Qantas and British Airways Increase Flight Services on Joint Services Agreement

Australia’s Qantas announced on Tuesday plans of enhancing Joint Services Agreement (JSA) with British Airways. Enhancements will strengthen their Singapore hub and offer better services on flights between London Heathrow and Australia.

Qantas and British Airways are set to develop their long-running Joint Services Agreement (JSA). The two airlines aim to strengthen their Singapore hub and offer better products and services to passengers booking flights between London Heathrow and Australia. The move is seen as a part of the Qantas Group’s plan to create a competitive global airline business.

Qantas will maintain its Airbus A380 operations from Melbourne and Sydney to London via Singapore. The carrier also proposes to construct a new premium lounge at Singapore’s Changi International Airport. On the other hand, UK’s flag carrier, British Airways will upgrade its London to Sydney (via Singapore) operations from a Boeing 777 to Boeing 747.

These developments will consolidate Singapore’s standing as the principal hub in the relationship, reinforcing the two airlines’ competitive position in the Asia-Pacific region. Both airlines are known to be premier carriers. Cheap flight tickets may not be their forte, but the carriers still enjoy popularity among travellers for offering quality on-board services.

Under the updated Joint Services Agreement, Qantas will offer flights on Australia – Bangkok and Australia – Hong Kong routes, while British Airways will provide services on Bangkok – London and Hong Kong – London routes. This move is aimed at maximising the carrier’s respective operational strengths and will come into effect from 2012 beginning. BA also plans to augment the frequency of London – Hong Kong flights from 14 per week to 17 per week.

Australia’s Qantas will discontinue its Bangkok – London and Hong Kong – London routes and BA will terminate Bangkok-Sydney operations in favour of Qantas operating flights on the route. This will ease early retirement of Qantas’ four Boeing 747 aircrafts.

Qantas CEO Alan Joyce remarked that the time was right to restructure the JSA between British and Qantas Airways.

“Strengthening our relationship with British Airways is an important element of our new strategy for Qantas International,” Mr Joyce said in the company’s press release that was posted on the website on Tuesday.

“Singapore will become the focal point of the JSA relationship, with daily Qantas A380 services from Melbourne and Sydney and onward to London, increased British Airways capacity and a new premium lounge.

“The new approach is a smarter use of both airlines’ resources that will enhance our competitive position in Asia and in the Australia – Europe market.

“Regardless of which airline is operating flights between Australia and the United Kingdom, we are focused on delivering a smooth and enjoyable flying experience for passengers. Restructuring the JSA will put us on the front foot in the fiercely competitive Australia – UK air travel market,” Mr Joyce further elaborated.

Qantas Announces New Lounges and Fleet Upgrades

Qantas also announced that it is going to invest almost $400 million in new international lounges, in-flight entertainment and aircraft refurbishment to enhance travellers’ experience.

“Qantas will construct a new First Lounge and Business Lounge in Los Angeles, three times the size of the current space, as well as new First Lounges in Singapore and Hong Kong,” Mr Alan Joyce was quoted in the company’s press release.

Mr Joyce stated that the introduction of the A380 in 2008 brought new levels of customer satisfaction and now the airline aims to make sure that consistent superiority is maintained across the fleet and lounge network.

“In February last year, Qantas announced a $250 million upgrade for nine Boeing 747-400s to meet the changing demands of the airline’s international customers. The first reconfigured B747 will commence services between Brisbane and Los Angeles in October, operating three return services per week,” he said.

The Qantas Group additionally launched a new low-cost airline, Jetstar Japan, in partnership with Japan Airlines and Mitsubishi. The airline is aimed at Japanese market and will serve travellers who seek cheap flight tickets.

Qantas Airways Plans Expand Flight Service to Asia

Qantas Airways Ltd. Chief Executive Officer Alan Joyce switched the airline’s focus to Asia with plans to start two new carriers, betting on the region’s growing prosperity to end losses at international operations.

