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Perth Airport is the main gateway to the Perth metropolitan area and the state of Western Australia. Hosting domestic, regional and international passenger and cargo services for over 20 airlines, the airport is a regional hub for Qantas Airways, Virgin Australia Regional Airlines, Skippers Aviation, Alliance Airlines, Cobham and Network Aviation.
Location of Perth Airport, Australia
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1,003 total articles
56 total articles
A week after the Australian government granted the State of Qatar – and therefore Qatar Airways – a long-sought capacity increase, Qatar Airways has wasted no time and announced a daily Doha-Sydney service from 01-Mar-2016 on the 777-300ER. This finally places Qatar in Australia's largest city, complementing existing daily services to Melbourne and Perth.
The generous-sounding 50% capacity increase means an additional seven weekly flights to primary gateways for a total of 21 for Qatar. This compares to Emirates' 84 weekly flights to primary gateways. Qatar's scheduled seat capacity into Australia will be 17% the size of Emirates and 44% the size of Etihad. Although Qatar will finally add Sydney to its network, it faces some challenges making European connections work due to its hub structure. One disadvantage it may face too is on-carriage. Qantas – which partners extensively with Emirates – does not carry Qatar's code on any of its services and Etihad and Virgin Australia are partners.
Every two hours, an Emirates aircraft – half of them A380s – departs Dubai for Australia. After India, the UK and US, Australia is Emirates' fourth largest market by seat capacity deployment but second largest, after the US, for available seat kilometres.
About one in every 10 seat kilometres flown by Emirates is en route to Australia. Emirates is the largest international airline in Australia after Qantas while its neighbour, Etihad Airways, is eighth largest. Etihad in Australia punches above its weight: globally it is 37% the size of Emirates but has 45% as many seats to Australia as Emirates does.
Qatar Airways is missing out. If its Australian capacity was in proportion to Emirates the way Etihad's is, Qatar would have around 18,000 weekly seats and 50-60 weekly flights, placing it on the heels of Cathay Pacific as the seventh largest airline in Australia. Instead Qatar has only 14 weekly flights, 4,700 seats and is Australia's 18th largest carrier.
Virgin Australia is adjusting its multi-brand strategy as it hands three of its Bali routes to Tigerair Australia. The changes should succeed at reducing the losses of Virgin’s international operation but the group will ultimately need to make further strategic adjustments if it is to compete effectively in Bali and other medium haul leisure markets against Jetstar's 787s and Southeast Asia’s other fast-expanding widebody LCC operators.
The new Bali routes will mark the launch of international services for the Tigerair Australia brand, which has only operated domestically since launching in 2007. The flights will however continue to be operated under the Virgin Australia air operators' certificate using Virgin Australia pilots, resulting in higher operating costs.
LCC competitors on Melbourne-Bali using widebody aircraft will also continue to enjoy much lower unit costs as Tigerair Australia is not able to configure the 737-800s to maximum density – or operate its own fleet of A320s – due to the length of the route. Tigerair Australia is taking over three Virgin Australia 737-800s, which will be retrofitted into 180-seat all economy configuration.
Malaysia Airline (MAS) is cutting capacity to Australia by over 40% in Aug-2015 as it drops Brisbane and reduces capacity to Adelaide, Melbourne, Perth and Sydney. But Australia remains an important market for MAS and the flag carrier will remain one of Australia’s 10 largest foreign airlines.
The reductions are sensible as for the most part they simply reverse earlier expansion that was overambitious and unsustainable. MAS does risk leaving an opening for competitors, particularly Malaysian rival AirAsia X, but in the current challenging phase of its history it cannot be worried about market share.
This is Part 1 in a series of reports on MAS capacity cuts and the potential impact on the Malaysian and broader Asian markets.
This report focuses on Australia, where the upcoming MAS cuts follow significant capacity reductions made in early 2015 by AirAsia X.
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.