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Old August 26th, 2015, 03:07 PM   #4781
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Old August 27th, 2015, 05:41 AM   #4782
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Europe-to-Asia Freight Rates Fall as Volume Forecasts Cut
26 August 2015
Dow Jones Excerpt

LONDON—Maritime and air freight rates for some of the world's busiest trade routes are spiraling lower, as slower growth in China and a sluggish Eurozone economy dash forecasts for higher volumes during the normally busy, late-summer season.

*******************************************

China accounts for about 20% of global air exports by weight, and 10% of global air imports, according to advisory firm Seabury Group.

Air cargo shipments passing through Hong Kong, for instance, slumped 2% last month, Mr. Dixon said. Prices across 21 global routes have fallen 27% since November to a record low in June, his consultancy said.

The air cargo market is suffering on several fronts. Lower demand in Asia is coming at the same time air-cargo capacity is climbing. A large chunk of air cargo is transported in the hold of passenger planes. With airlines adding flights globally this year, that is weighing on rates. Falling fuel costs are also delaying plans by airlines to retire older jets, exacerbating the problem.

"With capacity continuing to rise, supported by strong passenger demand, the industry faces a challenging period of weak load factors and low yields," said Mr. Dixon. "And with jet fuel costs set to fall further, we expect airfreight pricing to weaken further."
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Old August 28th, 2015, 08:19 AM   #4783
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Old August 28th, 2015, 12:36 PM   #4784
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Qantas CEO decries 'blatant protectionism'
5 August 2015
The Age Excerpt

Aviation - Flak flies over Hong Kong

Qantas chief executive Alan Joyce has lashed out at what he has described as blatant protectionism in Hong Kong after a recent decision to block Jetstar Hong Kong's bid to set up flying operations in the territory.

In signalling Qantas would walk away from its long-held ambitions to expand into one of Asia's financial capitals, Mr Joyce said on Tuesday one of the biggest threats for airlines operating in a global market was governments "penalising and taking away fair competition".

Despite Jetstar Hong Kong having majority local ownership and a Hong Kong chairman and chief executive, Mr Joyce said it had taken two years before the Chinese territory's government had ruled the budget airline did not qualify as a local carrier despite similarities to incumbents Cathay Pacific and Hong Kong Airlines.

"We had clearly made sure that [Jetstar] met all of the rules that apply in Hong Kong. If they applied to Cathay, Cathay would not be able to operate in Hong Kong today," he said at the CAPA Australia Pacific Aviation Summit in Sydney.

"There was blatant application of the rules for Jetstar Hong Kong that did not apply to other carriers."

While Qantas and Jetstar Hong Kong's two other shareholders, China Eastern and Shun Tak, were yet to decide whether to appeal the decision, Mr Joyce indicated it was the end of the road for the budget airline in the Chinese territory. He said Qantas would not be investing any more money in it.

"When different rules are applied to different carriers in different ways, that's a distortion and shouldn't be allowed. We think it's a very dangerous call for competition in markets around the world."

Similarly, he said Virgin Australia and Tigerair would not qualify as Australian airlines if the same rules were applied in Australia.

While Qantas and Cathay are members of the oneworld marketing alliance, their relationship has been strained over the years. It struck a low during Jetstar Hong Kong's failed bid to set up operations in the former British colony. Cathay vigorously opposed the start-up, claiming it did not meet Hong Kong's principal place of business test.

Qantas is seeking regulatory approval for a deeper alliance with China Eastern on routes between Australia and China.
Beyond the "Why can't Qantas call for a Openskies deal between Australia and Hong Kong" point, there are some others that this statement addresses.

Firstly does Joyce not understand it does not matter (unlike Australia to an extent) who owns the airline when it comes to basing airlines in HK, rather it is where exactly it is managed (Otherwise even Cathay would not be considered a "Hong Kong Airline"). Now for better or worse the relevant authorities have concluded that this proposed airline would not be managed in Hong Kong itself. So he is wrong to say the rules where only applied to them and that Cathay has question marks about if they follow the rules.

