ozflier

There have been TV and radio reports in Australia this last weekend suggesting Richard Branson is looking to start up a " no frills " airline servicing the bigger Australian capital cities.
Previous small airlines have tried this but lost out to predatory pricing of AN and QF, fraudulent activity on the part of their directors and difficulty in obtaining terminal space in SYD and MEL.
Branson has said he believed there was a market for travellers who didn't want Club lounges, Frequent Flier Points and Food and Drink! He may have misjudged Aussies on the first point ,in particular, as FFPs are very firmly entrenched in the local scene.
Aircraft suggested are 737s and the first market MEL - SYD.
50% of fares are to be set at around 75% of the current AN and QF 21 day Apex fares.
This may explain AN's entry into the market with its one class "peanuts and cola" Kendell Airline subsidiary. Branson has been talking to Canberra for the last year so presumably, AN have heard about it.
Kendell will be using CRJ 50s with 2 x 2 ,seating ,6 foot headroom, no audio or video entertainment, no aero bridge connections at major airports and on the non SYD- Canberra flights , minimal catering. AN is taking a big chance. This seems to be a "bottom line" exercise BUT Qantas is maintaining two class services in full size aircraft in routes to be downsized by AN.
That's the beauty of competition.
Ozflier

ffhound

It appears from tonight's news that Branson has the support of the Australian Government and is likely to get the terminal space he needs.

The comeptition will drive prices down but hopefully I'll still be able to get FF points on Qantas or Ansett.

cheers Peter