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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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4,777 total articles
Air New Zealand says 'very difficult' to provide view on Qantas/American JBA due to redacted content
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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.
Why don’t women run airlines? It is one thing to recognise that gender imbalance is in no-one’s best interests. But shifting the status quo is more than a little troublesome, especially in an industry which is still embedded in a technical and operational environment.
The range of options, from full-frontal onslaught through to much more subtle trajectories, offers greater hope than in the past. Imposed quotas are controversial, informal and formal women’s networks are spreading quickly, but if there is one area where unanimity seems likely, it is in the formalisation of mentoring as a means to aiding women to access formerly male-only domains.
And here there is, as always, an essential requirement – a hospitable corporate culture.
Australia domestic airline market outlook: Qantas Group reins in capacity as Virgin continues growth
Throughout the global financial crisis, Australia's domestic market defied global aviation trends. Although LCCs made inroads and grew the market, short-haul corporate travel – mostly in premium cabins – remained strong. A domestic market serving 20-odd million people produced profits in excess of AUD1 billion. More recently those profits were slashed during a capacity war between Virgin Australia, seeking a larger position in the market, and Qantas, which fought to defend its position.
Qantas applied the capacity brakes in the first half of fiscal 2015, removing seats across both Qantas and Jetstar for the first time since the capacity growth spurt. Capacity forecasts show the group continuing to remove capacity in 2H2015. Qantas is forecast to end FY2015 with a 3.5% reduction in domestic ASKs and Jetstar a 2.3% reduction. The smaller Virgin Australia will meanwhile grow 2.2% and its smaller LCC unit Tigerair will grow 8.9%.
After Qantas' international division posted a profit for the six months to 31-Dec-2014, the division's first positive result since the Global Financial Crisis, the division needs to move from profit to sustainability and delivering returns. But Qantas is now considering international expansion after many years of reductions. A flight to Tokyo has been added, seasonal services to Vancouver have returned, there are supplementary long-haul services and Perth-Singapore may even be re-opened. Reports suggest a return to Sydney-San Francisco is even possible.
“We continue to operate below our full potential,” Qantas reported in a recent government submission. But as Qantas considers international growth, it confronts a markedly different international environment. Qantas argues that Australia viewed it as “expendable” and gave away international traffic rights without receiving enough in return. Qantas seeks to slow liberalisation under the justification of enforcing Australia’s legal duty to support a local aviation industry. This is effectively a mask for protectionism, begging the question: what is the value of a local aviation industry?
China Southern Airlines nearing target of 55x flights to Australia/NZ, continuing international push
Chinese aviation often features "light switch" developments: the sector can fumble along and then suddenly, as if a switch is flicked, change mindset to an ambitious target and work tirelessly to achieve it. Such was China Southern's 2010 plan to focus on Australia/New Zealand. After having not even a daily service to Sydney, the relatively unknown Guangzhou-based airline is to have 55 weekly flights in 2015. And China Southern now looks likely to achieve the goal as the airline will 53 weekly flights to the region beginning in mid-2015. Increases over the busier holiday season could tip it past the 55 mark threshold.
The next challenge will inevitably be sustainability. China Southern's Australia/New Zealand capacity fluctuates more than other major Asian airlines, with its strong outbound-China market having sharp peak and off-peak seasons. Operating a full year of 55 weekly flights may be some years away. But there is no doubt the aviation and tourism markets are forever changed, with more to come. Not so long ago China was a small blip for Australia but now there are services from the Big 3 as well as two smaller carriers, along with a proposed JV between Qantas and China Eastern as well as Air New Zealand and Air China, developments hardly on the radar a few years ago. China Southern's international push – in Australia and beyond – has pushed international capacity growth from 19% to 31% of ASKs.