Australia’s largest airline will form a Japanese budget carrier and an Asia-based full-service unit, while handing some Europe services to British Airways, it said in a statement today. Qantas will also order as many as 110 Airbus SAS A320s, including 78 of the revamped neo version, it said.

The Sydney-based carrier will cut 1,000 jobs and delay the delivery of six Airbus A380 jets under its plan to reverse A$200 million ($209 million) in annual overseas losses. Qantas intends to pare its reliance on the Australia-Europe route after losing market share to Emirates Airline and because of rising demand in Asia.

“The growth is going to come from Asia,” said Nachiket Moghe, an analyst with Morningstar Inc. in Auckland. “The passenger numbers from there continue to grow strongly and airlines need to position themselves for that.”

Qantas fell 0.3 percent to A$1.525 at the 4:10 p.m. market close in Sydney, after earlier gaining as much as 4.9 percent. The stock has fallen 40 percent this year compared with a 10 percent drop in Australia’s benchmark S&P/ASX 200 index.

The airline’s budget unit Jetstar will form a low-cost carrier in Japan with Japan Airlines Co. and Mitsubishi Corp. Jetstar Japan plans to start domestic flights from Tokyo’s Narita and Osaka’s Kansai airports by the end of 2012 with a fleet of Airbus A320 jets. It will operate 24 planes within its “first few years,” Qantas said. Jetstar already has ventures in Singapore and Vietnam.

Singapore, Kuala Lumpur

Qantas hasn’t decided where to base the new Asian carrier, which will have a different brand, Joyce told reporters in Sydney today. Singapore and Kuala Lumpur are potential hubs for the venture, in which Qantas will likely have a large minority stake, he said.

“As a nation we used to fly over or via Asia, on our way to Europe,” Joyce said. “Now, we fly to Asia, both for business and relaxation.”

The Asia-Pacific region will be the most profitable aviation market this year, helped by economic growth in countries like China and India, the International Air Transport Association forecast in June.

On European routes, Qantas will scrap services via Bangkok and Hong Kong. Instead, it will focus on flights via its Singapore hub using A380s. British Airways will take travelers from Bangkok and Hong Kong to London and lease some slots at Heathrow from Qantas.

Qantas will offer voluntary redundancy packages as it cuts jobs, Joyce said. A cabin-crew buyout announced in June attracted about 400 workers.

‘Intend to Fight’

Qantas’ long-haul pilots union and a labor group representing check-in, clerical and information-technology staff criticized the plans for the cuts and the new carriers.

“We intend to fight this,” the Australian Services Union, the largest employee grouping at Qantas, said in an e-mailed statement today. “The ASU believes significant numbers of its members will ultimately be affected by this announcement.”

Transport Minister Anthony Albanese said the job losses were “regrettable.” He said he plans to enforce rules governing Qantas, such as requirements for a majority Australian ownership, a main operation base within the country and a board two-thirds comprised of local citizens.

Restructuring Costs

The restructuring will cost at least A$350 million, Chief Financial Officer Gareth Evans told reporters in Sydney today.

The company’s forecast for pretax earnings between A$500 million and A$550 million in the 12 months ended June is unchanged, it said. Qantas reports audited earnings on Aug. 24.

Qantas will delay six on-order A380s by at least five years, with deliveries only starting in the year beginning June 1, 2018 at the earliest. The airline will have 12 of the double- decker planes by the end of 2011. Two more will be handed over before June 2018. The airline will also upgrade nine Boeing Co. 747-400s by the end of next year.

On Americas routes, Qantas will switch its South American flights to Santiago from Buenos Aires to boost cooperation with Oneworld partner LAN Airlines SA. The Australian carrier also intends to develop its partnership with AMR Corp.’s American in the U.S.

“We cannot fly our own aircraft to every port, but we will get our passengers wherever they want to go,” Joyce said.

British Airways Plans to Expand Flight Services Rio de Janeiro, Brazil

British Airways will be expanding its services to Brazil by doubling the frequency of flights to Rio de Janeiro, from three to six flights per week.

