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Established in 2001 and started operations in 2002. Domestic and international, scheduled and charter, passenger and cargo, jet airplane services.
Qantas Centre, Bldg A
203 Coward Street
Mascot, New South Wales 2020, Australia
AUSTRALIA (COMMONWEALTH OF AUSTRALIA) WAS ESTABLISHED IN 1901, IT COVERS AN AREA OF 7,686,848 SQ KM, ITS POPULATION IS 17.9 MILLION, ITS CAPITAL CITY IS CANBERRA, AND ITS OFFICIAL LANGUAGE IS ENGLISH.
December 2001: Subsidiary of Qantas Airways (QAN) (100%). Australian's golden rule is simplicity. It is predicting its cost will be -25 to -30% below its parent, (QAN). It is flying just one type of airplane, 767-300ER, with 271Y PAX, no special check-in, no special baggage allowances, no clubs, and no upgrades. (AUS) has simpler labor agreements, rostering, and allowance procedures. One passenger class allows simpler boarding, and baggage procedures. (QAN) loads about 160 items on a mixed class 767. Australian Airlines (AUS) will load about 60.
(QAN) plans to launch its wholly owned subsidiary (AUS) in 3rd Quarter 2002 with initial service to 6 Asian cities: Cairns non-stops to Osaka, Nagoya, Singapore, Taipei, Hong Kong, and Fukuoka, using 4 767-300ER's and will grow to 12. Besides Asian service, it will offer connecting flights between Cairns and the Gold Coast of Australia (6/week). New tail logo will be a "flying kangaroo."
Denis Adams, CEO, joined (QAN) in 1996, after 25 years with the former Australian Airlines.
September 2002: Australian Airlines (AUS) marked its start of business with the arrival of the 1st of 4 767-300ER'S for initial operations to Japan (Cairns to Nagoya and Osaka). 1 month later to Fukuoka, Singapore, Taipei, and Hong Kong. Plans to set up a 2nd base, in either Sydney, or Melbourne, at start of 2003. Hopes to have 12 airplanes, within 2 years, and employ about 250 staff (including 50 Flight Crew (FC) & 180 Cabin Attendants (CA), with many ex-Ansett (ANS).
October 2002: Australian Airlines (AUS) launches with Cairns to Nagoya/Osaka, and Cairns to Coolangatta (767-338ER (396-25274, VH-OGJ). In November 2002, Cairns to Fukuoka/Singapore, and Cairns to Hong Kong.
February 2003: 2 orders (July 2003) 767-300ER's, for service Sydney and Melbourne to Bali, and Sydney - Cairns for possible service to Kota Kinabalu and on to Singapore. In October 2003, Cairns - Shanghai.
March 2003: In July 2003, Sydney - Denpasar - Singapore (3/week), (Sydney) - Melbourne - Denpasar (weekly).
Operated its 1st charter flight, carrying passengers off a canceled Air Niugini (NUI) flight, between Cairns and Port Moresby.
Parent organization/shareholders: Qantas Airways (QAN) (100%).
July 2003: Sydney to Bali, via Melbourne (3/week). Also, Sydney to Cairns (6/week).
May 2004: In November 2004, Sydney and the Gold Coast to Sapporo via Cairns (2/week).
June 2004: Has carried 1 million passengers since its launch 18 months ago.
September 2004: In December 2004, Perth - Denpasar (2/week).
January 2004: SITA Code: SYDEMAO.
April 2005: Australian Airlines (AUS) is an all economy (Y), full-service international leisure carrier operating to major points in Asia.
449 employees (including 84 Flight Crew (FC), & 307 Cabin Attendants (CA)).
(IATA) Code: AO. (ICAO) Code: AUZ - AUSTRALIAN. SITA: HDQSAAO.
Parent organization/shareholders: Qantas Airways (QAN) (100%).
Main Base: Cairns International airport (CNS).
Hub: Singapore Changi airport (SIN).
Domestic, Scheduled Destinations: Cairns; Darwin; Gold Coast; Melbourne; Perth; & Sydney.
International, Scheduled Destinations: Denpasar Bali; Fukuoka; Hong Kong; Kota Kinabalu; Nagoya; Osaka; Sapporo; & Singapore.
June 2005: Unveiled a new uniform for its 310 cabin attendants (CA) (see photo link).
October 2005: Parent, Qantas (QAN) is looking to expand its Australian Low Cost Carrier (LCC) Jetstar (IMU) to take over regional international holiday routes from both (QAN) and its holiday subsidiary Australian Airlines (AUS). The new Jetstar International (IMU) would be two-class and eventually may fly to the USA and Europe.
(AUS), continuing to suffer from depressed traffic in the wake of the latest Bali terrorist attack, will suspend twice-weekly flights from Perth and Melbourne to Bali November 10 to January 29. Thrice-weekly service between Sydney and Bali will continue.
