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Executive Summary
Jumpjet Airlines Limited® recognises the consequences of decision making by the Commerce Commission and the Australian Competition and Consumer Commission in response to the proposed integrated merger via equity shareholding between Qantas Airlines and Air New Zealand. ... The major players are the Virgin Group/Patrick Corporation, Singapore Airlines, Qantas, Air New Zealand and their subsidiaries. ...
It is commonly known that the Qantas Board strategy is to create a grand "Monopoly" of alliances in the region through shareholder equity. ... 5% ownership to Qantas Airlines and it fully owns Freedom Air International. ...
Similar research indicates that Qantas has also invited Singapore Airlines to purchase the British Airways 22% shareholding in Qantas. ...
PUBLIC OPINION
The first media poll undertaken following the announcement of the Qantas Air New Zealand proposed merger strategy revealed a public disfavour in excess of 80%. ...
Following extensive campaigning through media programs, high level political lobbying and advertising by Qantas and Air New Zealand the public rejection of the merger remains in the mid fifties. ... The obvious public awareness over the Qantas and Air New Zealand proposed merger and related issues in Australia and New Zealand ought to capture the attention of parliaments on both sides of the Tasman. ...
PREDATORY COMMERCIALISM
The proposed Qantas and Air New Zealand integrated merger combines the majority of regional airlines into a complex alliance structure that also incorporates two major global alliances and epitomises consumer fears. ...
In relation to the proposed merger, both Qantas and Air New Zealand publicly admit to the lessening of competition the merger will deliver the consumer, but declare the overall result will serve their best economic interests from a nationalistic political point of view. ... The Virgin Group/Patrick Corporation, Singapore Airlines, Qantas and Air New Zealand combined would exhibit extensive and substantial power in the market and virtually prevent any new entrant from gaining funding support to enter and introduce fair competition.
MARKET LOCKUP STRATEGIES
Publicly reported efforts of senior Qantas executives and the Board of Directors to build an impending Grand Regional Alliance, that is designed to protect major regional {Alliance} airlines from international {or any} competition, are both equity and marketing based. ...
A merger between Qantas and Air New Zealand would integrate two separate groups each with a substantial degree of power in the market into one powerful market force. ... Common sense, mathematical analogies and examination of the Australian domestic East Coast market concludes that insufficient market existed to support the increased seat capacity introduced into the route structures during an airfare war waged between Ansett Australia, Impulse Airlines, Virgin Blue and Qantas. ... It is the intention of this submission to identify the consequences of the proposed integrated merger between Qantas and Air New Zealand in a practical sense from the perspective of the strategies involved. ... The Qantas/Air New Zealand proposed merger portrays the distinct possibility that a structure of alliances could, with little undertaking, achieve a regional Market Lockup through Monopoly Alliance status. ... The proposed Qantas/Air New Zealand merger is planned to expand from a current 4. ... The proposed Qantas/Air New Zealand merger regionally integrates the two global alliances of Star and One World and includes the merging of additional airlines. ... Subsequently the integrated proposed merger of Qantas and Air New Zealand substantially increases such associations - Both currently and in a projected manner. ... Existing corporate shareholder ownership {Including airline ownership} of airlines operating in the Trans Tasman region is: Qantas (70%), Air New Zealand (10%), Thai International (7%), Lan Chile (100%), Aerolineas Argentinas (39%), Regional Express (100%), Virgin Blue (49%) and Origin Pacific (100% - Private). ... Existing public ownership of airlines in the Trans Tasman region is: Air New Zealand (13%) and Qantas (30%). ... Subsequently the integrated proposed merger of Qantas and Air New Zealand substantially increases such associations - Both currently and in a projected manner. ... During 2002 Qantas has offered Singapore Airlines the British Airways shareholding in Qantas (22%) as depicted via the following newspaper report quote:1
"Qantas: …vision is to build an antipodean airline alliance, including, preferably, Singapore Airlines. People close to the airlines said Qantas and Singapore had held regular discussions. ... Related to the British Airways 22% shareholding in Qantas}
14. ... The current Virgin Blue strategy to use the Qantas/Air New Zealand merger as a means to assist the acquisition of Freedom Air International is depicted by the following newspaper report quote. ... }
"Virgin Blue…said structural changes to the market were needed before any Qantas/Air New Zealand deal went ahead…Disposal of Freedom Air should be another condition. ... Subsequently the integrated proposed merger of Qantas and Air New Zealand substantially increases such associations - Both currently and in a projected manner. ... The proposed merger between Qantas and Air New Zealand will amalgamate the existing groupings of Marketing Alliances into a singular grouping. Comprising of 15 applicable Jet Operators and one (1) Turboprop Operator {Origin Pacific - Aligned to Qantas}2
21. ... Airlines aligned would be: - Air New Zealand, Air Pacific, Aerolineas Argentinas, Freedom Air, Garuda, Lan Chile, Malaysia Airlines, Norfolk Jet, Origin Pacific, Polynesian Airlines, Qantas Airways, Royal Tongan, Singapore Airlines, Silk Air {Currently inactive in the region}, Thai Airways International and Virgin Blue {Virgin Group}. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of substantially lessening competition in the market. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of taking advantage of market power. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of taking advantage of market power in Trans-Tasman markets. ...
