Hi all

As you will know Impulse Airlines are now actively competing with Qantas and Ansett.

Ansett and Qantas are matching Impulse's prices but there is still one very important differentiating feature as far as the existing carriers go. Impulse does not have a frequent flier program whilst Ansett and Qantas do.

This means that fliers have a choice of airlines at a set price but only two of the three will give the added benefit of occasional free flights by way of frequent flier points.

Australian fliers aren't fools - they'll make the most of the competition by enjoying the cheap prices AND getting their frequent flier points by choosing to fly Qantas or Ansett.

Even if Impulse do introduce a frequent flier program they then have the additional headache that their route network can't provide award tickets to favorite destinations for Australians eg Bali. They will need to find some partners to make the scheme work.

So this is what they have to do...

1. Introduce a very generous frequent flier scheme (they have plenty of empty seats currently - why not be extra generous?)

2. Get non-Star Alliance and non-Oneworld airline partners to provide award seating to favoured overseas destinations namely...

- KLM (Europe)
- Continental/Northwest (Hawaii to North America)
- Garuda (Bali/Asia)
- Canada 3000 (Fiji, Hawaii, Canada)
- AOM (New Caledonia)

That should easily provide award seats to Los Angeles, London, Paris, Fiji, Hawaii, Bali, Bangkok, Japan etc etc etc

Then the competition would be a little more interesting.

There is also another point that needs to be made. In Australia the existing carriers do not provided a full first class premium product - as I understand it their First Class is really just a rebadged business class. Impulse could provided a genuine first class product including 4 course meals on short flights, neckrubs, oodles of legroom, pampering, premium wines, silver service, legrests, fully reclining seats, personal video (select movie when booking ticket), internet access etc etc etc

Naturally they would charge excessively for this but that's where they could make extra money. I'll bet there are executives out there who would love to be able to utilise this service. And Qantas and Ansett aren't offering it.

cheers peter


[This message has been edited by ffhound (edited 08-06-2000).]

Well I hate to rub it in but...

I told you so

In the daily rag here in Melbourne today (FULL PAGE!) Impulse Airlines announced their new frequent flyer scheme.

It's quite basic really. Fly 10 flights get one free.

But it isn't going to work. Impulse don't have any Airline partners and don't fly to the places people would like to fly free to namely Bali, Europe, Thailand etc etc

So here are my next predictions.

Firstly, Virgin Blue will introduce a frequent flyer program soon in my opinion as the other three now have them (despite all the guff about how they are a no frills airline). I bet they are working on it right now.

Secondly I expect that Impulse's frequent flyer program will not be the success they envisage as they will soon discover that their achilles heel is that they can't provide award tickets to the destinations people want to go.

I wouldn't stake my life on it but I think there is a good chance that either Impulse or Virgin Blue will team up with the "other" major airline alliance namely Skyteam. They have a fairly good world route network and some good partners. If I was running Impulse I'd be on the phone to them right now.

cheers Peter

Now that Indonesia plans to introduce higher visa and entry fees I wouldn't be so sure that Bali will remain the favourite destination for long. After all for a family several hundred dollars extra in admision fees is quite a hike.

you seem to have something against impulse there ffhound?? you don't have a vested interest in the big 2 do you?
it seems to me that impulse have been pretty sensible in all their dealings thus far and by most accounts seem to be doing o.k.(i doubt amp and nab would be handing over another $300 million so quickly otherwise?). their new ff deal is sensible (and playing along the same lines as their original business plan - keep it simple!) and easy to redeem. put simply, you know where you stand!
i think impulse will do pretty well to be honest as long as they stick to the original plan and don't go head to head with an/qf trying to offer the same product - ie full range inflight service and fancy ff schemes..!
good luck to the new guys. i'd rather have the choice of being able to walk up and pay decent fares as opposed to what was there before - after all, do you really need to pay $40 extra for a cut lunch on a 1 hour flight? cheers...
as for a.o.m - i think they are pulling out of oz at the end of the month?! + co/nw have not been flying to oz for quite a while either.....

[This message has been edited by tnj (edited 11-07-2000).]

Not at all

I'm quite pleased to see them competing in the Australian market and I wish them well.

However I believe they have to become part of a bigger airline alliance to compete effectively with the big two that's all. Aside from that they strike me as a pretty well run operation.

I sorry to hear that AOM are no longer going to be flying to Australia.

By the way Continental Micronesia fly from Guam to Cairns. They also fly Guam to Hawaii and a host of other destinations.

cheers Peter



[This message has been edited by ffhound (edited 11-13-2000).]

Fly 10 get one free! It is an okay deal. Remember if you fly between Sydney and Brisbane 10 times, then you are probably going to need to fly twelve times.

Sort of similiar to Air Tran's deal and Air Tran is able to compete with Delta no problems!

All freebies are ok

However what if your employer lets you choose the airline and you get to keep the points.

If Qantas and Ansett match the prices Impulse sets then you have a choice. Fly 10 times with Impulse and get a free flight on Impulse's network or fly a number (?) of times and get points on Ansett or Qantas. Admittedly you have to fly a bit on Ansett or Qantas top get enough points for a free flight to anywhere useful however if you, like I, have a credit card linked to Qantas or Ansett's program then the additional points come in handy.

Unless you have relatives interstate you may not wish to fly with Impulse again to an Interstate destination.

For the reasona above, if price is equal I feel Ansett & Qantas have more to offer the Australian flyer for his/her $$$. My bet is that Impulse will reform its FF program to make it more like it's competitors in the next couple of years, and also bring in overseas airline partners.

cheers Peter

No sooner had I written the above words and...
http://afr.com/premium/specialreport...X6HHBK5FC.html

Mark my words - a tie up with Skyteam by one of the two new entrants is only a matter of time.

cheers peter




[This message has been edited by ffhound (edited 11-14-2000).]