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Qantas has code share rejection plan B in its back pocket!
Qantas Airways Regional Manager Grant Lilly has told New Zealand media that Qantas has a plan B to turn to, in case its trans-Tasman code-share scheme with Air New Zealand falls over.
Qantas is not revealing any details of Plan B as it works to get rivals and government authorities to accept the code-share to attempt to reduce losses and fuel used on the Tasman routes.
Mr Lilly said, “Our fuel bill in the year we’re just going into is going to be $A1.5 billion higher than our fuel bill in the year we’ve just finished.”
Mr Lilly would not comment on what the strategy would be if the code-share plan was rejected by Australian or New Zealand authorities, but just said, “Our focus at the moment is on furthering the agreement and trying to get it to a satisfactory conclusion.”
Rob Fyfe CEO of Air New Zealand said on Tuesday that a draft regulatory decision on the proposed trans-Tasman code-share was likely by July or August, with Qantas and Air New Zealand aiming to cease competing on the Tasman by sharing aircraft and cooperating on prices to reduce losses on the route and cut costs.
Mr Lilly said, “Most airlines flying the Tasman were hanging on and working desperately to make what they are already doing get an acceptable return”.
When asked if rather than code-share with Air New Zealand, the Australian carrier should instead competitively destroy its Kiwi counterpart, Mr Lilly said Qantas would not take the view it should attack any particular rival in any future consolidation of the airline industry but instead work on “running a very good airline”.
He added, “Our focus is on making our own business work by being a good business, not by making anyone else’s a bad business and we still fervently believe that tourism and travel is the sort of industry and business where there’s plenty of room for everyone.”
Mr Lilly defended Qantas spending on tourism in New Zealand, saying, “While Air New Zealand spent $120 million a year marketing New Zealand, Qantas spent a lot more promoting the Australia/New Zealand region to the major markets of the world”. “We definitely do pull our weight.”
Report by The Mole
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