It has been a popular discussion in the past week as to how Qantas can stop its decline and improve its relevance in the International market - and thought it would be an interesting point of discussion. I think it would not take too much, especially if there is a focus on a Pan-Asian strategy. Here are some of my thoughts/ideas - I am curious as to yours too (and feel free to criticise mine)
New Routes
Singapore - Paris (daily), Moscow (3xwk), New Delhi (4xwk)
- This expansion would allow Qantas to grow its Singapore hub and leverage on the Jetstar Asia strategy. Paris could still be maintained through an AF-JV, and this would allow for 2xdaily flights on the Singapore-Paris route maximising Australian connections. Moscow would also seem an ideal fit to capitalise on Oil traffic throughout Eastern Europe, from both Australia and Singapore especially through a partnership with S7.
Melbourne - Shanghai (3xwk), Tokyo (3xwk), Johannesburg (3xwk)
- Routes such as these would allow Qantas to reverse its decline in markets other than Sydney
Sydney - Beijing (3-4xwk), Guangzhou(3-4xwk), San Francisco (daily)
- Cities such as Beijing and Guangzhou should be added with a long-term focus, to capitalise on the growing Chinese market. San Francisco in my opinion should be added, as information seems to suggest the flights were profitable, but not AS profitable as other routes - a profit is still a profit, right?
Hong Kong - Frankfurt added (daily)
- Could through a partnership with CX allow oneworld to have a double daily presence Hong Kong-Germany, and with AB joining oneworld, could be advantageous for Qantas to grow its network
Adelaide - Hong Kong (3xwk)
- Once again to grow the International market out of Australia as a whole and to leverage on all Australia-China traffic.
Increased flights
Hong Kong - Brisbane, Sydney, Melbourne, Perth
- [B]Daily to Brisbane and Perth and double daily to Sydney as a minimum to maximise China connections.
Singapore - Sydney (extra 7xwk), Melbourne (extra 7xwk), Brisbane (extra 7xwk), Adelaide (daily operation), Mumbai (daily operation)
- Mumbai to a daily flight as a minimum, and increased flights to all cities to take advantage of the Jetstar Asia strategy and to feed into new flights such as to Paris, Moscow and New Delhi.
Some Ideas- Launch a strategy targeting Asia-South America traffic. This market seems relatively underdeveloped and cannot be served non-stop. Qantas could use its Sydney hub to serve non-stop Santiago, Buenos Aires and Sao Paulo. It could feed passengers from cities such as Singapore and Bangkok, and with the assistance of CX and JL, from Hong Kong, Tokyo as well as Japan and China in general.
- Launch a Joint-Venture with China Eastern. With flights launched to Beijing and Guangzhou, combined with Qantas largest Mainland operation being in Shanghai, a JV with China Eastern could increase the company's recognition in what will soon be the largest market to Australia. MU could also feed Qantas flights for an Asia-South America strategy, in particular the Sao Paulo flights.
- Launch a Joint-Venture with a Middle-Eastern airlines such as Qatar or Emirates. There has been Gulf-airline phobia, but Gulf airlines could allow Qantas to fill the largest gap in its network, the Middle East and North Africa, at a low-risk. I know this idea might be a bit controversial...
- Take Jetstar Asia a bit more upmarket, maybe with a Regional Business Class with 8-seats on an A320 to use the Singapore-hub to capitalise on both Business and Leisure traffic connections.
So, they are my thoughts as to how Qantas could potentially stop its market decline and expand its International operation. Keen as to what other aviation enthusiasts/Qantas nuts think.