AIRLINES – AUSTRALIA

Joyce still positive about Jetstar’s growth potential in Asia despite low returns

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Original article by Jamie Freed
The Australian Financial Review – Page: 27 : 9-Jun-15

Qantas CEO Alan Joyce has conceded that the Asian division of its Jetstar subsidiary will not return its cost of capital in 2014-15. However, he is upbeat about the outlook for the aviation market in Asia, arguing that the amount of capital Qantas is investing in the region is minor compared with the potential returns in the long-term. Qantas is tipped to post an underlying pre-tax profit of around $A1bn for 2014-15.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, JETSTAR JAPAN, JETSTAR HONG KONG AIRWAYS LIMITED, JETSTAR ASIA, JETSTAR PACIFIC, CHINA EASTERN AIRLINES CORPORATION LIMITED, SHUN TAK HOLDINGS LIMITED, INTERNATIONAL AIR TRANSPORT ASSOCIATION, HONG KONG INTERNATIONAL AIRPORT

China lobbies ACCC on Qantas alliance

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 12 : 2-Jun-15

The Australian Competition & Consumer Commission (ACCC) opposes an alliance between Qantas and China Eastern Airline on competition grounds. However, Chinese ambassador Ma Zhaoxu has asked ACCC chairman Rod Sims to take into account the relationship between the two nations when deciding whether to block the alliance. He argues that the deal will have no impact on competition. The ACCC is concerned that the two carriers would dominate the Sydney-Shanghai route.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TOURISM AUSTRALIA PTY LTD, CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE AIRLINES LIMITED, JETSTAR HONG KONG AIRWAYS LIMITED, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, AUSTRALIAN AND INTERNATIONAL PILOTS ASSOCIATION, TTF AUSTRALIA LIMITED TOURISM AND TRANSPORT FORUM, TTF AUSTRALIA LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, ETIHAD AIRWAYS

Qantas slow to reduce ‘galling’ fuel surcharges

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 27 : 20-May-15

FuelTrac’s Geoff Trotter has called upon Qantas to reduce its fuel surcharge on international flights. He notes that the carrier expects significant savings on its fuel costs in 2014-15 due to the downturn in the crude oil price. Qantas has yet to take action on the issue, despite flagging a review of its surcharges in January 2015. A spokeswoman says the airline is still in the process of revising its fares.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, FUELTRAC PTY LTD, EMIRATES AIRLINES, SINGAPORE AIRLINES LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

‘No reason to deny’ Qantas-China Eastern deal

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 18 : 14-Apr-15

The Australian Competition & Consumer Commission (ACCC) opposes an alliance between Qantas and China Eastern Airlines. However, the Department of Infrastructure & Regional Development’s submission on the regulator’s draft decision argues that the alliance will benefit travellers and the Australian economy. It takes the view that the ACCC has focused too much on the alliance’s impact on competition on the Sydney-Shanghai route

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE AIRLINES LIMITED, MALAYSIAN AIRLINE SYSTEMS, UNIVERSITY OF TECHNOLOGY, SYDNEY. AUSTRALIA-CHINA RELATIONS INSTITUTE, AIR CHINA

ACCC frowns at China Eastern tie

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Original article by Jamie Freed
The Australian Financial Review – Page: 19 : 25-Mar-15

The Australian Competition & Consumer Commission (ACCC) is concerned about a proposed alliance between Qantas and China Eastern Airlines. The ACCC has opposed the alliance in its draft ruling, arguing that the two carriers would dominate the Sydney-Shanghai route. ACCC chairman Rod Sims says he would be more willing to support an alliance between Qantas and carriers such as China Southern or Air China, as Qantas does not currently have flights to their main hubs

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AIR CHINA, CHINA SOUTHERN AIRLINES COMPANY LIMITED, CATHAY PACIFIC AIRWAYS LIMITED

Virgin, Delta keep Pacific capacity

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Original article by Jamie Freed
The Australian Financial Review – Page: 25 : 19-Mar-15

Virgin Australia and Delta Air Lines will seek regulatory approval to extend their alliance for another 10 years. However, the carriers have ruled out increasing their capacity on the Australia-US route. Delta president Edward Bastian has also indicated that the US carrier does not intend to introduce flights between Melbourne and Los Angeles. Qantas increased its capacity on several routes between Australia and the US in 2014

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELTA AIR LINES, QANTAS AIRWAYS LIMITED – ASX QAN, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA

Virgin predicts lag before revival

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 15 : 6-Mar-15

Virgin Australia Holdings CEO John Borghetti says it will take some time for a lower Australian dollar to stimulate growth in the number of foreign tourists. The full impact is most likely to be experienced in the second half of 2015. The airline is expanding its regional routes. From 25 May 2015, Virgin will offer six flights a week between Sydney and Tamworth

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, SKYWEST AIRLINES LIMITED, QANTASLINK, QANTAS AIRWAYS LIMITED – ASX QAN, ALLIANCE AVIATION SERVICES LIMITED – ASX AQZ, SKYTRANS AIRLINES, BRINDABELLA AIRLINES, VINCENT AVIATION (AUSTRALIA) PTY LTD

Qantas on target for $1b profit

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Original article by Jamie Freed
The Australian Financial Review – Page: 1 & 12 : 27-Feb-15

Qantas has reported a 2014-15 interim net profit of $A204m, compared with a loss of $A235m in the first half of 2013-14. The carrier’s underlying result for the half-year rose from a loss of $A252m to a pre-tax profit of $A367m. Qantas is now tipped to achieve a full-year underlying profit of around $A1bn, following a loss of $A646m in 2013-14. CEO Alan Joyce says the airline’s focus remains on debt reduction, but adds that it could resume paying dividends at some stage

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, MACQUARIE EQUITIES LIMITED, TRANSPORT WORKERS’ UNION, FIJI AIRWAYS, JETSTAR AIRLINES PTY LTD

Qantas brings new dimension to flight

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Original article by Jamie Freed
The Australian Financial Review – Page: 10 : 30-Jan-15

Qantas will team up with Samsung to provide passengers on some flights with a virtual reality experience. First-class passengers on selected A380 flights on the Pacific route will be able to view videos using virtual reality headsets and Samsung Galaxy smartphones. Qantas marketing executive Olivia Wirth says the airline will gauge feedback to decide whether to extend the new service to other passengers

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, SAMSUNG ELECTRONICS AUSTRALIA PTY LTD, KAKADU NATIONAL PARK

Qantas workers to vote on EBA

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Original article by Steve Creedy
The Australian – Page: 17 : 14-Jan-15

Qantas Airways has informed the market that a new enterprise bargaining agreement (EBA) has been approved by 130 staff after negotiations with the United Voice union. A majority of 61% voted for the deal, which includes a moratorium on wage rises for 1.5 years. However a far larger number of employees, represented by the Transport Workers Union (TWU), will vote on their EBA in February 2015. The TWU has been very vocal in the past in its criticism of Qantas CEO Alan Joyce, but has agreed to a similar wage freeze to be followed by increases of 3% per annum

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, TRANSPORT WORKERS’ UNION, UNITED VOICE