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What Happened to LAX-ORD/MEL-ORD routes?

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What Happened to LAX-ORD/MEL-ORD routes?

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Old Oct 28, 2011, 12:09 pm
  #1  
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What Happened to LAX-ORD/MEL-ORD routes?

I remember back in 2002 Qantas announced they would put in LAX/MEL-ORD three times weekly. Did they actually ever do this route or was it canned?


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Old Oct 28, 2011, 12:11 pm
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Briefly i think think their crew costs where too high
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Old Oct 28, 2011, 12:14 pm
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Oh and it probably turned out cheaper just to dump the pax on an AA flight
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Old Oct 28, 2011, 4:56 pm
  #4  
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Never flown. Was cancelled a few weeks before it was scheduled to start
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Old Oct 28, 2011, 4:58 pm
  #5  
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I was booked on the inaugural flight ORD-LAX on an AONEx ticket so I remember this well. QF canceled the route less than a week prior to the first flight! They had already prepared a QF presence at ORD and booked an inaugural event ... so lots of expense and about a year of preparation for starting this route. It was "suddenly" pulled.

My observation is that shortly thereafter UA and NZ made some changes that were favourable to QF. I'm sure there was no deal, after all that would be illegal and frowned upon by the ACCC and other regulatory bodies, but QF spent hundreds of thousands of dollars in route preparation, only not to operate it. Somehow I doubt that crew costs changed during the final week prior to ORD-LAX commencing.

In subsequent years QF decided to hoard the 744 fleet flight hours, deliberately keeping them on the ground at LAX in order to save cycles. An interesting use of capital; certainly there would be no business case for QF to do LAX-anywhere in North America these days. That might change when the 787s arrive, but QF has chosen the AA JV instead.
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Old Oct 29, 2011, 9:31 am
  #6  
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Originally Posted by number_6
I was booked on the inaugural flight ORD-LAX on an AONEx ticket so I remember this well. QF canceled the route less than a week prior to the first flight! They had already prepared a QF presence at ORD and booked an inaugural event ... so lots of expense and about a year of preparation for starting this route. It was "suddenly" pulled.

My observation is that shortly thereafter UA and NZ made some changes that were favourable to QF. I'm sure there was no deal, after all that would be illegal and frowned upon by the ACCC and other regulatory bodies, but QF spent hundreds of thousands of dollars in route preparation, only not to operate it. Somehow I doubt that crew costs changed during the final week prior to ORD-LAX commencing.

In subsequent years QF decided to hoard the 744 fleet flight hours, deliberately keeping them on the ground at LAX in order to save cycles. An interesting use of capital; certainly there would be no business case for QF to do LAX-anywhere in North America these days. That might change when the 787s arrive, but QF has chosen the AA JV instead.
It's worth considering that adding a tag flight from LAX (to ORD/JFK/wherever) adds something like three days to the roster for the crew, both cabin and tech, which then increases the number of crews required to operate a given route, and given QF's unwillingness to use their full operating rights (i.e. ALL overseas originating passengers, rather than just those flying in on QF) and an unprofitable freaight task, the flight all of a sudden becomes immensely unprofitable.

As you mention though, each round trip between LAX and wherever adds two cycles, as well as however many hours bring the checks just that little bit closer.

Cheaper to just park them and send the crew home three days earlier.

Dave
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Old Oct 29, 2011, 9:28 pm
  #7  
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Originally Posted by thadocta
...Cheaper to just park them and send the crew home three days earlier.

Dave
Joyce must be reading FT as he has taken your advice and parked all of QF's planes. Maybe Joyce will get an innovation award for the most novel way of running an airline (into the ground?).
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Old Oct 29, 2011, 9:49 pm
  #8  
 
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Profits

The Bottom line is that for the Qantas Group, the original business makes little or no profit - yet Qantas Frequent Flyer is very profitable, JQ etc - so this is just a tantrum to get the Group into the shape the board wants to make excess profit.
I have no issue with profit BUT not at the cost of 13000 stranded pax per day.

This is a very sad day for aviation
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Old Oct 29, 2011, 10:01 pm
  #9  
 
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LAX-ORD would've been gastronomically redundant as a hub-hub for AA- I cannot imagine it could be very profitable, esp without domestic traffic rights.
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Old Oct 29, 2011, 10:52 pm
  #10  
 
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Present return on capital is 4%, will take a long time for them to make excess returns.
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Old Oct 30, 2011, 8:22 pm
  #11  
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I just reread the press release I linked and it mentions John Borghetti in it. Funny how someone who is overlooked in a job like CEO of Qantas still makes good.
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Old Oct 31, 2011, 7:00 pm
  #12  
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Originally Posted by SighMN
I just reread the press release I linked and it mentions John Borghetti in it. Funny how someone who is overlooked in a job like CEO of Qantas still makes good.
Borghetti was number 3 at QF when passed over for the CEO job, so not too surprising that he winds up at DJ and sets about changing DJ into what QF was/wanted to be.
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