November 2005: Qantas (QAN) is proposing to expand its low-cost domestic carrier Jetstar (IMU) into international markets in a move that is expected to result in conflict with the mainline carrier’s pilot unions.
(QAN) CEO, Geoff Dixon told an investment conference recently that (QAN) is developing a proposal for a two-class, value-based international (IMU) that would serve primarily leisure-based markets.
(QAN) has been pleased with the performance of (IMU), which it launched in May 2004, and earlier this year said it was looking to deploy the low-cost model in markets elsewhere. (QAN) already has a 49.9% share in Singapore-based Jetstar Asia (JSA).
(IMU) says there are growth opportunities for the low-cost carrier on the broader international stage and that (IMU) management feels the carrier is in a position to deliver, but it is subject to board approval whether the plan proceeds.
The proposal is expected to be discussed at (QAN)’s next board meeting on 7 December. At that meeting, (QAN) management is also due to put forward its proposal for new long-haul airplanes for the mainline carrier.
The proposal is also expected to include airplanes for an international arm of (IMU), which currently operates A320s.
(QAN)'s pilot (FC) unions have already expressed concern regarding the proposal, with suggestions that an international (IMU) would take over under-performing (QAN) routes to South-East Asia, China and Japan.
Where an international low-cost carrier would fit with (QAN)’s existing leisure-based carrier Australian Airlines (AUS) is not known. Dixon said recently that (AUS) is “certainly viable for the future”, despite (AUS) failing to meet expectations.
(IMU) will make its first foray into the international market in December when it launches New Zealand services. (IMU) will have two A320s based in Christchurch, operating to Sydney, Melbourne, Brisbane and the Gold Coast.
(AUS), (QAN)'s international low-fare airline unit, will introduce a Premium Economy cabin in mid-2006 featuring more spacious seating, priority boarding and priority food service. The current all-economy, 271Y-seat cabins of its 767s will be reconfigured to feature 28 premium and 238 economy (Y) seats.
(AUS) said it will begin twice-daily service between Cairns and Tokyo next year, replacing (QAN). Weekly capacity on the route will increase by 500 seats.
December 2005: Australian Airlines (AUS) will fill the void left by the failure of Air Paradise International (API) by adding a fourth weekly service between Sydney and Bali December 19 and commencing weekly service between Perth and Bali December 26. Further Bali service increases are planned for the end of January.
In an interview with "ABC TV" in Australia, Qantas (QAN) CEO Geoff Dixon said Jetstar International (IMU) eventually might grow to represent 20% of the company's flying, operating to destinations within 8 to 10 hours of Australia, "Reuters" reported. It is unclear what effect this would have on existing low-fare international brand (AUS), which operates five 767-300s in 13 low-yield leisure markets. Qantas (QAN) recently announced that (AUS) will introduce a premium economy product in mid-2006 and is taking over the Cairns - Tokyo route next year.
April 2006: As expected, Australia's Qantas (QAN) Group moved to rationalize its various airline brands, with leisure operator Australian Airlines (AUS) being absorbed into the mainline from July, and Jetstar International (IMU), the overseas arm of (QAN) domestic Low-Cost Carrier (LCC), (IMU), launching operations in November. CEO Geoff Dixon told media that "(AUS) has done an outstanding job over the past few years, but we are determined to take full advantage of (IMU)'s success with its highly competitive cost structure and service standards." (AUS) was launched four years ago, but the twin Bali bombings and 2004 tsunami have taken a toll on passenger numbers. (AUS)'s cost base is -30% below that of (QAN), but (IMU)'s costs will be -45% lower yet, according to analysts.
About -40 (AUS) cabin crew (CA) positions will be lost through the transition to (IMU). However, (IMU)'s expansion into long-haul international service will result in +550 new jobs. (QAN) is determined to build on (IMU)'s domestic success but is facing challenges from mainline pilots (FC) on its international plans.
(IMU) will start operations with four A330-200s transferred from (QAN), growing to a fleet of six by mid-2007. Initial destinations are Osaka from Sydney and Brisbane, Ho Chi Minh City and Phuket from Sydney, Bangkok from Melbourne, Bali from three Australian markets and Honolulu from Sydney and Melbourne. (AUS) services will cease between Cairns and Sydney, Hong Kong and Gold Coast, while Cairns - Singapore will be operated by (QAN) via Darwin.
Dixon said (IMU)'s network "will ultimately provide more services to Asia and the Pacific before expanding with second-stage flying to Europe and other destinations." (IMU) will transition to 311-seat 787-8s from August 2008, building to a fleet of 12, which will be used on routes to Europe and other long-haul destinations.
Unlike the budget version of (IMU) in Australia, the International (IMU) will interline with selected connecting carriers. Its mainline parent (QAN) also will code share on its flights.
July 2006: Qantas Airlines (QAN) confirms that the Australian Airlines (AUS) brand name will cease to exist. Its routes will continue to be operated, but its 767 fleet will be re-branded in (QAN) livery and its crews will revert to (QAN) uniforms.