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DESTINATIONS Australasia


arrivals with 710,000 visitors in the past year. It is also second largest in terms of value with an estimated $2.78 billion visitor spend, up 6% on the previous year. Connectivity choices along the Kangaroo Route are immense with options via the Gulf and Asia, while the first ever non-stop flights between the two countries will be introduced in 2018 by Qantas with a daily Perth-London Heathrow service “This is a game-changing route flown by a game-changing aircraft. Australians have never had a direct link to Europe before, so the opportunities this opens up are huge,” says Alan Joyce, CEO, Qantas Group.


Not only will the route open new trade


opportunities from Western Australia, but it will also generate some passenger flows currently originating or terminating in eastern regions of Australia. “We expect many travellers from Europe


will start their time in Australia with a visit to Perth before going on to see other parts of the country. Our modelling shows that people from the east coast as well as south Australia would fly domestically to Perth to connect to our non-stop London service,” adds Joyce. Nigel Mayes, SVP consulting and


product development at air service development consultants ASM, describes the proposed new Qantas ultra-long-haul link as “one of the most eye-catching recent developments” in the Australian aviation sector. “This is an attractive proposition for Qantas because it’s one of the largest origin/destination (O&D) markets in the world which currently has no direct route. Qantas’s new Boeing 787-9 Dreamliner aircraft now enables them to serve that direct, and therefore potentially gain a competitive advantage,” he says. “There are currently 249,000 passengers


travelling annually between the two cities – and two million between the UK and Australia – and Qantas will undoubtedly hope to attract a larger share of this market with the new service. “In addition, Qantas has a major


partnership with Emirates and this route could actually assist both parties. There are bilateral constraints to major centres such as Sydney, Melbourne, Auckland, Darwin and the Gold Coast via the Middle East, so a direct route to Perth could relieve some of this capacity and benefit both the airlines.” £


The Routes events will return to Australia twice in the second half of the decade with Routes Asia 2018 taking place in Brisbane, while World Routes 2019 takes place in Adelaide.


40 ISSUE 1 ROUTES NEWS 2017 routesonline.com


Zealand knows America’s potential


New


To many, Air New Zealand is known for its trans-Tasman operations but the carrier has huge ambitions to grow its network into the Americas,


taking advantage of its existing connectivity into Australia to secure a major share of the developing Australia-Americas market. With a home market of more than one million origin/ destination (O&D) passengers in and out of the Americas for the 12 months to October 2016, Air New Zealand plans to grow its share of the four million-plus passengers that are flying in and out of the region to and from Australia. “Australia is a huge strategic opportunity for us once Australians


understand that using Auckland as a one-stop hub to North or South America makes great sense – particularly for those currently starting their long-haul journey with a domestic connection,” says Christopher Luxon, CEO, Air New Zealand. “We’re well established as the preferred airline for Australians


travelling to New Zealand and one of Australia’s most respected brands. However, many Australian travellers still think of us as a trans-Tasman carrier and that’s a perception we’re determined to change,” he adds.


Capturing just a little bit more of that market would see hundreds of thousands more Aussies flying with Air New Zealand to North and South America. The airline currently has a 5.9% share of the Australia-Americas market, but with an expanded network through new flights from its Auckland International Airport base to Buenos Aires, Argentina and Houston, US from December 2015, it expects to increase passengers connecting to and from Australia. These add to its existing flights to Honolulu, Los Angeles, San Francisco and Vancouver in the United States and Canada.


ANNUAL O&D PASSENGER FLOWS INTO THE AMERICAS (Nov 15-Oct 16)


Destination Region


North America South America Caribbean


Central America From


83,225 1,850 970


From


1,825,360 188,575 7,875 5,560


From


New Zealand Australia Pacific 462,785


2,687,825 285,900 10,930 7,075


Source: AirVision Market Intelligence from Sabre Airline Solutions


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