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Old Sep 26, 2006, 9:17 pm
  #43  
number_6
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Join Date: May 1998
Location: Portland OR Double Emerald (QF and AA), DL PM/MM, Starwood Plat
Posts: 19,589
Originally Posted by PMMMColonel
I understand AA, however if it is one of the most profitable in the world -- why wouldent more airlines who have rights not try to expand here? ....
The problem is feed, and the incredibly high prices that QF charges for add-ons from SYD or whatever POE the other airlines pick. I've heard that ADL-SYD-LAX for UA was costing more for the ADL-SYD leg than the SYD-LAX leg. When limited to O/D traffic, it simply doesn't work unless you can corner the high-yield business traffic (as QF has done, contrast the UA and QF J and F loads and prices, for example).

The other problem is that while it is a highly profitable market, it is a thin market (China is 100x bigger, albeit undeveloped). DJ solves the feed problem, but the US based airlines have never managed to successfully partner with an Australian airline in the past.
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