PAUL PHELAN / CAIRNS
Australian flag carrier confounds doubters as it announces 27 October start of operations for Australian Airlines
Qantas has set 27 October as the launch date for Australian Airlines, quashing persistent rumours that the major would drop the low-cost international carrier plan.
Flights will be phased in by December to link Australian's first operational base at Cairns daily with Nagoya and Osaka and thrice weekly with Fukuoka, Hong Kong, Singapore and Taipei. The airline will not compete internationally or domestically with Qantas, but will fly on routes from which Qantas has withdrawn or cannot extract a satisfactory return.
Operations will begin with four single-class Boeing 767-300s from the Qantas fleet, configured with 269 seats compared with 229 in Qantas. The fleet is expected to build to 12 aircraft, with the establishment of a second operational base in an unidentified "southern capital city" in early 2003. Daily connecting flights for international passengers will link Cairns and the Gold Coast. Australian plans to establish a national presence, eventually flying to every mainland state capital including Perth and Darwin. Australian has identified up to 25 routes for consideration over the next six months, possibly including Sapporo, Seoul and Shanghai.
Qantas 767 pilots will crew Australian's fleet, receiving Qantas pay rates but waiving various work practices and conditions, with some performance-related pay. Australian chief executive officer Denis Adams says the airline's 25% cost savings compared to the parent carrier will come from "right across the business". He adds: "A number of very significant gains have been negotiated in the simplification of administrative processes, rostering and allowances, which have led to some very real cost savings.
"The big gains are in productivity, and in a single type, a simple out-and-back operation, and one class configuration."
In addition, head office staff will be capped at 20 and there will be more outsourced services than at Qantas, while "we're taking a completely different approach to in-flight service which is still being developed."
In the race with Virgin Blue to fill the void left by Ansett's demise, Qantas has ordered a further six Boeing 717s for delivery in May and June for its low-cost leisure airline Impulse. The two-class aircraft will operate direct services from Adelaide, Hobart and Sydney to Queensland provincial cities and holiday destinations. Qantas will establish an operational 717 base in Hobart.Source: Flight International