Secondly if the rules used on HK applied to Australia, then Virgin Australia/Tiger Australia would be considered to be "Australian" Carriers since despite their foreign ownership the management is based in Australia itself.

Thirdly considering its recent and future actions, I am wondering why Oneworld has not kicked out Qantas out of its alliance by now considering the amount of disloyalty (even if the actions they have taken are understandable) they have shown to their fellow carriers, even though they still benefit from their ties with AA and JAL.
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Old August 29th, 2015, 12:58 AM   #4785
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Thirdly considering its recent and future actions, I am wondering why Oneworld has not kicked out Qantas out of its alliance by now considering the amount of disloyalty (even if the actions they have taken are understandable) they have shown to their fellow carriers, even though they still benefit from their ties with AA and JAL.
I take it CX should be kicked out of Oneworld too considering they haven't been loyal to their fellow Oneworld carriers too & jumped into bed with NZ instead of cooperating with QF on Australasian routes.
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Old August 29th, 2015, 06:26 AM   #4786
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I take it CX should be kicked out of Oneworld too considering they haven't been loyal to their fellow Oneworld carriers too & jumped into bed with NZ instead of cooperating with QF on Australasian routes.
CX's partnership with NZ would have minimal economic impact on other Oneworld carriers compared to QF's partnership with EK and MU.
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Old August 29th, 2015, 09:50 AM   #4787
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I take it CX should be kicked out of Oneworld too considering they haven't been loyal to their fellow Oneworld carriers too & jumped into bed with NZ instead of cooperating with QF on Australasian routes.
it is QF who hates CX...
and has refused to partner with them
the JQ proposal is older than the CX-NZ alliance...

CX is a founding member of OW and prefers to partner with OW carriers
QF is also a founding member but is a **** so backstabbed OW and went with EK, even though they could have partnered with QR...
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Old August 29th, 2015, 01:05 PM   #4788
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Quote:
Originally Posted by CBXLHRKGA View Post
it is QF who hates CX... and has refused to partner with them the JQ proposal is older than the CX-NZ alliance... CX is a founding member of OW and prefers to partner with OW carriers QF is also a founding member but is a **** so backstabbed OW and went with EK, even though they could have partnered with QR...
Source?!?

Alliances are of the past and it's the norm for carriers to establish individual agreement's / alliances. QF exhausted their options, NZ, EY, MH, Red Q and eventually they partnered up with EK.

Emirates was the better option out of the ME3 & QF was looking for a carrier with a vast network. Both QR and EY combined are no match to EKs network.
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Old August 29th, 2015, 06:00 PM   #4789
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Source?!?

Alliances are of the past and it's the norm for carriers to establish individual agreement's / alliances. QF exhausted their options, NZ, EY, MH, Red Q and eventually they partnered up with EK.

Emirates was the better option out of the ME3 & QF was looking for a carrier with a vast network. Both QR and EY combined are no match to EKs network.
By that logic, all the alliances would collapse, but the world's 3 major alliances are here to stay. The point is not to get the biggest network, but to safeguard the alliance. Having outside partnerships are not ideal and are detrimental to the alliance. The fact is QF did not work with CX or BA to enhance the European connectivity via existing hubs such as HKG and SIN, but instead went to bed with their competitor EK. HKG had given QF 5th freedom to help build their connectivity but they chose not to do grow that. But when they got into bed with EK, QF's international division was in a very bad state, which puzzles me even more why they couldn't seek help from existing oneworld partners.
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Old August 29th, 2015, 06:27 PM   #4790
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Quote:
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I take it CX should be kicked out of Oneworld too considering they haven't been loyal to their fellow Oneworld carriers too & jumped into bed with NZ instead of cooperating with QF on Australasian routes.
I do have questions about Cathay's relationship with the rest of Oneworld myself (Especially with their relationship with Air China) and I do wonder if Star is better for them (in the place of Singapore Airlines, not the most of carriers to Star) than OW. However considering the recent bad blood between QF and CX as well as issue of the HK-OZ Bilateral, I do somewhat understand why they have partnered with NZ instead.

Of course QF can try and improve their relationship with CX if they tried.

