Financial Daily from THE HINDU group of publications Friday, Sep 03, 2004 |
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Airlines Marketing - New Products & Services Qantas relaunches services to India Our Bureau
Mr Rob Gurney, Head of Sales and Distribution, Qantas Airlines, with former Australian cricketer and the airline's brand ambassador Steve Waugh at a press conference in Mumbai on Thursday. Paul Noronha
Mumbai , Sept. 2 QANTAS, the national carrier of Australia, is keen to increase its capacity into India. The airline is also looking at flying to more points within the country. The airline resumed its services to the country after a gap of two years with a thrice-weekly non-stop service between Sydney and Mumbai. Steve Waugh, who is a brand ambassador for Qantas, was on the first flight that arrived here yesterday afternoon. The airline views India as an important market, with traffic from the country projected to grow 15 per cent till 2010, said Mr Rob Gurney, Head of Sales and Distribution. Qantas first began services to India in 1947, but withdrew it in the early 1990s to restart it in 1996. The airline again withdrew the service in October 2002 following September 11 terror attacks in US. According to Mr Gurney, the existing bilateral services agreement between the two countries, which was signed in the forties, would come up at Government talks scheduled for next week. Qantas, he said, was in favour of a more liberal code-share agreement. The main advantage with the new service was that it offered a direct connection between the countries, covering the distance in less than 12 hours. The airline has deployed a refurbished 747-300 aircraft on the sector. The service will take off from Sydney at 9 a.m. local time to arrive in Mumbai at 4.30 p.m. local time on the same day. The return flight will take off the same evening at 6.30 p.m. to arrive in Sydney the next morning at 9.30 a.m. Qantas takes its name from its original registered title _ Queensland and Northern Territory Aerial Services Ltd. According to Mr Gurney, the airline would focus on development of bilateral tourism promotion in both Australia and India. In the year ended June 30, 2004, the airline recorded a profit after tax of A$648.4 million, an 88.8 per cent growth over the previous year. Mr Gurney attributed the performance to the airline's emphasis on the basics including improved customer service and rationalisation of costs within the business. Qantas had also taken a step into the next generation business of value-based airlines, with the launch of Jetstar in May. It has also entered into a similar initiative in Singapore with local investors, he added. The airline's annual expenditure on jet fuel had increased to 25 per cent of the total expenses this year, as compared to about 18 per cent last year. He added that the airline has hedged a part of its fuel requirements thereby shielding itself from the full impact of price fluctuations. Besides, it has also imposed a fuel surcharge on its ticket costs.
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