I was in Brisbane this week to attend CAPA’s Airline Leader Summit, which kicked off in rather unconventional style, as Brisbane Airport CEO Gert-Jan de Graaff gyrated his hips on stage to the tune of Bobby McFerrin’s Don’t worry be happy.
“Why?” I hear you collectively gasp.
That’s areally good question, and one that frankly we may never fully explain, but at least partially the conspicuous boogying was down to some huge developments planned for Queensland’s biggest air hub.
Flagged by the Brisbane Airport in October last year, the $5 billion upgrade will see major updates to facilities in order to make the hub more seamless for passengers in the lead-up to the 2032 Olympic Games.
Attendees at the summit were treated to the first virtual walk-through tour of what BNE will look like after the biggest revamp in its history, and if the visuals are any guide, future passengers are in for a treat as they transition through a terminal armed with a host of updated technology across baggage, check-in and security, to name just a few.
While Brisbane was clearly enjoying the opportunity to fly the flag of progress in front of CAPA delegates, the timing of the gathering is particularly interesting this year in light of an extremely turbulent year in domestic aviation.
Bonza was the first to fall over, followed closely by Rex, and while the former has bitten the dust permanently, the future of Rex still, if you can excuse the pun, hangs in the air as EY continues to monitor the market for investors (more on Rex later).
In light of this, clearly the state of play in the domestic scene was a hot topic during the many interesting sessions hosted.
For his part, Qantas International CEO Cam Wallace told the audience that despite the collapses, he believes new competitors are almost certain to emerge over the coming years simply because the “seductive” nature of the industry is too tantalising to resist for future entrepreneurs not to get involved.
The Flying Kangaroo has been heavily criticised for what many travellers and agents perceive to be actively discouraging competition from thriving in the market, however Wallace struck quite a different tone in Brisbane.
“It’s good for Qantas to have strong competitors…it makes us better because we are not after a free lunch here,” Wallace said.
“It keeps us on our toes, it means we have to provide better service for our customers day in and day out, and we want that competitive intensity.”
One can only hope that Qantas’ mentality has shifted after the Alan Joyce era to be less pugilistic with emerging competitors and more focused on lifting the standard of its customer interactions.
Only time will tell.
Moving on, back at Travel Daily HQ, the team wrote about Qantas’ annual report, where the airline took a thinly veiled swipe at well-funded and state sponsored competitors using aggressive discounting. It also claimed that Australia’s aviation policies favour liberal rights of entry into our markets.
Qantas made the claim in its listing of material business risks, and follows well documented objections to Qatar Airways, a state owned carrier, wanting to expand capacity in Australia.
The airline confirmed during a Senate hearing last year that it put its case forward to the Federal Government before it made the call to block Qatar, with The Flying Kangaroo noting at the time that foreign carriers with access to vast state resources were tough to compete with.
Adding to the ongoing drama at Rex, the embattled airline has now been accused of stealing four Saab twin-engine turboprops at Kingman Airport in Arizona. Aircraft leasing firm Jet Midwest has just filed a lawsuit against Rex, claiming it stripped the aircraft for various parts, before selling the rest – and without having paid them in full.
The company is now seeking US$7.2 million in damages plus court costs. Oof.
Speaking of alleged dodgy behaviour, Travel World Sydney Director Zahra Rachid is being accused of taking payments for flight tickets and holidays – but failing to make bookings for her clients. We chatted with ATIA CEO Dean Long about his thoughts on the issue – and he made it clear that there is “no space or tolerance for any of that behaviour in our industry”.
Travel World Sydney was previously ATAS-accredited, but failed to provide financial details to ATIA, leading to its membership being cancelled in 2019.
Indeed, ATAS has such a high level of criteria required for accreditation that it actually has a 25% rejection rate.
In more positive news, Turkish Airlines just confirmed yesterday that it will begin its one-stop service from Sydney to Istanbul on 5 December. The service will be a four-times weekly operation flying via Kuala Lumpur.
In a couple of years, Sydney will also offer non-stop flights to Istanbul, once Turkish Airlines takes delivery of its Airbus 350-1000 aircraft.
While the news is music to the ears of many who want more air access to Turkiye, it is unlikely to please the myriad of agents who came forward to TD last week to complain about the airline’s customer service standards.
Onto the jolly seas, our very own Bruce Piper has been taking in the spectacular sights of Shanghai, Zhoushan and beyond during the inaugural China Discovery Voyage on board the Viking Yi Dun. It’s the first ever Chinese domestic voyage, with the ability to operate coastal cruises in China.
Carnival Splendor has returned to Australia, with a raft of stunning onboard upgrades, including new dining venues, a basketball court, a refreshed Thalasso therapy pool at Cloud 9 spa and refurbished staterooms, which now include whirlpool tubs. For the kids, Carnival WaterWorks has undergone a revamp, there’s a refreshed mini golf course and a new raft of activities at the kids’ club.
What a week! I’ve just landed back in god’s country (read: Sydney) and it’s time for me to finally enjoy the weekend.
Adam.
