Qantas faces tough new competition on the Kangaroo Route to London.
Battered by the strength of Singapore Airlines for decades, threatened more lately by the success of Dubai’s high-quality upstart Emirates Airlines, Qantas this week faced the first real low-cost assault on its so-called Kangaroo Route to London.
Malaysia AirAsia X, which already operates daily services to Kuala Lumpur from Melbourne and Perth and four a week from the Gold Coast, this week launched five daily connections from Kuala Lumpur to London’s low-cost hub, Stansted Airport, charging little more than $1000 return for the entire journey.
Qantas had planned to have its low-cost subsidiary, Jetstar, flying to Europe by now but those plans were scuttled by Boeing, which has run into problems producing its new Dreamliner jet, the Boeing 787.
The best Qantas can do between Australia and London is about $2000 return. No-frills AirAsia X is charging about $1200 return from Melbourne, although the fare can vary depending on how far ahead you book, the season and and the number of “extras” you require – such as meals and checked luggage.
Source: The Sydney Morning Herald
By: OneLeft - 21st March 2009 at 20:05
Na don’t reckon so, Dickie Branson owns 20% of the company he’s well able to deal with any of the big boys
Tell that to Virgin Nigeria!
1L.
By: Vicbitter - 21st March 2009 at 15:18
Na don’t reckon so, Dickie Branson owns 20% of the company he’s well able to deal with any of the big boys, seem to remember the C.E.O saying it’s not so much the profit they’ll make on the Stansted route but the traffic it will bring in to use the rest of the Airasia network (pretty extensive) that counts, Eos and Maxjet were one trick ponies compared to Airasia.
By: abutcher1985 - 21st March 2009 at 14:57
I don’t doubt that they’re good, but if AA can kill off Eos and Maxjet just by stationing a 763 at STN, i’m sure “the world’s most experienced airline” will make short work of these guys!
By: Vicbitter - 21st March 2009 at 13:55
I think they’ll do fine, the reviews I’ve seen made by people who have actually flown with them are good, I’ve got a one way fare Stansted to Melbourne for £270, substantially cheaper than I could have got there any other way, I’ll be able to give a more personal opinion after October 🙂
By: abutcher1985 - 21st March 2009 at 10:09
I’d be very interested to see what happens to Air Asia X…
With Zoom, Silverjet, Eos, Oasis, and Maxjet all going out of business in the last year or so, can a startup airline really crack the long haul market at this point?
And particularly a low cost airline? All of the above were able to offer fares lower than their competitors (for the level of service).
I think Air Asia’s biggest mistake is trying to associate themselves too closely with the UK short haul low fares operators, which have a decidedly bad reputation. I, like many, would be very hesitant about booking a low cost long haul flight if I expected to be served ryanair-style
Edit: I realise that Air Asia is not strictly speaking a start up airline, but they are entering a completely new market
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March 21, 2009 at 12:15 am