K]

It was called OzJet Mk I. It came, It went...

What I think you will see if QF slowly pulling back their product to match VB. For the sake of cost. The full service products they keep will be only in select high yielding markets. I don't blame them. It's a monopoly at the top end but it's just economics 101.

What would be great (but the market could never sustain it) is a product like Virgin America in oz.

[D Chan]

Originally Posted by Arthur T

For other carriers, all above services need to be charged. That's make QANTAS is monopoly in Australian Domestic Market, and that QANTAS can charge customers extremely high price also a market follower, don't initiate market towards prices.

The question is then, why do other carriers charge for these services? - product differentiation. The notion that all customers are the same is wrong. Perhaps other carriers don't want to add complexities to their business model and unnecessary items that will ultimately drive up their 'unit cost' per seat. Secondly, they don't want to make some of their customers pay for what may be unnecessary to them. e.g. not all travellers need the 32kg travel allowance and not all passengers would want IFE for 1 hour flights e.g. reading a book or a nap to them is just as good.

Originally Posted by Arthur T

Frankly, from my point of view, I don't understand why commuters would choose Low Cost Carriers such as JetStar and Virgin Blue make them that popular where what they are providing to commuters in Australia is totally rubbish, and even more expensive if you choose to have all of their add-on service, and their add-on services such as food on board or entertainment etc is no better than Qantas.

Ok, I don't know how many commuters out there would choose a LCC and pay for all the extras that are available to them. I think the % of such passengers are VERY VERY low. It probably is more expensive if you choose to have all their add-on service because these carriers have worked out the amount of commuters who would opt for all the extras are very low. They would therefore want to get more revenue from each add-on item (ancillary revenues).

[Will T]

Originally Posted by Radi K

What I think you will see if QF slowly pulling back their product to match VB. For the sake of cost.

I don't think you'll see that happen at all, Radi. For the reasons I outlined on the other thread (and a number of others), VB - its product, positioning and strategy - is the last place the QF Group wants to be.

Unfortunately, and for obvious reasons, I'm not in a position to go into much detail on this. But I'm sure (and hope) there'll be a number of interesting responses to this thread.

[Eli B]

Do LCC's have a faretype that allows a commuter to arrive early at the airport and get on a flight earlier then their booked one? (Or later?) Of course it is up to availability, but in my experience men and women in suits are always doing this. There is a big rush for Friday afternoon flights when meetings run late or finish early. Do LCC's have the frequency for a commuter to take advantage of this faretype? I'm sorry I havent done the research cos im not a commuter... but its just a thought.

(If only Sydney's Cityrail had a Frequent Sardine System I would be saving BIG BUCKS!)

[Gareth U]

Originally Posted by Arthur T

Free Luggage Allowance, Full Customer Service, Free Newspapers, Free Headphones and Inflight Magazines

Free Luggage Allowance
Virgin matches Qantas' 32kg at comparable fare levels to those charges by the full service carrier.

Full Customer Service
I am yet to travel a LCC and only receive partial customer service. What is your definition? I flew flybe and tuifly (both LCC) in Europe recently and their customer service from check-in to onboard was second to none. Cabin crew were extremely professional, courteous and their service was refined (offering ice and lemon with drinks, water during a ground delay etc.). I would go as far to say that inflight service levels were much higher than the other airlines we used (Qantas, ANA, Cathay).

Closer to home my experiences flying Jetstar in recent times the cabin crew are just as accommodating (perhaps moreso on a consistency scale) than those at Qantas can be.

Free Newspapers
Only offered by Qantas on certain routes/times.

Free Headphones
Virgin offer free headphones.

Inflight Magazine
Offered by all carriers.

With respect to catering. Many would argue that they prefer the choice offered at the LCCs (or to BYO or eat before/after the flight) rather than being given two biscuits or just a sandwich of the airline's choosing.

[Jack B]

really not worth it, especially when you actually get the meal that cost you extra. wheras, virgin blue sells really really good chicken wraps. so for domestic, if your paying for yourself DJ is a better option in my opinion.

and i really dont think QF does steak on SYD-MEL flights.

[David Knudsen]

Originally Posted by Michael Mak

Because there is no need to have a big steak with chips for an hour flight.

I disagree! What a concept...BBQ Airways! I'd be onboard!