A discussion about the airline industry, airline employees, and all things related

It's International Night here at The Airline Hub. 

Qantas has done what most carriers couldn't do, especially in the US.  They have successfully spun off a low-cost carrier.  Jetstar Australia has been a huge winner for Qantas.  They have invaded the domestic market and were able to keep Virgin Blue's arrival in the market to a minimal impact.  JetStar has also been able to keep Air New Zealand from upping fares to New Zealand.  But when JetStar receives their keys to 10+ new 787 Dreamliners from mom (Qantas) in 2008, JetStar will begin servicing medium to long haul international routes.

Several months ago, I commented on how the carrier, Australian Airlines which was bought out by Qantas several years ago, would disappear.  Well it may be coming to a head sooner than I first thought. 

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Qantas would be better off discarding its loss-making international carrier Australian Airlines, an industry expert said on Friday.

A media report on Friday stated that Qantas was considering dumping Australian Airlines as it prepares to begin flying its low-cost offshoot Jetstar on international routes in early 2007.

Consulting firm Centre for Asia Pacific Aviation's executive chairman Peter Harbison on Friday said Qantas would be better off without Australian Airlines, the worst-performing of its six brands.

"It is very hard to see why Qantas would continue with both models," Mr Harbison said.  "The Jetstar model seems to be a lower cost version of something very similar to Australian Airlines.  There certainly doesn't seem to be a lot of logic in having Jetstar International operating on similar-type routes."  A Qantas spokeswoman said the company would not comment on speculation.

Australian Airlines was relaunched by Qantas in 2002 as a full-service, single class carrier flying to destinations in the Asia-Pacific region.  But Jetstar International is expected to begin flights early next year, possibly on similar routes.

Australian Airline lost $11.6 million in 2004/05, down from a $1.1 million profit in the previous year.

The Age (Melbourne)