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Qantas Airways is operated as part of the publicly listed Qantas Group. It is the national airline of Australia with major hubs in Sydney and Melbourne and secondary hubs in Perth and Brisbane. Utilising a large fleet of narrow and wide-body Airbus and Boeing aircraft, Qantas operates an extensive domestic and international network, with services to New Zealand, the Americas, Asia, South Africa and Europe. Regional services are provided by subsidiary, QantasLink. Qantas is a founding member of the oneworld alliance.
Location of Qantas Airways main hub (Sydney Kingsford Smith Airport)
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4,979 total articles
LAN Airlines and Jetstar Airways sign codeshare agreement to strengthen LATAM Airlines Group’s conne
Qantas requests allocation of unlimited capacity to New Zealand to allow LAN to codeshare on Jetstar
398 total articles
Reducing capacity in Australia is less a strategic decision than it is overdue common sense. Qantas and Virgin Australia appear finally to have settled into a more stable capacity approach, with growth largely a pivot of capacity away from Western Australia and back into the east coast as the commodities slowdown hits demand. A taste of profit for both carriers should head off the temptation for further scuffles.
With Australia more or less stable and international now back into expansion mode, the Qantas Group now looks set to take on Air New Zealand's domestic market with the expansion of Jetstar into regional services. While using idle assets to make a play at Air New Zealand’s monopoly, the move is likely to trigger an animated response – indeed, promotional fares have already been matched by the Kiwi incumbent and Air New Zealand is questioning the competition law implications.
Fiji Airways continues its quiet expansion in the South Pacific in the meantime while also looking to broaden its long haul markets into emerging inbound tourism markets such as China, Japan and Singapore. But the carrier is about to welcome its third CEO in three years and the shift back into expansion will require a steady hand to maintain the ruthless cost focus employed by previous CEO Stefan Pichler and prior, Dave Pflieger.
CAPA Australia Pacific Aviation Summit in Sydney - the region's biggest ever aviation & travel forum
Over 700 industry professionals and government officials will attend CAPA's Third Australia Pacific Aviation Summit in Sydney from 3-5 August. The Summit is shaping to be the biggest aviation and travel event ever held in the region. The three day event includes full days for an Airport Innovation Summit and a Corporate Travel Innovation Summit, as well as two days dedicated to a high level review of the key aviation events in the region, involving many of the key industry leaders.
Many industry CEOs will be taking part, including Alan Joyce (Qantas), Christoph Mueller (Malaysia Airlines), Mark Dunkerley (Hawaiian), Jayne Hrdlicka (Jetstar), Sean Donohue (DFW International Airport) and Patee Sarasin (NOK Air). Lim Ching Kiat (Changi Airport Group), Li Dongliang (China Southern Airlines), Levent Konukcu (Turkish Airlines) and Chu Viet Cuong (Vietjet) and are also among the approximately 100 speakers/panellists.
More than 120 airline delegates are already signed to come, from 40+ airlines, along with 20+ major airports. For the Corporate travel Summit, over 120 Corporate Travel Buyers will be present.
In total, over 700 industry experts, from across Australia, New Zealand, Asia Pacific and beyond are heading to Sydney for what promises to be the biggest event of its kind ever held in the region.
China Southern Airlines exceeds 55x flights target to Australia/NZ. Competition regulators query JVs
Mission accomplished: China Southern Airlines is already surpassing its goal of having 55 weekly flights to Australia and New Zealand by the end of 2015. From about 25 weekly flights in 2011, China Southern in Dec-2015 will have 65 weekly flights. This includes three daily flights – one on an A380 – to Sydney, a frequency that compares to Cathay Pacific’s four and Singapore Airlines’ average 4.5.
Competitors are responding with a series of JVs that await regulatory approval. Qantas-China Eastern received a draft rejection while Air New Zealand-Air China awaits approval and Air New Zealand-Cathay Pacific needs re-authorisation. The Qantas-China Eastern initial rejection appears misguided while New Zealand stakeholders are questioning the benefits of the Air NZ-Cathay alliance in a market that where capacity has decreased by 18% while the Air NZ-Singapore Airlines alliance has grown capacity by 20%.