MERGER BETWEEN QANTAS AND AIR NEW ZEALAND-CONSUMER EFFECTS
28. ... The authentic effects of the proposed merger between Qantas and Air New Zealand would be reduced choice, higher airfares and price fixing over a range of products offered by an alliance of carriers each marketing in a specialised sense. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of substantially lessening competition in the market. ... Public evidence and that submitted within this document also clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have insufficient benefit to the public and will take advantage of market power in trans-Tasman markets. ... The proposed merger between Qantas and Air New Zealand uses a justification that the current {duopoly} markets are threatened by low fare carriers commonly known as Discount {DA} or Value Based Airlines {VBA} based on new international trends. ... For example, Historically, Virgin Blue as the new Australian entrant and now duopoly partner Page 3 Predatory Commercialism and Qantas as the incumbent airline. ... Should the proposed merger between Qantas and Air New Zealand be successful the monopoly of alliances that is currently founding will offer a complete range of products from FSA products to DA/VBA products. ... The Trans Tasman operations of Qantas and Air New Zealand currently uplift some 40,600 passengers or 1850 passengers per aircraft per week. {Figures used are one-way and approximate} Qantas uses 10 aircraft and Air New Zealand 12. ... Section 58 Application document submitted by Qantas & Air New Zealand - December 9, 2002
PART 1V: Local Airline Companies and Access to the Market
50. ... In 2003, mergers and alliances aside, the current duopoly now consists of a joint subsidiary of an overseas group and Qantas. ... {Market Share: Qantas 80%; Virgin Group/Patrick Corporation 20%} Competition in the market continues to remain distinctly low. ... By May 2001 uncontrollable debts and recapitalisation resistance from its investors forced Impulse to finally enter into a commercial agreement with Qantas as part of its Link regional airline system. The company now trades successfully, but, as a Qantas subsidiary. ... The company has developed steadily since that time and in 2003 operates eighteen (18) turbo-prop aircraft in alliance with Qantas. ...
PART VI: Conclusion
The proposed merger between Qantas and Air New Zealand and the arguments presented raise valid issues in relation to omnivorous commercialism. ... Table 2 - Marketing Alliances - Trans Tasman
Copy: Australian Competition and Consumer Commission
Executive Summary
Jumpjet Airlines Limited® recognises the consequences of decision making by the Commerce Commission and the Australian Competition and Consumer Commission in response to the proposed integrated merger via equity shareholding between Qantas Airlines and Air New Zealand. ... The major players are the Virgin Group/Patrick Corporation, Singapore Airlines, Qantas, Air New Zealand and their subsidiaries. ...
It is commonly known that the Qantas Board strategy is to create a grand "Monopoly" of alliances in the region through shareholder equity. ... 5% ownership to Qantas Airlines and it fully owns Freedom Air International. ...
Similar research indicates that Qantas has also invited Singapore Airlines to purchase the British Airways 22% shareholding in Qantas. ...
PUBLIC OPINION
The first media poll undertaken following the announcement of the Qantas Air New Zealand proposed merger strategy revealed a public disfavour in excess of 80%. ...
Following extensive campaigning through media programs, high level political lobbying and advertising by Qantas and Air New Zealand the public rejection of the merger remains in the mid fifties. ... The obvious public awareness over the Qantas and Air New Zealand proposed merger and related issues in Australia and New Zealand ought to capture the attention of parliaments on both sides of the Tasman. ...
PREDATORY COMMERCIALISM
The proposed Qantas and Air New Zealand integrated merger combines the majority of regional airlines into a complex alliance structure that also incorporates two major global alliances and epitomises consumer fears. ...
In relation to the proposed merger, both Qantas and Air New Zealand publicly admit to the lessening of competition the merger will deliver the consumer, but declare the overall result will serve their best economic interests from a nationalistic political point of view. ... The Virgin Group/Patrick Corporation, Singapore Airlines, Qantas and Air New Zealand combined would exhibit extensive and substantial power in the market and virtually prevent any new entrant from gaining funding support to enter and introduce fair competition.
MARKET LOCKUP STRATEGIES
Publicly reported efforts of senior Qantas executives and the Board of Directors to build an impending Grand Regional Alliance, that is designed to protect major regional {Alliance} airlines from international {or any} competition, are both equity and marketing based. ...