Quote:
Originally Posted by EK413 View Post
Alliances are of the past and it's the norm for carriers to establish individual agreement's / alliances. QF exhausted their options, NZ, EY, MH, Red Q and eventually they partnered up with EK.
I would think that BA, AA, UA, LH Group, ANA, JL, AC, DL, AF/KL, QR and even CX and EY would disagree with that. Likewise even QF benefit from OW thanks to their relationship with AA and JL (and until recently BA).

What QF should is launch a JV (Covering the Kangaroo Route) between themselves, BA, QR, MH, Royal Jordanian and CX as well as a closer relationship with CX elsewhere.

If on the other hand they simply refuse to have anything to do with CX, then perhaps they could have got Singapore Airlines to join OW and Cathay to switch to Star (and eventually QF and SQ merge).

Quote:
Originally Posted by EK413 View Post
Emirates was the better option out of the ME3 & QF was looking for a carrier with a vast network. Both QR and EY combined are no match to EKs network.
I agree with you there, EK was the best choice for the Kangaroo Routes, but a BA/QF/CX/MH/QF/RJ JV would have not been too bad either and would have kept them loyal to OW.
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Old August 30th, 2015, 01:49 AM   #4791
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Originally Posted by hkskyline View Post
By that logic, all the alliances would collapse, but the world's 3 major alliances are here to stay. The point is not to get the biggest network, but to safeguard the alliance. Having outside partnerships are not ideal and are detrimental to the alliance. The fact is QF did not work with CX or BA to enhance the European connectivity via existing hubs such as HKG and SIN, but instead went to bed with their competitor EK. HKG had given QF 5th freedom to help build their connectivity but they chose not to do grow that. But when they got into bed with EK, QF's international division was in a very bad state, which puzzles me even more why they couldn't seek help from existing oneworld partners.
Perhaps I should've been far more specific in detail as to what I was getting at with my comments.

Yes, the top 3 Alliances (4 if you count the EY Group) are here to stay. However airlines have alternatives these days other than spending big $$$ (joining the big 3 does cost money). We have several examples which highlight carriers accomplishing agreements without signing up for Star, Sky & OW such as VA - DL, SQ, AB, NZ, EY.

Qantas exhausted their options, sour relationship between CX aside an strengthen Alliance / Agreement via HKG would mean a monopoly on the HKG route & the ACCC wouldn't blink twice.

The "Kangaroo" BA JSA was well past its used by date & QF had to explore an alternative gateway to Europe / UK. The EK agreement was the answer at a time when QF International was bleeding & would provide QF passengers 60+ destinations 1 stop. (QF wasn't in any position to expand their network).

In the end QF continue to be a key player in Oneworld and have strong relationships with OW carriers such as BA, LA, AA (recently announcing a strengthened JSA over the Pacific with AA commencing LAX-SYD flights from Dec 2015). The sour CX relationship I'm afraid is here to stay!
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Old August 30th, 2015, 06:28 AM   #4792
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Perhaps I should've been far more specific in detail as to what I was getting at with my comments.

Yes, the top 3 Alliances (4 if you count the EY Group) are here to stay. However airlines have alternatives these days other than spending big $$$ (joining the big 3 does cost money). We have several examples which highlight carriers accomplishing agreements without signing up for Star, Sky & OW such as VA - DL, SQ, AB, NZ, EY.

Qantas exhausted their options, sour relationship between CX aside an strengthen Alliance / Agreement via HKG would mean a monopoly on the HKG route & the ACCC wouldn't blink twice.

The "Kangaroo" BA JSA was well past its used by date & QF had to explore an alternative gateway to Europe / UK. The EK agreement was the answer at a time when QF International was bleeding & would provide QF passengers 60+ destinations 1 stop. (QF wasn't in any position to expand their network).

In the end QF continue to be a key player in Oneworld and have strong relationships with OW carriers such as BA, LA, AA (recently announcing a strengthened JSA over the Pacific with AA commencing LAX-SYD flights from Dec 2015). The sour CX relationship I'm afraid is here to stay!
Qantas could have tried to rebuild its relationship with fellow oneworld carriers before approaching non-alliance members. They could have at least salvaged some of its Europe network instead of dropping everything except London and basically ceding to the competition. I wonder whether they knew QR was coming on board oneworld at the time they struck the deal with EK. They could have waited a year or two and got in bed with them instead.