The carrier will be providing cheap flights to Rio de Janeiro from Heathrow every day of the week except Mondays, leaving London at 12.15pm and arriving in the carnival city at 9.55pm local time. The route will be served by three B777 aircraft, giving travellers the options of flat beds in Club World class, the premium economy World Traveller Plus class or the basic World Traveller class.

“We are experiencing a real increase in demand for Rio and by doubling the number of frequencies, we are able to offer our customers more choice and greater availability,” said Neil Cottrell, head of network planning at BA. “Brazil is also experiencing strong economic growth and this capacity increase is a great opportunity for British Airways to be part of that growth,” he added.

BA also revealed that it has been lining up a re-launch of its brand for later in 2011. However, the airline would not provide any details of what the new campaign might include.

A spokesperson for BA said “We are currently working on the re-launch of the BA brand, first internally with our staff then later in the year as an advertising campaign.” The news was revealed in an article in Marketing Week, which quoted Kerris Bright, the company’s former global marketing chief, saying that the re-launch would “put a great brand back on the map.”

BA was said to have kept creative agency Bartle Bogle Hegarty for the project, as well as OgilvyOne for digital and direct marketing.

British Airways Increase Frequent Cheap Flights to Florida

Flag carrier British Airways has increased the frequency of its cheap flights to Florida from London’s Gatwick Airport in a bid to become the dominant airline providing long-haul services at the busy hub.

Previously, BA offered cheap flights to Tampa in the Sunshine State just five times a week, but at the start of this month, the airline announced that this has now become a daily service. This should provide British families seeking cheap flights to their Florida holidays this year with even more options.

BA pointed out that as the only international carrier offering direct cheap flights to Tampa, Britons will benefit from a swifter experience at their destination, with far shorter queues for immigration. It also pointed out that Tampa’s airport is far smaller and quieter than the equivalent hub in Florida’s Orlando, so it could be a perfect alternative for families taking Orlando holidays who fancy the quiet life.

The airline went on to point out the “incredible scenery and attractions” to be found in the region, with cheap car hire making attractive locations along the Gulf Coast available, such as Clearwater, St Petersburg and Sarasota, plus many more. When it comes to the seaside city of Tampa itself, BA said that it is blessed with a “distinct” Caribbean influence due to the legacy of immigration from the islands across the water and a similar cultural influence from Latin America, seen most strongly in the city’s Latin Quarter in the Ybor City district.

British Airways is moving to become the premier long-haul carrier at Gatwick, with enhanced services and new routes, such as the recently instituted cheap flights to Cancun in Mexico. Currently, it operates some 47 routes from Gatwick – 14 of which are long-haul destinations.

American Airlines and British Airways Take Flight in Tokyo

American Airlines and British Airways have launched their new Tokyo Haneda International Airport flights.

Both airlines’ inaugural services from the Japanese capital’s newly expanded gateway departed within minutes of one another yesterday morning.

American is now offering the only flights between Tokyo Haneda and New York, with its daily JFK schedule complementing Japan Airlines’ established service between Haneda and San Francisco. Both services carry the codes of both airlines.

British Airways is operating Haneda’s only route to the UK, serving the airport an initial five times a week non-stop from its London Heathrow hub, in addition to its established daily Tokyo Narita schedule.

Yesterday’s debut services were marked by a ribbon-cutting ceremony at Tokyo Haneda hosted by American’s VP and managing director Asia/Pacific Theo Panagiotoulias and British Airways’ area GM Asia Pacific Jamie Cassidy, joined by Japan Airlines president Masaru Onishi.

American’s VP and MD Asia/Pacific Theo Panagiotoulias said: “We are very excited by this new flight that links two of the world’s largest financial markets and offers passengers the ability to fly from New York to Haneda, the closest airport to downtown Tokyo, and which hasn’t had service from the USA since 1978 when Tokyo’s Narita International Airport opened. We also are pleased to be offering this new service as part of our new transpacific joint venture with our valued oneworld partner, Japan Airlines.”