A merger between Qantas and Air New Zealand would integrate two separate groups each with a substantial degree of power in the market into one powerful market force. ... Common sense, mathematical analogies and examination of the Australian domestic East Coast market concludes that insufficient market existed to support the increased seat capacity introduced into the route structures during an airfare war waged between Ansett Australia, Impulse Airlines, Virgin Blue and Qantas. ... It is the intention of this submission to identify the consequences of the proposed integrated merger between Qantas and Air New Zealand in a practical sense from the perspective of the strategies involved. ... The Qantas/Air New Zealand proposed merger portrays the distinct possibility that a structure of alliances could, with little undertaking, achieve a regional Market Lockup through Monopoly Alliance status. ... The proposed Qantas/Air New Zealand merger is planned to expand from a current 4. ... The proposed Qantas/Air New Zealand merger regionally integrates the two global alliances of Star and One World and includes the merging of additional airlines. ... Subsequently the integrated proposed merger of Qantas and Air New Zealand substantially increases such associations - Both currently and in a projected manner. ... Existing corporate shareholder ownership {Including airline ownership} of airlines operating in the Trans Tasman region is: Qantas (70%), Air New Zealand (10%), Thai International (7%), Lan Chile (100%), Aerolineas Argentinas (39%), Regional Express (100%), Virgin Blue (49%) and Origin Pacific (100% - Private). ... Existing public ownership of airlines in the Trans Tasman region is: Air New Zealand (13%) and Qantas (30%). ... Subsequently the integrated proposed merger of Qantas and Air New Zealand substantially increases such associations - Both currently and in a projected manner. ... During 2002 Qantas has offered Singapore Airlines the British Airways shareholding in Qantas (22%) as depicted via the following newspaper report quote:1
"Qantas: …vision is to build an antipodean airline alliance, including, preferably, Singapore Airlines. People close to the airlines said Qantas and Singapore had held regular discussions. ... Related to the British Airways 22% shareholding in Qantas}
17. ... The current Virgin Blue strategy to use the Qantas/Air New Zealand merger as a means to assist the acquisition of Freedom Air International is depicted by the following newspaper report quote. ... }
"Virgin Blue…said structural changes to the market were needed before any Qantas/Air New Zealand deal went ahead…Disposal of Freedom Air should be another condition. ... Subsequently the integrated proposed merger of Qantas and Air New Zealand substantially increases such associations - Both currently and in a projected manner. ... The proposed merger between Qantas and Air New Zealand will amalgamate the existing groupings of Marketing Alliances into a singular grouping. Comprising of 15 applicable Jet Operators and one (1) Turboprop Operator {Origin Pacific - Aligned to Qantas}2
23. ... Airlines aligned would be: - Air New Zealand, Air Pacific, Aerolineas Argentinas, Freedom Air, Garuda, Lan Chile, Malaysia Airlines, Norfolk Jet, Origin Pacific, Polynesian Airlines, Qantas Airways, Royal Tongan, Singapore Airlines, Silk Air {Currently inactive in the region}, Thai Airways International and Virgin Blue {Virgin Group}. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of substantially lessening competition in the market. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of taking advantage of market power. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of taking advantage of market power in Trans-Tasman markets. ...
MERGER BETWEEN QANTAS AND AIR NEW ZEALAND-CONSUMER EFFECTS
72. ... The authentic effects of the proposed merger between Qantas and Air New Zealand would be reduced choice, higher airfares and price fixing over a range of products offered by an alliance of carriers each marketing in a specialised sense. ... We put it to the Commission that Public evidence and that submitted within this document clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have the effect of substantially lessening competition in the market. ... Public evidence and that submitted within this document also clearly demonstrates the proposed integrated merger between Qantas and Air New Zealand will have insufficient benefit to the public and will take advantage of market power in trans-Tasman markets. ... The proposed merger between Qantas and Air New Zealand uses a justification that the current {duopoly} markets are threatened by low fare carriers commonly known as Discount {DA} or Value Based Airlines {VBA} based on new international trends. ... For example, Historically, Virgin Blue as the new Australian entrant and now duopoly partner Page 3 Predatory Commercialism and Qantas as the incumbent airline. ... Should the proposed merger between Qantas and Air New Zealand be successful the monopoly of alliances that is currently founding will offer a complete range of products from FSA products to DA/VBA products. ... The Trans Tasman operations of Qantas and Air New Zealand currently uplift some 40,600 passengers or 1850 passengers per aircraft per week. {Figures used are one-way and approximate} Qantas uses 10 aircraft and Air New Zealand 12. ... Section 58 Application document submitted by Qantas & Air New Zealand - December 9, 2002
PART 1V: Local Airline Companies and Access to the Market
94. ... In 2003, mergers and alliances aside, the current duopoly now consists of a joint subsidiary of an overseas group and Qantas. ... {Market Share: Qantas 80%; Virgin Group/Patrick Corporation 20%} Competition in the market continues to remain distinctly low. ... By May 2001 uncontrollable debts and recapitalisation resistance from its investors forced Impulse to finally enter into a commercial agreement with Qantas as part of its Link regional airline system. The company now trades successfully, but, as a Qantas subsidiary. ... The company has developed steadily since that time and in 2003 operates eighteen (18) turbo-prop aircraft in alliance with Qantas. ...
