Qantas rebuffs Minister on capacity claims
Qantas Chief Financial Officer Peter Gregg said comments made yesterday by Tourism Minister Fran Bailey that opening up the Pacific route would boost inbound tourism were not supported by fact.
Mr Gregg said Qantas services between Australia and America during the 2004/05 financial year operated with more than 400,000 empty seats.
“With more than 200,000 empty seats in each direction last year it is ludicrous to suggest there is insufficient capacity on the Pacific route,” Mr Gregg said.
“Furthermore, with the addition of services to San Francisco in March 2006, the total number of return services that Qantas offers to mainland USA will be a record 39 flights a week.
“Qantas also adds supplementary services to cater for increased demand during peak periods as we did during June and July this year and will be doing during January and February next year.”
Mr Gregg said the relatively flat growth in demand by US visitors was reflective of recent US outbound travel trends more generally and exchange rate movements.
“It is these same exchange rate effects that have seen a dramatic increase of 14.6 per cent in travel by Australians to the US over the past 12 months to September – something that would not have been possible if there was a shortage of capacity.”
Mr Gregg said history had shown the Pacific route was not viable with more than three carriers competing.
“Numerous other carriers already have the rights to fly between Australia and America but choose not to or have abandoned the route,” he said.
“Significant competition already exists among Qantas, United Airlines and Hawaiian Airlines and as home country airlines these operators have a vested interest in, and commitment to, developing tourism and continuing to grow traffic between Australia and America.
Reports yesterday suggested that the Federal Government had deferred any decision on increased services by rival carriers Emirates and Singapore Airlines until early next year.
Graham Muldoon
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
TAP Air Portugal to operate 29 flights due to strike on December 11
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps