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21
Qantas Annual Report 2005
International leisure carrier Australian Airlines added new
destinations and expanded services this year in the lead-up
to its third anniversary in October 2005. Australian Airlines
operates more than 100 services to 13 destinations in five
countries with a fleet of five 767-300s. These destinations
are Bali, Cairns, Darwin, Fukuoka, the Gold Coast, Hong
Kong, Melbourne, Nagoya, Osaka, Perth, Sapporo,
Singapore and Sydney.
Australian Airlines was established to maintain a presence
in low-yielding international leisure markets where Qantas,
with its higher costs, could not compete.
It differentiates itself in the leisure market by being a full-
service international carrier with complimentary meals,
beverages and inflight entertainment. It also allows Qantas
Frequent Flyers to redeem points on its services.
Inbound tourism remains the main market for Australian
Airlines with Japanese visitors accounting for more than
one-half of all passengers the airline carries.
Australian Airlines offers the only non-stop services from
Fukuoka, Nagoya and Sapporo to Australia, with services
to Cairns, and the only non-stop service between Osaka
and Cairns.
HIGHLIGHTS
x In August 2005, services to Nagoya increased from seven
to nine. This brings the number of year-round Australian
Airlines services between Japan and Cairns to 19.
x Australian Airlines added a 13th route in December 2004
with two weekly services from Perth to Bali. This is in
addition to three services from Sydney and two from
Melbourne. These services cater primarily for the
outbound Australian and New Zealand markets.
x Between November 2005 and March 2006, the number
of weekly services will increase to 21 with a second
season of two weekly services between Sapporo and
Cairns for the ski season. This route is focused on
inbound traffic from Japan but also carries a significant
number of Australians to the Sapporo ski fields.
x For the first time, Australian Airlines operated charter
services to the holiday island of Phuket, Thailand, in
conjunction with Qantas Holidays. These services, which
are the only return non-stop services between Sydney
and Phuket, operated in September and October 2004
and June and July 2005. The second season of charters
was launched as part of Qantas Holidays’ Rediscover
Thailand campaign with the Tourism Authority of
Thailand to support the post-tsunami recovery drive.
x Australian Airlines relaunched its website
australianairlines.com in July 2005 and new crew
uniforms will be introduced from December 2005.
Australian Airlines will focus on improving the profitability
of its current network of routes while continuing to evaluate
opportunities for new destinations.
The majority of Australian Airlines services operate to and
from its hub and operational base in Cairns. Australian
Airlines has created more than 400 jobs in Cairns and
is one of the city’s largest private enterprise employers.
It contributes more than $800 million annually to the
Queensland economyx
Flying Businesses
Australian Airlinesx
Australian Airlines operates more than 100 services
to 13 destinations in five countries