PART VI: Conclusion
The proposed merger between Qantas and Air New Zealand and the arguments presented raise valid issues in relation to omnivorous commercialism. ... Qantas is moving quickly to reduce its costs. ...
Qantas will, over time, reduce the Virgin advantage, so Virgin will be reluctant to do anything which narrows that gap further. That gap makes it prohibitively expensive for Qantas to engage Virgin directly on price for any sustained period. ... Against that, Virgin would have to consider the strategic risks of leaving those terminal facilities to be used by Qantas or (even though it seems inconceivable at this moment) potentially someone else. ... It had planned to add a further seven planes by September but presumably will now consider a more ambitious level of capacity to grab as much share as possible before Qantas can deploy its full fleet of 737 800s.
The confirmation that, in the medium term at least, Virgin will share the skies with Qantas may also change its financing plans, or at least provides a much broader range of options. ...
Qantas has some substantial in-built advantages of its own, namely, there is a big, higher-margin slab of the market that wont use Virgin Blue. ...
Qantas has about 80 per cent of the market today. ...
If Dixon can convince his employees of the continuing need for change, not only will Qantas be better able to keep Virgin Blue under control but, once the profitability in its international routes starts to return, it will have greatly enhanced and entrenched its position as one of the worlds strongest airlines and created a platform for a much larger position in the global industry. ...
Why Qantas Virtual Airways? ...
How to bid
How to report
Speeding up your simulation or time warping
Promotion to a higher category
Charters and other Special QVA flights
Deletion from the roster
Introduction:
Hello and Welcome to Qantas Virtual Airways. The following information is provided to give new prospective members and more experienced Virtual Airline Pilots, a guide to the operation of our Virtual Airline - Qantas Virtual Airways, (hereby now called QVA for brevity purposes). ... We are all keen fans of our real world real life airline counterpart Qantas and have set our goal to emulate them in our virtual sense in the Flightsim Community. We are also very aware of the copyright issues pertaining to this and have followed the rules as set by the current Qantas website and do so in the full knowledge that Qantas can legally request otherwise at anytime with due regard to their intellectual copyrights. We do not represent Qantas legally in any way shape or form, nor are we funded by them in any way. We do this totally voluntarily and free of charge as "virtual fans" of Qantas to put forward the best possible, most professional light we can, for our own Australian airline, "Qantas Airways Limited", to promote them within the flightsim community. ... We at QVA have seen several other Qantas VAs come and go, but remain Rock Solid, and have so for 4 years. We are not the prettiest looking Virtual Airline by a long shot, but if you are looking for a answer with some substance, apart from the facts that we are the only VA to fly historic Qantas flights (yes you can now fly the constellation/dc3 and many other historic Qantas aircrafts if you wish), freight using the combined weight of Australia Post and Qantas with "Australian Air Express", or future Qantas aircraft aircraft including the new Australian Airlines International Airline along with future Qantas aircraft acquisition the A380 and A330 aircrafts, and, any charter or international event in the world that Qantas will be or has been a part of, we have something only a 1 other VA can offer ( which they bought from us right here at QVA anyway! ... We have probably the most complete collection of Qantas livery aircraft - current fleet, confirmed future Qantas acquisitions, and, historic Qantas aircraft, available on the internet. We have our own aircraft designers and painters, James Kaminski and Tony Lonsdale, and they provide us with the most up to date and best Qantas livery aircraft that are available anywhere on the internet. You will not find any aircraft that have not worn the Qantas livery. Want a Qantas Concorde? You wont find one at QVA - unless Qantas buy one of course - unfortunately highly unlikely. We are proud of our hangar as it is our most tangeable asset that we can give the flightsim community to promote Qantas - our real life ambition, as thats our intention - internet promotion of the best airline in the world - QANTAS. ... The more Qantas aircraft we can put on peoples PCs, the more people will think about using Qantass services next time they fly within Australia, New Zealand and all points International. ...
Charters and special flights
In actuality, Qantas and Australia Post are owners of Australian Air Express (AaE). This freight company has full utilisation of the Qantas flying network, and this coupled with the vast resources of Australia Post makes it a most formidable combination to send freight around Australia, and in fact, around the entire world.
Approximate Word count = 21012
Approximate Pages = 84
(250 words per page double spaced)
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