The ACCC allowed the alliance with MU, which would have monopolized the Shanghai route, so I don't think a closer relationship with an existing oneworld partner would have been at issue. Besides, Virgin was still flying to SYD from HKG at the time to provide some sort of meaningful competition.

I don't think Qantas wants to mend ties with CX at all. EK was a bitter sworn enemy for QF and to get in bed with them behind oneworld's back is quite a big slap in the face.
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Old August 30th, 2015, 05:55 PM   #4793
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Old September 1st, 2015, 08:45 PM   #4794
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Old September 6th, 2015, 06:33 AM   #4795
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Old September 6th, 2015, 08:01 PM   #4796
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Direct flights from Hong Kong to Vienna could take off next summer, Austrian envoy says
6 September 2015
South China Morning Post Excerpt

Austrian Airlines is in talks with the Hong Kong government to start operating a direct flight to Vienna from next summer, the country's top diplomat in the city says.

But a shortage of take-off and landing slots at Hong Kong International Airport has created a stumbling block for the route, billed as a gateway to central and eastern Europe.

"It is a technical problem in that the capacity of Hong Kong airport is limited," said Claudia Reinprecht, Austria's consul general to Hong Kong and Macau. "From the Austrian standpoint, any efforts to increase capacity would certainly help us get a direct flight between Vienna and Hong Kong."

Reinprecht pointed out Vienna's airport provides more connections to central and eastern Europe and the Black Sea regions than Frankfurt, to which Cathay Pacific and Lufthansa fly.

"Vienna is underestimated in Hong Kong. The direct flight is of strategic importance," she said.

Beijing is currently the only Chinese city connected to the Austrian capital, with flights operated by Austrian Airlines and Air China. Hong Kong-bound tourism is underdeveloped; just 26,000 Austrians visited the city last year, out of a total population of 8 million.
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Old September 7th, 2015, 09:13 AM   #4797
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QF is also a founding member but is a **** so backstabbed OW and went with EK, even though they could have partnered with QR...
The announcement of the EK-QF joint venture pre-dates QR's entrance into OW, so from an alliance point of view at the time, EK was no worse than EY or QR.

Also, current bilaterals between Qatar and Australia would not allow an effective DOH hub (or any growth). However, perhaps those bilaterals would have expanded due to both Australia and Qatar benefiting in such a case.
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Old September 7th, 2015, 09:19 AM   #4798
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I don't think Qantas wants to mend ties with CX at all. EK was a bitter sworn enemy for QF and to get in bed with them behind oneworld's back is quite a big slap in the face.
No one really knows the truth behind the sour relationship. End of the day QF explored their options and EK was the better fit for their restructured international network.

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The announcement of the EK-QF joint venture pre-dates QR's entrance into OW, so from an alliance point of view at the time, EK was no worse than EY or QR.
Spot on!
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Old September 7th, 2015, 10:25 AM   #4799
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No one really knows the truth behind the sour relationship. End of the day QF explored their options and EK was the better fit for their restructured international network.
By that logic, they should leave oneworld as it is not the right alliance for them. You can't expect synergy benefits yet backstab some airlines at the same time.

Qantas has some big lobbying powers at the government level. They could have lobbied Canberra to negotiate with Qatar for further rights but since they were only going to London anyway on their metal, I don't think this would have caused much regulatory headaches with Qatar gaining so much more feeder traffic. The key is they should have tried to switch. I wonder whether their agreement with EK had any non-compete clauses on this, and I would have thought they would drop out of oneworld at that point.
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Old September 7th, 2015, 10:45 AM   #4800
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By that logic, they should leave oneworld as it is not the right alliance for them. You can't expect synergy benefits yet backstab some airlines at the same time.
Works both ways. Cathay could've approached Qantas prior to going triple daily & 4 x daily from every Australian.

This conversation can go on and on, end of the day Qantas will continue to contribute to Oneworld and play its role in the alliance regardless of everyone's opinion...
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