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Some More Competition on the USA/AUS Route in July!

Brisbane
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Some More Competition on the USA/AUS Route in July!

Delta to begin flights:

smh.com.au/travel/delta-to-compete-with-qant…

Mission Viejo, CA...
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1. Re: Some More Competition on the USA/AUS Route in July!

This is going to bring a lot of competition to Australia with four airlines now (Qantas and United (the current two), and Delta and V Australia (to begin flights). Expect to see a pretty decent fare war on the route, which is good news for travelers.

It will be interesting to see how Delta does up against Qantas who is the big dog of Australia with good connections of either end and a good codeshare with American and go up against United who is the largest airline at LAX with the most frequent fliers and offers the best connections from the airport. Delta will need to add more domestic connections from LAX than the relativly small operations they have at the airport now and their lack of frequent flier numbers in So Cal needs to expand. It certainly will be a battle between Qantas, United, Delta, and V Australia.

Hanoi, Vietnam
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2. Re: Some More Competition on the USA/AUS Route in July!

I believe you left out a few that are not nonstop - Air New Zealand flies the route, as does Air Pacific and Air Tahiti Nui. A couple of others would very much like to - Emirates and Singapore. I can't imagine Delta competing with Air New Zealand!

Mission Viejo, CA...
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3. Re: Some More Competition on the USA/AUS Route in July!

Yes there are a few others, but nonstop flights still dominate the USA-Australia flight market. Qantas carries 50% of all passengers between the two countries and United Airlines claims 23% of the passengers. That is 73% of a major market among two airlines. Air New Zealand offers a one stop option through Auckland and has 9% of the passengers. The rest of the airlines have 2% of less.

…australia.com/content/…5D.pdf

Sunny Queensland...
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4. Re: Some More Competition on the USA/AUS Route in July!

"Yes there are a few others, but nonstop flights still dominate the USA-Australia flight market. Qantas carries 50% of all passengers between the two countries and United Airlines claims 23% of the passengers. That is 73% of a major market among two airlines. Air New Zealand offers a one stop option through Auckland and has 9% of the passengers. The rest of the airlines have 2% of less"

This means 27% of passengers at the moment fly by a non-direct route-almost certainly because of price.We certainly do-business fares via Tokyo are ~ 60% of direct fares.And we enjoy visiting Japan.

Hanoi, Vietnam
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5. Re: Some More Competition on the USA/AUS Route in July!

I just read the following on Etravel Blackboard:

Deltas’ presence on AU-US endangers local airlines

Wednesday, 24 December 2008

Delta’s imminent arrival on the trans-Pacific route threatens the dominance of Virgin, Qantas and Air New Zealand, and threatens to degrade into a “pricing bloodbath”.

V Australia is expected to be hit the hardest out of the three, a fledgling airline, yet to start services, and has already been hit with setbacks including delayed launch dates and ticketing issues.

In what truly appears to be a David and Goliath struggle, a quick glimpse at fleet figures shows a stark picture, the new Delta, after its merger with Northwest, controls a fleet of just over 1,100 planes, Qantas, including Jetstar, flies with a fleet of just under 200 planes, and V Australia is set to receive five planes – of the first it is still waiting to receive.

In a recent report, the Centre for Asia Pacific Aviation (CAPA), also adds that Air New Zealand will also feel the pinch with the establishment of Delta.

“The entry of both V Australia and Delta - and the competitive response from Qantas - will have a significant impact on Air New Zealand, which carries some 270,000 roundtrip passengers on the Australia-US route via its Auckland hub each year,” said the analysts at CAPA.

“The airline, which previously operated the Sydney-Los Angeles route with B747-400 equipment, now faces an increasingly challenging revenue outlook in many of its core markets.”

Additionally, the arrival of Delta on the route sees SkyTeam able to patch up a big blank spot on its global coverage, now able to compete better with oneworld allied Qantas and Star Alliance allied United Airlines.

This will undoubtedly put even more pressure on unallied V Australia.

“The experiences of the early 1990s [shows] when multiple airlines entered this uniquely long-haul point-to-point market suggest one outcome: a pricing bloodbath,” continues CAPA.

“Recent pricing initiatives on the Australia-US route look set to become entrenched as competition intensifies. Yields and profits will fall for the incumbents.”

Many have already noted that the size and might of Delta means that it will feel nothing to sell USA–AUS routes at a loss to gain market share. While incumbents like Qantas and Air New Zealand may be able to sustain some losses, start-ups like V Australia will feel the brunt of the pain.

Sunny Queensland...
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6. Re: Some More Competition on the USA/AUS Route in July!

"Many have already noted that the size and might of Delta means that it will feel nothing to sell USA–AUS routes at a loss to gain market share. While incumbents like Qantas and Air New Zealand may be able to sustain some losses, start-ups like V Australia will feel the brunt of the pain."

The only problem with this scenario is that qantas operates at a profit,delta at a loss.I am sure they are operating this route because they think it will be profitable,not to add to their losses.

Brisbane
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7. Re: Some More Competition on the USA/AUS Route in July!

i just booked a virgin australia syd-lax and return for $a1200 incl taxes ($us800) for august 09 so it's started already.

8. Re: Some More Competition on the USA/AUS Route in July!

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9. Re: Some More Competition on the USA/AUS Route in July!

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