It might appear lines in the market have been drawn, but it is still early days. China Southern’s achievement in the market is only its first. The question is what its next goal is, and the answer is being kept closely guarded.
Partnerships have been an important part of South African Airways' long-haul restructuring and will continue to shape changes as SAA seeks to bring its long-haul network to profitability. A joint venture with Cathay Pacific covering the Hong Kong-Johannesburg route is the likely next step.
A strategic solution for Hong Kong has been outstanding since SAA cancelled its Beijing service and dropped Mumbai as part of a partnership with Etihad Airways. In addition to its new Etihad partnership, SAA is looking to grow its pre-existing partnership with Emirates but denies reports Emirates was going to buy a stake in SAA.
SAA also wants better access to Sydney, and has considered various options to place its metal in Australia's largest city but would prefer to find a partnership with Qantas that regulators will approve. Expected regulatory rejection prompted Qantas to end a 14-year codeshare with SAA in early 2014.
Jetstar Hong Kong licence application rejected: Hong Kong becomes an island of protectionism in Asia
"Never imagine yourself not to be otherwise than what it might appear to others that what you were or might have been was not otherwise than what you had been would have appeared to them to be otherwise.” (Alice in Wonderland; Lewis Carroll).
The battle of semantics over the issue of Jetstar Hong Kong's compliance with an esoteric and highly subjective definition of the words "principal place of business" appears to be over. As Hong Kong's licensing authority rejected Jetstar Hong Kong's licence application on 25-Jun-2015, Cathay Pacific had successfully defended its market dominance with arguments more befitting of a scene from Alice in Wonderland. It is a precious victory over longstanding foe Qantas, which recently attacked Hong Kong's bilateral access to the Australian market as making no "concession to the legitimate interests of Australian airlines in establishing reciprocal hub opportunities in Hong Kong."
Ironically, the principal place of business test was established to circumvent the fact that Cathay was actually a foreign owned airline operating under a local AOC; consequently it could not be accommodated under typical bilateral air services agreements which required "substantial ownership and effective control" to reside in Hong Kong. For decades, the world made a special exception for Cathay. Today, even though it is based in Hong Kong, nearly two thirds of Cathay's voting rights reside in London with the Swire Group. And 30% of the airline is owned by Air China. It is also a common assertion that Hong Kong Airlines, another opponent to Jetstar's entry, is controlled by mainland-based HNA.
But, in the arcane world of international aviation regulation, logic and good sense is frequently a scarce commodity. The result here, as Alice in Wonderland's delightfully illogical Queen of Hearts would have said, is "Off with their heads!".
American Airlines has returned to the South Pacific after two decades of absence. In doing so within a tight and longstanding partnership, Qantas, the resurgent Australian flag carrier has firmly set out to re-establish itself as a significant international force.
The South Pacific corridor between North America and Australia/New Zealand long appeared an anachronism. After a flurry of US airline entry in the early 1990s, the US-Australia market became limited in direct competition and large intermediary hubs. The 2008 open skies agreement allowed the entry of Delta and then-V Australia (now Virgin Australia), but they quickly paired up to challenge larger rivals Qantas, United and Air New Zealand. Despite the latter two being members of Star Alliance, Air NZ and United were effectively competitors while Qantas plied the route on its own. Elsewhere, global alliances came to define the trans-Atlantic, North Pacific and EU-Japan markets.
Now the South Pacific too will be defined by partnerships. American Airlines will launch Los Angeles-Sydney service in Dec-2015 after years of relying on Qantas to feed AA's domestic network. There will now be pressure on Air New Zealand and United to look for synergies (or more) while the small position of Virgin Australia and Delta will surely be squeezed. American was previously rumoured to be considering direct services to New Zealand, and has again revived that potential by suggesting that may be next on the list. The competitive balance overall will inevitably be defined by the way the respective partners (or potential partners) proceed from here.