Qantas has introduced direct flights from Perth to London with tickets on sale now for flights in 2018. Qantas will be using the new Boeing 787’s and this will be the third longest route in the world. Qantas is hoping to be able to offer non-stop flights from Sydney to London within the next 5 years thanks to new aviation technology from Boeing and Airbus. This would cut 3 hours off the flight time and would allow Qantas to charge a premium price and set it apart from its competitors who have stop-offs in Singapore, Dubai and Hong Kong.
Chinese tourists key to Qantas growth (Marketing)
Qantas plans to capitalise on increasing domestic trips made by Chinese tourists. Over 1.1 million Chinese tourists visited Australia in 2016 a 17% increase on 2015. Qantas sees the Chinese market as a key area of growth for its business. Qantas’ alliances with China Eastern and China Southern are a key ingredient with packages booked through those airlines favouring Qantas domestic flights.
Qantas accused of shifting engineering jobs offshore (Operations)
While Qantas does more of its maintenance in Australia than its competitors, the intense cost pressures in the industry are driving Qantas to pursue more opportunities. Qantas’ new state of the art maintenance facility in Los Angeles Airport is 50% larger than previously and Unions fear Qantas will be shifting more jobs offshore. This follows the shutting down of its heavy maintenance in Sydney, Avalon and Melbourne. Qantas claims the new facility more efficient design means it can reduce maintenance time because engineers have easier access to the airline. Also because of its flight schedule Qantas can have up to 4 aircraft on the ground for up to 10 hours at a time. The engineer’s union claim staff at LAX are less qualified and would compromise Qantas ‘selling point as the world’s safest airline.
Source: Qantas tourists key to Qantas growth in domestic market by Chris Kohler The Australian April 6th, Airbus, Boeing close in on Qantas ‘long haul dream: The Kangaroo route non-stop by Jamie Freed SMH April 6th, Qantas accused of shifting engineering jobs from Australia to US by Paul Cleary The Australian April 21st.