Post by corsair67 on Mar 13, 2006 8:47:40 GMT 12
Trying to lure domestic business customers away from such a strong airline like Qantas is always going to be very tough, and Ozjet certainly misread the market potential for their airline option.
Two airline system 'too much for Ozjet'
March 13, 2006.
AUSTRALIA'S traditional preference for a two-airline system had proven too tough for Ozjet to crack, the airline's chairman, Paul Stoddart, said today.
Insufficient business forced the budget business class airline yesterday to suspended its scheduled flights between Melbourne and Sydney after just four months of operation and to foreshadow "50 or 60" redundancies.
Mr Stoddart said the outcome suggested there was no room for a budget business class airline in Australia.
"I think Australia's traditionally been, domestically anyway, a two-airline operation," he told ABC radio.
"There's always been two main players in the marketplace and any new entrants have struggled.
"We thought we had a different plan. Certainly the industry, the agents and so on, gave it enormous support before it started up (and) made us very confident.
"But unfortunately it didn't translate into that all important 'bums on seats'."
He agreed there had been a major misjudgement of the market.
"It's fair to say the support was overwhelming in the 12 months before we started, but it just didn't translate into bookings," Mr Stoddart said.
"It doesn't matter what the reasons are. They're just the facts."
He said ticket-holders were completely protected and Qantas had offered to carry any passengers who had already begun their journey back to their origin.
Redundancies were inevitable, Mr Stoddart said.
"Even to lose one member of staff is too many, but we're going to lose 50 or 60, which is really, really sad," he said.
"Certain areas of the business, namely the base at Sydney and the call centre are areas that we won't be taking forward."
Mr Stoddart, the former owner of Formula One racing team Minardi, said any staff not retained would be paid their full entitlements.
Just last month, OzJet announced Perth would become the airline's third destination.
The announcement came amid speculation OzJet would go belly-up.
The airline had struggled to attract customers in the tough Melbourne and Sydney markets, with reports some flights were carrying only three passengers.
OzJet slashed its prices and revised its flight schedule only a week after it began its Sydney-Melbourne service in December last year.
Mr Stoddart said OzJet would downsize to concentrate on earning income from ad hoc and VIP charters.
The carrier will retain its Air Operators Certificate, a minimum of two Boeing 737 aircraft for charter work and about 30 per cent of its staff.
Two airline system 'too much for Ozjet'
March 13, 2006.
AUSTRALIA'S traditional preference for a two-airline system had proven too tough for Ozjet to crack, the airline's chairman, Paul Stoddart, said today.
Insufficient business forced the budget business class airline yesterday to suspended its scheduled flights between Melbourne and Sydney after just four months of operation and to foreshadow "50 or 60" redundancies.
Mr Stoddart said the outcome suggested there was no room for a budget business class airline in Australia.
"I think Australia's traditionally been, domestically anyway, a two-airline operation," he told ABC radio.
"There's always been two main players in the marketplace and any new entrants have struggled.
"We thought we had a different plan. Certainly the industry, the agents and so on, gave it enormous support before it started up (and) made us very confident.
"But unfortunately it didn't translate into that all important 'bums on seats'."
He agreed there had been a major misjudgement of the market.
"It's fair to say the support was overwhelming in the 12 months before we started, but it just didn't translate into bookings," Mr Stoddart said.
"It doesn't matter what the reasons are. They're just the facts."
He said ticket-holders were completely protected and Qantas had offered to carry any passengers who had already begun their journey back to their origin.
Redundancies were inevitable, Mr Stoddart said.
"Even to lose one member of staff is too many, but we're going to lose 50 or 60, which is really, really sad," he said.
"Certain areas of the business, namely the base at Sydney and the call centre are areas that we won't be taking forward."
Mr Stoddart, the former owner of Formula One racing team Minardi, said any staff not retained would be paid their full entitlements.
Just last month, OzJet announced Perth would become the airline's third destination.
The announcement came amid speculation OzJet would go belly-up.
The airline had struggled to attract customers in the tough Melbourne and Sydney markets, with reports some flights were carrying only three passengers.
OzJet slashed its prices and revised its flight schedule only a week after it began its Sydney-Melbourne service in December last year.
Mr Stoddart said OzJet would downsize to concentrate on earning income from ad hoc and VIP charters.
The carrier will retain its Air Operators Certificate, a minimum of two Boeing 737 aircraft for charter work and about 30 per cent of its staff.
