Qantas Frequent Flyer - QF:May 1st Change of Airfare Structure

Just got an e-mail from a friend in the industry, telling me that Qantas have announced a change in fare structure..........any idea what this means?

Is this a warning prices are going to go up..........or is it that they are going to discount some fares?

I have got some well priced flights on hold at present........will the prices change post May 1st.............any ideas would be most welcome!

Perhaps related to this post, (http://www.flyertalk.com/forum/showthread.php?t=550228) and the ABC news report that Air NZ are increasing base fares by 10% to cover rising fuel costs (they did not mention what is going to happen with current surcharges).

Hmmm. Interesting.

Would be great (IMHO) if fuel surcharges were forced into the main price of tickets rather than as a seperate charge.

Maybe the ACCC and other bodies have been quietly talking to people?

Certainly will make award tickets a lot cheaper dollar wise ^

A week back CX put up 2-3% on its Australia and New Zealand routes.

There was an article in yesterday's Fin Review (the Perth Edition) that QF plans to reprice tickets to take into account that high fuel prices are here to stay. As a result there will still be a fuel surcharge but this will be based on a new benchmark for fuel prices which I think will be around $62 a barrell.

QF wasnt expecting the fuel surcharge to be around on a perm basis so instead of leaving it as is, they are going to incorporate it into the base ticket price where possible.

Interesting to note that while QF is hedged for fuel, this is for crude oil and the increase in refining margins is what is really hurting them. QF's fuel bill will be $800m more next year than it was this year, which is an increase of $800m over last year.

As QF's loads have dropped this year and as a result are going to drop earnings when compared to last year.

So while fares might rise (as you would expect as a knock on effect of oil prices) I would expect some cracker sales to be coming up to help fill some planes and generate some much needed cash flow.

As a side note the article mentioned that QF is investigating less capital intensive businesses to suppliment the flying business, such as a JV with Queensland Rail and an expansion of StarTrack Express. Rumour is that a LinFOX takeover offer might be on the cards in an AustPost/ QR/ QF consortium to give QF a road, rail and air logistics business. I guess trucks and trains are cheaper to buy than planes but this is still a pretty capital intensive business.

I guess trucks and trains are cheaper to buy than planes but this is still a pretty capital intensive business.
They'll be fighting with TOLL for the train and truck business. If NZ is anything to go by - TOLL seems to be on the side of most trains and trucks over there. Yet again, someone else has realised a market does exist and developed it before QF gets interested.

Qantas are already 50/50 partners with Australia Post in AaE . Auspost also own Startrack Express; so it's all getting a bit incestuous.

... I guess trucks and trains are cheaper to buy than planes but this is still a pretty capital intensive business.FWIW, QF has run a truck cargo operation between SFO and LAX for years (using their cargo terminal at SFO after they stopped flights into SFO). Still trucking freight to/from LAX even with their new SFO service. So road freight is not entirely a new business for QF. It was quite odd to see trucks with QANTAS on the side going down the highway in California.

So while fares might rise (as you would expect as a knock on effect of oil prices) I would expect some cracker sales to be coming up to help fill some planes and generate some much needed cash flow.

I've noticed QF have already been putting out some pretty impressive fares from overseas which include multiple domestic legs on them at no extra cost.

From Singapore currently there's a fare for SG$548+tax including two extra domestic legs at no extra cost http://www.qantas.com.au/regions/dyn/sg/specials/experienceMoreofAust?lk=prsg (I've personally got SIN-PER-BME-SYD-CNS-BNE-SIN booked with stops in Broome, Sydney and Cairns).

From the USA there's the airpass fare for US$999+tax which includes three flights within Australia at no extra cost - http://www.qantas.com.au/regions/dyn/us/specials/webDeals219

From the UK there's a GBP649+tax fare with two internal flights within Australia for free - http://www.qantas.com.au/regions/dyn/uk/specials/springaroundaustralia

From Japan there's a fare now including 3 domestic flights within Australia at no extra cost - http://www.qhi.co.jp/english.html

So it seems they must already be struggling to fill some of the planes up at this point (though given it's heading into winter, no doubt they face the same challenges each year).

I've noticed QF have already been putting out some pretty impressive fares from overseas which include multiple domestic legs on them at no extra cost.
...
So it seems they must already be struggling to fill some of the planes up at this point (though given it's heading into winter, no doubt they face the same challenges each year).Mid-April to 30 June each year is always the time for bargain basement fares ex-UK to Oz. It's not just that it's autumn/winter, but UK school holidays don't start until July, so there's just little demand (until the last week or so of June, when everyone tries to get in just before the fares go up significantly from 1 July).

Qantas are already 50/50 partners with Australia Post in AaE . Auspost also own Startrack Express; so it's all getting a bit incestuous.

Actually Qantas acquired Startrack Express directly, not through AusPost.

Perhaps related to this post, (http://www.flyertalk.com/forum/showthread.php?t=550228) and the ABC news report that Air NZ are increasing base fares by 10% to cover rising fuel costs (they did not mention what is going to happen with current surcharges).

NZ is incorporating the fuel surcharge in the fare for paid tickets (as it does already for domestic flights), but of course still separate for awards :mad: It is a shame it is including fuel surcharge in the fare at the same time as putting an increase through as I don't think they'll get much credit for this positive move (including the fuel surcharge I mean, not the increase). Also it is a shame it still applies to awards (AFAIK - I could be mistaken, not much internet access lately to keep fully up to date with these changes).

Actually Qantas acquired Startrack Express directly, not through AusPost.

No, it was a joint venture using the Australian Air Express Vehicle, see Qantas's CFO's presentation here : http://www.qantas.com.au/infodetail/about/investors/UBS2004AustralianTransportConference.pdf