British Airways’ Area GM Asia Pacific Jamie Cassidy added: “Today is a historic day for British Airways as we start our new route from Haneda which compliments our existing service from Narita. The start of this route allows us to offer our customers greater choice and flexibility. We are proud to be the only carrier operating from Haneda direct to the UK. The start of this service demonstrates our commitment to Japan and the deepening of our growing relationship with JAL.”

Japan Airlines president Masaru Onishi stated: “Japan Airlines began operating on new international routes from Haneda at the end of October last year. Passenger numbers have been very encouraging and are a good indication of the demand for flights to and from Haneda. The launch of

American’s and British Airways’ flights today is undoubtedly great news for the traveling public in Japan and is certain to strengthen further oneworld’s service offerings to customers.”

In addition to the new flight from Haneda to New York JFK, American and its partner Japan Airlines also offer non-stop daily service from Tokyo’s Narita Airport to JFK. American flies between the US and Tokyo using Boeing 777 aircraft with 247 seats – 16 in First Class, 37 in Business Class and 194 in Economy Class.

Flight AA135 will depart JFK daily at 6:10pm, arriving at Haneda at 10:15pm the following day. The return AA134 will depart Haneda at 6:40am daily, landing at JFK at 5:15 am the same day.

With the launch of the its new five-a-week service from Haneda in addition to its daily Tokyo Narita schedule, British Airways will operate 12 flights a week between Tokyo and London Heathrow.

Flight BA7 will depart London Heathrow on Mondays, Thursdays, Fridays, Saturdays and Sundays at 8am, landing at Haneda at 5am the next day. The return flight BA8 will depart Haneda on Mondays, Tuesdays, Fridays, Saturdays and Sundays at 6:25 am, arriving at Heathrow at 10am the same day.

Higher Oil Prices Force British Airways to Increase Airfares for Second Time

British Airways passengers face another rise in fares after higher oil prices forced the airline to increase fuel surcharges for the second time in as many months.

Analysts warned that all airline passengers could be affected with other carriers expected to follow suit and drive up ticket prices. BA increased its surcharge – a levy imposed on fares to cover the rising cost of oil – after admitting its fuel bill was in excess of £7m a day.

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Douglas McNeill, transport analyst at Charles Stanley Securities, said: “Other airlines will try to recoup the rising fuel cost, whether they call it a fuel surcharge or not. But past experience suggests they will struggle to offset all of the impact.”

From Tuesday, the surcharge on economy class flights lasting more than nine hours will rise by £24 to £176 for a return ticket; while the levy for sub nine hour long haul flights to destinations such as New York will increase £24 to £150. Premium tickets will face even higher increases but the surcharge on short-haul flights will stay the same.

BA said the spot price of jet fuel was up 14 per cent since the last duty rise in mid-December, which was the result of substantial increases in oil prices.

BA’s fuel surcharge on flights shorter than nine hours is now just £3 less than it was in June 2008, when the price of Brent crude oil peaked at more than $140 a barrel. The price this week rose to $103, driven by unrest in Egypt, and concerns about the security of energy supplies in the Middle East.

Earlier this week, Qantas Airways, Australia’s biggest carrier, increased the fuel surcharge for international flights for the first time in more than three years.

The International Air Transport Association, which represents some 230 airlines, warned that airline profitability remained weak and under pressure from the rising price of oil even as more people started to travel.

Fuel accounts for 27 per cent of operating costs and a sustained rise in the oil price could “spoil the party”, said Giovanni Bisignani, IATA’s chief executive.

British Airways to Charter Planes from Another Airlines During Cabin Crew Strike

British Airways expects to lease up to 22 aircraft from eight airlines in order to maintain services during a planned cabin crew strike this month.

It will use the aircraft to supplement its short-haul schedule from London Heathrow, and allow it to operate, overall, about 30% of its short-haul schedule over the initial strike period.

British Airways expects to carry 60% of booked passengers during the three-day strike from 20-22 March, adding that a number of other customers will be offered alternative British Airways flights or services on other carriers.
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