Quote:
Originally Posted by casper
I am assuming the cap is per direction. I am not certain if that assumption is correct or not.
I think at the end of the day the M3 are going drive the Australian aviation industry to being mostly a domestic service with a few token long range international routes.
Today LAX-SYD has a lot of competition. Not certain QF will maintain its market share in the long run.
Back when these agreements were negotiated there was not a lot demand. Air Canada (and Canadian before them and Canadian Pacific before them) had a stop in Hawaii with fifth freedom rights. That was partially due to the fact they did not have an aircraft that could make it all the way and partially due to the fact that they could not fill an aircraft to Australia. For many years it was a 767 and did take on a certain amount of local Australia to Hawaii service.
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Quote:
Originally Posted by casper
Air Canada is making good use of its quote. QF (and other Australian airlines) are not using their quota at all.
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To quickly address all your points....
Yes the cap is weekly seats each way per country.
The ME3 is definitely hurting a lot of Aussie routes, not just Aussie airlines.
Malaysia Airlines, for example, with its upcoming restructure is pulling all BNE flights and reducing MEL, SYD, ADL and PER. However, there is still a lot of potential for International routes for Aussie carriers. Everything this side of the Middle East, North and South America and even possibly Africa. Growth will continue to push into Asia, however, QF has to contend with the big Chinese Airlines and some very strong Asian airlines in other areas, plus a lot of LCC competition so it's not just the ME3.
LAX-SYD is about to get another player too. QF, UA, DL, VA and now AA will all be flying the route non-stop. Although, QF and AA are in bed together. I wouldn't be surprised to see VA pull all longhaul international services.
Air Canada is certainly making good use of its quota. And you are right Aussie airlines aren't because they don't have the right equipment to service the route efficiently year-round. That will change very soon and rest assured, SYD-YVR will be in the first round of additions.